Discover the jaw-dropping wealth of Arab rulers!

The Luxurious Holdings of Gulf Autocrats Unveiled

In the opulent world of Gulf autocrats, vast fortune and power intertwine, creating a fascinating glimpse into the wealth of the region. An unpaywalled report released recently delves deep into the estimations of the Gulf Cooperation Council’s ruling families, revealing a staggering figure of $6.8 trillion in assets under their control. To put that into perspective, it’s equivalent to two entire Apple companies! Let’s unravel the intriguing details by examining how this wealth is distributed and utilized across various sectors:

The Enigmatic Ways of Gulf SWFs:
1. Diversification Beyond Hydrocarbons:
– Gulf rulers strategically channel their immense resources towards diversifying their economies. This move aims to secure stability beyond the finite lifespan of their primary hydrocarbon reservoir.

1. Projection of Soft Power:
   • Soft power initiatives on a global scale are a common practice among these ruling families. From investments in sports, media, and education to hosting international elites, they leave no stone unturned in enhancing their influence.
2. Acquisition of Extravagant Assets:
   • Splurging on lavish possessions and indulging in opulence is a hallmark of Gulf autocrats. Whether it’s flashy bling or ego-stroking enterprises, their wealth is a manifestation of grandeur.
3. Absolute Ownership:
   • The comprehensive control of national champions in various industries underlines the state capitalism at play in the Gulf. With ownership extending to major companies and market capitalization, their influence is unparalleled.

Delving Deeper into Market Ownership:
– Despite extensive state ownership in the region’s stock markets, efforts to attract foreign investors have faced challenges. Instances of divestment and blacklisting by prominent international entities highlight the complex dynamics at play.

The Rise of Passive Investing:
– The allure of Gulf stocks has not escaped the radar of passive investors, with substantial inflows witnessed following index inclusions by major providers. Foreign investment in Saudi stocks, in particular, has seen a significant surge post-index inclusion decisions.

Exploring the Realm of Royal Private Offices:
– A lesser-known category of state-controlled assets, Royal Private Offices add another layer of opaqueness to the Gulf wealth landscape. These entities, with assets totaling $0.5 trillion, offer a glimpse into the intricate web of royal family ties and financial holdings.

As we navigate through the intricate web of Gulf autocracy and wealth, the blurred lines between sovereign wealth funds and royal private offices shed light on the complex ecosystem that defines the region. While distinctions between these entities may be hazy, the overarching theme of absolute monarchy and unparalleled wealth remains a dominant force in shaping the Gulf landscape.

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.