How Attractive Are Sovereign Wealth Funds?

June 16, 2010 by Naser

A study was recently done to see how investors are attracted to different sovereign wealth funds (SWF). The study asked participants from 19 countries, including the US, UK, China, India, Egypt, Germany, and Brazil. Money from Kuwait came in third, as 74% of respondents welcomed money from Kuwait, lagging only Norway and Hong Kong. Other countries included in the list are Singapore, Malaysia, Abu Dhabi, Dubai, Oman, Qatar, China, Bahrain, Oman, Mexico, Russia, Libya, Nigeria, and Algeria.

Personally I thought that investors would prefer more Middle Eastern SWFs than Asian and other SWFs, as many investors perceive these SWFs as unsophisticated and will give money to anybody. This perception is not only prevalent with SWFs but also other investment institutions. Many Westerners come to Kuwait and expect us just to pay them without providing adequate information about their funds.

What are your thoughts about the study and the Western perception of Middle Eastern investors?

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2 Responses to “How Attractive Are Sovereign Wealth Funds?”

  1. r says:

    the reason they prefer kuwait or the many of the other swfs is not because their of lack of sophistication but because they don’t interfere with managements decisions especially when it comes to direct investments nor do they walk around advertising their holdings which raises a few eyebrows abroad and makes people go xenophobic

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