
Just one week ago, a few days after US President Donald Trump's re-election, the investment world witnessed a historic commitment: Saudi Crown Prince Mohammed Bin Salman, following a call with President Trump, pledged a staggering $600 billion Saudi Arabian investment in the US over the next four years.
This bold statement came just three months after the Public Investment Fund (PIF) of Saudi Arabia announced a strategic shift towards prioritizing domestic over international investments in October 2024. With PIF's plans to expand its portfolio from $925 billion to $2 trillion by 2030, almost 60% of the fund's growth will now be directed to the United States. This likely indicates an increase in PIF's overall international investment percentage, despite its October 2024 commitment to prioritize domestic investments.
For companies seeking investment from the Arab Gulf, this story has three key takeaways:
Arab investors are flexible and can shift their long-term plans when presented with compelling investment opportunities;
Regardless of origin, personal relationships and trust play a significant role in Arab investment decisions;
To attract Arab investors, your product, company, and proposal must be exceptionally competitive.
Details about the specific projects discussed during the Trump-Salman conversation remain scarce, but more information is expected to be released soon.
Like its closest neighbors with powerful sovereign wealth funds, the UAE, Qatar and Kuwait, Saudi Arabia will continue to maintain a balanced investment strategy, investing both domestically and internationally. Fueled by high oil prices and growing investments influx, all major sovereign wealth funds of the Arab Gulf as well as largest companies of the region have been accumulating record amounts of money under management, and already began spending them more actively than ever before.
Doubling down on their traditionally preferred sectors like real estate and infrastructure, they are going more aggressively after important elements of technology, AI, renewable energy, and extraction of critical minerals that will make all of those technologies materialize.
Who Invests?
Sovereign wealth funds remain the dominant investors in the Arab Gulf. Saudi Arabia’s Public Investment Fund (PIF), managing over $925 billion in assets, invests both domestically and abroad. The UAE’s Mubadala maintains a diversified international portfolio, actively investing in technology, energy, and logistics. Qatar Investment Authority (QIA) continues strengthening its global position, particularly in European infrastructure and green energy.
Beyond sovereign funds, major Gulf corporations also drive substantial investments. Saudi Aramco, DP World, SABIC, Etisalat, STC, Zain, ACWA Power, SALIC, Al Marai and other giants are spreading their arms far beyond the Arab Gulf in a number of sectors.
Energy investments enhance Arab domination globally
Energy remains one of the top priorities for Arab Gulf investors, both domestically and overseas. The overseas investments are mainly aimed at getting access to new technologies which stabilise their domestic production and keep the oil and gas production all GCC countries competitive globally. The other part of such investments go towards renewables. Laying foundations for a sustainable post-oil era based on solar and wind energy, which the region possesses in abundance.
Their national industry flagship companies like Aramco, ADNOC, and Qatar Gas are investing in oil and gas exploration, production and refining across the globe, with a particular focus on LNG terminals.
In June 2024 Aramco signed a 20-year offtake agreement with NextDecade for 1.2 million tons per year from Rio Grande LNG and a heads of agreement with Sempra for 5 million tons per year from Port Arthur LNG. Additionally, Aramco is increasing its gas trading portfolio to enhance global market access. These moves align with its strategy to secure long-term supply agreements and equity stakes in key LNG projects.
ADNOC is also pursuing global LNG expansion, considering a potential bid for Australian gas company Santos while developing the Ruwais LNG project in Abu Dhabi. The Ruwais project, backed by Shell, BP, TotalEnergies, and Mitsui, will more than double the UAE’s LNG production capacity.
Meanwhile, QatarEnergy continues to invest in LNG projects worldwide, reinforcing its position as a dominant supplier. These investments highlight how Gulf energy giants are diversifying their portfolios and securing critical supply chains in the evolving energy landscape.
Mineral extraction supporting new economic streams
Access to critical minerals is essential for the Gulf’s ambitions in advanced technology and energy storage. By investing in mining projects worldwide, Gulf nations aim at securing a stable supply of materials like lithium, nickel, and copper—key resources for electric vehicles and renewable energy infrastructure.
In July 2023, Saudi Arabia’s Ma’aden formed a 50/50 exploration joint venture with Ivanhoe Electric, a Canadian company specializing in copper and nickel extraction, ensuring steady raw material supplies for electric vehicle batteries.
Meanwhile, ADQ, in a significant move to secure critical mineral supply, partnered with Orion Resource Partners, a New York-based investment firm. The resulting $1.2 billion joint venture, Orion Abu Dhabi, will target investments across the metals and mining sector. Focusing initially on Africa, Asia, and Latin America, Orion Abu Dhabi will deploy capital through equity, debt, and production-linked instruments, such as royalties. This strategic initiative aims to not only secure the offtake of key materials vital for energy transition but also bolster Abu Dhabi's economic diversification efforts.
Agricultural investments for improved food security
Food security is a long-term strategic concern for Gulf nations, given their reliance on food imports due to harsh climatic conditions. Investments in agricultural land, food production companies, and supply chain infrastructure help ensure stable food supplies.
In March 2024, ADQ acquired a 45% stake in Louis Dreyfus Company, one of the world’s largest agribusiness firms, securing long-term supply chains for grains and essential crops. The UAE’s Al Dahra Holding invested $500 million in Romanian farmland and grain storage facilities, reinforcing its wheat import security.
Chemical Production to extend oil processing value chain
Gulf economies seek to expand their industrial capabilities by acquiring international expertise in chemical production. Investments in petrochemical companies and specialty chemical firms allow Gulf countries to diversify their economies beyond crude oil exports.
Saudi Aramco has completed the $3.4bn purchase of a 10% stake in China's Rongsheng Petrochemical. This acquisition is a significant move for Aramco, solidifying its presence in the Chinese market and expanding its downstream operations.
At the beginning of October, the Abu Dhabi National Oil Company (ADNOC) acquired German chemical maker Covestro AG for nearly $13 billion. This is the region's biggest-ever acquisition of a European company and signifies a strategic shift for ADNOC towards chemicals, aiming to extend the use of their oil and gas resources.
Logistics influencing global supply chains
Influencing global supply chains is a key priority for Gulf investors. Investments in ports, airports, and shipping infrastructure enhance their influence over global trade routes and critical supply chains.
In November 2024, Abu Dhabi’s AD Ports Group completed a $140 million deal to acquire a 70 % stake in Egypt’s Transmar and TCI, expanding its influence over Red Sea trade routes.
DP World has committed to invest $3 billion in new port and logistics infrastructure across Africa over the next three to five years. This investment will focus on expanding existing ports and developing new ones, as well as building logistics parks and other infrastructure to support trade.
Technology
The Gulf states are rapidly investing in future technologies, from AI to robotics and healthcare innovations. Their strategy is to acquire cutting-edge technology and later localize it within their economies.
The latest information from the beginning of January reveals that UAE-based Damac has invested $20 billion in US data centers, which will be located in eight US cities. DAMAC's investment in US data centers will make a significant change. This substantial funding, totaling $20 billion, will enable data centers to process and store over 100 exabytes of data at speeds exceeding 100 gigabits per second. These new centers will be crucial for emerging technologies like AI and cloud computing, with the potential to increase AI model training speeds by 20%.
Saudi Arabia plans a $40 billion AI investment fund, partnering with Silicon Valley VCs, to boost its tech sector and diversify its economy away from oil. This massive investment aims to establish the country as a global AI hub, attracting talent and fostering innovation.
Real Estate
Real estate remains a reliable investment for Gulf nations, both for financial returns and strategic influence in key global cities.
Saudi investors allocated $1 billion for high-end commercial property developments in Baghdad, capitalizing on Iraq’s economic recovery. The UAE’s Aldar Properties acquired a $285 million stake in London’s Square, reinforcing its presence in Europe’s financial hub.
How can companies around the world seek investments from the Arab Gulf?
Foreign companies aiming to attract Gulf investors must align with the region’s strategic priorities while understanding its business culture. Gulf investors tend to avoid politically sensitive deals, as they prioritize long-term stability. Strong but neutral relationships with local governments ensure business continuity across political changes.
Having robust governance practices and complying with international regulations are also critical factors for investor confidence. Gulf investors favor businesses with transparent financial structures and a proven track record of compliance, as in most cases they prefer not to take controlling stakes.
For that purpose it would also be helpful for companies to have a major US or EU investor, that Arab investors trust, which makes their decision on buying a solid minority stake quick and easy.
A diversified export market reduces investment risks and increases a company’s attractiveness. Additionally, businesses must be mindful of cultural sensitivities—investors from the region typically avoid sectors related to alcohol, gambling, speculation or pork production.
By positioning themselves strategically and understanding these dynamics, businesses can successfully attract investments from the Arab Gulf and build long-term partnerships in the region.