Ray Dalio Praises the Gulf States as Promising Nations for Investment
Hedge fund magnate Ray Dalio expressed his optimism about the investment potential of the Middle East’s Gulf states amidst a tumultuous global landscape during CNBC’s panel at Abu Dhabi Finance Week. Specifically, he highlighted the United Arab Emirates as a region with promising investment opportunities. The Bridgewater Associates founder stated, “We’re talking today about how the world order is changing, and how the region, the GCC (Gulf Cooperation Council) region is becoming an important region.”
Bridgewater Associates is the world’s largest hedge fund with $97.2 billion in assets under management as of September 2023, according to the latest annual report by Pensions & Investments. Dalio has expanded his investment endeavors in the Middle East by opening a branch of his family office, the Dalio Family Office, in Abu Dhabi in April.
The UAE was particularly praised by Dalio, whom he described as a “renaissance state.” Emphasizing the importance of the income statement and balance sheet of a region, he added that the region was poised for strategic growth and development with low interference from major geopolitical conflicts. He noted, “This region is very, very attractive and is at the takeoff point for the reasons that were discussed in the other sessions.”
Investment Appeal of Gulf States
The Emirates, particularly Dubai, has been attracting significant attention from investors. Notably, Dubai has been home to 40 registered hedge funds as of July. The availability of large sovereign wealth funds in the region has further heightened its investment prospects. These sovereign wealth funds, which collectively manage approximately $4 trillion, have displayed interest in making substantial investments in advanced industries around the world.
The Emergence of “Middle Powers”
Additionally, the geopolitical positioning of countries like the UAE and Saudi Arabia as “middle power” nations has sparked interest in leveraging their relationships with both the Western and Eastern worlds, making them significant influencers in global politics. Dalio emphasized the importance of investing in regions that are outside major conflicts, indicating the appeal of Gulf states for institutional investors.
Overall, Dalio’s positive sentiment towards the Gulf states underscores their rising prominence as increasingly attractive investment destinations amidst the global economic and political shifts.
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