UAE sovereign wealth funds keep investing abroad despite war, minister says

The UAE's sovereign wealth funds are still investing "at home and abroad," Investment Minister Mohamed Alsuwaidi told AFP on Wednesday, pushing back on speculation of cutbacks triggered by the ongoing Middle East war.

The UAE's funds manage more than $2 trillion in assets.

Are UAE sovereign wealth funds cutting foreign investment because of the war?

No. UAE sovereign wealth funds continue to deploy capital actively at home and abroad, Alsuwaidi said.

The funds operate under "the same long-term mandate they have always held, a posture of steady, disciplined deployment," he added. The minister's comments directly counter reports that Gulf states are reviewing their foreign investment strategies in response to the conflict.

Why is the Middle East war raising questions about Gulf investment?

The war has stoked fresh speculation about investment priorities across the Gulf, a major source of capital for global industries including artificial intelligence.

Gulf states have borne the brunt of Iran's attacks, while their oil and gas exports reel from its blockade of the Strait of Hormuz. Observers warned that this combination of security pressure and economic disruption could prompt a pullback in overseas spending.

Saudi Arabia's Public Investment Fund signaled those pressures last week, announcing it would stop funding the LIV Golf tour as it pares back a string of ambitious economic diversification projects. The move reinforced concern that Gulf sovereign wealth funds may be recalibrating their global ambitions in response to the conflict.

How is the UAE reassuring investors amid the conflict?

The UAE has moved to stabilize investor confidence since a fragile ceasefire took hold last month. Industry and advanced technology minister Sultan Al Jaber said this week that investing at home "is no longer an option — it is a priority," speaking at a conference aimed at kickstarting the domestic economy.

The country also exited OPEC as it seeks to boost oil production to finance investment in non-oil sectors, including AI.

The UAE, a staunch US ally and one of the few Arab states to recognize Israel, has been targeted by more than 2,800 missiles and drones during the war.

Most attacks were intercepted, but the conflict has damaged the Gulf's reputation as a haven of stability. The UAE reported fresh Iranian drone and missile strikes this week as the US Navy worked to reopen the Strait of Hormuz, though Tehran denied resuming attacks.