• Geopolitical tension becomes sovereign investors’ primary concern, followed by inflation
• Appeal of private credit in the Middle East rises, while interest in fixed income, equities, and private equity softens
• Region’s sovereign wealth funds and central banks embrace AI in their investment process
• Investors align portfolios with global climate goals
• Middle East’s central banks turn to gold to diversify reserves

Dubai, UAE,22July 2024–Geopolitical tension has surpassed inflation as the primary concern of sovereign investors and is prompting greater interest in allocating to emerging markets, according to the twelfth annual Invesco Global Sovereign Asset Management Study (link here).

Geopolitical tensions were cited by 83% of sovereign investors, including 95% of those in the Middle East, as the most serious risk to economic growth over the next 12 months. This trend reflects concerns over competition between the major powers and the potential for trade disruption.