No more big spenders: Iran war to dent Gulf state investment

"The global impact of the Gulf countries is not limited to oil. This region is a hub of the international economy and if it decides to focus on its defense and to start pulling investments and to stop its [economic] engagement with the international community, the effect will be felt in every household in the world."

"Over the past few years, Gulf states' money has been spent in a wide variety of places. One of the most recent examples saw Gulf sovereign wealth funds supporting a bid by American entertainment company Paramount to take over competitor Warner Brothers. This year the Saudis will acquire the US-based Electronic Arts, one of the biggest gaming companies in the world, for $55 billion."

"During the last decade Gulf states have also spent around $100 billion in Africa on projects to enhance food security and to obtain critical minerals as well as on energy transition projects. They have also put billions into what experts describe as "bailout diplomacy" in their own region."

Gulf states, including Saudi Arabia, the United Arab Emirates, Qatar, and Kuwait, control approximately $5 trillion in sovereign wealth fund investments with substantial global economic impact. These funds extend beyond oil into diverse sectors including entertainment, gaming, and technology. Recent investments include support for Paramount's acquisition bid and Saudi Arabia's $55 billion purchase of Electronic Arts. Over the past decade, Gulf states invested around $100 billion in Africa for food security, critical minerals, and energy transition projects. Additionally, they engage in "bailout diplomacy," providing financial assistance to stabilize economies within their region. Gulf officials emphasize that their economic engagement significantly influences global markets and household economies worldwide.

Read at www.dw.com