Several large investors in the Persian Gulf are managing to navigate Iranian missile threats while continuing their trading activities, On the Money has learned.
U.S. financiers facilitating investments in key sovereign wealth funds—like the Abu Dhabi Investment Authority, the Saudi Public Investment Fund, the Kuwait Investment Authority, and the Qatar Investment Authority—are still active, even amid the ongoing conflict, according to sources familiar with the situation.
Sure, their focus has shifted somewhat towards rebuilding the damaged infrastructure, but overall, their long-term objectives haven’t changed much. They still aim to diversify their portfolios beyond energy into areas like technology and AI.
These sovereign wealth funds collectively manage trillions and are among Wall Street’s major clients. That’s likely why American financiers are closely monitoring their activities, especially since they’ve become unexpected targets amid the ongoing tensions.
And it is indeed “somewhat surprising,” considering Qatar has historically had relatively stable relations with Iran, despite Saudi Arabia being its main rival. It seems sources were anticipating a significant event weeks before the actual strikes occurred, guided by their intelligence assessments.
What they likely didn’t foresee, however, was the attack by Iranian drones and missiles that led to the last-minute cancellation of the F1 Grand Prix events in Bahrain and Saudi Arabia just days ago.
Moving forward, it seems it will be business as usual, as long as they can operate in areas of conflict. “Everyone at the sovereign wealth fund is working from home during Ramadan, the most sacred month in the Islamic calendar, which wraps up soon,” shared a hedge fund executive.
But, interestingly, “they’re still going out at night for dinners and meetings,” the source added. “There’s just this collective hope that it’ll all be resolved shortly.”
Many Gulf states, including Qatar, are keen on reducing Iran’s military and political might, which may create numerous investment chances. Take Gaza, for instance; if Hamas, historically backed by Iran, lost power, the region could see a surge in financial support from sovereign funds if moderates took over.
All the sovereign wealth funds in the Gulf are in a state of action regarding diversifying away from oil and gas, and that trend is likely to persist as Iran enhances its pipeline infrastructures to minimize reliance on the Strait of Hormuz.
For example, if the conflict wraps up favorably, oil prices—which are currently above $100 a barrel—could see a decline, especially given a potential halt to attacks on tankers, though a weakened Islamist faction may still hold control. This scenario would push Gulf states to speed up their diversification into tech and other sectors.
And, of course, if the war drags on, Gulf states have so much capital that they won’t likely remain inactive, particularly with oil prices at their highest in years.
