{
    "success": true,
    "data": {
        "id": 1682175,
        "msgid": "middle-east-treasure-worth-rp85-000-trillion-at-risk-of-vanishing-in-flames-of-war-1776347456",
        "date": "2026-04-16 20:10:38",
        "title": "Middle East Treasure Worth Rp85,000 Trillion at Risk of Vanishing in Flames of War",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "The sovereign wealth funds of Gulf Cooperation Council countries, managing over US$5 trillion (Rp85,000 trillion), face severe threats from escalating regional conflicts, including Iran's retaliatory strikes that have damaged US$25 billion in oil and gas infrastructure. These funds, which have invested heavily in global sectors like AI, renewables, and infrastructure to diversify beyond fossil fuels, may now need to liquidate illiquid assets or redirect resources towards repairs, new pipelines, and heightened defence spending, potentially derailing ambitious domestic projects and economic diversification goals. This situation underscores the vulnerability of oil-dependent economies to geopolitical tensions, forcing a shift from future-oriented investments to immediate fiscal stabilisation.",
        "content": "<p>Jakarta, CNBC Indonesia - For several years, Gulf states have become\nmajor players in the global investment market. According to The\nEconomist, the sovereign wealth funds of the six Gulf Cooperation\nCouncil (GCC) members\u2014Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and\nthe United Arab Emirates\u2014manage assets exceeding US$5 trillion, or\napproximately Rp85,000 trillion (US$1 = Rp17,125). This value has surged\nfrom US$3 trillion in 2021. Since 2021, they have poured more than\nUS$430 billion into various global sectors, from artificial intelligence\nand private credit to property, infrastructure, and elite football\nclubs. This flow of funds has driven the region\u2019s transformation.\nOil-producing countries are seeking to buy a future as the era of fossil\nfuels gradually wanes. Consequently, these funds have flowed into AI\nstartups, data centres, renewable energy, logistics, ports, critical\nmineral mines, and farmland in Africa and Asia. The strategy is clear:\nrotate today\u2019s oil revenues to keep economies alive when wells begin to\nlose dominance. However, Iran\u2019s retaliatory strikes on US allies in the\nregion are said to have damaged oil and gas infrastructure worth US$25\nbillion. In addition to repair costs, Gulf states are estimated to need\nUS$30-50 billion for building new pipelines to reduce dependence on the\nStrait of Hormuz. This route is vital as it serves as the world\u2019s energy\nexport lifeline. At the same time, defence spending is rising. Supplies\nof interceptor missiles, ammunition, air defence systems, and military\nreadiness must be bolstered. When domestic economies slow due to trade\ndisruptions and energy exports, national funding needs automatically\nswell. Dubai has even announced a stimulus package for businesses. In\nsuch situations, sovereign wealth funds almost certainly become the\nstate\u2019s emergency cash reserves. During the pandemic, the Abu Dhabi\nInvestment Authority once withdrew US$24 billion from its portfolio. The\nKuwait Investment Authority withdrew US$25 billion. Funds from the\nUnited Arab Emirates and Qatar also injected around US$4 billion into\nnational airlines. This means that when a country is under pressure,\nglobal portfolios will be called home. The problem is that their\ninvestment structures are now far more complex than in the past. Over\nthe last five years, much of the Gulf funds have gone into illiquid\nassets. Entities from the United Arab Emirates and Saudi Arabia have\ninvested nearly US$140 billion in property and infrastructure, about\nUS$80 billion in private credit, and tens of billions of dollars into AI\nstartups and data centres. Assets like these are not easily sold\nquickly. If forced to be offloaded, their prices could plummet. Some\ninvestments are also tied to geopolitical agendas. The United Arab\nEmirates holds stakes in mines and farmland in several African\ncountries. Saudi Arabia\u2019s Public Investment Fund finances mining\nbusinesses in Brazil and the agricultural sector in Southeast Asia. Such\ninvestments typically stem from inter-country relations, making them\ndifficult to cancel just for short-term cash needs. Further pressure\ncomes from ambitious domestic projects. Mubadala is funding the\nexpansion of the Al Maryah Island financial district and the green\nenergy company Masdar. When war reduces air traffic, tourism, and\nforeign investor interest, cash flows from airports, luxury hotels,\nproperty, and airlines are hit hard. Dividends that usually flow to\nsovereign wealth funds also shrink. In Saudi Arabia, the pressure\naffects national megaprojects. Construction of the Mukaab was reportedly\nhalted in January. Contracts for the Trojena and The Line projects are\nalso being trimmed. If the slowdown continues, the value of state fund\ninvestments could decline, and economic diversification targets could be\ndelayed. The war forces Gulf wealth funds to face difficult choices.\nMoney previously used to buy the future now must be diverted to\nrepairing the old economy, refineries, pipelines, defence, and fiscal\nstability.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/middle-east-treasure-worth-rp85-000-trillion-at-risk-of-vanishing-in-flames-of-war-1776347456",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}