Gulf funds deploy USD 1.7 bn in India despite Iran war

Gulf sovereign funds poured USD 1.7 bn in India in 1H 2026, keeping the country on their deployment map despite the Iran war, the Economic Times reports, citing data from industry tracker Global SWF.

By the numbers: This was the highest half-year investment by Gulf SWFs since 1H 2024 and double the USD 700 mn deployed in 1H 2025. The funds deployed USD 53.9 bn globally across 108 transactions in 1H, with India accounting for 3% of their global deployment during the period.

“Among Gulf investors, Abu Dhabi Investment Authority and Saudi Arabia’s Public Investment Fund are likely to be the most active in India over the medium term, given their new offices,” Global SWF founder and MD Diego Lopez told the daily.

Why it matters: The data suggests Gulf investments into India remained steady despite the Iran war exposing vulnerabilities across the India-MENA corridor, including energy, shipping, and banking risks.