Gulf SWFs deployed a record USD 53.9 bn in 1H 2026, showing no signs of slowing despite the war

The US-Iran war didn’t slow Gulf SWFs. Gulf sovereign wealth funds (SWFs) deployed a record USD 53.9 bn across 108 transactions in 1H 2026 — an all-time high in value and the fourth-most active semester on record — even as the Iran war roiled markets and oil prices, according to Global SWF’s 2026 GSR Scoreboard seen by EnterpriseAM.

Gulf funds punched above their weight. Of the 42 global mega-transactions — investments worth USD 1 bn or more — 21 involved Gulf SWFs, which have become frequent co-investors alongside other large asset owners. Mubadala led the pack, deploying USD 15.2 bn at group level. Almost half of GCC sovereign capital went to the US, followed by China and the UK, with technology the most popular sector, driven by AI funding rounds.

Why it matters: Gulf SWFs deployed at record pace, concentrated in technology and in the US, and used the volatility as cover to co-invest with global partners at scale. The question for 2H is whether the reopening of Hormuz and normalization of oil prices will sustain that appetite, or whether some funds will begin drawing down to plug domestic fiscal gaps as the reconstruction tab comes due.

REMEMBER- Some of the biggest tickets from GCC SWFs in recent months were the PIF, alongside Silver Lake and Affinity Partners, advancing Electronic Arts’ USD 55 bn acquisition. Mubadala committed USD 325 mn to Ørsted’s Hornsea 3 offshore wind farm alongside Apollo, USS, and La Caisse, and led a USD 170 mn round into Property Finder.

BUT- The Middle East’s relative share of global SWF activity slipped to 38% in 1H 2026, compared to 48% in 2H 2025, due to stronger activity from other major investors including Canada’s Maple 8 institutions and Singapore’s GIC and Temasek Holdings.

Zooming out

The global state-owned investor universe now manages an estimated USD 62.5 tn — USD 16 tn by SWFs, USD 28 tn by public pension funds, USD 17.6 tn by central banks, and USD 900 bn by royal family offices. The Iran war and associated volatility dented performance in the short term, but a rapid recovery in global stocks and bonds pushed AUM to record highs.

The industry is also on track for its most active year in terms of fresh capital deployment. Strip out PIF’s one-off USD 28.8 bn investment in EA in December 2025, and the value of transactions by state-owned investors globally in 1H 2026 was 9% higher than the prior semester — with SWFs deploying USD 83.3 bn across 188 transactions and public pension funds spending USD 60.3 bn across 178. If the pace holds, 2026 could be the most prolific year on record.

MARKETS THIS MORNING-

Asian markets are collectively in the red this morning after a chip sell-off that propagated from Wall Street. Kospi is down over 6%, while Japan’s Nikkei is down more than 2% and the Shanghai Composite is unchanged. Meanwhile, Wall Street futures are little changed.

THE CLOSING BELL-

The DFM rose 0.9% yesterday on turnover of AED 625.6 mn. The index is down 1.7% YTD.

In the green: Emirates Integrated Telecommunications Company (+3.5%), Emirates REIT (CEIC) (+3.2%), and Emaar Development (+3.0%).

In the red: BHM Capital Financial Services (-4.5%), Tecom Group (-3.5%), and Talabat Holding (-3.3%).

Over on the ADX, the index fell 0.2% on turnover of AED 958.5 mn. Meanwhile, Nasdaq Dubai was up 0.6%.