Despite potential regulatory pressures and national security concerns, Gulf countries, which collectively hold about $4 trillion in sovereign wealth, are eager to expand their expertise in technology and become global hubs for AI. They are also aware of the need to maintain a low profile on China deals to avoid antagonizing Trump. The dealmaking environment for Middle Eastern funds was improving even before the elections, and some executives and bankers noted that regional wealth funds are already heavily skewed towards investments in the US.
Key takeaways:
- Elon Musk's presence in Donald Trump's inner circle is seen as a significant opportunity for Middle East finance, particularly for the UAE’s Sheikh Tahnoon bin Zayed Al Nahyan and Saudi Arabia’s Yasir Al Rumayyan.
- Gulf funds are optimistic that Musk's involvement will help them secure more deals in the US, especially in areas like technology and artificial intelligence.
- Despite regulatory pressure from the Biden administration, oil-rich Gulf countries are seeking to bolster their expertise in technology and become global hubs for AI to reduce their reliance on revenue from crude.
- Regional wealth funds are expected to show more commitment to investments in the US and keep a lower profile on China deals to avoid antagonizing Trump.