What are the key objectives of the sovereign wealth funds (SWFs) of Arab countries? This column presents the results of new quantitative analysis, which reveals that these institutions typically pursue a top-down investment strategy in which they first screen target countries or jurisdictions, then target sectors and finally target businesses. In the risk-return trade-off, Arab SWFs seem to put significantly more weight on risk mitigation than on returns.
Mohamed ArouriProfessor of Finance and Sustainable Economics, Université Nice Sophia-Antipolis
Mohamed El Hedi Arouri is a Professor of Finance and Sustainable Economics at Université Nice Sophia-Antipolis. He received his Phd. in Financial Economics from Université de Paris X Nanterre, France. He is an ERF Research Fellows.