The Governance of Sovereign Wealth Funds from the GCC in an International Perspective

Abstract

The rise of sovereign wealth funds (SWFs) as an increasingly important institutional investor class indicates some profound trends in the global political economy. It is indicative for the movement of emerging economies from the periphery to the center, not only of the real economy, but also the international financial system. It is indicative for the secular trend of long-term upward pressure on commodity prices and associated incomes which SWFs are mandated to manage on behalf of countries endowed with natural resources. It is also indicative for the capacity, but also political will of governments predominantly from emerging economies to more prudently manage financial wealth. It is finally indicative for the growing role of government in economics, not limiting itself to providing the institutional framework within which market participants interact, but assuming more active roles in markets themselves.