{"id":157513,"date":"2018-04-10T13:21:45","date_gmt":"2018-04-10T15:21:45","guid":{"rendered":"https:\/\/anba.com.br\/?p=157513"},"modified":"2018-04-11T13:18:37","modified_gmt":"2018-04-11T15:18:37","slug":"sovereign-funds-reach-usd-15-trillion-assets-2020","status":"publish","type":"post","link":"https:\/\/anba.com.br\/en\/sovereign-funds-reach-usd-15-trillion-assets-2020\/","title":{"rendered":"Sovereign funds will manage USD 15 trillion in 2020"},"content":{"rendered":"

Dubai \u2013 The total amount under the management of sovereign funds will reach USD 15 trillion in 2020, according to Fatima Al Arabi, from Saudi Arabia, an expert in the sector and founder of Alaf Capital, an investment consulting firm. She was one of the speakers in a panel discussing sovereign and private equity funds and strategies for sustainable investments this Tuesday (10) at the Annual Investment Meeting (AIM), a conference being held in Dubai, United Arab Emirates.<\/p>\n

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Fatima: Islamic finances foster sustainable investments<\/figcaption><\/figure>\n

Fundos soberanos s\u00e3o formados por governos para usar o dinheiro proveniente de alguma atividade b\u00e1sica, como exporta\u00e7\u00e3o de commodities, para garantir que a riqueza ser\u00e1 utilizada em prol de gera\u00e7\u00f5es futuras. Os pa\u00edses \u00e1rabes do Golfo mant\u00eam fundos do g\u00eanero que investem petrod\u00f3lares em diferentes setores ao redor do mundo. Eles s\u00e3o uma fonte importante de investimentos estrangeiros diretos (IED).<\/p>\n

Sovereign funds are set up by governments to use the funds generated by some basic activity, such as the export of commodities, to ensure that the wealth will be used on behalf of future generations. The Arab countries in the Gulf keep this type of funds to invest petrodollars in different sectors across the world. They are an important source of foreign direct investments (FDI).<\/p>\n

In this sense, there\u2019s a valid and important concern with sustainability, given the mission of these funds of supporting future generations. \u201cSustainability is the focal point of the sovereign funds,\u201d said Fahad Al Sharekh, from Kuwait, managing partner of investment company Techinvest.<\/p>\n

However, the CEO of investment bank Emirates NBD Capital, Ahmed Al Qassim, said that investors pay more attention to the return than the project\u2019s sustainable features, unless the fund that is investing the money is required, by its regulation, to invest in sustainable ventures, or if it\u2019s managed under the Islamic finance regime.<\/p>\n

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Sharekh: sovereign funds changed their investment profile<\/figcaption><\/figure>\n

However, Fatima Al Arabi said that profitability and sustainability are not mutually exclusive. She mentioned the funds that follow the Islamic traditions. \u201cThe Islamic finances are about social sustainability,\u201d she said. According to her, the system operates with a low risk rate and doesn\u2019t invest in companies that make use of child labor or that produce weapons, for instance, or, yet, that make use of bleach in ship cleaning, since it pollutes the ocean. \u201cThe investment has to be worthwhile to society,\u201d she said.<\/p>\n

Money available<\/strong><\/p>\n

Sharekh, from Techinvest, explained that has been a change in the sovereign funds\u2019 investment profile in the last few years. Up to the 2008 financial crisis these funds used to invest more in the real estate sector and public bonds, but now they have migrated to stakes in private businesses and supplying funds to new ventures (private equity and venture capital). \u201cAfter the crisis, they realized that they had to diversify,\u201d remarked Sharekh.<\/p>\n

And part of these resources is being directed to start-ups and not only to mature companies. He mentioned, as an example, development projects in the food products industry and experimental agriculture. Sharekh added that private equity and venture capital firms currently have around USD 1 trillion in funds available, just sitting in the banks.<\/p>\n

Fatima Al Arabi also said that Africa should be a major focus of the funds in the near future. \u201cThere\u2019s unlimited potential,\u201d she said.<\/p>\n

Translated by S\u00e9rgio Kakitani<\/strong><\/p>\n

Press Release<\/div>\n
Divulga\u00e7\u00e3o<\/div>\n","protected":false},"excerpt":{"rendered":"

The numbers were reported by Fatima Al Arabi, investment manager and consultant, who attended the Annual Investment Meeting in Dubai. Private equity and venture capital firms have, currently, USD 1 trillion available.<\/p>\n","protected":false},"author":1454,"featured_media":157481,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[91],"tags":[343,139,496,1885,1898,1886],"class_list":{"0":"post-157513","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-annual-investment-meeting","9":"tag-dubai","10":"tag-investments","11":"tag-private-equity","12":"tag-sovereign-funds","13":"tag-venture-capital"},"wps_subtitle":"The numbers were reported by Fatima Al Arabi, investment manager and consultant, who attended the Annual Investment Meeting in Dubai. Private equity and venture capital firms have, currently, USD 1 trillion available. ","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/157513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/1454"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=157513"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/157513\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media\/157481"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=157513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=157513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=157513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}