BlackRock expects Gulf investors to redirect as much as $100 billion towards their home markets, creating opportunities in infrastructure and assets opened to private capital.
The figure is an estimate of capital that might otherwise have flowed overseas, according to the BlackRock Investment Institute. It is not a commitment by BlackRock to invest $100 billion, despite that interpretation appearing in a report on the firm’s regional outlook. BlackRock estimates that $50 billion to $100 billion could be redirected inward in the near term as Gulf sovereign wealth funds give greater weight to domestic priorities.
Ben Powell, the institute’s chief investment strategist for the Middle East and Asia-Pacific, said the region’s financial position gives investors room to make that shift. He described domestic deployment as an opportunity rather than an urgent requirement, while pointing to some diversification away from US assets.
The outlook comes as governments seek private investment in energy, utilities, water and transport. BlackRock has identified pipelines, data centres and other large infrastructure assets as potential opportunities. Its research estimates that Gulf Cooperation Council countries will invest about $2.1 trillion by 2030, with resilience to disruptions in trade, shipping and energy among their priorities.
BlackRock’s regional report also points to growing interest in private markets. Sovereign wealth funds tracked in the study allocate 43% of their exposure to private capital, against 35% for peers elsewhere. The proportion of Middle East investors positive about, or considering, private equity mandates rose from 70% in 2019 to 83% in 2026.
The prospective shift is taking place amid conflict-related pressure on Gulf trade and energy routes. BlackRock says governments with stronger finances and more flexible export routes are better placed to sustain investment, while the effects on growth and financing differ across the region.
Also published on Medium.
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