The largest sovereign wealth funds (SWFs) in the Middle East are expected to invest between US$1 and 2 trillion in China by 2030.
This was the view of the chief executive of the Hong Kong Stock Exchange (HKEX), Nicolas Aguzin, who was speaking at the 10th Arab China Business Conference in Riyadh.
Should Aguzin’s prediction prove true, it would involve a significant increase in allocation.
Currently, the Middle East SWFs invest between 1% and 2% of their estimated $4 trillion of assets in Asia.
According to Aguzin, the funds’ collective investment capital should increase to $10 trillion by 2030, while the percentage invested in China will rise between 10% and 20%.
The flow of capital is also likely to increase in both directions, said Aguzin. While a growing number of sovereign funds are investing in more Chinese companies, the Chinese onshore funds market, estimated to be worth more than $2 trillion, could invest more overseas, including in the Middle East.
“We will start to see more of that capital coming out of the mainland and going internationally,” said Aguzin.
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