A research report by Modern Diplomacy has analyzed the capital deployment strategies of Gulf sovereign wealth funds across Asia and China amid changing global interest rates. Citing data from Global SWF, the report found that 10 percent of deployed Middle East sovereign capital in 2026 was directed toward China and Hong Kong.
In comparison, approximately 45 percent of Middle East sovereign capital deployed in 2026 went to the United States. The analysis stated that Gulf institutional investors are balancing long-term Asian partnerships against broader global asset allocations and macroeconomic variables.
Major Gulf sovereign funds, including Abu Dhabi's Mubadala, Saudi Arabia's Public Investment Fund (PIF), and the Qatar Investment Authority, are maintaining targeted exposure in Chinese technology, electric vehicles, and renewable energy corridors.
According to the report, the funds are rebalancing portfolio exposures while navigating tightening technology investment regulations and seeking to hedge geopolitical risks.
Sources
- UAE-China Chamber of Commerce · 2026-10-09



