$6T in Gulf capital is looking for the exit

3 days ago

The Iran war is causing significant disruptions beyond oil, affecting global capital flows.
Gulf states manage $6 trillion in assets, representing over 40% of global sovereign wealth funds.
Force majeure clauses are being considered by Gulf states to pause or exit investment contracts, which could destabilize global financial systems.
The potential invocation of force majeure could delay or cancel critical projects in AI, climate, and energy transition.
Gulf sovereign wealth funds are major investors in global infrastructure, including renewable energy projects.
If capital is withdrawn, projects like Stargate could face delays of 12-18 months or complete collapse.
The ripple effects include higher costs of capital, disrupted supply chains, and slower energy transitions.
Wars generally harm infrastructure, redirect spending to defense, and disrupt long-term economic planning.
Individuals and businesses are advised to build resilience, diversify investments, and prepare for higher energy costs.
The global financial system's interconnectedness means disruptions in Gulf capital could have widespread impacts.

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