MSc International Business: Sovereign Wealth Funds Dissertation

This report examines Sovereign Wealth Funds (SWFs) and their increasing importance, particularly within the Gulf Cooperation Council (GCC). It highlights the growth of SWFs and their role in channeling capital into global investments, with a focus on foreign direct investment (FDI) as a means of diversification and economic growth. The report references the significant investments made by Qatar in the UK and discusses the proposed research methodology, which includes both qualitative and quantitative approaches. The report also includes references to relevant sources such as oecd.org, bbc.com and swfinstitute.org.

Running Head: FIN 0
SOVEREIGN WEALTH
FUNDS

FIN 1
Proposal about SWFs (Sovereign Wealth Funds)
Sovereign wealth funds (SWFs) are known to be the investment vehicles by which
governments capitalize some of a country wealth in national and international financial
markets. The number of SWFs operating in GCC (Gulf Cooperation Council) had also grown
in the past decades and all GCC states are aiming to reduce their reliance over hydrocarbons
while also channelled a big portion of capital reserves gather over the times into investments
globally. To closely USD 2.3 trillion in 2018, there is an 8 % growth of the assets under
management of the GCC Sovereign Wealth Funds since 2010 (swfinstitute.org, 2019).
As a part of the above efforts, foreign direct investment (FDI) can play a greater role in
instigating diversification approach. In various conditions and using of SWFs, FDI can carry
technical expertise together with capital to economies as some of them do not have the
abilities to build certain sectors on their own (oecd.org, 2020). Hence, FDI has a great and
improved impact on growth than in highly diversified and developed nations, implying that
GCC states stand to gain from FDI. In addition, owing to with developed countries is more
promising as it tells the economic dynamism that noticeable much of the last decades.
Taking about the UK, one of the developed nation, Qatar makes the country as a single and
biggest investment destination with £35bn in place and another £5bn in the next five years
(Robertson, 2017). From research perspective, the proposed methodology that will be used
here is both qualitative and quantitative.

FIN 2
References
oecd.org. (2020) Assessing investment policies of member countries of the gulf cooperation
council [ONLINE] Available from: https://www.bbc.com/news/business-40192970
[Accessed 05/04/2020].
Robertson, J. (2017) Qatar: Buying Britain by the pound [ONLINE] Available from:
https://www.bbc.com/news/business-40192970 [Accessed 05/04/2020].
swfinstitute.org. (2019) Marmore: Gulf Cooperation Council (GCC) Sovereign Wealth
Funds Experience Asset Growth [ONLINE] Available from:
https://www.swfinstitute.org/news/73342/marmore-gulf-cooperation-council-gcc-sovereign-
wealth-funds-dominate-in-asset-growth [Accessed 05/04/2020].