Saudi Arabia has ranked first in the volume of assets of sovereign wealth funds (SWFs) among the GCC countries at $641 billion (SR2,400 billion) followed by the United Arab Emirates (UAE) at $397 billion (SR1,489 billion).
Kuwait came in the third rank at $395 billion (SR 1,481 billion), followed by Qatar ($175 billion or SR656 billion), Oman ($14 billion or SR52.5 billion), and Bahrain ($11 billion or SR 41 billion), local media said quoting a report by Moody’s Investors Service.
The assets of SWFs in the GCC countries have grown alongside the recovery in oil prices since the 2009, the report said.
According to the Moody’s estimates, GCC SWFs reached an aggregate $1.6trillion (SR6 trillion) in assets at the end of 2012 (equivalent to 107 percent of the aggregate GDP), up from $1.0 trillion (SR3.75 trillion) in 2007 (105 percent of GDP).
The report said high oil prices in the last two years have led to an unprecedented accumulation of wealth in the GCC countries.
The GCC governments have recently ramped up their budget spending by engaging in ambitious infrastructure plans and by increasing state handout packages, the report said.
The high level of foreign-exchange reserves, which governments could liquidate to absorb a shock (e.g. oil prices and the real-estate and banking crisis), constitutes a significant buffer for public finances, the report said.
Referring to oil revenuers, the report said the average prices stood at $110 (SR412) per barrel in the last two years, which, it said, registered a historic record and surpassed the double of oil prices prevailing between 2001-10 at $55 (SR206) per barrel.
Oil production in the GCC countries captured 24.3 percent of the global oil production and 11 percent of the world’s gas production, the report said. As demand grew in the emerging markets, the GCC countries opted to raise production by 15.9 percent between 2010-12, the report said.
In an earlier report, Moody’s said the vulnerability of GCC government finances to a sudden fall in oil prices is mitigated by their massive SWF assets.
GCC sovereign funds account for 32.6 percent of the global SWF assets valued at $5.2 trillion (SR19.5 trillion), it said.
KSA holds GCC’s largest SWF assets at $641 bn
KSA holds GCC’s largest SWF assets at $641 bn
Saudi Arabia opens 3rd round of Exploration Empowerment Program
RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has opened applications for the third round of the Exploration Empowerment Program, part of ongoing efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investment from local and international mining companies.
The third round of the Exploration Empowerment Program offers a comprehensive support package targeting exploration companies and mineral prospecting license holders.
The initiative aims to lower investment risks for projects and support a faster transition from prospecting to development.
"The program provides coverage of up to 70 percent of the total salaries of Saudi technical staff, such as geologists, during the first two years, increasing to 100 percent thereafter, in line with program requirements.
This support aims to develop talent, build national capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.
The application for the third round opened on Jan. 14, allowing participants to benefit from the Kingdom’s attractive investment environment, its stable legal framework, and streamlined regulatory structures, as well as integrated infrastructure that supports the transition from mineral resources to operational mines.
The ministry has set the timeline for the third round, with the application period running from Jan. 14 to March 31.
This will be followed by the evaluation, approval, and signing of agreements from April 1 to May 31, with the eligible projects set to be announced between June 1 and July 31 of the same year.
The program stages include submitting exploration data during the reimbursement and payment phase from Sept. 1 to Nov. 30, followed by technical and financial verification of work programs and approval of the disbursement of support funds in January 2027.
The exploration data will then be published on the National Geological Database in April 2027.
The ministry emphasized that the EEP focuses on supporting the exploration of strategically important minerals with national priority. It also contributes to enhancing geological knowledge by providing up-to-date data that meets international standards, helping investors make informed decisions and supporting the growth of national companies and local supply chains.
The ministry urged companies to apply early to benefit from the program’s third round, which coincided with the fifth edition of the International Mining Conference, which was held from Jan. 13 to 15.
