Infrastructure funds have seen strong inflows this year from SWFs
and other long-term institutional investors and a survey by Preqin
forecasts that the strong momentum will continue into 2014.
Global sovereign wealth fund assets have grown by over 750 billion US
since last year and now amount to 5.38 trillion USD.
Growing assets, increasing allocations to alternative investments,
diversifying into emerging markets, hiring internal investment staff
and increasing direct investments.
Real estate investment continues to be one of the strongest
ongoing trends and is expected to remain so in 2014.
Global SWFs invested 11.09 billion USD in real estate as of
November 2013 and GCC SWFs continued making real
estate deals into December.
Both ADIA and QIA added exposure to Indian real estate.
ADIA also made real estate investments in the U.S., U.K.,
Australia and Montenegro.
Kuwait Investment Authority is taking a new tact by investing
in real estate projects in the U.K., rather than completed
properties as project financing from banks dries up.
Meanwhile, SOFAZ announced plans to buy Asian real estate in 2014.
In other alternative investments, a survey by Preqin forecasts that
SWF inflows to infrastructure funds will also continue to see momentum
Resource investment was one of the earliest investment trends
for GCC sovereign wealth funds and this area continues to see
Mubadala Development is making a joint bid with
Qatar Petroleum and Oman Oil to buy a minority stake in
Occidental Petroleum Corp's MENA unit.
SOFAZ continues to buy gold and Qatar Holding signed a letter of
intent to develop a copper project in Peru with Indico Resources.
Finally, in a more recent investment trend, GCC sovereign wealth
funds were active in sports and fashion investments in December.
Mubadala is a minority investor in the sports, fashion and media
firm, IMG Worldwide. ADIA is considering buying the naming rights
to Sao Paolo's World Cup football stadium and Qatar Holding
is entering into a joint venture to buy a 20 percent stake in