swf role

• SWF Role

• Geographic Allocation

• Global Ranking

• Political Risks

• Risk Assessment

SWF Role

• SWF role to restore of economic stability and investor confidence this trend driven by global growth of energy,commodity.

• the important role of diversification to lessen oil market volatility,achieve socioeconomic development,and foster political dominance.

• The rise of state capitalism to deepen the role of governemnts in financial monetary policy and its implications over SWF as a contributors in global rebalancing.

• SWF involved the rescue of global financial crises, For example, Singapore's Temasek Holdings bought a $5 billion stake in Merrill Lynch

SWF Allocation

• SWF assets are projected to surpass global foreign exchange reserves from SWF assets range from $12 trillion to $20 trillion by 2020.

• GCC owns around 1.8 Trillion equals %34 of global assets.

• The long-term investment horizon of SWFs makes them ideal of large infrastructure projects in Asia $8 trillion over the next ten years for infrastructure along with Africa and Latin America, has been a key destination for sovereign funds in recent years.

• Significant increase in equity investment %47 for long-term ROI advantage

SWF-GCC Global Ranking

Political Risks

• Confiscation:seizing of company assets

• Exproriation:partial seize of company assets from government

• Domestication:when host country transfer asset ownershipthrough series of government decrees

Risk Assessment

• GAPP organization purpose is to provide transparent governance structure through:

• Adequate operational controls, risk management and accountability.

• Ensures compliance with applicable regulatory requirements in the countries in which SWFs invest.

• Help maintain sustainable global financial system, free flow of capital and investment.

• Political risk can be measured by the Gov relationship with Foreign investor,its influence in decision making process and,the ability to transfer capital when required.