The Gulf Arab region pumps more than 20 percent of the world�??s crude oil and is home to some of the world�??s biggest sovereign wealth funds. The Abu Dhabi Investment Authority managed an estimated $328bn at the end of 2008, the Kuwait Investment Authority $228bn and the Qatar Investment Authority $58bn.
Sovereign institutions, including those that invest in Investcorp�??s funds, typically allocate 5 percent to 10 percent of their assets to alternative investments.
Gulf Arab clients have put $1.3bn into Investcorp�??s hedge fund assets, and the firm has invested an additional $1bn, Investcorp said in a presentation yesterday.