Notwithstanding the sharp drop in oil prices through the second half of 2014, the value of sovereign wealth funds (SWFs) held by Gulf Cooperation Council (GCC) states remains as substantial as ever, and in fact is on the rise rather than in decline.

The Sovereign Wealth Institute, which tracks state wealth, has been reporting steady growth in the funds’ size quarter on quarter even though the petroleum sector accounts for nearly 60 per cent of the world’s wealth. The value of SWFs on a global basis currently amounts to $7.11 trillion and up from $7.05 trillion, $6.83 trillion and $6.6 trillion in December, September and June 2014, respectively.

Together, GCC states have amassed some $2.67 trillion at the start of 2015. Undoubtedly, this is substantial by virtue of comprising 37.6 per cent of the global SWFs.

If any, the GCC share has been growing steadily, if slower than was the case in the years when oil was around $100 a barrel. The six-nation grouping accounted for 36 per cent of the world’s SWF in March 2014. In late 2012, their contribution was $1,775 billion.

With SWFs of $1.07 trillion to be specific, the UAE alone controls a robust 15.2 per cent. This includes figures for Abu Dhabi Investment Authority plus those of the Abu Dhabi Investment Council, Investment Corporation of Dubai, International Petroleum Investment Company, Mubadala Development Company and Emirates Investment Authority.

The Sovereign Wealth Institute ranks Abu Dhabi Investment Authority as the second largest source of SWF in the world after a Norwegian pension fund. Oil-producing Norway has an established practice of setting aside an essential amount of revenues for future generations.

Clearly, the SWFs amount adds further significance to the UAE’s economy, which has a gross domestic product (GDP) of some $400 billion, in turn the second largest among Arab countries after Saudi Arabia.

Understandably, rating agencies like Moody’s and Standard & Poor’s extend attractive ratings to Abu Dhabi partly reflecting its extraordinary financial strength. Moody’s extends a rating of Aa2 with a stable outlook for Abu Dhabi. Recently, S&P affirmed a sovereign credit rating of AA/A-1+ to Abu Dhabi with a stable outlook. At the same time, S&P reduced the outlook for Saudi Arabia from stable to negative.

Three other GCC member states maintain sizeable SWFs, specifically $763 billion by Saudi Arabia, $548 billion by Kuwait and $256 billion held by Qatar. Oman and Bahrain maintain $19 billion and $11 billion.

GCC countries have a track record of showing a readiness to use their wealth towards solving critical international problems. This was put to display at the height of sub-prime market crisis in 2008, with the GCC contributing generously to a special fund to help the worst-hit cope with the financial calamity.

Also, several international banks depended on financial support from GCC funds during the period, partly through acquiring stakes at numerous financial institutions.

Launched in 1953, the Kuwait Investment Authority is the oldest SWF in the GCC region. Notably enough, Kuwait used a part of its SWFs to finance the war of liberation following the Iraqi invasion in 1990 whilst providing sustenance to its subjects living abroad during the crisis.

Clearly, when it comes to SWFs, all roads lead to GCC states and for good reason.

The writer is a Member of Parliament in Bahrain.