Global gloom erodes value of sovereign funds in Gulf

Dubai: Seven Gulf sovereign wealth funds face losing 15 per cent of their value because of the chaos in the world's financial markets, the Wall Street Journal reported, citing a report by Samba Financial Group.

Howard Handy, Samba's chief economist, said losses would amount to about $190 billion (Dh698.82 billion), effectively wiping out the funds' gains from soaring oil prices this year. Samba, Saudi Arabia's second largest bank by value, estimated oil revenue growth at $190 billion for 2008.

Samba examined the Abu Dhabi Investment Fund, Kuwait Investment Authority, Mubadala Development Co, Istithmar World Capital, which is owned by Dubai World, as well as the Qatar Investment Authority, Investment Corp of Dubai and the Saudi Arabian Monetary Agency, the Journal said.