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Royal Private Offices (RPOs) in the GCC now command approximately $500 billion in assets, emerging as a significant force in the region’s sovereign wealth fund (SWF) landscape, according to a Deloitte report.
The report highlights the recent proliferation of RPOs in the Gulf, triggering the creation of parallel SWFs. “This trend is most evident in the GCC, where new funds linked to specific individuals or extended families have been established,” Deloitte stated.
Global SWF data indicates 35 RPOs operate within the GCC, with the UAE hosting a substantial majority. Leading this sector is Abu Dhabi’s Royal Group, the core of Shaikh Tahnoon bin Zayed Al Nahyan’s business empire, boasting nearly $300 billion in assets under management (AUM), according to the Sovereign Wealth Fund Institute.
LSEG data reveals the Royal Group holds a 61% stake in the International Holding Company (IHC), also chaired by Sheikh Tahnoon. In 2024, IHC launched 2PointZero, a $27 billion portfolio entity, transferring assets from the Royal Group, as reported by Reuters.
Deloitte also pointed to the Investment Corporation of Dubai’s (ICD) 2023 creation of the Dubai Investment Fund (DIF), designed to manage Dubai government funds and reserves.
The RPOs’ involvement in private credit is expanding. Chimera Capital (now Lunate), affiliated with the Royal Group, partnered with Alpha Wave Global in 2022 to launch a $2bn credit fund. Lunate has also reportedly shown interest in acquiring a minority stake in HPS Partners. Mubadala has committed over $5bn to private credit through partnerships with Apollo, Ares, Blackstone, and Goldman Sachs.
The rise of GCC SWFs has propelled global SWF AUM to $12 trillion in 2023, with projections reaching $18trn by 2030. Gulf funds now manage approximately 40 per cent of global SWF assets and feature six of the world’s top 10 largest funds, including the Abu Dhabi Investment Authority (ADIA), Mubadala, Abu Dhabi Developmental Holding Company, Saudi’s Public Investment Fund (PIF), and the Qatar Investment Authority (QIA).
These funds are increasingly focusing on Asian markets, establishing offices and increasing allocations to high-growth economies in China, India, and Southeast Asia, the report concluded.
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