A Market Splurge

A Market Splurge

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  • A prominent Abu Dhabi royal-controlled investment company, Royal Group, intends to invest up to $10 billion in U.S. and European stocks and other assets suffering from growing recessionary fears. According to people familiar with the situation, the group, which is led by the United Arab Emirates National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, views this as an opportunity to sell off some of its current equity holdings, lessen its exposure to riskier assets, and broaden its global portfolio.

  • Although the final strategy is still being drawn up, investments in equities, fixed income, and physical assets, such as real estate, are all being considered. Sheikh Tahnoon’s strategy, up until this point, had prioritized investments in the developing world, especially India. 

Why it matters

The Royal Group is hoping to take advantage of share prices which are already under pressure as expectations of a worldwide economic downturn grow. The S&P 500 Index has slumped 23% this year, while European equities slid into a bear market last month after dropping more than 20% from their January peak – allowing cash-rich GCC investment firms to make strategic investment decisions and boost their portfolio.


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