Sovereign Wealth Funds To Run The Gcc Countries

The vigorous development of sovereign wealth funds is one of the most prominent phenomena in international economic and financial field of the21st century. The emergence of sovereign wealth funds has become the emerging strength in the global financial structure, imposing more and more important influence on the international financial system. GCC states’ sovereign wealth funds, basing on the large-scaled oil dollars, occupies nearly half amount of the global sovereign wealth funds, which plays an increasing as well as significant role in the global financial market.Based on the synthesis of the existing literature and research results, this paper argues that the new east-toward strategy of GCC states’sovereign wealth funds is under the situation of global economic gravity center’s west to east movement, and also the inevitable result of the emerging economies’rising stances during the subprime crisis, while the subprime crisis increases those east-toward trend at the same time.To test the hypothesis, this paper selects the year before and after the subprime crisis, that is,2007-2011, and studies the transfer of sovereign wealth funds’ investment strategy. Taking GCC states’sovereign wealth funds investment strategy as empirical research case and according to different characteristics before and after the subprime crisis, this paper is divided into3stages to verify financial crisis’ influence to sovereign wealth funds. The study shows that GCC states presented overt east-toward trend after subprime crisis. Moreover, the GCC states are reducing their investment to developed countries as Europe and America while increasing the proportion of investment in emerging Asian countries.According to the GCC states’ east-toward trend, this paper deeply analyzes the reason of this phenomenon, and probes into the further development prospects between China and GCC states:the cooperation between the two, basing on GCC states and China, was used to be fields like energy, economic and trade cooperation. However, with the rising of GCC states’ sovereign wealth funds in China, the trend hastens the sovereign wealth funds cooperation, which has already become a growth economic opportunities not only to China but also to GCC states.