The rise of Sovereign wealth funds as investment vehicles
June 29th, 2008 . by adminThe amount of money that is being accumulated by Petro countries has resulted in a significant accumulation of wealth that is now looking for viable investment alternatives. Countries such as Dubai are looking ahead to the time when the oil may not be flowing so freely and they will be forced to find alternative sources of income. Sovereign wealth funds have arisen as a vehicle that can be used to channel investment funds. Some commentators are naturally concerned that these funds might use their investments to secure political or economic favors. This has prompted many to consider the need for a legislative framework to deal with this. So far there has been no real evidence that these funds are anything other than passive investors but it does not necessarily mean that this will remain the case indefinitely.