In the face of a global economic downturn, the financial world is setting its sights on the Middle East. The region’s wealth, particularly in the Gulf states, has become a magnet for international investors.

The Gulf region’s 10 largest sovereign wealth funds manage nearly $4 trillion, surpassing the GDP of major economies like France or the U.K. This staggering figure doesn’t even account for private wealth. The financial prowess of these oil-rich states is not a new revelation. However, the current economic climate has amplified their significance on the global stage.

The recent Investopia x Salt conference in Abu Dhabi, a collaboration between American financier Anthony Scaramucci and Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum, was a testament to this growing interest. The event, which expected 1,000 attendees, saw a turnout of 2,500, indicating the escalating global attention towards Middle Eastern wealth.

The influx of foreign institutional investors and venture capitalists into the region, particularly into Saudi Arabia and the UAE, signals a shift in the financial landscape. These investors are not just attracted by the wealth but also by the increasing sophistication of the region’s financial markets.

The Middle East is also witnessing a surge in advanced-industry startups, particularly in sectors like fintech, digital transformation, and renewable energy technology. This entrepreneurial energy, coupled with the region’s financial strength, is creating a dynamic ecosystem that is drawing global attention.

Marc Nassim, partner and managing director at Dubai-based investment bank Awad Capital, noted, “Investment used to only flow from the Gulf outward. Now it’s going both ways; institutional investors are coming and investing here”. This sentiment was echoed by Stephen Heller, founding partner at Germany-based AlphaQ Venture Capital, who recently opened his first Middle Eastern office in Abu Dhabi.

As the world grapples with economic challenges, the Middle East’s stability and financial strength offer a beacon of hope for global finance.