Kuwait Continues to Conclude Investment Deals Despite 93% Regional Value Decline

Kuwait has continued to conclude investment deals despite the repercussions of the war with Iran and the geopolitical challenges facing the region, even as the value of mergers and acquisitions involving Gulf companies fell by approximately 93% year-on-year in the fourth quarter so far, according to a report published by Bloomberg.

Bloomberg noted that Kuwait and Qatar, despite the war’s fallout, have persisted in closing deals in sectors including artificial intelligence and data centers. In this context, it highlighted Kuwait’s recent attraction of its largest-ever foreign direct investment, valued at $16 billion, in the oil infrastructure sector.

Despite the slowdown, Bloomberg affirmed that deal activity in the Gulf remains above its five-year average, indicating a cooling-off phase following exceptional performance in 2025, rather than an exit from global markets. Meanwhile, Wall Street institutions have continued to strengthen their local teams to capitalize on investment opportunities in the region.

As an indicator of sustained deal activity despite the war, a survey conducted by Lumina Capital Advisors showed that 73% of Gulf-based dealmakers remained active during the conflict, while approximately 43% of respondents stated they were planning to close a deal or were considering doing so.

The agency pointed to the continued investment activity of Gulf sovereign wealth funds. The three Abu Dhabi-based funds, which collectively manage assets worth around $2 trillion, have recently financed an acquisition in the United Kingdom, supported a chain of Chinese coffee shops, and participated in the privatization of a major local port operator.

In Saudi Arabia, the Public Investment Fund, with assets of $905 billion, has prioritized high-yield sectors, notably artificial intelligence and logistics, alongside acquiring a mobile game development studio valued at $6 billion.

According to a report by Global SWF, Middle East and North Africa sovereign wealth funds are expected to deploy approximately $136 billion in investments during 2026, if current activity levels persist through the end of the year. This would involve 327 deals, marking the second-highest number of transactions ever, driven by smaller, more frequent technology investments.

The agency quoted Waleed Al-Muhairi, Deputy Chief Executive Officer of Mubadala Investment Company, who confirmed that the company continues to deploy capital and seek the best global investment opportunities, balancing risk and returns through partnerships.