‘Our phones are ringing off the hook’: Amid a global downturn, the finance world is chasing Middle Eastern money
A man dressed in a thawb walks past Dassault Falcon executive jets, Dubai, United Arab Emirates
Leonid Faerberg | Sopa Images | Lightrocket | Getty Images
The organizers of the Investopia x Salt conference in Abu Dhabi — the brainchild of American financier and one-time White House press secretary Anthony Scaramucci and Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum — expected to see 1,000 guests over its two-day event in early March. Instead, it got 2,500.
“We’re a little overwhelmed, but it’s a great sign,” one of the organizers told CNBC. Some others were annoyed. “It’s too many people. Everyone is coming to the Gulf now begging for money. It’s embarrassing,” one Dubai-based fund manager said. Both sources declined to be named due to professional restrictions.
related investing news
That oil-rich Gulf states have a lot of money to spend isn’t new. The region’s 10 largest sovereign wealth funds combined manage nearly $4 trillion, according to the Sovereign Wealth Fund Institute. That’s more than the gross domestic product of France or the U.K. — and it doesn’t include private money.
But the influx of foreign institutional investors — and visible interest from venture capitalists and startup founders in advanced sectors like fintech, digital transformation and renewable energy technology — shows a level of sophistication that’s being noticed now more than ever, industry players say.
“Investment used to only flow from the Gulf outward. Now it’s going both ways; institutional investors are coming and investing here,” Marc Nassim, managing director at Dubai-based investment bank Awad Capital, told CNBC.
The regional investors, especially the sovereign funds but also the families, are now much more sophisticated than before.
Marc Nassim
Managing director, Awad Capital
“The Middle East feels more stable than Europe does right now,” Stephen Heller, founding partner at Germany-based AlphaQ Venture Capital, told CNBC. “Europe’s security issues, economic inequality are getting worse … meanwhile, the Gulf has its s— together.” Heller’s fund of funds, which invests in megatrends like climate technology, infrastructure, health and fintech, recently opened its first Middle Eastern office in Abu Dhabi.
“There’s an entrepreneurial energy in the UAE and Saudi Arabia today,” Heller said. “I see the potential because you have technically infinite capital, and if you have entrepreneurs coming here, you can have huge outcomes.”
Follow the capital
As oil prices made a roaring comeback in the last two years, the Gulf’s public wealth funds went on a spending spree. The top five regional funds in terms of spending in the last year — Abu Dhabi’s ADIA, ADQ and Mubadala, Saudi Arabia’s PIF and Qatar’s QIA — deployed a combined total of more than $73 billion in 2022 alone, according to sovereign wealth fund tracker Global SWF.
Abu Dhabi city skyline, United Arab Emirates.
kasto80 | iStock | Getty Images
Meanwhile, the value of sovereign wealth funds’ assets globally dropped from $11.5 trillion to $10.6 trillion between 2021 and 2022, Global SWF reported, and those held by public pension funds also dropped amid a dramatic downturn in stock and bond markets.
“Five out of the ten most active investors hail from the Middle East,” and ADIA is currently the “world’s largest allocator to hedge funds,” Global SWF’s 2023 report wrote. It added that GCC sovereign wealth funds “played an important role in 2020 during the Covid-19 pandemic and now again in 2022 during times of financial distress.”
So it’s an understatement to say that foreign demand is high. “A lot of places in the world are low on capital – Western institutional funds are kind of hamstrung. And this region has a lot of capital. Our phones are ringing off the hook,” one manager from a UAE investment fund said, declining to be named due to professional restrictions.
No longer ‘dumb money’
But while many overseas companies have long seen the Gulf as a source of “dumb money,” some local investment managers said – referring to the stereotype of oil-rich sheikhdoms throwing cash at whoever wants it – investment from the region has become much more sophisticated, employing deeper due diligence and being more selective than in past years.
“The regional investors, especially the sovereign funds but also the families, are now much more sophisticated than before,” Awad Capital’s Nassim said. “They are much more diligent than before in terms of who they write the check to.”
“Before it was much easier to come and say, ‘I’m a fund manager from San Francisco, please give me a couple million’. Now, not only are they more sophisticated but there are far more funds from all over the world – the U.S., Latin America, from Europe, Southeast Asia – coming here to raise capital. I think that a very small minority of them will be able to take money from the region – they are much more selective than before.”
A screen broadcasts Khaldoon Al Mubarak, chief executive officer of Mubadala Investment Co., during a session at the Future Investment Initiative (FII) conference in Riyadh, Saudi Arabia, on Tuesday, Oct. 25, 2022.
Tasneem Alsultan | Bloomberg | Getty Images
In the UAE in particular, liberalizing reforms, a much-praised handling of the Covid-19 pandemic and a willingness to do business with anyone — including countries like Israel and Russia – have enhanced its image to foreign investors. In Saudi Arabia, financiers are attracted to historic reforms and a massive growth market of nearly 40 million people, some 70% of whom are below the age of 34.
The money from the GCC funds still overwhelmingly goes to developed markets, in particular the U.S. and Europe. Priority sectors include energy, renewables, climate technology, biotech, agri-tech and digital transformation, fund managers say.
Like any commodity-related economic boom, however, fortunes are subject to change – it was not so long ago that the pandemic pushed oil prices to multi-decade lows, forcing Gulf governments to reign in spending and introduce new taxes. Saudi Arabia and the UAE in particular are investing heavily in diversification, with a view to the long term.
“The music would stop if [the price of] oil goes down in a way that some SWFs are forced to use their reserves to help governments shore up their fiscal positions – very unlikely – or geopolitical risk” such as war or uprisings, Nassim said.
“If oil goes down, the surplus generated and which is usually allocated to the SWFs would obviously reduce, and that would force them to reduce their investments and limit them to assets that generate higher returns,” he added, though noted that not all SWFs have the same mandate when it comes to investment strategy.
For those companies seeking investment from the deep pockets of the Middle East, they are wise to do so while the music is playing.
It’s official. BYD is launching its first kei car. The new electric car is BYD’s smallest EV yet, and it’s expected to arrive next year with a starting price under $18,000. After it was spotted testing again, we are learning a little more about what to expect.
BYD’s smallest EV is coming in 2026
Kei cars, or K-Cars, as they are often called, are one of the most popular types of vehicles in Japan. They are the smallest street-legal passenger vehicles you can buy in the country.
To be classified as a kei car, the vehicle must be less than 3.4 m (134″) long, 1.48 m (58″) wide, and 2 m (79″) tall.
BYD’s smallest EV, and top-selling, is currently the Seagull (sold as the Dolphin Surf and Mini overseas), measuring 3,780 mm in length (148.8″).
We caught a glimpse of the new electric Kei car for the first time in May after it was spotted testing on public roads. Like many kei cars, including the Honda N-Box, Japan’s top-selling vehicle, BYD’s tiny EV has that quirky, upright, boxy design.
After being recently spotted parked at a test facility, new spy photos provide a closer look, including a sneak peek of the interior.
The new images, posted by ThinkerCar, show essentially the same kei car we saw in May. It’s a right-hand-drive vehicle, suggesting it will launch in Japan, the UK, parts of Southeast Asia, and possibly other regions.
#BYD K-Car spy shots reveal a four-door layout with sliding rear doors. The vehicle is expected to launch in #Japan in H2 2026, with a starting price of RMB 130,000.
It will feature a 20 kWh battery offering 180km range (WLTC), heat pump AC system, and 100 kW fast charging… https://t.co/B2P05I5RAp pic.twitter.com/wYGtoC3yJk— ThinkerCar (@thinkercar) July 16, 2025
For the first time, the interior is shown. Like BYD’s other vehicles, there’s a large floating infotainment screen at the center.
The electric car is expected to feature a 20 kWh battery, providing a WLTP range of 180 km (112 miles). It will also support DC charging speeds of up to 100 kW.
BYD’s Dolphin Surf (Seagull EV) is available with two battery packs: 30 kWh and 43.2 kWh, offering WLTP ranges of 137 miles and 189 miles, respectively.
By using LFP batteries from its battery unit, FinDreams, BYD could have the upper hand with costs. The Kei car is expected to launch in Japan in the second half of 2026 with a starting price of 2.5 million yen, or under $18,000. In comparison, the Nissan Sakura, Japan’s top-selling electric vehicle, starts at 2.59 million yen.
Earlier this year, Nikkei reported that Japanese automakers are already preparing for its arrival. A Suzuki dealer explained that “Young people do not have a negative view of BYD. It would be a huge threat if the company launches cheap models in Japan.”
Can BYD’s smallest EV find a foothold in Japan? Domestic brands like Toyota, Honda, and Nissan have long dominated the market. Check back soon for the latest updates.
Source: TheDriven, ThinkerCar
FTC: We use income earning auto affiliate links. More.
Tesla has launched a long list of new discounts and incentives for its electric vehicles in the US as it seeks to capitalize on what will likely be its last strong quarter in its best market.
Since the beginning of the year, we have been reporting on how Tesla’s sales are declining in its largest markets, including Europe and China, with the US being the notable exception.
With the federal tax credit for electric vehicles set to expire by the end of the quarter, the US is also expected to become a challenging market for Tesla and electric vehicles in general.
Many electric automakers are trying to take advantage of the demand being pulled forward into Q3 due to the imminent end of the tax credit.
Tesla has introduced several new incentives that can be combined with one another. Here’s the full list:
All New Tesla Vehicles
- $7,500 Lease Incentive (delivery by Sept 30)
- $1,000 Off for American Heroes (military, first responders, teachers, students)
- Free 1-Month Full Self-Driving (Supervised) Trial
- Free Full Self-Driving (Supervised) Transfer from your current Tesla
- Premium Connectivity Trial
- 30 days for Model 3 and Y
- 1 year for Model S, X, and Cybertruck
Model Y
- $7,500 Lease Incentive
- One Free Upgrade on select inventory (pre-discounted)
- $7,500 Federal Tax Credit at Point of Sale (cash/finance only)
- Lease from $349/mo (24-month) or $399/mo (36-month) with $3,000 down
- APR Financing: 3.49% up to 60 months
- 18 Months Free Supercharging (cash purchases only)
Model 3
- $7,500 Lease Incentive
- One Free Upgrade on select inventory (pre-discounted)
- $7,500 Federal Tax Credit at Point of Sale (cash/finance only)
- Lease from $299/mo (24-month) or $349/mo (36-month) with $3,000 down
- 0% APR Financing with FSD (Supervised), 2.49% without
Model X
- $7,500 Federal Tax Credit at Point of Sale
- One Free Upgrade with FSD (Supervised)
- Premium Connectivity Trial (1 year)
Model S
- One Free Upgrade with FSD (Supervised)
- Premium Connectivity Trial (1 year)
Cybertruck
- $7,500 Federal Tax Credit at Point of Sale
- 0% APR Financing with FSD (Supervised)
- Free 20″ Cyber Wheel Upgrade ($3,500 value) on lease orders
- Premium Connectivity Trial (1 year)
Electrek’s Take
It looks like Tesla is now relying less on 0% APR, likely due to the fact that now interest on car payments is deductible up to $10,000.
Though Tesla is still offering 0% financing on the Cybertruck for obvious reasons: it can’t sell them.
That said, it is still offering financing discounts for the Model 3 and Model Y, albeit at a lower rate than before the change.
18 months of free Supercharging on Model Y is also a significant discount, but that’s if you don’t take the financing deal.
It looks like Tesla is going all-out to try to secure as many buyers in Q3 as possible.
FTC: We use income earning auto affiliate links. More.
Environment
Volvo is ‘definitely not’ leaving the US, but it’s dropping these vehicles from its lineup
Volvo confirmed it will continue selling vehicles in the US, but its lineup will look a little different. With plans to cut several models, Volvo will offer only about half of the cars it currently sells globally.
Volvo adjusts US lineup, cutting several vehicles
Days after Volvo announced it would begin production of the XC60 in the US, its best-selling vehicle, we are learning the move is part of a major shakeup.
Volvo has already begun cutting sedans and station wagons from its US lineup. The Swedish luxury brand confirmed plans with Reuters on Thursday, citing slowing demand amid the Trump administration’s new auto tariffs.
Outside of the V60, Volvo will only offer SUVs in the US, or about half of the 13 vehicles in sells globally. Production of the S60 ended at its South Carolina facility last year.
Volvo also told Reuters that the European-spec EX40 was also temporarily paused, but it would be available “shortly.” The company didn’t comment on why.
Meanwhile, its new electric vehicles, including the EX30 and three-row EX90, are failing to live up to the hype. Both were expected to see strong US demand, but Volvo is one of the most exposed to Trump’s tariffs.
Although the EX90 is built in South Carolina, many parts still come from Europe, which is now subject to a 25% tariff.
The EX30, which was expected to arrive at around $35,000, is only available in the dual-motor variant, priced from $46,195.
During an interview on CNBC’s Europe Early Edition, Volvo’s CEO Håkan Samuelsson said the company would “definitely not” leave the US market altogether.
“What we are doing is first of all, we want to fill our factory we have in South Carolina. It should be the strategic asset it was intended to be. So, we have to utilize it more,” Samuelsson explained.
By bringing XC60 production to the facility, Volvo said it would “soon now produce something for everyone in its US plant.”
The EX60 has been Volvo’s best-selling model globally for years and is the most popular in the US. So far this year, the XC60 accounts for over a third of Volvo’s total sales. It’s also the fourth-best-selling luxury plug-in hybrid in America.
Volvo is set to begin building XC60 models in South Carolina in late 2026. It will also continue building the EX90 “for customers who want more space or are looking to go fully electric.”
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike