As more and more Gulf Coast countries seek the reduction of their dependence on their energy resources, many GCCs are increasing their local spending as well as redirecting foreign investments back into the region.
According to a KPMG report released last Thursday, the shift from external to internal investments is due to the debt crisis currently hounding the European Union, the Arab Spriong and many other factors.
In another study, this time conducted by Invesco's Middle East Asset Management in 2012, there was a suggestion that the value of assets put into sovereign wealth funds that have been invested locally has increased by 10% from 2011.
With a 30% increase in projected revenues of the GCC economies, assets that have been allocated to these very same sovereign wealth funds have declined by 1% overall.
In its report, KPMG was quoted as saying, "It is anticipated that this apparent redirection of sovereign wealth will source a stable flow of funds into the region's infrastructure aspirations and will facilitate growth and development of the local economies over the medium term."
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