| Sovereign wealth funds (SWFs) in Gulf Cooperation Council (GCC) countries are functioning as both diversification engines and shock absorbers during times when oil prices fall, according to Bruno Daher, chief executive officer of Credit Suisse in the Middle East and the Indian subcontinent.
The funds were created to provide future generations with a safety cushion, given the heavy reliance GCC economies have on oil. When oil prices are high, governments generate strong fiscal surpluses that are channelled into SWFs. But when prices fall below the fiscal budget break-even oil price, governments often dip into their reserves to fund the deficit...............................................Full Article: Source
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