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Financial Services, Banking Article, new oil wealth
Article at a glance:

The new role of oil wealth in the world economy

  • As oil prices continue to set new records, investors outside Europe and the United States are increasingly shaping trends in financial markets. The influence of these investors is likely to continue to grow over at least the next five years.
  • Without a doubt, this flood of oil money is creating new dynamics in world markets and fueling growing concern about government connections and influence on markets.
  • Since facts about these powerful new investors have been scarce, McKinsey’s research aims to ground the debate by providing data and analysis, including where this new wealth is held, how it affects markets, and what the players might do to address growing concerns over their influence.
This article contains the following exhibits:
  • Exhibit 1: Oil-exporting countries have become the world’s largest source of global capital flows, surpassing Asia.
  • Exhibit 2: Even if oil prices declined to $30 a barrel, foreign assets purchased with petrodollars would grow at a robust average annual rate.
  • Exhibit 3: The Abu Dhabi Investment Authority (ADIA) is the largest sovereign wealth fund among oil exporters.

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