Saudi Arabia Plans to Withdraw Assets from UK and US Banks
Following the UAE, Saudi Arabia is discussing the withdrawal of some assets from British and American banks as a measure to respond to economic pressures from conflicts in the Middle East.
Sovereign wealth funds from Gulf countries such as Saudi Arabia, the UAE, and Kuwait hold over $2 trillion in US investments and are assessing existing commitments, contracts, and whether to invoke force majeure clauses, potentially reducing investments in the US.
This move stems from rising regional economic pressures due to the Iran conflict, prompting Gulf countries to reassess their global investment exposure to protect national wealth.
Source: Public Information
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Saudi sovereign wealth funds previously committed to investing hundreds of billions in the US following Trump's visit to the Gulf in 2025. This review of investments, in sync with the UAE, continues the long-term shift from oil dollar returns to diversification (including China and Asia). They have adjusted overseas asset allocations multiple times during periods of oil price volatility or geopolitical tension.
In terms of capital flow, Gulf countries are mobilizing oil revenue reserves through sovereign funds, gradually withdrawing from or canceling future commitments to US and UK banks, US stocks, bonds, and real estate. The motivation is to address budget pressures and sanction risks arising from the Iran conflict while redirecting funds to domestic "Vision 2030" projects and non-Western markets, achieving a shift of resources from dollar assets to diversified reserves and domestic development.
Similar to the cautious adjustments made by Gulf countries following the freezing of Russian assets after the 2022 Russia-Ukraine conflict, or historical divestments during periods of tension in US-Saudi relations (such as post-2001), Gulf sovereign funds are currently in a mid-stage transition from deep ties with Western financial systems to a multipolar allocation strategy, focusing on testing the resilience of Western markets with a $2 trillion scale.
Essentially, this involves capital concentration and a transfer of pricing power: under geopolitical conflict pressures, Gulf countries are reclaiming some oil dollar pricing power from the UK and US banking systems through asset reallocation, utilizing sovereign funds to review force majeure and phase withdrawals to avoid sudden shocks, while enhancing their negotiating position in global capital flows through diversified investments.