For decades, the Gulf region has been synonymous with the oil sector, an industry marked by volatility due to price fluctuations and geopolitical sensitivities. However, in recent years, Gulf nations have accelerated efforts to diversify their economies, reducing reliance on oil revenues and seeking stability through investments abroad.

Europe has emerged as a prime destination for Gulf investors, offering a balanced economic environment characterized by mature regulatory frameworks, transparent markets, and a wide range of opportunities spanning real estate, finance, and renewable energy. Notably, the technology sector has become a focal point for Gulf capital, with investments in European startups surging from $627 million in 2018 to $3 billion in 2023, according to Sifted. Over two-thirds of these investments targeted funding rounds exceeding $100 million.

A Sifted analysis highlights the Gulf region’s most active investors in Europe over the past two years. These include entities from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). Below is a closer look at some of the leading players:

Aramco Ventures

The corporate venture arm of Saudi Arabia’s state-owned oil giant, Aramco, topped the list with participation in 17 European deals in the last two years. Headquartered in Dhahran and operating globally, Aramco Ventures targets startups and technologies with strategic relevance to its parent company and broader global markets.

In January 2023, Aramco boosted its investment allocation from $3 billion to $7 billion. The firm manages several funds, including:

• Digital/Industrial Fund ($500 million): Focused on tech solutions critical to Aramco.
• Prosperity7 Fund ($1 billion): Investing in disruptive technologies beyond energy.
• Sustainability Fund ($1.5 billion): Supporting Aramco’s net-zero goals by 2050.

Additionally, Aramco Ventures oversees Wa’ed Ventures, a $500 million venture capital fund for Saudi startups.

Mubadala Capital

Abu Dhabi’s Mubadala Capital ranked second, engaging in 13 deals. This wholly-owned subsidiary of Mubadala Investment Company manages $20 billion in assets, including $13 billion from third-party institutional investors.

Its diverse portfolio spans private equity, early-stage ventures, and special opportunities in Brazil. In October 2023, Mubadala Capital raised $710 million for its Brazil Special Opportunities Fund II, underscoring its global reach.

Ventura Capital

Dubai-based Ventura Capital, active in nine European deals, focuses on pre-IPO technology startups. Established in 2012, the firm has invested $750 million in 23 companies, including Uber, Spotify, and Twitter. Ventura Capital closed a $150 million fund in January 2022, targeting disruptive consumer and enterprise technologies.

Qatar Investment Authority (QIA)

QIA participated in six deals, placing it among the fourth most active Gulf investors in Europe. Founded in 2005, Qatar’s sovereign wealth fund manages diversified assets globally and launched a $1 billion VC “Fund of Funds” in February 2023. This initiative aims to stimulate Qatar’s VC ecosystem while delivering commercial returns.

MetaVision

Established in 2022, Dubai-based MetaVision also participated in six deals, focusing on metaverse and Web3 startups. The firm primarily invests in pre-seed and seed-stage ventures. Notable investments include Kinetix and Ngrave.

Investcorp

Bahrain’s Investcorp matched QIA and MetaVision with six deals. Founded in 1984, Investcorp specializes in alternative investments, managing over $50 billion in assets. In February 2023, it raised $1.2 billion for its North America Private Equity Fund, targeting family- and founder-owned businesses.

Chimera Capital

Abu Dhabi’s Chimera Capital ranked fifth, with four European deals. A subsidiary of Chimera Investments, Chimera Capital focuses on Series B and later-stage investments across fintech, AI, and life sciences. Its Alpha Wave Ventures II fund, launched in 2022, raised $10 billion.

The increasing involvement of Gulf investors in Europe underscores their strategic intent to diversify portfolios and hedge against local economic uncertainties. With billions of dollars flowing into technology, real estate, and other sectors, Gulf nations are carving a prominent role in Europe’s investment landscape. As these investors continue to expand their footprints, their influence on European markets is set to grow even further.