Singapore’s Temasek to open Gulf offices despite war uncertainty - Semafor
Singapore’s Temasek will open its first offices in the Gulf early next year, joining a growing list of global investors expanding into the region despite ongoing conflict.
Temasek, which controls around $400 billion on behalf of the government of Singapore, will open offices in Abu Dhabi and Riyadh. It plans to invest more in the region and to use the offices as a base for portfolio companies looking to expand into the Middle East. The regional presence will also be used to deepen the firm’s engagement with Qatar, Temasek said.
Gulf finance hubs have continued to attract commitments from international firms even as they have been rocked by retaliatory attacks from Tehran in March and April after the US used military bases in the region to stage strikes on Iran. Attacks have slowed since then, but the threat of further escalation remains.
UK-based private markets firm Pantheon, which manages $84 billion, also announced plans on Wednesday to open offices in Abu Dhabi.
“The Middle East is an important part of Temasek’s global network,” chief executive Dilhan Pillay said. “The pace and ambition of economic transformation across the region are remarkable, and its long-term fundamentals remain highly attractive.”
Temasek’s most recent international office opened in Paris in 2023.
By opening in Riyadh and Abu Dhabi simultaneously, Temasek sidesteps a dilemma facing international finance firms expanding in the region: rather than choosing between rival financial hubs, it is setting up in both.
Earlier this year, the Singaporean investor also joined a $30 billion infrastructure partnership with Abu Dhabi sovereign wealth fund L’IMAD, the emirate’s national oil company ADNOC, and BlackRock’s Global Infrastructure Partners. Its Gulf investments are expected to focus on energy, infrastructure, logistics, and urban development.
Temasek’s expansion into the Gulf also comes as regional governments increasingly focus on attracting foreign direct investment to drive economic diversification. Saudi Arabia’s Public Investment Fund has made attracting external investors a key part of its plan for the next five years, and state oil companies have been selling stakes in their pipelines and other infrastructure assets. Multibillion-dollar plans to build AI hubs and new export routes are also expected to create opportunities for foreign infrastructure investors.
The chance to partner with Gulf sovereign funds, which are on track for one of their busiest years of dealmaking on record despite the disruptions of the Iran war, is also helping to attract more global finance firms to the region.
