S'pore reaps gains as Mid-East steps up investments in Asia

It is benefiting from interest in tech and renewable energy as investors seek to diversify from oil, says analyst

- Angela Tan

Singapore has been reaping the benefits as billions of dollars from Middle East investors continue to pour into Asia.

These investors - keen to diversify from their region's overreliance on oil - laid out around US$57 billion (S$75.5 billion) in private capital deals from 2020 to 2023, well above the US$12.9 billion that flowed into Asia from 2016 to 2019.

These are deals funded by a lender other than a bank, such as an investment fund.

Singapore-based companies accounted for 7 per cent or US$3.9 billion of the US$57 billion across 43 deals, noted Mr Jeff Schlapinski, managing director of research at Global Private Capital Association (GPCA), which represents investors who manage over US$2 trillion of assets.

India has led the way in Asia, reaping more than half of the deals with Middle East investors from 2020 to 2023.

Southeast Asia captured 20 per cent of Asia's deal value, amounting to US$11.5 billion in 68 transactions.

Mr Schlapinski told The Straits Times that diversification from oil is shaping Middle East investments in Asia.