BlackRock IncBLK
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Impact on stocks 2
Digital Finance & Tokenization
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Chevron CorpCVX
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BlackRock Sees $2.1 Trillion Gulf Spending Shift Reshaping Global Capital Flows
MacroGeopolitics Impact 4
BlackRock Investment Institute strategist Ben Powell said in a Bloomberg interview that Gulf Cooperation Council countries are set to invest upwards of $2 trillion in strategic capital expenditures over the next several years, with a growing share of that money staying in the region rather than being recycled into global markets. Powell argued that sovereign wealth funds like Saudi Arabia's PIF are accelerating domestic diversification, driven by conflicts that have highlighted the risks of relying on strategic chokepoints such as the Strait of Hormuz. He also noted that AI, energy, and defense are converging into a single investment theme, as data centers require both reliable power and military protection. Treasury Secretary Scott Bessent told the G20 that Hormuz could become "a worthless piece of water" within two years as oil shifts to land pipelines, and former Chevron executive Ali Moshiri separately argued that U.S. energy security should rely on Western Hemisphere supply routes that bypass Hormuz, the Red Sea, and the Black Sea. Powell concluded that this $2.1 trillion buildout could reshape global capital flows as Gulf capital becomes more domestic and strategic.
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