Low oil prices are forcing the exporting countries to sell foreign assets of sovereign wealth funds

Almaty. January 20. Silkroadnews – The low oil prices are forcing the development funds of the exporting countries to sell and diversify assets, RBC informs.
“The high volume exporters’ problems are getting worsened with the oil prices falling down to prices existing ten years ago – on January 16 the February futures for Brent crude broke through $29, which equals to prices of 2004. At 18.30 on Tuesday the oil was trading at the same level”, the statement said.
It is noted that Saudi Arabia has the most serious problems - the Kingdom budget for 2016 was planned with a deficit of $87 billion (about 11% of GDP). Qatar, Kuwait and Oman (their budget deficits - from 5 to 8% of GDP) run into the similar difficulties.  
“To reimburse the lack of “petrodollars” the exporting countries sell foreign assets of the sovereign funds and withdraw money from the investment companies”, RBC says.
For example, in 2014 the total volume of assets at the disposal of sovereign investment funds reached the highest level of $7.2 trillion. Now funds are reconsidering their strategy - getting rid of low-income instruments and investing in more risky assets.
Saudi Arabia became the leader of withdrawals. In 2015 sovereign investment fund of the country controlled by the central bank of Saudi Arabia (Saudi Arabian Monetary Agency, SAMA) withdrew about $70 billion from the large asset managing funds. Total volume of the foreign assets of the fund ranking the fourth in the world on this indicator decreased to the level of 2012 – from the highest level of $737 billion in August 2014 to $628 billion in November 2015.
Not only Saudi Arabia faces a necessity to change one’s investment policy. Since the third quarter of 2015 Qatari sovereign fund “Qatar Investment Authority” (with total assets of $256 billion ranking the 9th place in the world) has sold its share in several major projects. In addition, Kuwait, which has the fifth in terms of assets sovereign fund “Kuwait Investment Authority” ($92 billion) to cover its 27 billion budget deficit is getting ready to sell off one’s assets. In particular, the fund is going to get rid of assets with earnings lower than 9% per year, up to $30 billion. Investment package of Kuwaiti sovereign fund is quite diversified - it includes stocks, bonds and real estate in China, Europe and the United States.
So far the sovereign fund UAE - Abu-Dhabi Investment Authority (ADIA), the second largest fund of the world in terms of assets ($773 billion) responds to declining oil revenues in a calmest manner. ADIA reduced funds under management by the investment companies only - earlier about 75% of its assets were under the external management, now this number got reduced to 65% (by $77 billion).
The world’s largest fund manager “BlackRock” does not disclose its deals with sovereign funds, yet, according to estimations, in the second and third quarters of 2015 the sovereign funds withdrew about $31 billion the company’s control.
The experts believe this trend on the sovereign wealth funds withdrawal of the oil-producing countries shall continue. If it proceeds with the same pace as in 2015 the profits of the operating companies per share is expected to fall by 4-7%.