Temasek plans to open its first two offices in the Middle East next year, establishing a presence in Riyadh and Abu Dhabi. The Singapore sovereign investor, which manages $401 billion, cited the region's remarkable economic transformation and long-term fundamentals as key drivers. Despite regional turbulence from the Iran war earlier this year, international investors are increasing commitments to the Gulf.

Temasek's expansion follows similar moves by State Street and Partners Capital. The new outposts, due to open in the first half of 2027, will expand Temasek's global network to 15 offices across 11 countries. This move builds on Temasek's existing partnership with Global Infrastructure Partners and Abu Dhabi's sovereign wealth fund L'imad.

Seviora, Temasek's fund management arm, already established a presence in Abu Dhabi last year and recently signed a memorandum of understanding with First Abu Dhabi Bank for a strategic partnership. The FT reported last year that Temasek was encouraging its Singaporean portfolio companies to increase deals in the Middle East, with some planning to use the new offices as regional hubs.