Gulf sovereign wealth funds have made big bets on global carmakers, especially electric vehicles. But high costs, knowledge gaps and China’s EV emerging dominance are making it nearly impossible to profit from these investments.

From Saudi Arabia’s PIF and the UAE’s Mubadala to Qatar’s QIA and Bahrain’s Mumtalakat, funds have not held back from investing millions of dollars in the auto sector.

Each one has adopted a different strategy.

Saudi Arabia wants to build an integrated, self-reliant domestic car industry. The UAE is more focused on future technologies. Bahrain leans toward prestige investment. Qatar’s approach is more functional.

What they have in common is that none has made money. Qatar Holding’s stake in the once-mighty Volkswagen has plummeted in value under pressure from Chinese EV dominance, for example.

Yet analysts believe the UAE stands the best chance of hitting its near and medium-term targets.