Beyond Oil: Why Gulf Family Offices Are Doubling Down on US Logistics, Data, and Housing

This is not simply diversification; it is a strategic pivot informed by post-oil national visions, ESG alignment, and a focus on long term resilience.

Consistent with these themes, and according to the 2025 UBS Global Family Office Report, Middle Eastern family offices continue to maintain their allocation concentration in North America, rising from 49% in 2024 to 55% in 2025 (Exhibit 1).

As part of this slight but notable rise in allocations, Gulf family offices—especially those from Saudi Arabia, the UAE, and Qatar—are now concentrating their US allocations into sectors like data centers, logistics infrastructure, and student and workforce housing.

Additionally, this same UBS report indicates that electrification and generative AI are their top two emerging technologies of familiarity, with 78% and 77%, respectively (Exhibit 2).

These sectors align with energy transition trends and long run population shifts. Investors see them as resilient to volatility and better suited to an economy increasingly shaped by technology, climate pressure, and urban demand.

ESG AND POLITICAL RISK

In the US, ESG has entered a more politically charged phase. The Trump administration and allied policymakers have signaled plans to roll back ESG-related regulations, framing them as governmental overreach.

And as shown in Exhibit 3, sustainable fund flows softened in Europe in early 2025, and US markets show similar pressure, which suggests that ESG-informed capital is becoming more selective, not absent.

For Middle Eastern investors, these developments are not prohibitive barriers. On one hand, an ESG-focused US investment could be viewed as misaligned with a Trump administration agenda, exposing it to delays, regulatory changes, or reputational risk.

This makes deal structuring and sector selection critical. Given their long-term horizons, Middle Eastern family offices are finding opportunities that shorter-term investors have passed over, allowing some selected family businesses to leverage their existing US partnerships to make such investments.

Analyses by Tax Foundation and by Arnold and Porter explain that the One Big Beautiful Bill Act scales back or accelerates the phaseout of several IRA clean energy credits and tightens domestic content and foreign entity rules, which removes a prior tailwind for developers and investors.

Select opportunities remain in sub-sectors such as green metals, advanced recycling, and renewable-linked infrastructure, where Middle Eastern investors can align their own ESG targets with commercially attractive outcomes.

DATA CENTERS

Few assets have the growth profile of data centers. But their energy use is a challenge. For Gulf investors, this is not a deterrent. It is a reason to lead. While there are no explicit restrictions uniquely targeting Gulf investment into US data centers, such transactions can trigger review under the Committee on Foreign Investment in the United States (CFIUS) when they involve critical infrastructure or sensitive technology.

Leading Saudi and UAE investors address this by partnering with established US operators, structuring deals through US-registered entities, and adhering to rigorous AML/KYC protocols. These measures ensure compliance with US law and position them as credible partners in advancing America’s digital infrastructure. (See Exhibit 4.)

Saudi Arabia’s DataVolt has announced a $20 billion investment into US data centers powered by renewable energy and green hydrogen. These assets will serve hyperscale cloud and AI operators with high capacity and low emissions. The UAE’s DAMAC Group has launched a parallel initiative, also committing $20 billion to sustainable data infrastructure in America.

These moves show how Gulf investors are connecting their legacy in energy with their vision for the digital economy. By developing data centers that are both tech forward and climate aligned, they are redefining what long-term digital infrastructure looks like.

LOGISTICS

Modern logistics properties are no longer just warehouses. They are energy systems, which is reflected in the investment decision-making of Gulf-based investors. Tracking e-commerce behavior is one useful way to strengthen this thesis, as shown in Exhibit 5, which demonstrates how upticks in online sales translate into more inventory moves, more warehouse demand, more last-mile deliveries, and ultimately, more energy consumption.

Flat roof distribution centers are ideal for solar arrays. New builds can integrate battery storage, backup power, and high efficiency systems. These assets are not only cash flowing, but also adaptable to climate risks and regulatory shifts.

Qatar’s sovereign fund has prioritized US logistics and trade infrastructure. Family offices are now co investing alongside operators with experience in sustainable supply chain assets. Properties with microgrid potential or solar readiness are especially attractive. They offer operational resilience and tenant appeal, especially as Amazon and others push for greener logistics.

HOUSING

Residential sectors such as student housing and workforce housing are also receiving renewed attention from Gulf capital. These sectors offer defensive cash flow, consistent demand, and the ability to deliver social outcomes.

ADIA has partnered with Landmark Properties to launch a one billion dollar student housing platform in the US. Their focus is on tier one university markets, energy upgrades, and long term operational alignment. Similar strategies are being explored for mid market rentals across growing Sunbelt cities.

For Gulf family offices, this is about more than income. It is about relevance. Housing touches real people. Investing in efficient, accessible homes positions investors as contributors to community outcomes, not just beneficiaries of market cycles.

THE ONGOING SHIFT

The shift underway is not tactical. It is thematic. Middle East family offices are adjusting to a global economy shaped by energy transition, infrastructure renewal, and demographic change. Their capital is moving into real estate sectors that are resilient, scalable, and built for tomorrow. From renewable powered data centers to solar smart warehouses and socially attuned housing, Gulf investors are no longer just participating in US real estate. They are shaping its future. This is what post oil allocation looks like.

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Note from the Editor: Issue #19

Mid-Year Pulse: Global Investors on the Economy, Energy, and Housing

Benjamin van Loon | AFIRE

Bend, Not Break: Investing in Real Estate Amid Economic Uncertainty

John Murray + François Trausch + Russell Gannaway + Kirill Zavodov | PIMCO

Test Of Time: How US Real Estate Withstands an Uncertain Investment Market

Riaz Cassum | JLL

Oh Canada: Why International Investors Might Want a Second Look at Canadian Real Estate Markets

Amy Erixon + Long Tang + Daniel Goldberg + Marie-France Benoit | Avison Young

Beyond Oil: Why Gulf Family Offices Are Doubling Down on US Logistics, Data, and Housing

Abbas Hashmi | Saudi Family Holdings

South of the Border: Higher Yields and Growth in Mexican Industrial

Shaun Libou | Raymond James

Migration Myth: NIMBYism and Why Coastal Movers Aren’t Affecting Sunbelt Housing Supply

Donal Warde | Consultant + Ron Bekkerman | Constellation Data Labs

Machine Center: The AI-Driven Transformation of Data Center Investment

Sam Chandan | Chen Institute for Global Real Estate, NYU Stern School of Business

AI in Commercial Real Estate: A Practical Guide for Industry Leaders

Armel Traore Dit Nignan + Shaarvani Kavula | Principal Real Estate

Artificial Control: Are You Ready for AI Management and Oversight?

Marie-Noelle Brisson + Michael Savoie | CyberReady, LLC

Capitalizing on Dynamics: Demographic Mega-Trends Impacting CRE

Stewart Rubin | New York Life Real Estate Investors

Mid-Cap Assets: An Under-Examined Segment in CRE

Asaf Rosenheim | Profimex

The Lifestyle Renter: A Growing Opportunity for Strategic Investment in High-Quality Apartment Communities

Hannah Waldman | The Dermot Company

The Climate Is Speaking: CRE Underwriting for a Future That’s Listening

Ines Diez + Thomas Stanchak | Stoneweg

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