Buoyed by oil prices above $100 a barrel and a growing confidence in the global economy, sovereign wealth funds in the Middle East expect to receive more funding this year, providing them with extra financial firepower to raise their investments into emerging markets and asset classes such as private equity and real estate, according to an Invesco study.

Latin America, Africa and China are likely to be the main beneficiaries of the continuing shift towards emerging markets by the world’s sovereign funds despite their historical preference for developed markets such as the United Kingdom, Invesco said in its survey of 52 sovereign investors who collectively manage $5.7 trillion in assets.

“Is it just looking for short term gain? We think no, this is strategic and structural. This is partly driven by the fact they [SWFs] were underweight in these asset classes that produce high yields. Interest rates are low so infrastructure and real estate represent a really good opportunity,” said Nick Tolchard, head of Invesco Middle East.

The increase in funding for Middle Eastern funds not only reflects a more confident regional outlook on the global economy, but also implies that domestic governments in the Persian Gulf have grown at ease with the impact the Arab Spring had on their countries, Mr. Tolchard said.

“What we’re seeing in the last two years are governments spending directly on job creation, public sector spending, direct infrastructure spending. The big change now is that they’re giving the money to the sovereign wealth funds to deploy it,” he added.

Moreover, political instability elsewhere in the region is pushing oil prices up, thereby increasing and guaranteeing the main source of income of the oil-rich Persian Gulf states.

“Slightly Ironically, with instability in the region, the oil prices go up and that gives the governments sometimes a little bit more room to maneuver,” said Mr. Tolchard.

Here are some of the key Middle East takeaways from the Invesco report:

54% of Middle East SWFs expect an increase in new funding in 2014, higher than the 46% average for all funds.

83% of Mideast SWFs expect to step up their new exposure to global private equity compared to 60% in 2013.

All Mideast SWFs say they will boost their exposure to global real estate and infrastructure compared to 67% and 50% last year.

67% of Mideast SWFs plan to allocate more funds to Latin America, while half will do the same to Africa and 60% to India.

In return, sovereign investors from all regions will increase allocations to the Middle East, with exception of the West where one third is said to reduce Mideast investments.