It might come as a surprise to some in the Middle East that the debate over sovereign wealth funds is not about the name. Whether vehicles channelling Arab capital abroad are called government investment arms, investment companies or sovereign wealth funds is hardly the issue fuelling western paranoia.

The backlash we have witnessed over the past year has to do with exaggerated fears that government-backed entities in the emerging world could be tempted to use their financial muscle to control strategic assets. Part of the anxiety also is due to what some governments see as an uneven playing field, with foreign state-backed entities less driven by market forces than their private western competitors.