Kuwaiti funds witnessed a 6.55% drop in AUM in the first three quarters of 2011 as outflows outpaced inflows, writes Zawya researcher Celine Salloum. By Celine Salloum, Research Associate, Zawya Year 2011 has been tough on investors. The nuclear disaster in Japan and the ongoing Eurozone debt crisis have sent markets reeling, but perhaps the most long-term impact will come from the Arab Spring. In response to the turmoil, Gulf countries have announced USD 150 billion worth of social welfare spending in the region since the unrest began, according to an economic note by Jean-Michel Saliba of Bank of America Mer rill Lynch, who estimates that “ the extra GCC spending pledges of intra-regional fiscal transfers to less endowed members total … 12.8% of GDP, while 2011 appropriations could reach 4.9% of GDP, supporting growth.” Investment funds in the GCC region are characterized by an evolving market. Until the global crisis, the GCC markets had registered robust growth driven