The 10 largest Arab sovereign wealth funds manage assets valued at USD 4.76 trillion

 The PIF spent $31.6 billion in 2023 (by Adobe)

By the end of 2024, the 10 largest Arab sovereign wealth funds had assets under management totalling USD4.76 trillion, according to data from the Global SWF Sovereign Wealth Fund Tracker. Ahmad Abdel Rahman reports.

The Abu Dhabi Investment Authority (ADIA) topped the list of assets under management by Arab sovereign wealth funds (SWF) surpassing the USD1 trillion mark, followed by the Kuwait Investment Authority (KIA) with approximately $969 billion, and then the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, with total assets under management of approximately $925 billion.

According to Bloomberg, Abu Dhabi's Mubadala Investment Company (often known as Mubadala) was the world's most active sovereign wealth fund last year, intensifying dealmaking in areas such as private credit and artificial intelligence. The PIF was the most active in 2023, focusing its spending on domestic investments.

Mubadala has spent $29.2 billion in 2024, according to research firm Global SWF, representing a 67 percent increase from the previous year. This growth exceeded the overall growth in investments by global sovereign funds, which amounted to only 7 percent.

For the second year in a row, Middle Eastern sovereign wealth funds accounted for five of the top 10 most active funds globally in deal making, according to the report.

The list included, in addition to Mubadala, ADIA, Abu Dhabi Developmental Holding company (ADQ), the PIF, and the Qatar Investment Authority (QIA). These five funds spent a combined $82 billion last year.

However, Abu Dhabi's sovereign wealth funds accounted for the largest portion of the global index. The Emirate's sovereign wealth funds invested more than $57.6 billion last year, according to Global SWF.

Saudi Arabia's PIF spent $31.6 billion in 2023, both directly and through its subsidiaries. This figure was around $20 billion higher than in 2024.

Yasser Al-Rumayyan, the fund's governor, said last October that the focus was now on the domestic economy. He affirmed that the fund seeks to develop new industries and promote economic diversification. He also added that the NEOM Investment Fund (NIF) supports groundbreaking projects, managing investments to boost economic growth. NEOM is a planned city in northern Saudi Arabia.

The Middle East is home to a large number of sovereign wealth funds, which have become a prominent source of financing for international deals, especially after the rise in energy prices in 2022, which led to a budget surplus for most Gulf governments.

Globally, funds such as Singapore's GIC and Temasek were significantly more active in 2024 than in 2023, both of which had reduced their spending by about 50 percent that year due to a more cautious investment approach.

This increased activity in 2024 contributed to raising total investments by sovereign funds to $136.1 billion, compared to $127 billion in 2023. Total assets under management by sovereign funds reached $13 trillion by the end of 2024, with most of this wealth concentrated in oil-rich Middle Eastern countries.

Developed markets remained the primary focus for most global sovereign wealth funds. Mubadala invested 85 percent of its capital in these markets. Sovereign wealth funds also reduced their investments in real estate and healthcare in 2024, while increasing expenditure in infrastructure and technology.Arab sovereign wealth funds reached USD 4.76 trillion in assets by the end of 2024, with Abu Dhabi's ADIA surpassing the $1 trillion mark. Mubadala led global dealmaking, spending $29.2 billion—up 67 percent from the previous year—while Saudi Arabia's PIF focused its $31.6 billion investments on domestic development. Five Middle Eastern funds ranked among the world's most active, collectively investing $82 billion. As energy revenues fuel financial powerhouses, Gulf SWFs are reshaping global markets with a growing focus on tech, infrastructure, and economic diversification.

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