Sovereign wealth funds globally amassed a record US$15 trillion in assets under management last year, when many deepened their technology investments and profited from buoyant markets, Global SWF said in a new report.
Sovereign owned investors plowed US$66 billion into investments in artificial intelligence (AI) and digitalization last year, the data firm said.
Middle East sovereign wealth funds led on digital investments, with Abu Dhabi’s Mubadala Investment Co investing US$12.9 billion in AI and digitalization, followed by the Kuwait Investment Authority’s US$6 billion and the Qatar Investment Authority’s US$4 billion last year, the report said.
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The Middle East continues to be a hotspot for sovereign wealth fund riches. The main seven Gulf wealth funds accounted for 43 percent of all capital invested by state-owned investors globally at US$126 billion, a historical maximum.
In particular, Saudi Arabia’s Public Investment Fund was the single largest dealmaker last year by committing US$36.2 billion. However, the fund’s participation in the acquisition of video game industry heavyweight Electronic Arts Inc made up the bulk of that figure.
Stripping out that deal, Abu Dhabi’s Mubadala was the most active sovereign wealth fund, investing a record US$32.7 billion over 40 transactions, the report said.
Sovereign investors — a term that encompasses other entities such as public pension funds — grew their weight last year amid a market of strong returns for investors across fixed income, public equities, real estate and infrastructure, Global SWF said.
The US stood out with US$13.2 trillion in assets under management by state-owned investors, followed by China with US$8.2 trillion and the United Arab Emirates at US$2.9 trillion, it said.
The main destination for state-owned investments was the US, attracting US$131.8 billion last year compared with US$68.9 billion a year earlier, the report said, while investments into China by sovereign-owned investors fell to US$4.3 billion from US$10.3 billion in 2024.
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