A preliminary report issued by the research consulting firm Global SWF revealed that the Saudi Public Investment Fund was the top spender among global sovereign wealth funds last year, as it spent about a quarter of the amounts spent by these funds, amounting to about $124 billion.
The Saudi Fund boosted its deal activities, according to the research, from a total of $20.7 billion in 2022 to $31.6 billion in 2023, even as most of its counterparts reduced their spending, according to what the “Network” reported.CNBC“.
Overall, global sovereign wealth funds reduced their investments in 2023 by 20% compared to 2022, although most major stock markets saw a rise last year.
“This may indicate an overly cautious approach, as there is no shortage of capital to operate among these institutions,” noted the report, which tracks activities across the world’s sovereign wealth funds.
“The clear winner is the Saudi Public Investment Fund, which has become a major influence domestically and abroad,” the analysts wrote. “The total assets of the fund, controlled by Saudi Crown Prince Mohammed bin Salman, amount to $776 billion.”
The Saudi Fund has repeatedly sought to conclude deals and joint projects as it works to achieve Vision 2030 – a plan launched in 2016 that aims to increase economic diversification away from oil. Notable foreign investments included in 2023, in addition to investment in golf and football, Nintendo in Japan and Vale Basic Materials in Brazil.
In addition to the Saudi Public Investment Fund, four other funds from the Gulf Cooperation Council countries reached the top ten places: Mubadala, affiliated with the UAE, the Qatar Investment Authority, the Holding Company (ADQ), and the Abu Dhabi Investment Authority.
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The Public Investment Fund has overtaken the Singapore Investment Fund, which has led wealth fund spending for the past six years. The Singaporean fund reduced its investment activity by 37% in volume, despite receiving one of the largest inflows of funds from the central bank.
The report also pointed to the interest received by many sovereign investors in emerging markets.
“In 2023, we could see renewed interest in emerging markets, including Saudi Arabia, Turkey, the United Arab Emirates (with the help of local sovereign wealth funds), India, Brazil, China and Indonesia,” the report said.
Global economies will see more sovereign wealth funds emerge in 2024, such as HKIC in Hong Kong, Maharlika in the Philippines, and PSWF in Pakistan.
The research indicated that the formation of the new sovereign wealth fund in Dubai will certainly attract employees from other sovereign wealth funds.”
2024-01-03 18:10:58
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