Saudi Arabia’s sovereign wealth fund overtakes Singapore’s GIC to prime spending desk

Saudi Arabia’s Public Investment Fund (PIF) was the highest spender amongst world sovereign wealth funds final yr, accounting for a couple of quarter of the $124 billion splashed by state-owned buyers, based on a preliminary report by analysis consultancy Global SWF.

The Saudi fund boosted its deal actions from a complete $20.7 billion in 2022 to $31.6 billion in 2023, the analysis stated, whilst most different counterparts tapered down their spending. Overall, world sovereign wealth funds deployed 20% fewer funds in comparison with 2022, regardless of most main inventory markets seeing a rally final yr.

“This may signal an overly cautious approach, as there is no shortage of capital to put to work among these institutions,” the report, which tracks actions internationally’s sovereign funds, famous. 

“The clear winner was Saudi’s PIF, which has become a heavy-hitter both at home and overseas,” the analysts wrote. The PIF, managed by Saudi Crown Prince Mohammed bin Salman, has complete estimated belongings of $776 billion. The Saudi fund has pursued frequent offers and joint ventures in its pursuit towards Vision 2030 — a plan initially launched again in 2016 which goals to extend financial diversification away from oil. Notable abroad investments in 2023, alongside golf and soccer, included Nintendo in Japan and Vale Basic Materials in Brazil. 

Asides from PIF, 4 different funds from the GCC (Gulf Corporation Council) made it into the highest 10 — Mubadala, the Qatar Investment Authority, ADQ and the Abu Dhabi Investment Authority.

The PIF even surpassed Singapore’s GIC, which had led spending by wealth funds for the previous six years. The Singaporean fund slashed its funding exercise by 37%, by way of quantity, regardless of receiving one in all its largest inflows from the central financial institution.

The report additionally famous the eye given to rising markets amongst a number of sovereign buyers. 

“In 2023 we can observe a renewed interest in emerging markets, including Saudi, Türkiye, and the UAE (with the help of domestic SWFs), and India, Brazil, China, and Indonesia,” it said. 

Global economies will see extra sovereign wealth funds coming on-line in 2024, reminiscent of Hong Kong’s HKIC, Philippines’ Maharlika and Pakistan’s PSWF.

“The formation of Dubai’s new SWF, DIF, will send shock waves and will surely attract personnel from other SWFs,” the analysis stated.