In 2024, the investment landscape underwent significant shifts, particularly in the realm of sovereign wealth funds. Dominating this year’s investments was Abu Dhabi’s Mubadala Investment Company, which successfully claimed 20% of the global expenditures, totaling nearly $136.1 billion. This marked an impressive surge from its $17.5 billion expenditures in 2023 to $29.2 billion in 2024. Such a dramatic ascent showcased not only Mubadala’s growing influence but also the strategic emphasis Gulf nations are placing on diversifying their investment portfolios amid changing economic landscapes.
In stark contrast, Saudi Arabia’s Public Investment Fund (PIF) experienced a notable decline, dropping its investment spending by 37% to $19.9 billion. This reversal in momentum reflects a strategic pivot as the PIF aims to bolster the domestic economy over international investments, as articulated by Governor Yasir Al-Rumayyan. This conservative approach has realigned Saudi investment ambitions, weakening its previous standing as the world’s foremost investor in sovereign wealth dynamics.
Despite the contrasting fortunes of individual funds, the collective investments of Gulf sovereign wealth funds—including those from Abu Dhabi, Qatar, and Saudi Arabia—reached an unprecedented $82 billion in 2024. This increase of over 10% from the previous year reflects regional governments’ commitment to fortifying their economic resilience through strategic investments. The report by Global SWF indicates ongoing activity in sectors like infrastructure and credit, which have consistently attracted interest and funding from these investment giants.
In the broader context, while countries like Canada and Singapore maintained activity levels, they remain below the highs experienced during the 2021-2022 boom period. The global assets managed by sovereign wealth funds surged by 6.1% this year to a record $13 trillion, underscoring the sustained growth of these funds even amid international uncertainties. Additionally, the investments concentrating on digitalization have shown remarkable growth as sovereign funds steered $27.7 billion into various digital avenues—including AI and infrastructure—in 2024.
Abu Dhabi’s strategic positioning as a leader in the AI sector has prompted strong backing for technological advancement from government-supported firms like G42 and MGX, with Mubadala as a key partner. Emirati officials are betting that augmenting their capabilities in AI will enhance their international standing, preparing the economy for a post-oil future. This optimism casts a transformative light on the region, which is undergoing a renaissance of sorts in terms of technology and innovation.
Real estate and private equity appear stagnant, yet infrastructure, credit, and overall deal activity blossomed, with a 5% increase in total state fund deal activity to reach $216 billion this year. Average deal sizes also surged to their highest levels in six years, reaching $370 million, indicating a robust appetite for larger investments. In summation, 2024 has emerged as a remarkable year for Gulf sovereign wealth funds, illustrating the region’s dynamic shift towards a diversified and forward-thinking investment strategy.