Middle East Funds Lead Global Surge with $52 Billion

Middle Eastern sovereign wealth funds surged among the world's largest SWFs in global investments, with $52 billion invested in the first half of 2024, as shown in statistics provided by consultancy firm GlobalSWF.^[1]  

Global state-backed entities committed $99 billion across 166 deals in 2019, and together with Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi Investment Authority, and Qatar Investment Authority (QIA), they hit a 54% share of all state-backed foreign investments in the past year, the highest since 2009.

They further point to the continuing rise in the authority of the regional wealth funds, now overseeing more than $4 trillion of investment, in directing flows of capital. Challenges like falling oil prices also had an impact but Saudi Arabia’s PIF remained topmost in its engagement scale among all sovereign funds, backed by the government’s continuous asset reallocation.

While Middle Eastern funds have increased their share of worldwide investments, Asia-based investors, such as GIC Pte and Temasek Holdings Pte, have reduced their investment, which has led to a general decrease in disbursement by state-funded investors compared to the previous year.

Nonetheless, the extent to which Middle Eastern funds have an increased stake in these investments has edged up over the years due to the increased importance of Middle Eastern funding in the global investment arena.

It was reported that the Saudi PIF doubled its total revenues hitting SAR331 billion ($88.23 billion) last year, climbing from SAR165 billion ($43.98 billion) in 2022.

Last year, Dubai established the Dubai Investment Fund, joining the ranks of state-backed wealth funds in the region that manage close to $4 trillion