Abu Dhabi’s Mubadala Investment Co. emerged as the world’s most active sovereign wealth fund in 2024, significantly increasing its investments across private credit and artificial intelligence sectors.
This shift starkly contrasted Saudi Arabia’s Public Investment Fund (PIF), which led activity in 2023 but has since scaled back international spending to focus on domestic investments.
According to research by Global SWF, Mubadala deployed $29.2 billion in 2024, a 67% increase from the previous year, far surpassing the 7% global growth in sovereign fund investments.
Middle Eastern sovereign wealth funds accounted for five of the top 10 global dealmakers for the second consecutive year. In addition to Mubadala, the list included the Abu Dhabi Investment Authority (ADIA), ADQ, Qatar Investment Authority, and Saudi Arabia’s PIF. Together, these five funds invested $82 billion in 2024.
Abu Dhabi’s sovereign wealth funds dominated the global investment landscape, showcasing the emirate’s ambitious strategy to leverage its financial resources to establish an international footprint in finance, technology, and life sciences. As reported by Global SWF, Abu Dhabi’s funds collectively invested over $57.6 billion last year.
Saudi Arabia’s Public Investment Fund (PIF) saw its investments decline from $31.6 billion in 2023, deployed directly or through its subsidiaries, to approximately $20 billion in 2024.
In October, PIF Governor Yasir Al Rumayyan stated that the fund is now prioritizing the domestic economy, aiming to foster new industries and drive economic diversification.
The Middle East is home to many sovereign wealth funds, which have gained prominence in global deal-making following a 2022 surge in energy prices that left most Gulf state budgets with surpluses.
These funds have increasingly used their rising influence to negotiate concessions from Wall Street firms, securing access to more extensive and more lucrative investment opportunities. In 2024, the average deal size for sovereign wealth fund investments reached $370 million, the highest in six years, according to Global SWF.
Meanwhile, Singapore’s GIC Pte and Temasek Holdings Pte significantly ramped up their activity in 2024 after a cautious 2023, during which both funds halved their investment deployments.
These trends pushed total sovereign wealth fund investments to $136.1 billion in 2024, up from $127 billion the previous year. By the end of 2024, sovereign wealth funds globally managed assets totaling $13 trillion, with a significant portion of this concentrated in the oil-rich nations of the Middle East.
Developed markets continued to dominate as the primary focus for global sovereign wealth funds, with Abu Dhabi’s Mubadala directing 85% of its investments to these regions. Meanwhile, sovereign funds reduced their investments in real estate and healthcare but significantly increased allocations to infrastructure and technology sectors.
This strategic pivot highlights a growing emphasis on future-oriented industries, signaling a shift in investment priorities to align with long-term growth opportunities. As sovereign funds continue to deploy their financial might, their evolving focus will play a pivotal role in shaping global economic and technological landscapes.
