Abu Dhabi’s Mubadala has overtaken Saudi Arabia’s PIF as the world’s biggest spender of Reuters funds
Author: Hadeel Al Sayegh
DUBAI (Reuters) – Abu Dhabi investment firm Mubadala accounted for about 20% of the nearly $136.1 billion spent by sovereign wealth funds worldwide last year, overtaking Saudi Arabia’s sovereign wealth fund amid a surge in Gulf spending.
Mubadala and its affiliates have invested $29.2 billion in 2024, up from $17.5 billion invested in 2023, according to a preliminary annual report by industry expert Global SWF, which tracks the world’s sovereign wealth funds.
Saudi Arabia’s public investment fund lost its ranking as the world’s most active sovereign wealth fund after cutting its investment spending by 37% to $19.9 billion in 2024 from $31.6 billion the previous year, according to a report.
PIF Governor Yasir Al-Rumayyan said in October that the sovereign wealth fund was more focused on the domestic economy and aimed to reduce the fund’s international investments.
Still, Gulf sovereign wealth funds controlled by the governments of Abu Dhabi, Qatar and Saudi Arabia “invested a record” $82 billion in 2024, up more than 10% from 2023, the report said.
Other groups such as Canada’s Maple 8, Singaporean funds or Australian pension funds were more active than in 2023 but remained below their peaks in 2021-2022, the report added.
Total assets of sovereign wealth funds under management rose 6.1% this year to $13 trillion, a historic high, and public pension funds rose 6% to $25 trillion. Norway has the world’s largest sovereign wealth fund.
Government investments in digitization, which include data centers, digital infrastructure, artificial intelligence and space investments, will reach $27.7 billion in 2024.
Abu Dhabi, a rich oil producer and longtime US security partner, is in the race to become a leader in artificial intelligence amid growing competition in the region as Qatar and Saudi Arabia emerge as potential AI hubs outside the United States.
The push is being led by G42 with the support of the government and MGX, a company in which Mubadala is a partner. Emirati officials believe the Gulf state’s bet on artificial intelligence will bolster its international influence by making it a key economic player long after demand for oil dries up.
The volume of investment by sovereign funds in real estate and private equity remained unchanged, while infrastructure and credit continued to grow, the report said.
The sovereign wealth fund business grew 5% in 2024 to $216 billion. The average deal size rose to a six-year high of $370 million.
