Abu Dhabi’s Mubadala overtakes Saudi Arabia’s PIF as world’s prime wealth fund spender

By Hadeel Al Sayegh

DUBAI (Reuters) – Abu Dhabi’s Mubadala Funding Firm accounted for about 20% of the just about $136.1 billion spent by sovereign wealth funds worldwide final 12 months, overtaking Saudi Arabia’s wealth fund amid a surge in spending from Gulf international locations.

Mubadala and its subsidiaries deployed $29.2 billion in 2024, up from $17.5 billion invested in 2023, primarily based on a preliminary annual report from trade specialist International SWF, which tracks the world’s sovereign funding funds.

Saudi Arabia’s Public Funding Fund misplaced its rating because the world’s most lively sovereign wealth fund after it lower its funding spend by 37% to $19.9 billion in 2024 from $31.6 billion the earlier 12 months, in keeping with the report.

PIF Governor Yasir Al-Rumayyan stated in October the sovereign wealth fund was extra centered on the home economic system and aiming to cut back the fund’s worldwide investments.

Nonetheless, the Gulf’s sovereign wealth funds managed by governments of Abu Dhabi, Qatar and Saudi Arabia “invested a document” $82 billion in 2024, an increase of greater than 10% from 2023, the report stated.

Different teams comparable to Canada’s Maple 8, the Singaporean funds or the Australian superannuation funds have been extra lively than in 2023, however remained beneath their peaks in 2021-2022, the report added.

General sovereign wealth funds’ property beneath administration rose 6.1% this 12 months to $13 trillion, a historic peak, and public pension funds rose 6% to succeed in $25 trillion. Norway has the world’s largest sovereign wealth fund.

Sovereign investments into digitisation, which embody information centres, digital infrastructure, synthetic intelligence and house investing, reached $27.7 billion in 2024.

Abu Dhabi, a rich oil producer and longtime safety accomplice of the U.S., is in a race to grow to be an AI chief amid rising competitors within the area as Qatar and Saudi Arabia pitch themselves as potential AI hubs exterior the US.

The push is led by the government-backed G42 and MGX, a agency during which Mubadala is a accomplice. Emirati officers imagine the Gulf state’s wager on synthetic intelligence will strengthen its worldwide clout by making it a key financial actor lengthy after demand for oil has dried up.

Actual property and personal fairness funding volumes by sovereign wealth funds have been unchanged, whereas infrastructure and credit score continued to rise, the report stated.

Deal exercise by state funds rose 5% in 2024 to $216 billion. Common deal measurement rose to a six-year excessive of $370 million.