Sovereign Wealth Funds (SWFs) in the Gulf are transforming global investment landscapes, with the UAE and Saudi Arabia leading the expansion. A recent Deloitte Middle East report highlights that global SWF assets under management (AUM) reached $12 trillion by the end of 2024. Projections indicate this figure will climb to $18 trillion by 2030.
Over the past two years, SWFs have experienced remarkable growth. The establishment of new funds, major acquisitions, and increasing asset valuations have contributed to this expansion.
Gulf SWFs Control 40% of Global Assets
Gulf-based sovereign funds hold nearly 40% of global SWF assets. Six of the ten largest funds by AUM originate from the region. The total number of SWFs worldwide has tripled since 2000, reaching approximately 160-170 funds. Between 2020 and 2023, 13 new entities were created.
The leading Gulf SWFs include:
- Abu Dhabi Investment Authority (ADIA)
- Mubadala
- Abu Dhabi Developmental Holding Company
- Saudi Public Investment Fund (PIF)
- Qatar Investment Authority (QIA)
These funds continue to dominate regional investments. In 2023, they deployed $82 billion, followed by an additional $55 billion in the first nine months of 2024.
Julie Kassab, Sovereign Wealth Fund Leader at Deloitte Middle East, stated:
“The Gulf remains the epicenter of sovereign wealth fund activity. Major players are expanding their global footprint while enhancing investment strategies and operational efficiency.”
Shifting Focus Toward Asia and Africa
The Deloitte report highlights a strategic shift toward high-growth markets in Asia. Many Gulf funds have opened offices across the Asia-Pacific region. Investments in China, India, and Southeast Asia have significantly increased.
In the year ending September 2024, Gulf SWFs invested an estimated $9.5 billion in China. ADIA and the Kuwait Investment Authority (KIA) now rank among the top 10 shareholders in Chinese A-share listed firms. As Western investors scale back, Middle Eastern funds are strengthening ties with Beijing.
Africa has also emerged as a key investment destination, particularly in the mining sector. The UAE and Saudi Arabia have shown strong interest in high-risk extractive ventures, leveraging stakes in multinational mining firms.
Evolving Investment Strategies and Rising Competition
Gulf SWFs are adopting more proactive investment strategies. Many funds are now willing to divest from underperforming assets. They are also demanding greater transparency from portfolio companies and increasing their boardroom influence.
Competition for top financial talent has intensified. Gulf SWFs employ approximately 9,000 professionals across their operations. Senior executives with experience at leading global funds, such as Singapore’s Temasek and Canada’s Maple Eight, are in high demand.
A new trend is also emerging—the rise of “Royal Private Offices.” These investment vehicles now control an estimated $500 billion in assets, further strengthening the Gulf’s financial influence.
Future Outlook: Innovation Amid Market Uncertainty
Despite geopolitical risks and commodity price fluctuations, Gulf SWFs remain resilient. Deloitte notes a rising trend of protectionism in emerging economies. Governments are creating domestic funds that co-invest with international players rather than competing directly.
As governance, risk management, and sustainable returns take priority, Gulf SWFs are set to maintain their leadership in global markets.
