Saudi Arabia’s Public Investment Fund (PIF) leaves behind Singapore’s GIC as a significant global player

 

Saudi Arabia’s Public Investment Fund (PIF) leaves behind Singapore’s GIC as a significant global player

Saudi Arabia’s Public Investment Fund (PIF) emerged as the leading spender among global sovereign wealth funds in the past year, surpassing Singapore’s GIC, which held the top position for the preceding six years, according to a preliminary report by research consultancy Global SWF.

The research revealed that the Saudi fund significantly increased its deal activities from $20.7 billion in 2022 to $31.6 billion in 2023, accounting for approximately one-fourth of the $124 billion spent by state-owned investors globally. In contrast, many other sovereign wealth funds reduced their spending, deploying 20% less capital compared to the previous year, despite a general market rally.

 

Saudi Arabia's Public Investment Fund supporting Vision 2030

 

The report highlighted the cautious approach adopted by several sovereign wealth funds, stating, “This may signal an overly cautious approach, as there is no shortage of capital to put to work among these institutions.”

The analysts noted that Saudi Arabia’s PIF, controlled by Crown Prince Mohammed bin Salman, emerged as the clear winner, becoming a significant player both domestically and internationally. With estimated total assets of $776 billion, the PIF actively pursued deals and joint ventures in line with its Vision 2030 plan, aiming to diversify the economy away from oil. Notable overseas investments in 2023 included ventures with Nintendo in Japan and Vale Basic Materials in Brazil.

Additionally, four other funds from the Gulf Cooperation Council (GCC) - Mubadala, the Qatar Investment Authority, ADQ, and the Abu Dhabi Investment Authority - made it into the top 10.

 

PIF to set up five regional investment firms in MENA region

 

The report highlighted a shift in attention toward emerging markets among several sovereign investors, stating, “In 2023, we can observe a renewed interest in emerging markets, including Saudi, Türkiye, and the UAE (with the help of domestic SWFs), and India, Brazil, China, and Indonesia.”

It also predicted the emergence of more sovereign wealth funds in 2024, including Hong Kong’s HKIC, Philippines’ Maharlika, and Pakistan’s PSWF. The formation of Dubai’s new SWF, DIF, was expected to have a significant impact, attracting personnel from other sovereign wealth funds.

Source: https://www.cnbc.com/