Abu Dhabi’s Mubadala overtakes Saudi Arabia’s PIF as world’s prime spender on wealth funds By Reuters

By Hadeel Al Sayegh

DUBAI (Reuters) – Abu Dhabi’s Mubadala Funding Firm accounted for about 20% of the roughly $136.1 billion spent by sovereign wealth funds globally final yr, surpassing the Saudi fund amid rising spending by Gulf nations.

Mubadala and its associates have deployed $29.2 billion in 2024, up from $17.5 billion invested in 2023, based mostly on a preliminary annual report from business specialist International SWF, which tracks sovereign funding funds of the world.

Saudi Arabia’s Public Funding Fund misplaced its rating because the world’s most energetic sovereign wealth fund after reducing its capital spending by 37% to $19.9 billion in 2024 from $31.6 billion. {dollars} the earlier yr, based on the report.

PIF Governor Yasir Al-Rumayyan mentioned in October that the sovereign wealth fund was extra targeted on the home financial system and aimed to cut back its worldwide investments.

But Gulf sovereign wealth funds managed by the governments of Abu Dhabi, Qatar and Saudi Arabia “invested a document quantity” of $82 billion in 2024, a rise of greater than 10% from 2023 , based on the report.

Different teams such because the Canadian Maple 8, Singaporean funds or Australian pension funds have been extra energetic than in 2023, however remained beneath their peaks of 2021-2022, the report provides.

Total, property underneath administration of sovereign wealth funds elevated 6.1% this yr to $13 trillion, an all-time excessive, and public pension funds elevated 6% to $25 trillion. {dollars}. Norway has the biggest sovereign wealth fund on this planet.

Sovereign investments in digitalization, which embody knowledge facilities, digital infrastructure, synthetic intelligence and house investments, reached $27.7 billion in 2024.

Abu Dhabi, a rich oil producer and longtime U.S. safety accomplice, is in a race to change into an AI chief amid rising competitors within the area, as Qatar and Saudi Arabia are rising as potential AI facilities exterior the USA.

This initiative is led by G42 and MGX, a government-backed firm, of which Mubadala is a accomplice. Emirati officers say the Gulf state’s guess on synthetic intelligence will increase its worldwide affect by making it a key financial participant lengthy after demand for oil has dried up.

Sovereign funds’ actual property and personal fairness funding volumes remained unchanged, whereas infrastructure and credit score continued to extend, the report mentioned.

Transaction exercise carried out by public funds elevated by 5% in 2024 to achieve $216 billion. The typical deal dimension hit a six-year excessive of $370 million.