Sovereign wealth funds are state-owned investment funds which comprises of money generated by governments through their surplus reserves. Sovereign wealth funds, which obtain their funds from state-affiliated sources, invest their funds into shares and bonds. These funds also help strengthen a country’s economy, with citizens benefitting from it.
According to the data by the Sovereign Wealth Fund Institute (SWFI) China leads the list of the biggest sovereign wealth funds globally with over $1.22 trillion in assets.
However, the data showed that UAE tops the list in the GCC region. That being said, here is a look at the biggest sovereign wealth funds in GCC.
1. Abu Dhabi Investment Authority – $708.75 billion
The Abu Dhabi Investment Authority (ADIA), was founded in 1976 and invests funds on behalf of the emirate’s government. It is the largest sovereign wealth fund in the Middle East with an asset value of $708.75 billion.
The primary source of ADIA is the revenue generated by oil exports in the emirate. Additionally, the largest GCC sovereign wealth fund comprises of over two dozen asset classes and subcategories, from equities and fixed income to hedge funds, real estate, private equity and infrastructure.
2. Kuwait Investment Authority – $708 billion
Kuwait’s sovereign wealth fund which is known as Kuwait Investment Authority (KIA) is the oldest wealth fund in the world and was first established when the Kuwait Investment Board took its form in 1953. The organisation invests in oil surplus revenues, thus reducing the country’s reliance on oil reserves.
Aside from this, the KIA manages the General Reserve Fund (GRF) and is the second-largest sovereign wealth fund in the Gulf, with an asset value of $708 billion.
3. Public Investment Fund – $607 billion
Established in 1971, the Public Investment Fund (PIF) controls over $607 billion in assets, placing it among the largest wealth funds in the world.
The PIF helps move the kingdom away from its reliance on oil revenues, and has invested in many projects and institutions, such as the Blackstone Infrastructure Fund, Virgin Galactic, and the Softbank Vision Fund.
The success behind the wealth fund’s ranking relies solely on the launch of Saudi Vision 2030 in 2016. PIF’s assets seen a value increase by 308 percent ever since then.
4. SAMA Foreign Holdings – $490 billion
Saudi Arabia’s SAMA Foreign Holdings was established in 1952 and currently holds an asset value of $490 billion.
The wealth fund is an investment arm of the Saudi Arabian Monetary Authority (SAMA) and is also part of the Central Bank of Saudi Arabia.
Established to manage the kingdom’s massive oil surpluses, and also to support the country’s budgetary needs, SAMA Foreign Holdings’ has a different investment strategy compared to its second sovereign wealth fund Public Investments Fund (PIF).
The former focuses on fixed-income investments, such as sovereign debt instruments, especially US treasury bonds.
5. Qatar Investment Authority – $461 billion
Established in 2005 by Qatar, the country’s sovereign wealth fund Qatar Investment Authority (QIA) holds an asset value of $461 billion.
QIA was established to develop, invest and manage the country’s reserve funds and other assets. As of mid-2022, the QIA’s portfolio was worth roughly $360 billion.
6. Investment Corporation of Dubai – $299 billion
The Investment Corporation of Dubai (ICD), which was established in 2006 has a total assets value of $305 million. ICD was established with a mandate to manage the Government of Dubai’s portfolio of commercial companies and investments.
It is also the principal investment arm of the emirate’s government and manages a wide portfolio of assets that support emirate’s growing economy.
7. Mubadala Investment Company – $284 billion
Established in 2017, Mubadala Investment Company is a merger between Mubadala Development Company and the International Petroleum Investment Company, both of which are state-backed by Abu Dhabi.
The sovereign wealth fund was founded by the government in order to channel its oil funds for the developing economy.
With a diverse portfolio of over 50 countries, the Mubadala Development Company runs a business that spans six continents with interests across multiple sectors and asset classes. While it is headquartered in Abu Dhabi, Mubadala also has offices in London, Moscow, New York and Beijing.
8. Abu Dhabi Developmental Holding Company PJSC – $159 billion
Abu Dhabi Developmental Holding Company PJSC (ADQ) is a sovereign wealth fund located in the capital city.
The current assets for ADQ is $159 billion, which has a broad portfolio of major enterprises, spanning key sectors of the emirate’s diversified economy.
9. Emirates Investment Authority – $87 billion
Founded in 2008, the Emirates Investment Authority (EIA) is a sovereign wealth fund located in Abu Dhabi.
Current Assets for EIA is valued at $87 billion and has a globally diversified investment portfolio which includes both developed and emerging markets.
EIA also has investments in the Americas, Europe, Asia and the Middle East.
10. Oman Investment Authority – $17 billion
Located in Muscat, Oman Investment Authority was founded in 2020.
The sovereign wealth fund holds an asset value of $17 billion and invests in over 40 countries worldwide across two categories – public markets and private markets.
Public Markets include global stocks, fixed-income bonds and short-term assets whereas private market includes private investments in real estate developments, logistics, service sector, mining, industrial projects, and technology.
Follow us on
