Abu Dhabi’s Mubadala Investment emerged as the world’s most dynamic sovereign wealth fund in 2024, broadening its influence across private credit and artificial intelligence sectors.
This development follows a shift by Saudi Arabia’s Public Investment Fund (PIF), the most active sovereign fund in 2023. The fund has reduced its spending and refocused on domestic investments.
According to Global SWF, a research consulting firm, Mubadala invested $29.2 billion last year, a 67% increase from the previous year. This growth far exceeded the global sovereign fund investment growth rate of 7%.
Mubadala’s strong presence in global indices reflects the United Arab Emirates’ ambitious financial strategy of positioning itself as a finance, technology, and life sciences leader.
UAE-managed sovereign funds collectively invested over $57.6 billion in 2024. For the second consecutive year, Middle Eastern sovereign funds dominated global dealmaking, with five of the ten most active players coming from the region.
The Abu Dhabi Investment Authority and ADQ, two other Abu Dhabi-based funds, joined the PIF and Qatar Investment Authority on the elite list of top global investors. Together, these five funds invested $82 billion last year.
Middle Eastern sovereign funds have become vital sources of capital for international transactions, supported by the 2022 surge in energy prices, which left most Gulf government budgets in surplus.
As a result, total sovereign fund investments grew from $127 billion in 2023 to $136.1 billion in 2024.
While developed markets remain the primary focus for most global sovereign funds, Mubadala allocated 85% of its investments to these markets.
In contrast, the PIF’s investments, made directly or through subsidiaries, are expected to decrease from $31.6 billion in 2023 to approximately $20 billion in 2024.
PIF Chairman Yasir Al-Rumayyan stated last October that the fund is shifting its focus to the domestic economy to foster new industries and promote economic diversification.
Most Commented