The value of global sovereign wealth fund (SWF) assets reached a record $12 trillion at the end of 2024, according to a Deloitte report, with Gulf-based SWFs accounting for roughly 40% of that total. Despite growing competition from newly formed funds across Africa, Asia, and Europe, the Gulf region remains the dominant force in SWF activity, driven by its large asset base and higher risk tolerance.
Between January and September 2024, Gulf sovereign funds deployed $55 billion globally, following $82 billion in 2023. The region’s five largest players—the Abu Dhabi Investment Authority (ADIA), Mubadala, ADQ, Saudi Arabia’s Public Investment Fund (PIF), and the Qatar Investment Authority (QIA)—continue to lead in outbound deal volume.
Since 2020, at least 13 new SWFs have been launched, including funds in Ireland, Pakistan, Ethiopia, and Mozambique. These are generally smaller and focused on domestic priorities such as infrastructure, employment, and fiscal stabilization. While unlikely to rival the Gulf funds in global transactions, they are increasingly active in co-investments and are competing for the same global talent pool.
In the Gulf, new vehicles have also emerged alongside existing SWFs. These include Dubai’s newly formed Dubai Investment Fund, and Abu Dhabi’s 2PointZero, created by International Holding Company and Royal Group. Family office-style entities, referred to as Royal Private Offices, have also become more active, reportedly managing around $500 billion in combined assets.
Facing increased scrutiny and tighter fiscal conditions due to fluctuating oil prices, Gulf funds are under growing pressure to boost returns and streamline operations. PIF has led several domestic consolidations, including mergers in telecom infrastructure and entertainment sectors, and is currently in talks to acquire Saudia, the national airline.
At the same time, Gulf SWFs are scaling up operations in Asia. ADIA recently launched a new entity in India’s Gujarat International Finance Tec-City and invested $750 million in GMR Group. It also appointed a former Jingdong Investments executive to head its Beijing private equity office. QIA has expanded its presence in Singapore, Japan, and other Asia-Pacific markets. Saudi Arabia’s PIF opened an office in Hong Kong and bought $2 billion in convertible bonds from China’s Lenovo.
Gulf investment in China surged to $9.5 billion in the year ending September 2024. ADIA and the Kuwait Investment Authority are now among mainland-listed Chinese firms’ top 10 foreign shareholders.
The competitive push has intensified the demand for talent. Around 9,000 professionals are currently employed across Gulf SWFs, with many firms pursuing aggressive recruitment, including from Singapore’s Temasek and Canada’s pension funds. ADIA has hired over 100 global professionals for a new quantitative unit and recruited a former Blackstone executive to lead its alternatives division.
Local governments are also leveraging SWFs to build financial hubs. Abu Dhabi’s ADGM reported a 226% increase in assets under management in June 2024 and now hosts 141 registered funds. Riyadh has required global firms to base regional headquarters in the city to qualify for state contracts.
While geopolitical uncertainty and oil price fluctuations remain risks, Gulf SWFs are expected to continue expanding globally, with growing interest in co-investment opportunities and high-growth emerging markets. The region’s role in the global SWF landscape remains central due to its asset scale, capital deployment speed, and increasingly professionalized governance structures.
