Sovereign Wealth Funds (SWFs) reached a historic milestone in 2024, managing $13 trillion in assets, of which the GCC region managed 38 percent. A recent report by Global SWF also revealed that Southeast Asia holds 10 percent of total assets while China manages 20 percent of total Sovereign Wealth Fund assets. Another country that dominated the landscape in 2024 was Norway, with 14 percent of total assets, including the world’s largest SWF.
The balance sheets of State-Owned Investors (SOIs) reached a historic high in 2024, approaching $55 trillion. Sovereign Wealth Funds (SWFs) hit the significant milestone of $13 trillion, Public Pension Funds (PPFs) expanded their assets to $25 trillion and Central Banks (CBs) grew their foreign reserves by 6 percent to $16.9 trillion.
Projections suggest that SOIs could collectively reach $60 trillion in 2025 and $75 trillion by 2030, as GCC nations progress toward their ambitious economic visions.
Mubadala emerges as lead investor in 2024
State-owned investors increased their investment activity in 2024, despite the number of deals remaining relatively unchanged from 2023. The average transaction size rose to $0.37 billion, reflecting strong demand for large infrastructure and credit deals.
Compared to 2023, investments by SWFs grew by 7 percent to $136.1 billion across 358 transactions, while PPFs increased their investments by 2 percent to $80.5 billion across 227 deals.
The Abu Dhabi-based SWF, Mubadala, emerged as the lead investor in 2024, deploying $29.2 billion across 52 deals, a 67 percent increase from the previous year, according to Global SWF. Mubadala continued to expand across regions and industries, supported by subsidiaries such as ADIC, Mubadala Capital and MGX.
Top 10 global dealmakers
Alongside Mubadala, four other GCC SWFs ranked among the top 10 global dealmakers: Abu Dhabi peers ADIA and ADQ, Saudi Arabia’s PIF, and Qatar’s QIA, collectively referred to as the “Oil Five.” The remaining slots in the top 10 were filled by Singapore’s GIC and Temasek, which were significantly more active than in 2023, two Canadian “Maple Eight” funds (CPP and CDPQ), and APG from the Netherlands.
Collectively, the Oil Five invested a record $82 billion in 2024, while Canadian, Singaporean, and Australian funds increased their investments but remained below their peaks in 2021–2022.
Read: Abu Dhabi’s Mubadala rises as leading global sovereign investor in 2024
2024 investment trends
While some GCC SWFs displayed a slight bias toward emerging markets in 2024, including their domestic economies, developed economies remained the top choice for most sovereign investors. The standout markets in 2024 were the UK, Australia, Italy and Germany, although India, China and Indonesia also continued to gain prominence within the portfolios of sovereign investors.
Industry-wise, SWFs and PPFs increased their allocations to real assets, which together accounted for over 50 percent of total capital deployed despite a modest correction in the real estate sector. Meanwhile, healthcare, industrials and consumer sectors saw declines in both deal value and volume. However, technology experienced a strong recovery despite broader challenges in the venture capital space.
Private credit also gained momentum, with 12 mega-deals recorded in 2024. Some of these transactions involved investments in general partnerships, a strategy frequently employed by Abu Dhabi funds in recent years. The year also saw significant divestments and a growing adoption of secondary markets among state-owned investors.
