GCC sovereign wealth funds among world’s top 15

With combined assets worth $3.69 trillion
GCC sovereign wealth funds among world’s top 15
UAE wealth funds rank high in the global list of SWFs in terms of assets under management

According to a report by Global SWF, seven sovereign wealth funds (SWFs) from the six-nation GCC bloc have secured positions within the world’s top 15 SWFs. GCC stands for Gulf Cooperation Council.

These SWFs boast a combined estimated assets under management (AuM) valued at $3.69 trillion.

UAE leads GCC

The United Arab Emirates (UAE)’s Abu Dhabi Investment Authority (ADIA) leads GCC SWFs, ranking fourth globally. ADIA commands an estimated AuM of $943 billion, according to Global SWF’s October 2023 update.

Three additional UAE-based funds have also made their mark on the list. The Investment Corporation of Dubai, the principal investment arm of the Dubai Government, takes the ninth position with an AuM of $320 billion. Meanwhile, Mubadala Investment Company and ADQ held the 11th and 12th places, with respective AuMs of $276 billion and $199 billion.

The Kuwait Investment Authority ranked fifth with an AuM of $801 billion. In addition, Saudi Arabia’s Public Investment Fund (PIF) held seventh place with an AuM of $700 billion. The Qatar Investment Authority followed in the eighth spot, with an AuM of $450 billion.

Norges Bank Investment Management, the asset management unit of the Norwegian Central Bank, clinched the top position with an AuM of $1.41 trillion.

According to the Global SWF, they based the AuM values on the latest available data in US dollar terms. They used estimations where data was not readily available.

Read: Saudi, UAE sovereign wealth funds lauded in new report

Boom in GCC wealth funds

The newest report supports GCC sovereign wealth funds’ robust performance in the previous year. 

In 2022, industry experts at Global SWF reported that five of the top 10 most active sovereign investors were based in the GCC. The overseas investments of GCC sovereign funds notably surged. It more than doubled in 2022, as they deployed $51.6 billion in Western economies, including the US and Europe, compared to $21.8 billion in 2021.

According to experts, this increased SWF spending is primarily driven by higher oil prices and, consequently, higher revenue. Estimates show that oil-producing GCC countries, led by Saudi Arabia, could potentially earn up to $1.3 trillion in additional revenue through 2026.

This surplus capital could further prompt Gulf SWFs to make substantial investments globally.

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