GCC SWFs flex financial muscle to expand global influence, boost growth

GCC SWFs flex financial muscle to expand global influence, boost growth

Soaring oil revenues, faltering asset prices and a strong dollar have spurred Gulf sovereign wealth funds (SWFs) to make a flurry of foreign acquisitions and investments this year.

The Gulf is home to four of the world’s 10 largest SWFs by assets under management (AUM). According to the Sovereign Wealth Fund Institute, the Abu Dhabi Investment Authority (ADIA) has an AUM of $708.8 billion, the Kuwait Investment Authority (KIA) has $708.4 billion, Saudi Arabia’s Public Investment Fund (PIF) has $620 billion, and Qatar Investment Authority (QIA) has $450 billion.

In 2022, ADIA has agreed to invest in various Indian real-estate projects and take a sizeable stake in a German train carriage owner; it also reportedly offered to buy an Australian healthcare firm. The PIF nearly tripled its holdings in US listed companies year-on-year and bought a minor stake in a Jordanian bank. On Monday, PIF invested more than $7 billion to take new positions in US stocks including Amazon.com Inc., Alphabet Inc. and JPMorgan Chase.

The QIA has agreed to invest in an Istanbul road toll, pledged up to $1.5 billion to a new investment fund for South Asian tech firms, and upped its interests in biotech. Another Abu Dhabi SWF, Mubadala, has