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Saudi Arabia’s Public Investment Fund (PIF) significantly influenced global sovereign wealth fund spending in 2023, accounting for a quarter of the total nearly $124 billion spent by sovereign wealth funds worldwide.
The surge in global stock markets in 2023 propelled assets managed by sovereign wealth funds to a historic high of $11.2 trillion. Concurrently, sovereign-controlled spending on energy transition initiatives, including green hydrogen and lithium mining, also reached a record $25.9 billion.
Caution Amid Capital Availability:
Despite ample available capital, total sovereign wealth fund spending in 2023 declined by 21% compared to 2022, suggesting a potentially cautious approach among these institutions, according to Global SWF’s managing director, Diego López.
Singapore’s GIC, previously a top wealth fund investor, reduced its investments by 48% in 2023. Gulf funds notably increased their dealmaking activities, now representing nearly 40% of investment value deployed by sovereign wealth funds.
Saudi PIF’s Expansive Investments Beyond Sports:
While notable for its significant foray into sports investments, particularly in soccer and golf, Saudi PIF made substantial investments in various sectors, including gaming, aircraft leasing, and steel production. A significant portion, approximately 42%, of this investment was directed toward domestic ventures.
Saudi PIF’s diverse range of investments, encompassing U.S. gaming company Scopely, Standard Chartered’s aircraft leasing division, and steelmaker Hadeed, underscores its extensive reach and alignment with Saudi Vision 2030’s economic transformation agenda.
Anticipated Asset Growth for State-Owned Investors in 2024:
Global SWF projects a potential asset peak surpassing the previous high of $50.8 trillion in 2021 for state-owned investors, including sovereign wealth funds, central banks, and pension funds. This projection reflects paper gains and asset growth from the preceding year.
