GCC state investors dominate sovereign-backed investments, GlobalSWF says

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Sovereign wealth funds from the GCC region reached their highest levels of global dealmaking in about 15 years, deploying $38.2bn across 58 different deals in the first half of 2024, according to the latest data from consultancy GlobalSWF.

State investors, notably Saudi Arabia’s Public Investment Fund, Abu Dhabi Investment Authority (ADIA), and Qatar Investment Authority (QIA), accounted for 54 per cent of the $96bn deployed by sovereign funds – the highest rate since 2009.

The wave of dealmaking by the Gulf sovereign investors began with the outbreak of the Covid-19 pandemic. Once sleepy government-holding companies, the funds are emerging as investment vehicles with global ambitions.

While the market uncertainty has invited global state investors to be cautious, GCC-based and, particularly, Abu Dhabi-based funds have received significant windfall from oil revenues and are more active than ever.

The latest data from GlobalSWF highlights the importance of GCC wealth funds that have more than $4.1tn in combined assets under management, as they have emerged as new bankers to the world and the go-to investors for distressed western assets desperate to raise fresh capital.

PIF once again emerged as the world’s most active sovereign investor in Q1 2024, boosting its deal activity, fueled by asset transfers from the government.

Saudi Arabia transferred an 8 per cent stake in Aramco to PIF in March as part of the kingdom’s “long-term initiatives to boost and diversify the national economy and expand investment opportunities in line with Vision 2030.” According to LSEG data, the stake is worth roughly $163.6bn, according to Aramco’s market capitalisation.

Read: Why GCC wealth funds are becoming engines of regional growth