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The sovereign wealth funds of the
Gulf Cooperation Council members topped $4 trillion last year, which was an
all-time high.
Called the “Oil Five”, the group
of top sovereign wealth funds includes three entities from the United Arab
Emirates (UAE), one from Saudi Arabia, and the Qatar Investment Authority. The
five invested a total $75.6 billion last year, which was a decline on 2022
investments, according to Khaleej Times,
citing data from a report by Global SWF.
The Saudi Public Investment Fund
and the Qatar Investment Authority were the most active investors accounting
for the bulk of the five’s total, at some $68 billion. The Saudi sovereign
wealth fund was also the biggest investor globally last year, deploying $31.6
billion across 49 deals.
The amount was a 33per cent
increase on 2022 and a record for any sovereign wealth fund. The total spend of
sovereign wealth funds last year reached $123.8 billion. The five oil funds
from the Gulf were the most active investors during the year.
The increase in investments for
the Gulf oil kingdoms’ sovereign wealth funds comes amid lower oil prices and
also lower production for Saudi Arabia. Based on their assets under management,
however, it appears the effect of the oil price rout last year will manifest
with a delay.
The UAE, meanwhile, launched a
new investment fund at the COP28 climate conference in December. The entity
will have a size of $30 billion and will be a partnership between the Emirates,
BlackRock, TPG, and Brookfield, the Financial
Times reported in late November, citing sources in the know.
A day later Reuters confirmed the
news citing the official announcement of the UAE’s President, who said the
fund, dubbed ALTERRA, will seek to raise up to $250 billion by the end of the
decade, to invest in in climate-related initiatives.
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