Middle East to become sole region boasting $3tn funds

The Middle East, abundant in oil wealth, is on the brink of becoming the sole region boasting three trillion-dollar wealth funds.

According to Bloomberg News, Saudi Arabia recently shifted a $164 billion stake in its state-owned petroleum and natural gas company to the Public Investment Fund (PIF), while the Kuwait Investment Authority is experiencing one of its most prosperous fiscal years to date due to a widespread market upswing.

This development has enabled both entities to close the gap with the $993 billion Abu Dhabi Investment Authority (ADIA), the largest state-backed investor in the region, as per data from the Sovereign Wealth Fund Institute.

The opacity surrounding many wealth funds makes it challenging to determine the precise magnitude of their holdings.

On a global scale, Norway’s sovereign wealth fund holds the title of the world’s largest, followed by the China Investment Corporation, as indicated by data from SWFI.

Within the Middle East, Abu Dhabi is home to three wealth funds. The city ranks among the select few globally managing around $1.5 trillion in sovereign wealth capital and has recently established a technology investment firm poised to oversee assets exceeding $100 billion.