Saudi’s PIF Was World’s Most Active Sovereign Investor of 2023

Saudi Arabia's Public Investment Fund (PIF) has emerged as the world's most active sovereign investor, defying a global trend of reduced spending among state-owned investment funds. In 2023, PIF deployed USD 31.6 billion, surpassing its own previous year's investment of USD 20.7 billion.

Singapore's GIC, previously the world's most active sovereign wealth fund for six consecutive years, reduced its capital deployment by 46% to USD 19.9 billion, relinquishing its top position. Similarly, Temasek scaled back new investments by 53% to USD 6.3 billion due to volatile markets, resulting in deteriorating returns for the Singapore-based investors.

The dominance of Gulf sovereign wealth funds, particularly those of Abu Dhabi, Saudi Arabia and Qatar, is a notable trend. These hydrocarbon-rich governments secured five spots on the list of the top 10 most active funds in 2023. As energy prices surged in 2022, the region's sovereign funds became significant sources of capital for international deals.

A report by the Institute of International Finance predicts that by the end of 2024, the governments of the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain will control around USD 4.4 trillion in gross foreign assets, a substantial portion of which will likely be managed by sovereign wealth funds.