Saudi Arabia's Wealth Fund Tops Global Spending, Outflanking Singapore's GIC

Saudi Arabia’s Public Investment Fund (PIF) has upstaged Singapore’s GIC to become the top spender among global sovereign wealth funds in 2023.

What Happened: As per preliminary findings by Global SWF, a research consultancy, PIF contributed to about a fourth of the $124 billion expended by state-owned investors in 2023. The Saudi Arabian fund amplified its deal activities from $20.7 billion in 2022 to $31.6 billion in 2023 despite a global decline in sovereign wealth fund spending. The PIF, under the control of Saudi Crown Prince Mohammed bin Salman, has been actively pursuing deals and joint ventures as part of Vision 2030, a diversification initiative launched in 2016.

Conversely, Singapore’s GIC reduced its investment activity by 37% in volume, even though it experienced one of its largest inflows from the central bank. The research also expects more sovereign wealth funds to come online in 2024, including those from Hong Kong, the Philippines, and Pakistan.

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Why It Matters: The PIF’s spending spree aligns with its strategic plan to diversify the Saudi economy away from oil. It has invested heavily in overseas ventures, including tech giants like Amazon AMZN, Alphabet GOOGL, and Meta META, as part of its diversification efforts.

In 2023, the fund’s foreign investments included Nintendo in Japan and Vale Basic Materials in Brazil. The PIF also entered an unprecedented deal to gain control of pro golf tournaments, a move that drew attention in the U.S. Senate due to concerns over homeland security.

The research further highlighted a renewed interest among several sovereign investors in emerging markets like Saudi Arabia, Türkiye, and the UAE, indicating a potential shift in the global investment landscape in the coming years.

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