Sovereign wealth funds from the Gulf Cooperation Council (GCC) region are on a record-breaking spree, according to data from consultancy GlobalSWF.

In the first half of 2024, these state-owned investment giants deployed $38.2 billion across 58 deals, accounting for over half (54%) of all sovereign wealth fund activity globally. This marks the highest GCC share since 2009.

The trend reflects a significant shift in the global investment landscape. GCC sovereign wealth funds, particularly those from Saudi Arabia (PIF), Abu Dhabi (ADIA), and Qatar (QIA), are emerging as major players with global ambitions in a period of market uncertainty.

The recent oil price surge has fueled windfall profits for GCC funds, particularly those in Abu Dhabi, allowing them to remain aggressive investors.

GlobalSWF data underscores the growing importance of these funds, which now manage a combined $4.1 trillion in assets. They are increasingly viewed as “new bankers to the world,” acting as a critical source of capital for distressed Western assets seeking fresh investments.

Saudi Arabia’s PIF leads the charge as the world’s most active sovereign investor in the first quarter 2024. This surge is partly attributed to asset transfers from the Saudi government, including an 8% stake in oil giant Aramco. This move aligns with Saudi Arabia’s Vision 2030 goals of economic diversification and attracting new investments.

PIF’s financial performance further bolsters its position as a major player. The fund recently reported strong results for 2023, with revenues exceeding $88 billion, a 100% increase from the previous year. This robust performance reflects a diversified investment portfolio focusing on long-term economic transformation.

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