Gulf SWFs' assets to hit $18tn by 2030, report says
RIYADH: Gulf sovereign wealth funds are on track to control $18 trillion in assets by 2030, marking a 50 percent surge from the end of 2024, according to an analysis.
In its latest report, Deloitte Middle East noted that the region, home to six of the world's 10 largest sovereign funds, now holds approximately 40 percent of global SWF assets — solidifying its position as a dominant force in the market.
The study aligns with the latest report from the Sovereign Wealth Fund Institute, which ranks Saudi Arabia's Public Investment Fund sixth globally, managing $925 billion. The Abu Dhabi Investment Authority leads the Gulf with $1.05 trillion, followed by the Kuwait Investment Authority at $1.02 trillion and the Qatar Investment Authority with $526 billion.
Julie Kassab, sovereign wealth fund leader at Deloitte Middle East, said: 'The Gulf region continues to be the epicenter of sovereign wealth fund activity, with its major players driving innovation in investment strategies and operational excellence.'
She added: 'We are witnessing these funds not only expand their geographical footprint but also significantly enhance their internal capabilities, setting new standards for the industry in terms of performance and governance.'
The report also highlighted that Gulf SWFs maintained an 'aggressive investment pace,' deploying $82 billion in 2023 and an additional $55 billion in the first nine months of 2024.
Deloitte listed five major players shaping the region's investment landscape: Saudi Arabia's PIF, ADIA, Abu Dhabi's Mubadala, Abu Dhabi Developmental Holding Co., and QIA.
Globally, the total number of sovereign wealth funds has nearly tripled since 2000, reaching approximately 160-170 funds, with 13 new ones established between 2020 and 2023.
Asia takes center stage
Deloitte's analysis highlights key trends reshaping the regional SWF landscape, with funds increasingly focusing on fast-growing countries outside traditional Western markets.
The report revealed that Gulf SWFs strategically prioritize Asia, with many establishing new offices throughout the Asia-Pacific region and significantly increasing allocations to high-growth economies, including China and India.
Wealth funds in the Gulf region were particularly active in China, investing approximately $9.5 billion in the Asian giant during the first nine months of 2024.
Abu Dhabi Investment Authority and Kuwait Investment Authority ranked among the top 10 shareholders in Chinese A-share listed firms.
'This represents a strategic opportunity as Western investors reduce their exposure, allowing Middle Eastern funds to leverage their strong political and trade relationships with Beijing,' Deloitte noted.
The report added that Gulf wealth funds are also eyeing Africa, particularly the mining industry, for new opportunities.
This year, the UAE and Saudi Arabia have shown a willingness to invest in high-risk extractive ventures in Africa, both directly and through stakes in multinational mining companies.
This shift coincides with the rise of new investment vehicles, particularly 'Royal Private Offices,' which now control an estimated $500 billion in assets.
Combating challenges
Wealth funds in the Gulf region are under increasing pressure to sharpen their competitive edge, focusing on internal performance, risk oversight, and investment management to deliver stronger returns, the analysis stated.
The report noted that many regional wealth funds are becoming more proactive — showing greater openness to divestment, demanding better reporting from portfolio companies, and exerting more influence at the board level.
The study added that this drive for excellence has intensified competition for human capital among these funds, with soaring demand for experienced national talent.
'Gulf SWFs now employ an estimated 9,000 professionals across their operations. Gulf funds are offering increasingly attractive packages to senior professionals, particularly those with experience at established funds like Singapore's Temasek or Canada's Maple Eight,' Deloitte stated.
The consulting firm added that Gulf governments are also reassessing their approach to strategic assets. This has led to the creation of new, domestically focused funds designed to co-invest alongside international partners rather than compete directly with established regional players.
It concluded: 'Looking ahead, while geopolitical uncertainties and potential commodity price fluctuations may create headwinds, these pressures could drive greater efficiency and innovation in fund management practices.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asharq Al-Awsat
2 hours ago
- Asharq Al-Awsat
Study: European Game Generated 38 Bln Euros in 2023-24 Season
Europe's soccer market grew by 8% in terms of revenue in the 2023-24 season to 38 billion euros ($43.46 billion) with England's Premier League generating the most, Deloitte said in a study published on Wednesday. In its Annual Review of Football Finance, Deloitte said the top five leagues -- Premier League, Bundesliga, LaLiga, Serie A and Ligue 1 -- generated 20.4 billion euros in revenue, an increase of 4%. Premier League clubs had the highest revenue of Europe's top leagues at 6.3 billion pounds ($8.50 billion), Reuters reported. However, the traditional 'big six' clubs in England's top flight reported lower average revenue growth (3%) than other clubs that were in the Premier League in both the 2023-24 and 2022-23 seasons (11%). The study said the growth was largely driven by expansion of clubs' commercial offerings, which also led to the teams cumulatively generating more than two billion pounds in commercial revenue for the first time. "A focus on stadia development and diversification of commercial revenues led to growth across the European football market in the 2023-24 season," Tim Bridge, lead partner in Deloitte's Sports Business Group, said. "However, clubs and leagues cannot afford to take their eye off the ball as new challenges, including an evolving regulatory landscape and changing fan behaviors, arise. "The pressure is mounting for more clubs to drive additional revenue at the same time as managing rising costs. "More so than ever, leaders and owners must recognize the great responsibility they have of managing these businesses, capturing the historic essence of a football club while honoring its unrivalled role as a community asset for generations to come." Clubs in Europe's 'big five' leagues reported an aggregate operating profit (0.6 billion euros) for a second successive season, while the aggregate wages/revenue ratio fell from 66% to 64%. WSL REVENUE SOARS Clubs in England's Women's Super League (WSL) jointly generated revenue of 65 million pounds in the 2023-24 season, a 34% rise. Each WSL club had a double-digit increase in revenue, while all 12 clubs reported over one million pounds in revenue for the first time, with an average revenue of 5.4 million pounds. "Through developing more robust fan engagement strategies, strong commercial deals and securing central distributions, WSL clubs unlocked a new phase of growth," Deloitte Sports Business group's knowledge and insights lead Jennifer Haskel said. "Plus, as the reporting and attribution of commercial revenue remains inconsistent between clubs, we may be scratching the surface on the value now being generated by the women's game."
Leaders
16 hours ago
- Leaders
US-China Trade Deal 'Done': Trump
The US and China have agreed on a trade deal after two days of talks in London between American and Chinese officials. On Wednesday, the US President, Donald Trump, announced that a deal with China had been finalized. 'Our deal with China is done,' he posted on his Truth Social platform. US-China Trade Deal Trump added that the deal, which is subject to approval from China's President Xi Jinping and himself, will grant the US access to the rare earth metals it needs, while the Chinese college students will be able to attend American universities. 'Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities,' he said. 'We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!' Trump noted. Framework Agreement The announcement followed two days of negotiations between American and Chinese officials in London to resolve trade disputes and ease export restrictions, reported Reuters. Both sides agreed on Tuesday on a 'framework deal' that adds crucial details to implement the consensus reached last month in Geneva to ease reciprocal retaliatory tariffs, according to the US Commerce Secretary, Howard Lutnick. 'We have reached a framework to implement the Geneva consensus and the call between the two presidents,' Lutnik said, referring to a phone call last week between Trump and Xi, which the US President said was a 'very good talk.' Lutnik told reporters that the framework would remove restrictions on Chinese exports of rare earth minerals and magnets and some of the recent US export restrictions 'in a balanced way,' without providing details. Similarly, the Chinese Vice Commerce Minister, Li Chenggang, said in a separate briefing that the US and China had reached a trade framework 'in principle' pending the approval of both presidents. Geneva Talks Last month, the US and China agreed to suspend most of their reciprocal tariffs for 90 days, following two days of talks in Geneva, Switzerland. Both sides announced in a joint statement that they agreed on a 110% tariff reduction for 90 days. Thus, the US would reduce tariffs on Chinese goods from 145% to 30%, while China would lower duties on US goods from 125% to 10%, taking effect on May 14, 2025. Short link : Post Views: 126
Saudi Gazette
21 hours ago
- Saudi Gazette
Trump says US-China deal 'is done'
SINGAPORE — US President Donald Trump has said a deal with China "is done" after two days of talks between top officials in said that, subject to final approval from President Xi Jinping and himself, the US will get the rare earth metals it needs, while Chinese students can take up their places at American the US and China said they had agreed in principle a framework for de-escalating trade tensions between the world's two biggest month, Washington and Beijing agreed a temporary truce over trade tariffs but each country has since accused the other of breaching the on his Truth Social platform, the president said: "Our deal with China is done, subject to final approval with President Xi and me."Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!)."We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!"Chinese exports of rare earth minerals, which are crucial for modern technology, were high on the agenda of the meeting in the talks, US Commerce Secretary Howard Lutnick said the deal between the two countries should result in restrictions on rare earth minerals and magnets being US has criticized China, saying it has been slow to release exports of rare earth metals and magnets which are essential for manufacturing everything from smartphones to electric Washington has restricted China's access to US goods such as semiconductors and other related technologies linked to artificial intelligence (AI)."We have reached a framework to implement the Geneva consensus," Lutnick told reporters."Once the presidents approve it, we will then seek to implement it," he new round of negotiations followed a phone call between Donald Trump and China's leader Xi Jinping last week which the US President described as a "very good talk"."The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5th and the consensus reached at the Geneva meeting," China's Vice Commerce Minister Li Chenggang said.A line chart showing US tariffs imposed on Chinese goods imports, and Chinese tariffs on US good imports, since 1 February. As of 1 February, the US had placed 10% on imports from China, which increased to 20% by 3 March, 54% by 2 April, 104% by 8 April, and 145% by 9 April. It then dropped to 30% on 14 May when a 90-day pause was agreed between the two countries. China only imposed 34% tariffs on US imports on 3 April, 84% on 9 April, and 125% on 11 April. It then dropped to 10% on 14 Trump announced sweeping tariffs on imports from a number of countries earlier this year, China was the hardest hit. Beijing responded with its own higher rates on US imports, and this triggered tit-for-tat increases that peaked at 145%.In May, talks held in Switzerland led to a temporary truce that Trump called a "total reset".It brought US tariffs on Chinese products down to 30%, while Beijing slashed levies on US imports to 10% and promised to lift barriers on critical mineral exports. It gave both sides a 90-day deadline to try to reach a trade the US and China have since claimed breaches on non-tariff Trade Representative Jamieson Greer said China had failed to rollback restrictions on exports of rare earth said US violations of the agreement included stopping sales of computer chip design software to Chinese companies, warning against using chips made by Chinese tech giant Huawei and canceling visas for Chinese of this week's talks, the Chinese Ministry of Commerce said on Saturday that it had approved some applications for rare earth export licenses, although it did not provide details of which countries were said on Friday that Xi had agreed to restart trade in rare earth materials. — BBC
