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Arabian Business
20-03-2025
- Business
- Arabian Business
Sovereign wealth fund assets to hit $18tn by 2030 as Gulf leads global growth
Sovereign wealth funds (SWF) in the Gulf have seen massive investment outlays and growth as UAE and Saudi Arabia transform global financial order. A new Deloitte Middle East report reveals Gulf Sovereign Wealth Funds (SWFs) continue to dominate the global investment landscape, spearheading an industry-wide expansion that has pushed total assets under management globally to $12tn by the end of 2024 and forecast to reach $18tn by 2030. The Sovereign Wealth Fund (SWF) landscape has witnessed tremendous growth over the past two years, with new SWFs established around the world, high-profile acquisitions by existing firms, and value of assets under management hitting fresh highs. Gulf Sovereign Wealth Funds Gulf funds, which control approximately 40 per cent of global SWF assets and represent six of the ten largest funds worldwide by Assets Under Management (AUM), are reshaping investment strategies amid increasing regional competition and evolving market dynamics. The total number of SWFs globally has roughly tripled since 2000, reaching approximately 160-170 funds, with 13 new entities established between 2020 and 2023. The Deloitte report, titled 'Growth in funds, and assets drives SWF's landscape,' reveals that Gulf SWFs have maintained an aggressive investment pace, deploying $82bn in 2023 and an additional $55 billion in the first nine months of 2024. The five major players which continue to dominate activity in the region are: Abu Dhabi Investment Authority (ADIA) Abu Dhabi's Mubadala Abu Dhabi Developmental Holding Company, Saudi's Public Investment Fund (PIF) Qatar Investment Authority (QIA) Julie Kassab, Sovereign Wealth Fund Leader at Deloitte Middle East, commented: 'The Gulf region continues to be the epicentre of sovereign wealth fund activity, with its major players driving innovation in investment strategies and operational excellence. '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.' Deloitte reveals several significant trends reshaping the regional SWF landscape, as GCC funds look increasingly towards fast-growing countries outside traditional Western markets. Deloitte said: 'Gulf funds are strategically pivoting toward Asia, with many establishing new offices throughout Asia-Pacific and substantially increasing allocations to high-growth economies including China, India, and Southeast Asia. 'The sovereign funds have been particularly active in China, investing an estimated $9.5bn in the year ending September 2024. Both Abu Dhabi Investment Authority (ADIA) and Kuwait Investment Authority (KIA) have been ranked in 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. According to the Deloitte report, Africa is also an area of interest, with the mining sector yielding new opportunities. The UAE and Saudi Arabia have shown willingness to invest in high-risk extractives ventures in Africa this year, both directly and through their holdings in multinational mining firms. This comes alongside the emergence of new investment vehicles, particularly 'Royal Private Offices,' which now control an estimated $500bn in assets. With more entities and more assets now being actively deployed, funds are under increasing pressure to gain a competitive edge, with a stronger focus on internal performance, risk oversight and investment management, to ultimately deliver better returns. Many Gulf SWFs are now adopting a more proactive approach, becoming more open to divest, demanding better reporting from portfolio companies and more willing to exert influence at board level. This drive for excellence has also sparked fierce competition for human capital, with high demand for 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 also notes a growing trend toward protectionism globally, particularly in developing economies, where governments are reassessing their approach to strategic assets. This shift has led to the creation of new domestically focused funds, often designed to co-invest alongside international partners rather than compete directly with established Middle Eastern players. 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.
Mid East Info
20-03-2025
- Business
- Mid East Info
Deloitte Middle East report: Gulf Sovereign Wealth Funds lead global growth as assets forecast to reach USD 18 tn by 2030
Gulf SWFs invested $82bn in 2023 and another $55bn in just the first nine months of 2024, representing two-thirds of all new SWF activity Pivoting to Asia, Gulf SWFs invested $9.5bn into China in the year ending September 2024, with ADIA and KIA among top 10 shareholders in Chinese A-Share listed firms Dubai, United Arab Emirates, March, 2025 – A new Deloitte Middle East report reveals Gulf Sovereign Wealth Funds (SWFs) continue to dominate the global investment landscape, spearheading an industry-wide expansion that has pushed total assets under management globally to $12 trillion by the end of 2024 and forecast to reach $18 trillion by 2030. The Sovereign Wealth Fund (SWF) landscape has witnessed tremendous growth over the past two years, with new SWFs established around the world, high-profile acquisitions by existing firms, and value of assets under management hitting fresh highs. Gulf funds, which control approximately 40% of global SWF assets and represent six of the ten largest funds worldwide by Assets Under Management (AUM), are reshaping investment strategies amid increasing regional competition and evolving market dynamics. The total number of SWFs globally has roughly tripled since 2000, reaching approximately 160-170 funds, with 13 new entities established between 2020 and 2023. The Deloitte report, titled 'Growth in funds, and assets drives SWF's landscape,' reveals that Gulf SWFs have maintained an aggressive investment pace, deploying $82 billion in 2023 and an additional $55 billion in the first nine months of 2024. Five major players – the Abu Dhabi Investment Authority (ADIA), Abu Dhabi's Mubadala and Abu Dhabi Developmental Holding Company, Saudi's Public Investment Fund (PIF), and the Qatar Investment Authority (QIA) – continue to dominate activity in the region. Julie Kassab, Sovereign Wealth Fund Leader at Deloitte Middle East, commented: '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. 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.' Deloitte reveals several significant trends reshaping the regional SWF landscape, as GCC funds look increasingly towards fast-growing countries outside traditional Western markets. Gulf funds are strategically pivoting toward Asia, with many establishing new offices throughout Asia-Pacific and substantially increasing allocations to high-growth economies including China, India, and Southeast Asia. The sovereign funds have been particularly active in China, investing an estimated $9.5 billion in the year ending September 2024. Both Abu Dhabi Investment Authority (ADIA) and Kuwait Investment Authority (KIA) have been ranked in 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. According to the Deloitte report, Africa is also an area of interest, with the mining sector yielding new opportunities. The UAE and Saudi Arabia have shown willingness to invest in high-risk extractives ventures in Africa this year, both directly and through their holdings in multinational mining firms. This comes alongside the emergence of new investment vehicles, particularly 'Royal Private Offices,' which now control an estimated $500 billion in assets. With more entities and more assets now being actively deployed, funds are under increasing pressure to gain a competitive edge, with a stronger focus on internal performance, risk oversight and investment management, to ultimately deliver better returns. Many Gulf SWFs are now adopting a more proactive approach, becoming more open to divest, demanding better reporting from portfolio companies and more willing to exert influence at board level. This drive for excellence has also sparked fierce competition for human capital, with high demand for 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 also notes a growing trend toward protectionism globally, particularly in developing economies, where governments are reassessing their approach to strategic assets. This shift has led to the creation of new domestically focused funds, often designed to co-invest alongside international partners rather than compete directly with established Middle Eastern players. 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.
Zawya
20-03-2025
- Business
- Zawya
Deloitte Middle East report: Gulf SWFs lead global growth as assets forecast to reach $18trln by 2030
Pivoting to Asia, Gulf SWFs invested $9.5bn into China in the year ending September 2024, with ADIA and KIA among top 10 shareholders in Chinese A-Share listed firms Dubai, United Arab Emirates – A new Deloitte Middle East report reveals Gulf Sovereign Wealth Funds (SWFs) continue to dominate the global investment landscape, spearheading an industry-wide expansion that has pushed total assets under management globally to $12 trillion by the end of 2024 and forecast to reach $18 trillion by 2030. The Sovereign Wealth Fund (SWF) landscape has witnessed tremendous growth over the past two years, with new SWFs established around the world, high-profile acquisitions by existing firms, and value of assets under management hitting fresh highs. Gulf funds, which control approximately 40% of global SWF assets and represent six of the ten largest funds worldwide by Assets Under Management (AUM), are reshaping investment strategies amid increasing regional competition and evolving market dynamics. The total number of SWFs globally has roughly tripled since 2000, reaching approximately 160-170 funds, with 13 new entities established between 2020 and 2023. The Deloitte report, titled 'Growth in funds, and assets drives SWF's landscape,' reveals that Gulf SWFs have maintained an aggressive investment pace, deploying $82 billion in 2023 and an additional $55 billion in the first nine months of 2024. Five major players – the Abu Dhabi Investment Authority (ADIA), Abu Dhabi's Mubadala and Abu Dhabi Developmental Holding Company, Saudi's Public Investment Fund (PIF), and the Qatar Investment Authority (QIA) – continue to dominate activity in the region. Julie Kassab, Sovereign Wealth Fund Leader at Deloitte Middle East, commented: '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. 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.' Deloitte reveals several significant trends reshaping the regional SWF landscape, as GCC funds look increasingly towards fast-growing countries outside traditional Western markets. Gulf funds are strategically pivoting toward Asia, with many establishing new offices throughout Asia-Pacific and substantially increasing allocations to high-growth economies including China, India, and Southeast Asia. The sovereign funds have been particularly active in China, investing an estimated $9.5 billion in the year ending September 2024. Both Abu Dhabi Investment Authority (ADIA) and Kuwait Investment Authority (KIA) have been ranked in 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. According to the Deloitte report, Africa is also an area of interest, with the mining sector yielding new opportunities. The UAE and Saudi Arabia have shown willingness to invest in high-risk extractives ventures in Africa this year, both directly and through their holdings in multinational mining firms. This comes alongside the emergence of new investment vehicles, particularly "Royal Private Offices," which now control an estimated $500 billion in assets. With more entities and more assets now being actively deployed, funds are under increasing pressure to gain a competitive edge, with a stronger focus on internal performance, risk oversight and investment management, to ultimately deliver better returns. Many Gulf SWFs are now adopting a more proactive approach, becoming more open to divest, demanding better reporting from portfolio companies and more willing to exert influence at board level. This drive for excellence has also sparked fierce competition for human capital, with high demand for 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 also notes a growing trend toward protectionism globally, particularly in developing economies, where governments are reassessing their approach to strategic assets. This shift has led to the creation of new domestically focused funds, often designed to co-invest alongside international partners rather than compete directly with established Middle Eastern players. 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. To download the full report, please click here. © 2025 Deloitte & Touche (M.E.). All rights reserved. In this press release references to 'Deloitte' are references to one or more of Deloitte Touche Tohmatsu Limited ('DTTL') a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of DTTL and its member firms. The information contained in this press release is correct at the time of going to press. About Deloitte & Touche (M.E.) LLP: Deloitte & Touche (M.E.) LLP ('DME') is the affiliate for the territories of the Middle East and Cyprus of Deloitte NSE LLP ('NSE'), a UK limited liability partnership and member firms of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'). DME is a leading professional services organization established in the Middle East region with uninterrupted presence since 1926. DME's presence in the Middle East region is established through its affiliated independent legal entities, which are licensed to operate and to provide services under the applicable laws and regulations of the relevant country. DME's affiliates and related entities cannot oblige each other and/or DME, and when providing services, each affiliate and related entity engages directly and independently with its own clients and shall only be liable for its own acts or omissions and not those of any other affiliate. DME provides services throughout 23 offices in 15 countries with more than 7,000 partners, directors and staff. About Deloitte: Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ('DTTL'), its global network of member firms, and their related entities (collectively, the 'Deloitte organization'). DTTL (also referred to as 'Deloitte Global') and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm sand related entity is liable only for its own acts and omissions, and not those of each other. DTTL, NSE and DME do not provide services to clients. Please see to learn more. Deloitte provides Audit & Assurance, Tax & Legal and Consulting and related services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte's approximately 457,000 people worldwide make an impact that matters at Bassel Barakat External Communications |PR and Media Lead Deloitte & Touche (M.E.) bbarakat@ |
