Saudi Arabia’s sovereign wealth fund update
According to news agency The Telegraph Saudi Arabia’s sovereign wealth fund outspent all others last year, deploying $31.5 billion (£24.7 billion) on investments ranging from a stake in Heathrow to ownership of a US gaming company.
The Kingdom’s Public Investment Fund (PIF) topped the annual sovereign investment fund spending ranking compiled by consultancy Global SWF for the first time. PIF’s investments accounted for over a quarter of the total $123.8 billion (£97.2 billion) spent by sovereign wealth funds worldwide in 2023, marking a significant increase from the previous year.
The Middle Eastern nation’s wealth fund executed 48 deals across various sectors as part of its efforts to diversify the economy away from oil dependence. Recent acquisitions include a 49% stake in Sir Rocco Forte’s luxury hotels group, a 10% share in Heathrow Airport, and a $4.9 billion purchase of Californian mobile game developer Scopely. Additionally, PIF became a major shareholder in Nintendo and acquired a stake in Brazilian mining group Vale.
Under Crown Prince Mohammed Bin Salman’s leadership, PIF has risen from third place to first in global sovereign wealth fund spending rankings in recent years. This transformation aligns with Saudi Arabia’s Vision 2030 plan to reduce reliance on oil amid declining global demand.
Beyond international investments, Saudi Arabia is also focusing on domestic economic reshaping, including ambitious projects like Neom, a new city planned near the Red Sea with innovative architectural proposals.
Despite economic pressures from low oil prices, Saudi Arabia continues to assert its financial strength through strategic investments globally and domestically, contributing significantly to the global sovereign wealth fund landscape.
