Saudi Unveils Sovereign Wealth Fund’s 2023 Spending Spree: Report

In 2023, Saudi Arabia’s Public Investment Fund (PIF) has played a significant role in global sovereign wealth fund spending, nearing $124 billion.

PIF’s robust investment reached an impressive $31.5 billion, standing out against the total sovereign wealth fund expenditure of $123.8 billion.

This surge in spending coincided with a remarkable upswing in global stock markets, propelling the combined assets managed by sovereign wealth funds to an unprecedented $11.2 trillion.

The report also highlighted a pivotal development in sovereign-controlled investments, reaching a record $25.9 billion in 2023, primarily dedicated to the energy transition, covering aspects from green hydrogen projects to lithium mining.

Despite this positive trend, the overall spending by sovereign wealth funds experienced a 21% decline compared to the previous year, prompting speculation about a potentially cautious investment approach.

Notably, Singapore’s GIC, a leading spender in the preceding six years, scaled back its investments by 48% in 2023, even amid a substantial $144 billion inflow from the country’s central bank.

Gulf funds seized the opportunity to assert their dominance in dealmaking, capturing nearly 40% of the total investment value deployed by sovereign wealth funds. This shift marked a notable transition, with Gulf funds superseding Canadian and Singaporean counterparts, as revealed in the Global SWF report.

Given the limited release of annual reports by sovereign funds, insights provided by organizations like Global SWF remain crucial for understanding the dynamics of these influential financial entities.

Saudi’s Cash Fund Surge on Gaming and Sports

Global SWF’s report highlights Saudi Arabia’s PIF lavish spending, especially in soccer and golf, with control over leading clubs and a golf circuit merger.

Other notable investments include US gaming company Scopely, Standard Chartered’s aircraft leasing division, and steelmaker Hadeed. About 42% of spending remains domestic. PIF plans include launching an airline, an electric vehicle brand, and an $8.1 billion stake in gaming companies.

Moreover, reports underscore PIF’s diverse deals aligning with Saudi Vision 2030.

Looking ahead, Global SWF predicts a surpassing of the 2021 peak of $50.8 trillion in state-owned investors’ assets in 2024, factoring in gains from the past year.