By Hadeel Al Sayegh
DUBAI (Reuters) - Abu Dhabi's Mubadala Investment Company accounted for about 20% of the almost $136.1 billion spent by sovereign wealth funds worldwide last year, overtaking Saudi Arabia's wealth fund amid a surge in spending from Gulf countries.
Mubadala and its subsidiaries deployed $29.2 billion in 2024, up from $17.5 billion invested in 2023, based on a preliminary annual report from industry specialist Global SWF, which tracks the world's sovereign investment funds.
Saudi Arabia's Public Investment Fund lost its ranking as the world's most active sovereign wealth fund after it cut its investment spend by 37% to $19.9 billion in 2024 from $31.6 billion the previous year, according to the report.
PIF Governor Yasir Al-Rumayyan said in October the sovereign wealth fund was more focused on the domestic economy and aiming to reduce the fund's international investments.
Still, the Gulf's sovereign wealth funds controlled by governments of Abu Dhabi, Qatar and Saudi Arabia "invested a record" $82 billion in 2024, a rise of more than 10% from 2023, the report said.
Other groups such as Canada’s Maple 8, the Singaporean funds or the Australian superannuation funds were more active than in 2023, but remained below their peaks in 2021-2022, the report added.
Overall sovereign wealth funds' assets under management rose 6.1% this year to $13 trillion, a historical peak, and public pension funds rose 6% to reach $25 trillion. Norway has the world's biggest sovereign wealth fund.
Sovereign investments into digitisation, which include data centres, digital infrastructure, artificial intelligence and space investing, reached $27.7 billion in 2024.
Abu Dhabi, a wealthy oil producer and longtime security partner of the U.S., is in a race to become an AI leader amid rising competition in the region as Qatar and Saudi Arabia pitch themselves as potential AI hubs outside the United States.
The push is led by the government-backed G42 and MGX, a firm in which Mubadala is a partner. Emirati officials believe the Gulf state's bet on artificial intelligence will strengthen its international clout by making it a key economic actor long after demand for oil has dried up.
Real estate and private equity investment volumes by sovereign wealth funds were unchanged, while infrastructure and credit continued to rise, the report said.
Deal activity by state funds rose 5% in 2024 to $216 billion. Average deal size rose to a six-year high of $370 million.