UAE Sovereign Wealth Fund Surpasses Saudi PIF with $29bn in Deals

Mubadala Surpasses Saudi PIF with $29.2 Billion Investment Surge in 2024

In 2024, the UAE’s Mubadala Investment Company emerged as the world’s most active sovereign wealth fund, setting a new benchmark with a remarkable $29.2 billion investment. This figure represents approximately 20% of the global total of $136.1 billion spent by sovereign wealth funds in the same year. Mubadala’s spending surge, which increased from $17.5 billion in 2023, allowed it to surpass Saudi Arabia’s Public Investment Fund (PIF), which reduced its spending and refocused on domestic projects.

Mubadala Surpasses PIF with a Shift in Focus

Mubadala’s growth in spending came at a time when PIF slowed its investments. The Saudi fund reduced its outlay by 37%, dropping from $31.6 billion in 2023 to $19.9 billion in 2024. This shift in strategy allowed Mubadala to overtake PIF as the most active sovereign wealth fund, showcasing the UAE’s increasing global financial clout.

UAE’s Strategic Investments in AI and Private Credit

Mubadala’s aggressive investment strategy reflects the UAE’s strategic focus on emerging sectors like artificial intelligence (AI) and private credit. A key example is its involvement with G42, an Abu Dhabi-based AI group. In 2024, Microsoft pledged $1.5 billion to G42, highlighting Mubadala’s increasing commitment to advancing in high-tech sectors. Additionally, Mubadala expanded its presence in private credit by collaborating with global investment firms like Apollo to tap into the lucrative non-bank lending market.

Saudi Arabia’s PIF Turns Inward with Vision 2030 Projects

While still a major player, Saudi Arabia’s PIF has shifted its focus to domestic projects, particularly in support of Saudi Vision 2030. One of the largest projects is the controversial Neom megacity—a $1.5 trillion development designed to reduce Saudi Arabia’s reliance on oil. However, the project has encountered significant setbacks. Estimates now suggest only 300,000 residents will live in Neom by 2030, far fewer than the original target of 1.5 million. Additionally, the city’s construction is progressing slowly, with only a small portion of it expected to be completed by the deadline.

UAE Sovereign Funds Continue to Flourish

The Abu Dhabi Developmental Holding Company (ADQ), the Abu Dhabi Investment Authority (ADIA), and Mubadala are among the UAE sovereign wealth funds that are still doing well. These funds collectively oversee assets worth $1.7 trillion. The UAE government, especially the brothers of President Mohammed bin Zayed, keeps a careful eye on the cash. ADIA and ADQ are chaired by the UAE’s national security advisor, Sheikh Tahnoun bin Zayed, while Mubadala is led by another brother, Mansour bin Zayed.

Middle East Sovereign Funds Set New Record in 2024

The growing prominence of UAE sovereign wealth funds is evident in their global investments, particularly in high-tech sectors. In 2024, UAE-controlled sovereign funds invested over $57.6 billion, solidifying the UAE’s position as a major player in the global economy. Sovereign wealth funds from the UAE, Saudi Arabia, and Qatar collectively spent a record $82 billion, marking a 10% increase from the previous year. This surge underscores the increasing influence of Middle Eastern countries in global financial markets and technology investment.