The UAE's sovereign wealth funds — Mubadala, Abu Dhabi Investment Authority (ADIA), and ADQ — collectively invested USD 36.5 bn in 2023, according to the Global Sovereign Wealth Fund 2024 annual report. Mubadala ranked third globally among the largest investing SWFs, investing USD 17.5 bn, with Adia right behind with USD 13.2 bn. ADQ secured the eighth spot with USD 5.8 bn worth of investments in 2023.

The report dubbed the GCC the “region of the year” on the back of USD 82.3 bn in investment activity.GCC sovereign funds’ assets surged to USD 4.1 tn in 2023,led by Adia, which commands USD 984 bn in assets under management, according to Global SWF. Together with Mubadala, ADQ and other SWFs, the UAE holds wealth exceeding USD 2 tn, Khaleej Times reported in October, citing Global SWF’s updated ranking.

Oil is the answer, once again: GCC wealth funds’ robust performance came on the back of a “sustained high level of oil prices,” which allowed them to recover “quicker than others from the 2022 financial markets debacle,” the report said.

Mubadala rankedsecond globally in terms of divestments in 2023 with the sale of 55% of Mubadala Health to tech firm G42 for USD 2.4 bn. It also divested some USD 122.7 bn between 2018 and 2022, an amount almost equal to the size of its investments during the same period.

UAE SWFs ❤️ private credit: Mubadala was an “aggressive investor in private credit,” Global SWF said, referencing its tie-up with Alpha Dubai to set up a USD 2.5 bn JV to co-invest in global credit. Adia also ventured into private credit in September, backing a USD 5 bn fund launched by Wells Fargo alongside asset manager Centerbridge and making a USD 932 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments (QDCI).

GCC SWFs have a taste for green investments: The report named this year’s theme “Energy Transition” as sovereign investors poured a historic sum of USD 25.9 bn, half of which GCC SWFs were responsible for, to support clean energy projects such as renewable energy, battery storage and EVs. The UAE’s launch of the USD 30 bn climate fund Alterra during COP28 to improve access to climate funding for the Global South is one landmark agreement in that respect, the report notes.

Looking ahead: All eyes are on Dubai’s new sovereign wealth fund. The “formation of Dubai’s new SWF will send shock waves and we will see plenty of movement of personnel from other SWFs, just like we saw a few years ago with ADQ’s formation,” Global SWF founder Diego López said.

ICYMI- Dubai announced plans to set up the Dubai Investment Fund, the emirate’s second multi-bn wealth fund, last month. Chaired by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum, the new fund will focus on investing in stocks, bonds and securities in local and international financial markets.

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