Gulf SWFs to remain dominant despite rising competition: Gulf sovereign wealth funds are set to remain “the focus of growth and activity” in SWF investments globally despite looming competition, due to the “sheer size of assets being deployed and a greater risk appetite both geographically and strategically,” Deloitte said in its latest report (pdf. The report name-checked the Abu Dhabi Investment Authority (Adia), Mubadala, and ADQ as key among the Gulf’s largest players, alongside Saudi Arabia’s Public Investment Fund (PIF) and the Qatar Investment Authority.

REMEMBER- Gulf SWFs held 40% of the world’s SWF assets in 2024, contributing to a global total of USD 12 tn, which is projected to grow to USD 18 tn by 2030, a Global SWF report said late last year. These funds deployed USD 82 bn in 2023, with an additional USD 55 bn invested in 9M 2024 — indicating sustained momentum despite global economic uncertainties. The rise of new SWFs, such as Dubai’s newly launched Dubai Investment Fund (DIF), Oman’s Future Fund Oman, and Kuwait’s Ciyada Fund, signals a further expansion of state-backed investment vehicles across the region.

Upcoming headwinds: New sovereign funds are emerging globally, intensifying the race for investment opportunities, co-investments, and top-tier talent. At the same time, a more protectionist stance in Africa and Asia is making direct acquisitions more difficult, shifting focus toward co-investments and long-term partnerships.

Pressure to deliver stronger returns is also increasing, driven by oil price volatility and widening budget deficits. In response, Gulf SWFs are tightening governance, divesting underperforming assets, and demanding better reporting from portfolio companies to maintain efficiency and profitability.

A provocative approach to stay ahead: To remain competitive, Gulf SWFs are also streamlining operations and consolidating assets, with PIF merging state-backed firms in telecom, entertainment, and aviation. Meanwhile, Abu Dhabi is using ADGM to attract global investors, offering seed capital to fund managers in exchange for a local presence — a strategy which has paid off, with ADGM’s AUM surging 226% y-o-y in June, 2.5k new jobs created, and 141 funds now registered.

Talent acquisition also remains a priority, with over 9k people now employed across Gulf SWFs. Adia added over 100 specialists and hired a former Blackstone executive, while PIF is aggressively expanding its Hong Kong and Singapore teams to strengthen its Asia strategy.

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