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The first six months of 2024 witnessed 27 mega-deals, each exceeding $1 billion in value, involving sovereign investors. Leading the charge were the top sovereign wealth funds in the Middle East, which invested $38.2 billion across 58 deals, according to Global SWF. The combined investments by Saudi Arabia's PIF, Abu Dhabi's ADIA, Mubadala, ADQ, and Qatar's QIA more than doubled the amount deployed by the largest Canadian funds and were nearly eight times what Singaporean funds spent, as revealed by Global SWF’s Governance, Sustainability, and Resilience (GSR) scorecard.
- Despite global market uncertainties prompting caution among investors, Gulf-based funds, particularly those from Abu Dhabi, have remained highly active, fueled by substantial oil revenues. Sustainability goals are increasingly influencing the investment choices of state-owned investors (SOIs). Diego López, Founder and Managing Director of Global SWF, noted that since 2021, investments in renewable energy have consistently outpaced those in traditional oil, gas, and mining sectors, a trend that has continued into 2024. Significant green investments include Mubadala’s ventures in renewable energy across Australia, India, and Japan, and NBIM’s investments in wind and solar farms in the UK and Spain.
Why it matters
Investment strategies of sovereign wealth funds are shifting towards sustainability, which could have significant implications for global financial and environmental landscapes.
