- An annual industry survey has found that Gulf sovereign wealth funds are anticipated to become more active in global markets this year as they get significant capital infusions resulting from increased oil revenue. Five of the top 10 most active sovereign investors in 2022, according to sector expert Global SWF, were from the Gulf.
- With $40.3B invested in 2022, a 17% increase over 2021, Singapore's GIC topped the list of the top 10 state-owned investors. It was followed by the Public Investment Fund of Saudi Arabia and the Abu Dhabi Investment Authority. The Qatar Investment Authority was also listed as was Mubadala Investment Firm and holding company ADQ of Abu Dhabi.
- Middle Eastern sovereign investors are predicted to continue their investment in Europe and North America in 2023, where there will be a plethora of opportunities to purchase listed securities or direct stakes, seek co-investments, purchase shares of private equity firms, and locate distressed portfolios.
Why it matters
Government-owned fund activity was robust globally in 2022 as more cash was invested, even if there were fewer deals, than in 2021. Compared to $229.9B from 890 transactions in 2021, state-owned investors invested $261.1B in 747 deals in 2022. Accordingly, sovereign wealth funds made investments totaling $152.5B in 427 transactions, 38% more than they did the previous year, while public pension funds made investments totaling $108.6B in 320 transactions, 9% less.