The Power of Oil Money... Saudi Arabia Accounts for One-Quarter of Global Sovereign Wealth Fund Investments

Last year, Saudi Arabia's Public Investment Fund (PIF) actively made investments in various sectors, accounting for about one-quarter of the total sovereign wealth fund investments worldwide.

According to the preliminary annual report by Global SWF, a global sovereign wealth fund specialist, Saudi Arabia's sovereign wealth fund investments last year amounted to $31.5 billion (approximately 40.82 trillion KRW). This figure represents 25% of the total global sovereign wealth fund investments of $123.8 billion (approximately 160.44 trillion KRW).

Last year, the Saudi sovereign wealth fund made bold investments in various fields, including sports, leveraging so-called "oil money," causing waves in the industry.

In June last year, Crown Prince Mohammed bin Salman announced that PIF would acquire Saudi Arabia's four major football clubs: Al Ittihad, Al Ahli, Al Hilal, and Cristiano Ronaldo's Al Nassr. Additionally, Saudi Arabia made a groundbreaking declaration to merge the PGA Tour, DP World Tour, and their rival LIV Golf. However, this merger plan has not yet been finalized.

PIF's investments do not stop there.

It acquired the U.S. gaming company Scopely for $4.9 billion. Furthermore, PIF holds $8.1 billion in shares of gaming companies such as Activision Blizzard, Electronic Arts, and Take-Two, as part of its plan to make Saudi Arabia a gaming hub. PIF also invested $3.6 billion to acquire Standard Chartered's aircraft leasing division and $3.3 billion to acquire steelmaker Hadid. PIF plans to launch its own airline and electric vehicle brand as well.

Last year, with the global stock market showing strength, assets managed by sovereign wealth funds worldwide reached a record high of $11.2 trillion (approximately 1,451.5 trillion KRW). On the other hand, total sovereign wealth fund expenditures decreased by 21% compared to 2022. Although total investments in energy transition sectors, from green hydrogen to lithium mining, reached a record $25.9 billion, investments in other sectors were low, resulting in an overall reduction in spending.

Diego Lopez, Managing Director of Global SWF, analyzed, "It is not that sovereign wealth funds lack capital, but the reduction in investment amounts signals that sovereign wealth funds are taking an overly cautious approach."

This content was produced with the assistance of AI translation services.