“Oil Five” Sovereign Wealth Funds Pass $4 Trillion Mark

The sovereign wealth funds of the Gulf Cooperation Council members topped $4 trillion last year, which was an all-time high.

Called the “Oil Five”, the group of top sovereign wealth funds includes three entities from the United Arab Emirates, one from Saudi Arabia, and the Qatar Investment Authority. The five invested a total $75.6 billion last year, which was a decline on 2022 investments, the Khaleej Times reported, citing data from a report by Global SWF.

The Saudi Public Investment Fund and the Qatar Investment Authority were the most active investors, accounting for the bulk of the five’s total, at some $68 billion. The Saudi sovereign wealth fund was also the biggest investor globally last year, deploying $31.6 billion across 49 deals.

The amount was a 33% increase on 2022 and a record for any sovereign wealth fund. The total spend of sovereign wealth funds last year reached $123.8 billion. The five oil funds from the Gulf were the most active investors during the year.

The increase in investments for the Gulf oil kingdoms’ sovereign wealth funds comes amid lower oil prices and also lower production for Saudi Arabia. Based on their assets under management, however, it appears the effect of the oil price rout last year will manifest with a delay.

The UAE, meanwhile, launched a new investment fund at the COP28 climate conference in December. The entity will have a size of $30 billion and will be a partnership between the Emirates, BlackRock, TPG, and Brookfield, the Financial Times reported in late November, citing sources in the know.

A day later Reuters confirmed the news citing the official announcement of the UAE’s President, who said the fund, dubbed ALTERRA, will seek to raise up to $250 billion by the end of the decade, to invest in in climate-related initiatives.

By Charles Kennedy for Oilprice.com

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