Mubadala, the UAE’s sovereign wealth fund, emerged as the most active globally in 2024, deploying $29.2bn across sectors such as artificial intelligence, private credit, and healthcare. This accounted for nearly 20% of the $136.1bn invested by sovereign wealth funds worldwide.

Saudi Arabia’s Public Investment Fund (PIF) lost its leading position as it scaled back spending by 37% to $19.9bn from $31.6bn in 2023. In contrast, Mubadala increased its investments from $17.5bn to $29.2bn in the same period.

Mubadala is one of three key UAE sovereign funds managing $1.7 trillion in assets. It is overseen by the brothers of UAE President Mohammed bin Zayed, with Sheikh Tahnoun bin Zayed chairing ADIA and ADQ, while Sheikh Mansour bin Zayed leads Mubadala.

Mubadala has played a crucial role in AI and technology investments, backing Abu Dhabi’s G42, which secured a $1.5bn investment from Microsoft in 2024. It also has close ties with US-based Apollo, securing deals in private credit alongside Goldman Sachs.

Diverging Investment Strategies: UAE Expands While Saudi Arabia Focuses Inward

While UAE sovereign funds invested over $57.6bn in 2024 to strengthen their presence in emerging sectors, Saudi Arabia’s PIF shifted focus inward, prioritising Crown Prince Mohammed bin Salman’s Vision 2030 projects. PIF Governor Yasir al-Rumayyan confirmed in October that the fund would centre on domestic investments.

Saudi Arabia has struggled to attract foreign investors to its diversification efforts, leading to scaled-down ambitions for Neom, initially a $1.5 trillion megacity. Plans now expect fewer than 300,000 residents by 2030, with just 2.4km completed.

Overall, Middle Eastern sovereign wealth funds, led by those from the UAE, Qatar, and Saudi Arabia, collectively invested a record $82bn in 2024, marking a 10% increase from the previous year.