A report released on Monday revealed that the Saudi Public Investment Fund (PIF) spent approximately a quarter of the total amounts disbursed by sovereign wealth funds across the globe last year, reaching nearly $124 billion.
The Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, expended $31.5 billion in 2023 out of the total $123.8 billion spent by sovereign wealth funds worldwide, according to an annual preliminary report by the Global SWF platform, which tracks the activities of sovereign wealth funds globally.
Strong performance in global stock markets last year bolstered a record growth in assets managed by sovereign wealth funds worldwide, amounting to $11.2 trillion.
The report also indicated that the total sovereign spend on energy transition—including all aspects from green hydrogen to lithium mining—reached a record level of $25.9 billion in 2023.
However, the overall expenditure of sovereign wealth funds last year was 21% less than in 2022.
Investments by Singapore's sovereign fund GIC, which recorded the highest expenditure among sovereign wealth funds over the past six years, dropped by 48% in 2023 despite receiving $144 billion inflow from the country's central bank.
The report showed that Gulf funds managed to significantly increase their dominance in deal-making at the expense of Canadian and Singaporean funds.
Gulf funds now account for nearly 40% of sovereign wealth fund investments.
The sports ministry announced the commencement of the second phase of the sports club investment and privatization project.
Sports and Entertainment
The Global SWF report did not specify the individual investments of the Saudi Public Investment Fund. Still, the fund's generous spending on football and golf has caused a stir in the sports world.
In June, Saudi Crown Prince Mohammed bin Salman announced that the Public Investment Fund would take control of four of the kingdom's largest football clubs: Al-Ittihad, Al-Ahli, Al-Hilal, and Al-Nassr, with the latter's team led by Cristiano Ronaldo.
Aside from prolific spending on sports, the Kingdom's most significant investments were in other sectors, with 42% of expenditure domestically.
Major acquisition operations included a $4.9 billion expenditure to acquire American gaming company Scopely, $3.6 billion to purchase the aircraft leasing division from Standard Chartered, and $3.3 billion for the acquisition of steel manufacturing company 'Hadeed'.
Global SWF's report also highlights the fund's plans to launch an airline and an electric vehicle brand, and notes that the fund holds an $8.1 billion stake in companies such as Activision Blizzard, Electronic Arts, and Take-Two, as part of plans to make the Kingdom a hub for electronic gaming.
Looking ahead to 2024, Global SWF predicts that the assets of all state-owned investment institutions—including sovereign wealth funds, central banks, and pension funds—will surpass the previous record set in 2021 when managed assets reached about $50.8 trillion.
