Sovereign wealth funds are witnessing a growth around the world, especially in the Middle East where oil exporting countries prefer to save money when oil prices increase in case they witness a drop later on. Such funds are important to help governments face budget deficits, and enable them to deliver services to citizens.
Sovereign Wealth Fund Institute (SWF Institute) has released a list that includes 79 funds; among them are 20 sovereign wealth funds in the Middle East and North Africa. The following is a list of the Middle East largest sovereign wealth funds:
1- Abu Dhabi Investment Authority (ADIA) is the Middle East largest sovereign wealth fund worth $589bn to $733bn. It was founded in March 1976. The fund invests in different types of assets such as shares listed in the financial markets, fixed- income assets, real estates, private firms and infrastructures.
2- Saudi Arabian Monetary Agency (SAMA), the central bank of the Kingdom of Saudi Arabia, is among the world largest monetary funds. The fund management is known for its cautiousness when investing and most of its investments lie in low- revenue US bonds. The fund has announced that it owns foreign assets worth $612bn at the end of 2015.
3- Kuwait Investment Authority (KIA) is the oldest investment fund in the region as it witnessed the foundation of Kuwait Investment Board that was established in 1953, 8 years before Kuwait had retained its independence. KIA was established in 1982 and is believed to have assets worth $548bn to $592bn.
4- Qatar Investment Authority (QIA) is Qatar’s sovereign wealth fund, specialized in domestic and foreign investment. It has suffered severe losses over the past years. Financial Times estimated the fund’s losses at $12bn as a result the shares fall of Volkswagen, Glencore and Agricultural Bank of China, Which the fund had shares at. The fund assets are believed to worth $256bn to $304bn.
5- Investment Corporation of Dubai (ICD) is a sovereign wealth fund owned by the government of Dubai. The fund is concerned with sectors such as: financial services, real estate, tourism and trade. ICD has shares in FlyDubai airlines, Emaar Properties and Emirates NBD bank. Recent estimations say that the fund assets are valued at AED 672bn ($183bn).
6- The Public Investment Fund (PIF) is a sovereign wealth fund owned by Saudi Arabia. It is believed that the fund has investments worth $160bn, in which most of its investments lie within local economy. The government is planning to make the fund keep its shares in Aramco which will increase the fund’s value to $2 trillion.
7- Abu Dhabi Investment Council (ADIC) is an investment arm of the Government of Abu Dhabi. It started operations in April 2007 and invested in various assets portfolio. The fund aims to diversify Emirates’ economy and help local companies to extend their business globally. The fund assets are estimated at $90bn to $110bn.
8- International Petroleum Investment Company (IPIC) was formed by Abu Dhabi government in 1984 to invest in energy and other related sectors across the globe. The fund’s investment portfolio has shares in the Austrian petrochemical company “Borealis”, Japanese Cosmo Oil and Protégés electricity company “Energias de Portugal”. The fund’s late financial statements of June 2015 say that it has assets worth $68bn.
9- Mubadala Development Company PJSC was established in October 2002; it is among the small investment funds; it plays a significant role in diversifying the economy. The fund’s investment and projects are focused on attracting global companies to invest in Abu Dhabi, strengthening local capabilities, skills and providing work opportunities. At the end of 2015, Mubadala announced that assets are worth AED 246bn ($67bn).
