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Combined assets of UAE’s public bodies hit $2.5tr

UAE ranks fourth globally in terms of the combined size of AuM

Published: Thu 26 Oct 2023, 4:27 PM

By
Issac John

The Abu Dhabi Investment Authority headquarters. Adia tops among the GCC SWFs and is fourth in the global list. — KT file

The combined wealth under management by the UAE based sovereign wealth funds, the Central Bank, and public pension funds has been estimated to have exceeded $2 trillion.

As per the latest updated ranking by Global SWF, the UAE ranks fourth globally in terms of the combined size of the assets under management (AuM) of $2.5 trillion, after the US at $11.338 trillion, China at $6.828 trillion, and Japan at $3.128 trillion.

The total wealth managed by SWFs in the UAE has been estimated to be $1.839 trillion, the UAE Central Bank at $133 billion and public pension funds at $33 billion.

The UAE is followed by Singapore at $1.858 trillion, Canada at $1.829 trillion, Norway at $1.606 trillion, and Saudi Arabia at $1.507 trillion.

Seven SWFs from the GCC have been listed in the world’s top 15, with combined estimated assets under management of $3.69 trillion. Abu Dhabi Investment Authority (Adia) from the UAE tops among the GCC SWFs and is fourth in the global list. The fund has an estimated AuM of $943 billion.

Other three leading UAE funds that have found a place on the list include Investment Corporation of Dubai, the principal investment arm of the Dubai Government, is placed ninth on the list with an AuM of $320 billion.

Abu Dhabi-based Mubadala Investment Company and ADQ are listed 11th and 12th with AuMs of $276 billion and $199 billion, respectively.

Globally, Kuwait Investment Authority takes the fifth spot on the list with an AuM of $801 billion, followed by Saudi Arabia’s Public Investment Fund at seventh place with an AuM of $700 billion.

Qatar Investment Authority ranks eighth with an AuM of $450 billion. Norges Bank Investment Management, the asset management unit of the Norwegian Central Bank, tops the list with an AuM of $1.41 trillion.

Driven by the latest windfall from an oil and gas price boom, most of the Gulf SWFs have seen a significant jump in their assets. The top seven SWFs in the Gulf have seen their assets surge by about 70 per cent since 2018 to $ 3.6 trillion. “This amount represents about 33 per cent of the world’s SWF assets, the largest share of any region in the world, according to a report released by DBRS Morningstar, a leading credit ratings agency.

The Gulf is currently home to about 20 SWFs. The largest Gulf SWF, in absolute terms, is Adia, according to Global SWF. Adia is also the eighth largest SWF in the world.

“The Gulf SWFs are increasing their investments aiming to support diversification, with some also aiming to attract investment into their countries. The investments of the Gulf SWFs are central to the development of their local economies. Whether they prove successful remains to be seen,” said DBRS Morningstar report.

The number of SWFs around the world has grown steadily over the past two decades, from 62 funds in 2000 to 176 in 2023. During that time, SWF assets under management have grown from $1.0 trillion to $11.36 trillion.