Asia and MENA hold 75% of Global Sovereign Wealth Funds Value at $7.8 Trillion

Global Sovereign Wealth Funds

Sovereign Wealth Funds (SWF) continue to grow with more countries opening funds and investing in various products. However, some regions are taking the lead, accounting for a significant share of the global SWF value.

According to data acquired by Finbold, as of October 2021, the global Sovereign Wealth Funds assets under management stand at $10.3 trillion. Asia and MENA regions account for the highest share of $7.8 trillion or 76.06% of the global value. Asia has $4.5 trillion, while MENA holds $3.2 trillion. Europe ranks third with AUM at $1.6 trillion.

Other regions with a significant share of the SWF assets include Oceania ($434 billion), North America ($299 billion), Latin America ($31 billion), and Sub-Saharan Africa ($15 billion).

Elsewhere, Norges Bank Investment Management (NBIM) ranks the largest sovereign wealth fund globally with $1.3 trillion. The China Investment Corporation (CIC) ranks second at $1.6 trillion, followed by Abu Dhabi Investment Authority (ADIA) at $829 billion. Overall, the ten most significant Sovereign Funds hold 72.01% of global SWFs value at $7.43 trillion.

The State Administration of Foreign Exchange (SAFE) at $817 billion followed by The Government PensionInvestment Fund (GPIF) at $744 billion, while Kuwait Investment Authority (KIA) ranks sixth at $693 billion.

The Hong Kong MonetaryAuthority (HKMA) accounts for $520 billion, followed by The National Council for Social Security Fund (NSSF) at $452 billion. The Public Investment Fund (PIF) and The Qatar Investment Authority(QIA) rank in the ninth and tenth spots at $430 billion.

Asia’s economic growth influences the region’s SWF

The report explores some of the driving factors behind Asia’s position in the SWF scene. According to the research report.

Although the Asian region entered the Sovereign Wealth Fund scene more recently, it accounts for a significant share thanks to rapid economic growth in the last two decades. Several countries like China opted for multi-billion funds that are now competing on a global scale. Notably, China stands out considering that most investment portfolios defy traditions by exploring the private sector.

Despite the growth of SWFs globally, the sector is facing several criticisms from the political class.

Read the full story with statistics here: 

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of All China Review.


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