Saudi Arabia’s Public Investment Fund outpaces Singapore’s GIC with US$31.6 billion splurge in 2023
- The PIF was the world’s most active sovereign wealth fund last year, deploying US$31.6 billion in 2023, according to research consultancy Global SWF
- Globally state-owned investors deployed US$124.7 billion in 2023, about a fifth less than the previous year
Saudi Arabia’s Public Investment Fund (PIF) emerged as the world’s most active sovereign investor last year, boosting its deal activity even as most global peers including GIC and Temasek Holdings slashed spending.
PIF deployed US$31.6 billion in 2023, according to research consultancy Global SWF. That was higher than the US$20.7 billion it invested the previous year, an increase that contrasts with a wider trend – globally state-owned investors deployed US$124.7 billion, about a fifth less than the previous year.
The declines were led by GIC, which cut the amount of capital deployed by 46 per cent to US$19.9 billion and lost its spot as the world’s most active sovereign wealth fund for the first time in six years. Temasek also reduced new investments by 53 per cent to US$6.3 billion against a backdrop of volatile markets, which led the two Singapore-based investors to report worsening returns.
Global SWF said much of GIC’s decline related to investments across developed markets. Singapore’s state investors continued to be active in emerging markets like India, with deals including GIC’s US$1.4 billion joint venture with Brookfield India Reit and Temasek’s increased stake in Manipal Health Enterprises.
“Singaporean investors are being more cautious and we’ve seen that reflected in the numbers,” Global SWF said. “Gulf sovereign wealth funds have increased their domination of the global transaction activity to the detriment of Singaporean and Canadian funds, and now represent almost 40 per cent of all investment value deployed by sovereign investors.”
