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A Sovereign Wealth Fund, according to Michael Maduell, is the health of the financial ecosystem. The president of Sovereign Wealth Fund Institute (SWFI), Maduell, is of the belief that the SWF of GCC countries is playing an active role in diversifying their income which is basically generated from oil and oil products.
SWFI is a global organization aimed at analyzing the assets owned by the Governments.
The Kingdom of Saudi Arabia, under the Vision 2030, is aiming at making the Public Investment Fund into a giant investment vehicle so that the economy would be less valiant on oil and be less vulnerable to oil price shocks. Today the Saudi PIF is the world’s 11th SWF. The top ten SWF of the world are dominated by the Arab world, here is a list of it:
Abu Dhabi Investment Authority
The Abu Dhabi Investment Authority (ADIA) was founded in 1976 and with worth $696.66 billion stands as the world’s largest SWF. It tends to generate funds primarily from the revenues collected from the exports of oil. It invests funds in more than 24 different asset classes and sub-categories.
Kuwait Investment Authority, Kuwait
The Kuwait Investment Authority (KIA) is the world’s oldest SWF. It has been developed to make the country less dependent on oil income. It shall allow the future of Kuwaiti to face uncertainty with confidence. It has a worth of $592 billion and shall maintain its second rank despite the fact that it shall cover a deficit for March 2020 of $25.34 billion.
SAMA Foreign Holdings, Saudi Arabia
SAMA Foreign Holdings which is an investment arm of Saudi Arabian Monetary Authority (SAMA), came into being in 1952. It is different from PIF as it manages revenues from oil surplus and fulfills country’s budgetary needs. It worth is $505.76 billion.
Public Investment Fund, Saudi Arabia
Since the vision 2030 has been implemented in the Kingdom of Saudi Arabia, the role of PIF has also changed. It has been established since 1971 and has a worth of $320 billion. It is now motivated to become the world’s largest SWF and make KSA less dependent on oil prices. It is already investing in massive projects such as the Blackstone Infrastructure Fund, Virgin Galactic, and the Softbank Vision Fund.
Qatar Investment Authority, Qatar
It has been investing and managing the state’s reserve funds and other assets. The Qatar Investment Fund was established in 2005 by the government and has a worth of $320 billion. The SWF’s aims at creating long term value for Qatar. It is also missioned to support economic diversification initiatives.
Investment Corporation of Dubai, UAE
The Investment Corporation of Dubai (ICD) functions as the basic arm of the government of the UAE emirate Dubai. Founded in 2006, ICD consolidates the investments. It is now missioned to enhance the economic prosperity for the welfare of future generations and to enhance the global image and presence of Dubai. It has a worth of $239.38 billion.
Mubadala Investment Company, UAE
Mubadala Investment Company is relatively a new setup established in 2017. It came into being as a result of a merger among the Mubadala Development Company and the International Petroleum Investment Company. Both these companies were founded by Abu Dhabi’s government with the aim of channeling the oil funds to accelerate development and growth. It has a worth of $228.93 billion.
Libyan Investment Authority, Libya
The Libyan Investment Authority (LIA) holds the title of being the largest in Africa. It has been established since 2006 and aimed at managing the surplus generated from oil revenues. However, since the turmoil of Libyan President Muammar Qaddafi, the organization aims at excessing the assets that were frozen during the regime of Qaddafi. It now has a worth of $60 billion.
Emirates Investment Authority, UAE
With a worth of $45 billion, The Emirates Investment Authority (EIA) was established by the federal UAE government in 2007. It manages stakes and shares of government in firms especially the telecom sector. It owns 10.2% of shares of the telecom sector, whose worth is estimated by du to be $630 million.
State General Reserve Fund, Oman
Established in 1980, the State General Reserve Fund (SGRF) is an investment arm of the government to diversify oil-based revenues. It now has spread across 25 countries.
Source: Al Arabiya
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