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Sovereign Wealth FundsFirst created in 1953 by Kuwait to sustainably grow excess oil profits, sovereign wealth funds are state-owned investment funds that largely invest in foreign assets. Total assets under management ranged between $13T and $15T as of 2025, with SWFs in the Middle East and Asia accounting for more than half of that total. Nations with budget surpluses—often driven by windfalls in natural resource profits (like oil and gas) or trade—sometimes create these special-purpose vehicles because their domestic economies are too small to productively absorb the excess capital. While SWFs are usually funded by the state, they're often run independently by fund managers appointed by an investment authority reporting to the government. SWFs typically invest in higher-risk assets (think: equities, real estate, fixed-income through bonds, and alternative investments) than traditional reserve holdings, maximizing long-term returns while preserving wealth for the nation's future. Each SWF is structured differently to achieve different goals set by the government that owns the fund, not fund managers. Most countries reveal few details about their SWFs' investment strategies due to national security concerns, making them controversial for those concerned with the potential power foreign actors could have to undermine markets.Explore Sovereign Wealth Funds

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In 2025, sovereign wealth funds invested more than $66B into artificial intelligenceDeveloping artificial intelligence, both from a hardware and software perspective, is time and resource-intensive. Sovereign wealth funds, particularly those in the Middle East, have heavily invested in critical AI infrastructure, like data centers. The Australian Financial Review Sovereign wealth funds in the Middle East and Asia surged after the 2008 financial crisisAs the stock market plummeted in 2008, SWFs with cash on hand were able to snap up critically undervalued assets that eventually posted large profits. The Government of Singapore Investment Corp. and Abu Dhabi Investment Authority invested $14.4B in Citigroup, resulting in a $1.6B profit for the GSIC when it sold half of the holdings in 2009. IE Insights China operates multiple different sovereign wealth funds, primarily backed by profits from a trade surplusUnlike other countries that primarily use profits from natural resources, China's sovereign wealth funds are fueled by the country's mounting trade surplus. Among the two largest are the State Administration of Foreign Exchange (SAFE) fund and the Chinese Investment Corporation (CIC). China also operates the Silk Road Fund, a strategic investment initiative that backs infrastructure creation in developing countries. Institutional Investor Abu Dhabi operates 6 different sovereign wealth funds—one of which is the most active SWF in the worldAbu Dhabi, the capital district of the United Arab Emirates, manages its own funds distinct from those held by the United Arab Emirates federal government. Like other SWFs in the Middle East, the funds are secretive, but they are estimated to be worth about $1.8T altogether. Mubadala, one of Abu Dhabi's SWFs, became the most active fund in the world in 2024, deploying nearly $30B. CNBC International In the UK, foreign sovereign wealth funds can claim diplomatic immunityIn 2025, a court in London found that sovereign wealth funds and their executives can claim diplomatic immunity in legal cases, given the funds' foreign ownership and their role in the private sector. The ruling furthered speculation about the ethics of these funds, particularly from countries accused of human rights violations. Yahoo Finance The majority of the world's sovereign wealth funds are controlled by nations in Asia and the Middle EastNorway operates the world's single largest sovereign wealth fund, but Asian and Middle Eastern countries operate the rest of the top 10 largest SWFs. The Middle East alone accounts for more than $5T of the world's entire sovereign wealth. Visual Capitalist Written by 26 sovereign wealth funds in 2008, the 'Santiago Principles' provide generally accepted principles for fund management and governanceSovereign wealth funds are not regulated, but many of the funds voluntarily follow the Santiago Principles (though, to a varying extent). Some of the principles include transparent financial objectives, clear accountability structures, regular performance reviews, and annual auditing. Highgrade Because of their size, sovereign wealth funds create anxiety about foreign undermining of financial systemsAcross the board, sovereign wealth funds have an immense amount of capital, and, therefore, influence in global financial markets. Critics argue that this influence could enable a foreign country to harm another country's financial market by either investing adversely in competitive markets or by withholding critical capital. Georgetown As oil revenues decline, many Gulf States are investing in professional sports through sovereign wealth fundsGulf States—including the United Arab Emirates, Qatar, and Saudi Arabia—have invested tens of billions of dollars in professional sports, owning high-profile soccer clubs like Paris Saint-Germain and Manchester City. Many of these investments have been characterized as an increase in these countries' soft power, or global cultural influence, in Western countries, where the Middle East remains relatively misunderstood. Bloomberg Hardline China critics in the US worry that China's Belt and Road Initiative is a Trojan horse for military expansion effortsThe Belt and Road Initiative, initially launched in 2013 to develop trade routes throughout Europe, Asia, and the Middle East, has evolved into a larger infrastructure development initiative in developing countries. The BRI is backed by the Silk Road Fund, which is administered by the two most prominent Chinese sovereign wealth funds. Council on Foreign Relations Alaska's sovereign wealth fund pays people to live in the state through an annual dividendWhile the US doesn't operate a federal sovereign wealth fund, several states run SWFs—the most well-known being the Alaska Permanent Fund. Unlike most SWFs, the Alaska Permanent Fund sends cash payments averaging roughly $1.2K each directly to Alaskan residents each year. Investopedia A Saudi Arabian sovereign wealth fund divested from LIV Golf after pumping more than $6B into the PGA's controversial rivalThe Saudi Arabian Public Investment Fund was the primary backer of LIV Golf, and at one point held more than 90% of the league's ownership stake. Famous golfers, like the three-time Masters' champion Phil Mickelson, criticized the league for "sportswashing" Saudi Arabia's questionable human rights record. Golf Digest The majority of capital in private equity funds is provided by institutional investorsThe individuals who invest this initial capital are called the firm's limited partners. Private equity firm LPs include sovereign wealth funds, university endowments, high-net-worth individuals, and more. Moayyad Law The venture capital mindset is shaping the US into a 'portfolio state'For decades, the US has operated as a low-regulation, private-sector-driven, globalized economy (also known as neoliberalism). In recent years, the Trump administration has taken direct stakes (rather than providing subsidies) in private companies with strategic products like semiconductors and rare earths. This paper argues the approach allows the US to capture the upside of growth. Foreign Policy Research Institute The Walton family behind Walmart is the world’s richest family with $432BThe world’s 10 richest families, including the families behind Hermès and Mars, control hundreds of billions of dollars worth of the world’s wealth. The Week It’s estimated there are 10,000 single-family and 5,000 multifamily offices globallyFamily offices are expanding around the world at a rapid pace, impacting the wider financial landscape. SWFI As of 2022, the US accounted for nearly one-fifth of global oil productionBy 2022, the US had cemented its position as the world’s top oil producer with close to 18 million barrels per day. This eclipsed Saudi Arabia and Russia. Visual Capitalist

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