Bloomberg and others reported on the 1st that Saudi Arabia accounted for about a quarter of global sovereign wealth fund investment last year. Last year, major Western countries, including the United States, reduced investment due to the banking crisis, and the total investment amount of state-run investment institutions around the world also decreased by 20% compared to 2022. However, Saudi Arabia showed off the power of ‘oil money’ by increasing investment by 52% during the same period. There is also a lot of criticism that this move is an attempt to launder the image of Crown Prince Mohammed bin Salman, the de facto leader who has been subject to considerable controversy over his suppression of opposition.
According to a report by ‘Global Sovereign Wealth Fund (SWF)’, a research firm specializing in sovereign wealth funds, last year Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), signed investment contracts worth $31.5 billion (approximately 40.82 trillion won), a 52% increase from the previous year. concluded. It is about a quarter of the $123.8 billion invested by sovereign wealth funds around the world last year. Saudi Arabia surpassed Singapore to become the country with the largest sovereign wealth fund in Asia.
PIF has made aggressive investments, especially in sports fields such as soccer, golf, and gaming. First, it acquired the country’s four major soccer teams, including Al-Nasr, which includes famous soccer player Cristiano Ronaldo. The golf world was shaken by the announcement of a plan to merge the LIV Golf Tour, operated by PIF, with the Professional Golfers of America (PGA). Even star player Yon Lam, who was initially critical of LIV, announced his intention to transfer to LIV at the end of last year. The exact transfer fee was not disclosed, but it was reported to be $450 million.
PIF also acquired American gaming company Scopely for $4.9 billion. Saudi Arabia has already invested in famous game companies Activision Blizzard, Electronic Arts, and Take-Two, and holds a total stake of $8.1 billion. They evaluated that they are trying to make their country a gaming hub for the world.
In addition, it also acquired Britain’s Standard Chartered’s aircraft rental business (USD 3.6 billion) and domestic steel company Hadid (USD 3.3 billion). Based on this, PIF plans to launch its own airline and electric vehicle brands.
SWF analyzed that “Saudi Arabia is diversifying its investment sources to achieve ‘Vision 2030.’” Crown Prince Muhammad is leading the effort, saying he will diversify the industrial structure focused on oil by 2030.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.