Sovereign wealth funds managed a total of $13.2 trillion of assets in 2023, up 14% on the previous year, according to a report by IE University and ICEX-Invest in Spain

Sovereign wealth funds (SWFs) grew by 14% to over $13 trillion in assets under management in 2023, according to the Sovereign Wealth Funds Report compiled by IE University in partnership with ICEX-Invest in Spain. This study, developed by IE University's Center for the Governance of Change (CGC), confirms the robustness of SWFs, which reached $13.2 trillion in managed assets in 2023 compared to $11.6 trillion in 2022.

The 2024 Sovereign Wealth Funds Report highlights the resilience of SWFs’ long-term investment strategies despite geopolitical turmoil and fragmentation across the globe.  With U.S.-China tensions and protectionism on the rise, SWFs are adopting cautious, regionally focused approaches, centering on strategic industrial sectors, as well as digital infrastructure and energy, especially renewables. Middle Eastern SWFs are increasingly targeting markets such as India, while strengthening domestic innovation and infrastructure.

The SWF report was presented at the ICEX headquarters, at an event attended by the Secretary of State for Trade, Amparo López Senovilla, who pointed out that “the presence of sovereign wealth funds in our market reflects Spain's attractiveness to international capital. It contributes to the capitalisation of the companies themselves and their operations, favouring both domestic growth and large international projects in third markets. Moreover, Spain is one of the largest recipients of foreign investment in the world; the stock of foreign investment in our country represents 56% of GDP, the third highest ratio in the G-20”.

In turn, Javier Capapé, Director of Sovereign Wealth Research at IE University's Center for the Governance of Change (CGC), analyzed the main conclusions of the annual study on sovereign wealth fund investment. “Funds are showing extraordinary strength, increasing in number and assets under management in a context of weaker international investment flows. They are clearly gearing up for the future by taking up positions in industrial sectors, energy and digital infrastructure.”

Leading global players

Norway's Government Pension Fund Global remains the largest sovereign wealth fund ($1.8 trillion), approaching the symbolic $2 trillion mark, while the China Investment Corporation (CIC) and the State Administration of Foreign Exchange (SAFE) ranked second and third for the second year running (CIC $1.3 trillion and SAFE $1.1 trillion). The 4th, 5th and 6th positions are currently filled by Middle Eastern funds, with the Abu Dhabi Investment Authority registering around $993 billion, Saudi Arabia's Public Investment Fund (PIF) $978 billion, and the Kuwait Investment Authority (KIA) bringing in an updated estimate of $969 billion of assets under management. 

This growth has gone hand in hand with an increase in both the number and size of transactions. The study shows substantial growth in SWF activity, with 473 investments, which is an increase of almost 50 deals compared to the 2023 Report. There was also robust growth in the total value of deals, which reached $211 billion, almost doubling that of the previous report. 

The authors of the report have also detected a shift in the focus of investment from technology to finance, which led the deal count, with sectors like healthcare, energy and industrials gaining prominence. The main SWFs are also targeting large-scale infrastructure projects in renewable energy, urban transport, and digital infrastructure, aligning with global decarbonization and digital transformation trends. Despite challenges like high interest rates, their equity-focused investments have enabled them to capitalize on strategic opportunities with surprising operational efficiency.

Record investments in Spain

Spain set a record for attracting SWF investments in 2023-2024. A total of seven different SWFs made 13 direct investments in Spanish companies or projects led by them. The total investment volume in 2023 reached €7 billion. This is the second most significant year on record in terms of sovereign investment uptake, representing an increase of 160% compared to the figures for 2022. The period covered by this report (January 2023 to June 2024) brings the total to €7.3 billion, with a significant focus on renewable energy and digital infrastructures, in addition to major investments in real estate and the hotel sector.

The Global South, an increasingly popular investment destination

Investment flows are increasingly directed toward the Global South, particularly India, which benefits from strong economic growth and green transition policies. While the U.S. remains a top destination for SWF investments, its share of global flows has decreased, underscoring the growing influence of emerging markets. 

This report highlights the case study of the recently created Indonesia Investment Authority (INA), established in 2021. Its capital was seeded in an innovative manner, and it does not act like a traditional savings SWF. It uses co-investment strategies to attract foreign capital in sectors such as infrastructure, green energy, and logistics to meet the challenges of the world’s fourth most populated country in the 21^st century. INA's approach to de-risking investments supports Indonesia’s broader goals of energy security and economic diversification, which are critical in the current geopolitical landscape.  

Climate and sustainability

The report reflects a long-term commitment to innovation, with SWFs supporting AI startups and projects geared towards sustainable food production. In terms of sustainability, and in response to global water scarcity, funds such as Saudi Arabia’s PIF and Qatar’s QIA are spearheading water resilience projects both domestically and internationally. 

Along similar lines, IE’s Center for the Governance of Change has launched the Sovereign Impact Initiative (SII), which aims to transform SWF investment cultures by fostering impact investing, capacity building, and research. Finally, partnership building between SWFs is a growing trend to achieve shared climate and sustainability goals, identify new deals for co-investment, and share critical knowledge. 

For further information about the report, click here.