Saudi Arabia’s public investment fund emerges as Asia’s largest

Bloomberg revealed that Saudi Arabia’s Public Investment Fund made up 25 percent of the total global sovereign wealth funds spent. While other major Western economies reduced their investments due to the crisis in the banking sector, resulting in a 20 percent drop in the overall global investment by these funds in 2022, Saudi Arabia increased its investment by 52 percent. This highlights the influence of “oil money.” However, criticism surrounds Saudi Arabia’s significant investment, with concerns about it being used for “image washing” of Saudi Crown Prince Mohammed bin Salman.

According to Global SWF, which tracks sovereign wealth funds globally, Saudi Arabia’s Public Investment Fund entered investment agreements totaling 31.5 billion U.S. dollars, marking a 52 percent increase from the previous year. This accounted for a quarter of the 123.8 billion dollars global sovereign wealth funds spent. Saudi Arabia has surpassed Singapore, claiming the top spot among Asia’s largest sovereign wealth funds.

The PIF made bold moves in the sports industry, acquiring four Saudi Arabian football teams, including Al-Nassr, which signed star player Cristiano Ronaldo. In golf, the PIF’s plan to merge its LIV golf tour with the PGA significantly impacted the industry. Even Jon Rahm, a critic of the LIV, announced his intention to join LIV Golf last month, reportedly signing a record-breaking deal worth 600 million dollars.

The PIF recently acquired U.S. video game maker Scopely for 4.9 billion dollars. Saudi Arabia already owns stakes in Activision, Electronic Arts, and Take-Two, amounting to 8.1 billion dollars, with an aim to make the country a global hub for the gaming industry.

SWF analyzed that Saudi Arabia is diversifying its investment portfolio to achieve “Vision 2030.” Crown Prince Muhammed Bin Salman is taking the helm of the investment diversification, which is currently focused on the oil industry, by 2030.


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