MENA sovereign wealth funds accelerate growth with focus on innovation and sustainability

The landscape of sovereign wealth funds (SWFs) in the Middle East and North Africa—commonly known as MENA—is really showing some impressive growth and resilience. Assets managed by these funds are expected to increase quite a bit over the next few years. According to a recent report from Global SWF, the total assets under MENA SWFs are projected to jump from around $5.6 trillion today to approximately $8.8 trillion by 2030. That’s roughly a 10 percent compound annual growth rate (CAGR), which is pretty remarkable and—well, it definitely highlights the sector’s strong momentum amid ongoing economic changes across the region.

Just in the first nine months of 2025, MENA sovereign wealth funds invested about $56.3 billion across 97 different deals. That accounted for roughly 40 percent of all global dealmaking by state-owned investors during that period. The U.S. remains the main target for these investments, taking in over a third of the capital deployed, with Europe—including the UK—coming in at around 28 percent, and about 16 percent staying closer to home within the region. Abu Dhabi’s key players—Mubadala and the Abu Dhabi Investment Authority (ADIA)—were especially active, making up nearly half of all outbound investments from MENA.

One standout is Saudi Arabia’s Public Investment Fund (PIF), which has become the largest sovereign wealth fund in the world as of July 2025, holding assets worth about $1.15 trillion. The goal is to grow that to $2 trillion by 2030, fitting into Saudi Arabia’s broader plan to diversify the economy beyond just oil. It’s not just about size, though—PIF’s transformation is also notable for its efforts toward transparency and sustainability. This year, it scored a perfect 100 in Governance, Sustainability, and Resilience (GSR), a big jump from just 28 percent in 2020. Across the MENA region, the average GSR score for sovereign funds has risen to 48 percent, even as tougher sustainability standards have been introduced.

Meanwhile, Gulf Arab countries are increasingly focusing on innovation and diversification—both in terms of where they invest geographically and which sectors they target. For example, artificial intelligence and digital technologies are suddenly a big priority. Funds like PIF, Qatar Investment Authority (QIA), and Mubadala are boosting their investments in AI and related tech fields. These shifts point to a strategic move—one that’s actually about preparing their economies for the future by leveraging new tech and sustainable investing approaches. Islamic finance is also playing a growing part, with sukuk (Islamic bonds) being used more frequently to support expansion. Just recently, PIF sold about $6.8 billion worth of sukuk, and Mubadala along with Turkey’s Wealth Fund have also tapped into this market.

Despite all this outward investment activity, inbound capital—meaning money coming into MENA from global investors—remains relatively limited. geopolitical tensions in the region, especially the conflict involving Israel, have caused some major funds, like Norway’s Government Pension Fund Global (GPFG)—which is the biggest SWF in the world—to pull back from holdings related to Israel. Still, regional governments, especially those in the Gulf Cooperation Council, are actively reaching out to international asset managers and investment teams from Asia and other parts of the world. They’re trying to position cities like Abu Dhabi as major hubs for global capital. The Abu Dhabi Global Market (ADGM), for instance, attracts managers overseeing a collective $52 trillion in assets, helping cement Abu Dhabi’s reputation as the “Capital of Capital.”

Broader regional financial institutions—like central banks and public pension funds—also add to the wealth pool, though their growth rates are a bit more modest. Central banks are expected to increase reserves at around 3 percent annually, while pension funds are growing roughly 6 percent per year.

Analyses from firms like Deloitte back this up, showing that Gulf SWFs are really leading the charge globally. It’s anticipated that by 2030, total assets for Gulf SWFs could reach about $18 trillion. In 2023 and 2024, Gulf funds accounted for about two-thirds of all new SWF investments worldwide—an indication of how influential the region is becoming in global financial markets.

All of this high-speed growth and shifting focus really reflect the economic visions many MENA governments have—they want to cut down on their dependence on oil. Sovereign wealth funds are key players in these long-term strategies, helping to diversify investments across new asset classes, emerging technologies, and international markets. Plus, their focus on sustainability and better governance shows that these funds are maturing and aligning more with global best practices.

To sum it all up, the MENA sovereign wealth fund sector is in a pretty exciting expansion phase, driven by aggressive investment moves, innovation in finance, and a solid emphasis on sustainable development. These funds are not only reshaping the economic futures of their countries but are also increasingly asserting the region’s presence in the global capital markets—growing in influence, sophistication, and strategic importance.

Source: Noah Wire Services