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Business Home > Nation
Worth of Global SWFs swells to $6.46t in first quarter

Abdul Basit / 2 June 2014

The UAE, as a country, ranked second globally in terms of assets size and China is on top with $1.63 trillion assets.

The total worth of all Sovereign Wealth Funds (SWFs) in the world jumped by $955 billion to $6.46 trillion in the first quarter of 2014 compared to same period last year and Abu Dhabi Investment Authority (Adia) is ranked second globally with $773 billion assets, revealed Sovereign Wealth Fund Institute in its latest update.

According to the Institute, an American organisation that tracks SWF performance, Adia made $7.93 billion of deals last year, behind only funds from Norway, which has $838 billion assets. Adia is one of the longest-established and largest sovereign wealth funds in the world.

A SWF is a state-owned investment fund or entity that is commonly established from balance of payments surpluses, official foreign currency operations, the proceeds of privatisations, governmental transfer payments, fiscal surpluses, and receipts resulting from resource exports.

The US Institute’s ranking tracks six UAE SWFs, which had combined assets of $975 billion by March quarter of 2014. The UAE, as a country, ranked second globally in terms of assets size and China is on top with $1.63 trillion assets.

Among Gulf countries, the UAE ranked top with 43 per cent of the region’s total assets, followed by Saudi Arabia with more than $681 billion assets, and Kuwait ranked third with $410 billion assets.

The combined assets held under the SWF of the GCC countries is estimated at around $2.25 trillion in 2014, said global trade credit insurance company Euler Hermes in its latest report.

The SWF Institute said that the Middle East region controls 35 per cent of the total SWFs assets while Asia topped with 40 per cent assets. Europe ranked third with 17 per cent of the total global assets. The institute tracks total 72 SWFs across the world and out of that 12 are based in the GCC, six in the UAE.

SWFs are fundamental to the GCC asset management industry and account for 88 per cent of existing investable assets and 74 per cent of new assets. GCC investors primarily target the UK and the US for investment.

Other UAE-based SWFs, tracked by the US institute, include Investment Corporation of Dubai at $70 billion, International Petroleum Investment Company at $65.3 billion, Mubadala at $55.5 billion, Emirates Investment Authority at $10 billion and Ras Al Khaimah Investment Authority managed $1.2 billion.



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