Gulf sovereign wealth funds drive investment diplomacy

DiploFoundation has published a blog analysing how Gulf sovereign wealth funds use outbound investments as strategic tools of investment diplomacy.

• Main analysis: The post documents how Gulf sovereign wealth funds (SWFs) — notably Saudi Arabia’s PIF, Abu Dhabi’s ADIA, UAE’s Mubadala, QIA, and KIA — deploy capital abroad to secure resources, diversify economies, and strengthen diplomatic ties; the article cites that GCC SWFs collectively manage ~$5 trillion (early 2025) with projections to $7 trillion by 2030, and that PIF manages ~$1.15 trillion and is targeting $2 trillion by 2030.
• Background and specifics: The blog gives concrete examples and figures: PIF increased assets by 29% in 2023 and has invested in technology and entertainment aligned with Vision 2030; Mubadala expanded renewables globally; QIA manages >$550 billion and invests across telecommunications, healthcare, infrastructure and renewables in Africa and Asia; Gulf funds hold investments in Egypt (ports, petrochemicals, financial sectors) and funds like ADQ and QIA are investing in post-conflict markets such as Iraq; the piece also references China’s BRI and proposals like a US–Japan sovereign fund promoted by SoftBank.