In a landmark year for state-owned capital, sovereign wealth funds across the globe have collectively reached an unprecedented milestone. According to a new report by data firm Global SWF, these powerful investors now oversee a staggering $15 trillion in assets under management. This surge was fueled by robust market performance and a strategic, deep dive into future-focused sectors like artificial intelligence.
Gulf Funds Drive the Global AI Investment Spree
The year 2025 witnessed sovereign investors channel a colossal $66 billion into artificial intelligence and digitalization projects worldwide. Leading this technological charge were the wealth funds of the Middle East, which solidified their position as the most aggressive dealmakers in the digital arena.
Abu Dhabi's Mubadala Investment Company emerged as a standout, deploying $12.9 billion into AI and digitalization. It was closely followed by the Kuwait Investment Authority, which invested $6 billion, and the Qatar Investment Authority, which committed $4 billion towards similar technologies. Collectively, the seven major Gulf sovereign funds were responsible for 43% of all capital invested globally by state-owned investors, amounting to a historic high of $126 billion.
Deal-Making Titans: PIF and Mubadala Take Center Stage
When it came to sheer deal size, Saudi Arabia's Public Investment Fund (PIF) claimed the top spot in 2025. Its total commitment of $36.2 billion was significantly bolstered by its participation in the major acquisition of gaming giant Electronic Arts Inc. However, when that single massive deal is excluded from the calculations, the title of the most active sovereign investor goes to Abu Dhabi's Mubadala.
Mubadala executed a record $32.7 billion across 40 different transactions, showcasing a diversified and highly active investment strategy throughout the year. The overall growth in the clout of sovereign investors, a group that also includes public pension funds, was underpinned by strong returns across asset classes like fixed income, public equities, real estate, and infrastructure.
Geographic Shifts: US Gains, China Sees Pullback
The report also highlights significant shifts in the geographic flow of sovereign capital. The United States remains the undisputed leader in both hosting sovereign wealth and attracting new investments. State-owned investors in the US manage $13.2 trillion in assets, followed by China with $8.2 trillion and the United Arab Emirates with $2.9 trillion.
As a destination for new money, the US attracted $131.8 billion in 2025, nearly double the $68.9 billion it received the previous year. In a contrasting trend, investments by sovereign-owned investors into China fell sharply to $4.3 billion from $10.3 billion in 2024, indicating a notable cooling of appetite.
This data paints a clear picture of a financial landscape where sovereign wealth is not only growing but is being strategically deployed to shape the future of technology, with Gulf funds operating at the very forefront of this global movement.
