Abu Dhabi’s Mubadala Investment Company has taken the lead as the world’s biggest spender among sovereign wealth funds in 2024.

The fund deployed $29.2 billion last year, a sharp increase from $17.5 billion in 2023, according to a report by Global SWF, an industry tracker. This marks a significant shift, as Saudi Arabia’s Public Investment Fund (PIF) slipped in rankings after cutting its spending by 37% to $19.9 billion in 2024.

Gulf sovereign wealth funds, including those from Abu Dhabi, Qatar, and Saudi Arabia, collectively invested a record $82 billion last year, up over 10% compared to 2023. The report noted that while regions like Canada, Singapore, and Australia saw increased activity, they remained below their peak investment levels from 2021-2022.

Mubadala’s increased activity comes as Abu Dhabi intensifies its focus on digitisation and artificial intelligence. Investments in these areas, including data centres, digital infrastructure, and space technologies, reached $27.7 billion globally in 2024. The UAE is competing with Qatar and Saudi Arabia to position itself as a global hub for AI, with government-backed companies like G42 and MGX leading the way. Officials believe this strategy will cement the UAE’s economic relevance beyond oil.

Meanwhile, total assets under management by sovereign wealth funds globally climbed 6.1% to hit a record $13 trillion in 2024, while public pension funds also rose 6% to $25 trillion. Real estate and private equity investments remained steady, but infrastructure and credit deals continued to grow.

Overall, sovereign wealth funds increased deal activity by 5% last year, with total deals amounting to $216 billion. The average deal size also reached a six-year high of $370 million, highlighting the growing appetite for large-scale investments.