<h6><strong>Eduardo González</strong></h6> <h4><strong>Sovereign funds grew by 14% worldwide and exceeded $13 trillion in assets under management in 2023, according to the Sovereign Funds Report developed by IE University in collaboration with ICEX-Invest in Spain, which adds that Spain broke a record for attracting sovereign fund investments in the 2023-2024 period.</strong></h4> The Sovereign Funds Report 2024, presented this Tuesday at ICEX headquarters, confirms the strength of sovereign funds, which reached $13.2 trillion in assets under management in 2023 compared to $11.6 trillion in 2022, and the resilience of long-term investment strategies in a context of geopolitical instability and global fragmentation. The presentation of the report was attended by the Secretary of State for Trade, Amparo López Senovilla, and the CEO of ICEX, Elisa Carbonell. “In a global environment marked by tensions between the United States and China, together with the advance of protectionism, sovereign funds have adopted prudent and regionalised investment approaches, concentrating on strategic industrial sectors, digital infrastructure and energy, especially renewables,” the report states. For their part, sovereign funds in the Middle East are targeting markets such as India, while strengthening innovation and infrastructure in their own countries. The document also reveals that Spain broke a record for attracting investments from sovereign funds in the period 2023-2024. A total of seven different sovereign funds made thirteen direct investments in Spanish companies or in projects led by them. The total investment volume in 2023 reached 7 billion euros. This is the second most significant year in terms of attracting sovereign investments in Spain in the historical series, with an increase of 160% compared to the figures for 2022. The period covered by this report (from January 2023 to June 2024) brings the total to 7.3 billion euros, with a significant concentration on renewable and digital energy infrastructure, in addition to a strong commitment to the real estate and hotel sectors. In this regard, the Secretary of State highlighted during the event that “the presence of sovereign funds in our market is a reflection of the attractiveness that Spain has for international capital”. These investments, she continued, contribute to “capitalizing the companies themselves and their operations, favoring both internal growth and large international projects in third markets”. “In addition, Spain is one of the largest recipients of foreign investment in the world”, since “the stock of foreign investment in our country represents 56% of GDP, being the third country with the highest ratio within the G-20”, added López Senovilla. Norway’s Government Pension Fund Global remains the world’s largest sovereign wealth fund, approaching the symbolic $2 trillion mark. China Investment Corporation (CIC) and State Administration of Foreign Exchange (SAFE) remain in second and third place for the second year in a row: CIC holds $1.3 trillion and SAFE $1.1 trillion. The fourth, fifth and sixth places are currently occupied by Middle Eastern funds Abu Dhabi Investment Authority (estimated at $993 billion), Saudi Arabia’s Public Investment Fund (PIF) with $978 billion and Kuwait Investment Authority (KIA) with an updated estimate of $969 billion of assets under management. Moreover, the report shows that sovereign investment flows are increasingly targeting the Global South, especially India, which is benefiting from strong economic growth and policies geared towards green transition. Although the United States remains one of the main destinations, its relative weight in global flows has decreased, highlighting the growing influence of emerging markets.
