Emerging markets are falling
Emerging markets, particularly China, India, Indonesia and Saudi Arabia, were the biggest losers, receiving only 15% of total sovereign investment, down 28% from 2024. Global SWF director Diego Lopez noted that while these economies performed well, capital flows shifted sharply to the US.However, private credit investors have returned to emerging markets in search of stronger returns and more attractive project structures. The report also noted that all eleven new sovereign wealth funds launched in 2025 originated in emerging markets. With oil prices under pressure, Lopez predicted that 2026 could be a challenging year for oil-dependent sovereign wealth funds, while sectors such as natural gas and metals including copper could drive new capital flows.
The American pulling power remains strong
The US retained its appeal as a destination of choice for global sovereign and pension funds. Investments were heavily focused on digital infrastructure, data centers and AI companies, reflecting a paradigm shift for recipient countries. Lopez emphasized that the $132 billion figure does not include the estimated $2.2 trillion already in the “Magnificent 7” U.S. stocks Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla.
High-profile commitments from the Gulf states also strengthened US investment magnetism. Saudi Arabia pledged $600 billion in US investment during President Trump’s visit, with Crown Prince Mohammed bin Salman promising to increase this to $1 trillion. Abu Dhabi and Qatar have also made large-scale commitments, pledging $1.4 trillion and $500 billion respectively over the next decade.The biggest spenders in 2025 included Saudi Arabia’s Public Investment Fund with $36.2 billion, much of it to acquire Electronic Arts, and Abu Dhabi’s Mubadala, which invested a record $32.7 billion. Other major investors included Canada’s CPP, La Caisse and Singapore’s GIC. Golf funds such as PIF, Mubadala and Qatar Investment Authority also emerged as major backers of Paramount Skydance’s bid for Warner Bros Discovery.The report underlines the continued ability of the US to attract sovereign capital, even in times of global economic uncertainty, and highlights a clear difference in investment flows between the US and emerging markets.
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