Kingdom ranks second in sovereign funds with $676 billion in assets
Amlak-Agencies
The investments of the Saudi Monetary Authority (SAMA) ranked second globally in the size of sovereign wealth funds with assets of about $676 billion, according to a report by the Washington-based Sovereign Wealth Funds Institute (SWFI).
On October 16, 2013, the total value of global sovereign wealth fund assets surpassed the $6 trillion mark for the first time, after adding $16.1 trillion in assets since the beginning of 2012.
The Monetary Authority Fund moved up the global list from fourth place to second place globally and first in the Arab world, after its assets under management rose to $675.9 billion in August, compared to $532.8 billion in June.
The Kingdom of Saudi Arabia's large sovereign wealth fund investments surpassed the $6 trillion mark for the first time on October 16, 2013.
The increase in the Kingdom's large sovereign investments is a positive signal for the Saudi economy and encourages the flow of foreign capital to the Kingdom, which brings many economic benefits, increases consumer and investor confidence in the Saudi economy, indicates that it is a safe economy even in the event of low oil income and uncertainty, and makes the Kingdom able to use these reserves when needed.
These sovereign cash reserves also indicate the strength of the Saudi economy and the good management of oil revenues and their allocation in an effective economic manner, as part of them are invested inside the Kingdom and finance the general budget, while the surplus part is invested externally and in government bonds with almost guaranteed returns for their development.
At the same time, these large foreign cash reserves indicate the financial solvency of the state and that it is not in need of external borrowing, but is able to participate in local and global economic programs without affecting its financial situation.
With the emergence of the global list of sovereign funds, the Norwegian government pension fund ranked as the largest government investor in the world with assets of about 804 billion dollars, followed by the Saudi Monetary Authority, then the Abu Dhabi Investment Authority with assets of 627 billion dollars, the China Investment Corporation fourth with “575” billion dollars, and its compatriot SAFE investment company fifth with assets of 568 billion dollars.
With the emergence of the global list of sovereign funds, the Norwegian government pension fund ranked as the largest government investor in the world with assets of about 804 billion dollars.
