Top Ten Sovereign Wealth Funds in the Middle East: A Compilation

National Development Fund of Iran (NDFI): USD 62 billion National Development Fund of Islamic Republic of Iran > HOME (ndf.ir) Even amid relentless international sanctions against Iran’s economy, the Iranian government succeeded in establishing its own sovereign wealth fund. The NDFI was founded in 2011, taking over the depleted Oil Stabilisation Fund. Its capital originates from Iran’s domestic oil revenues. According to data from the International Monetary Fund (IMF), during the fiscal year ending March 2016, the Tehran government allocated 20% of its oil revenue to this fund. Should Iran successfully ramp up its oil production to targeted levels in the coming years—and should oil prices rise as many analysts anticipate—the fund is poised for robust growth. The NDFI invests both domestically and internationally; however, it also bears immense pressure, given its critical role in financing massive investments required for rebuilding Iran’s local economy in the post-sanctions era. Mubadala Development Company (Abu Dhabi): USD 67 billion As one of Abu Dhabi’s smaller investment funds, Mubadala plays a pivotal role in the government’s drive toward economic diversification. Its investments and joint ventures aim to attract multinational corporations to the emirate, introduce advanced technologies, and generate employment. The fund’s investments concentrate primarily in four sectors: technology and industry; aerospace and engineering; energy; and emerging industries such as healthcare, real estate, and infrastructure. It has formed joint ventures and made investments with commodity trader Trafigura and tech giant IBM, and jointly operates a USD 10-billion global investment fund with China Development Bank. It also owns Masdar, Abu Dhabi’s local renewable energy specialist. International Petroleum Investment Company (IPIC) (Abu Dhabi): USD 68 billion This fund builds its portfolio on investments in oil and gas companies worldwide. Its holdings include stakes in Austrian petrochemical company Borealis, Japanese refiner Cosmo Oil, and Portuguese power supplier Energias de Portugal. Abu Dhabi Investment Council (ADIC): USD 90–110 billion Abu Dhabi Investment Council The second tier of Abu Dhabi’s investment funds comprises the ADIC, established in 2007. It invests in what the government describes as a “broad portfolio across highly diversified asset classes.” Part of the rationale behind establishing this fund was to support economic diversification and enhance the international presence of local enterprises.

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Mubadala Investment Company is the sovereign wealth fund of Abu Dhabi, United Arab Emirates, founded in 2002. Its evolution reflects not only a story of capital expansion but also the UAE’s strategic transformation—from petroleum dependence to future-oriented industrial planning. Since 2015, Abu Dhabi’s sovereign fund Mubadala has poured over USD 17 billion (approximately RMB 123 billion) into the Chinese market, executing more than 100 investment projects spanning core sectors including healthcare, consumer goods, and technology. Over the past decade, how has this enigmatic sovereign fund transformed from an oil-backed capital vehicle into a global tech powerhouse? Which Chinese unicorns has it backed? From Oil to AI: The Evolution of Mubadala’s ‘Cash Power’ In 2002, the UAE government established Mubadala Development Company to promote economic diversification and reduce reliance on oil revenues. In its early years, its investments centered on the energy sector—for instance, acquiring stakes in 18 global oil-and-gas enterprises via the International Petroleum Investment Company (IPIC), thereby strengthening its influence across the energy value chain. In 2009, Mubadala Development Company launched its subsidiary GMTN to issue securities and broaden its funding channels, earning an AA credit rating—marking its transition from government-funded entity to a market-oriented operator. By then, Mubadala had already established a presence in over 20 countries, though its investments remained largely focused on energy and infrastructure, laying the groundwork for its global network. 2017 marked a watershed moment in Mubadala’s development. It merged with IPIC, catapulting its assets under management to USD 125 billion, and rebranded as Mubadala Investment Company. This merger not only consolidated energy assets but also accelerated its clean-energy strategy—integrating TAQA (Abu Dhabi National Energy Company) and clean-energy assets from oil companies into its subsidiary MASDAR, dedicated to renewable energy development. That same year, Mubadala Capital—the first subsidiary of a sovereign fund globally to manage third-party capital—launched private equity funds to attract institutional investors worldwide, further expanding its capital pool. Thus, Mubadala evolved from a single-sector energy investor into a diversified sovereign fund. Since 2020, Mubadala has accelerated its pivot toward technology and emerging industries: • Clean Energy: Through MASDAR, it has integrated global solar and wind projects and built the UAE’s largest aluminum recycling plant, advancing green industrial chains. • Artificial Intelligence: In 2023, it invested USD 6.6 billion in OpenAI, co-founded the national AI platform MGX, and partnered with Microsoft and NVIDIA to develop data centers and semiconductor manufacturing. • Life Sciences: It acquired UCB’s pharmaceutical business in China and led a funding round for Haisen Bio, strengthening capabilities in drug R&D and distribution. By 2024, its assets under management exceeded RMB 2.4 trillion (approx. USD 330 billion), ranking it among the world’s top ten sovereign funds, with AI, semiconductors, and life sciences now forming its core investment pillars. “As a key investor supporting the UAE’s long-term competitiveness, this year marks our twentieth consecutive year of solid financial performance.”

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