News about Gulf sovereign wealth funds is no longer limited to returns and deal sizes. In recent months, these entities—which manage hundreds of billions of dollars—have begun reshuffling their internal structures and merging parts of their assets. These steps reflect a shift in how public wealth is managed and in the role these funds play in regional and global economies.
The moves have unfolded almost simultaneously across several Gulf capitals.
Saudi economist Abdullah Al-Jabli believes the changes underway signal a transformation in the function of Gulf sovereign wealth funds. Whereas their role traditionally focused on preserving wealth for future generations, they have increasingly become instruments for executing major economic strategies, such as Saudi Vision 2030.
He says that mergers help reduce costs and standardize investment management mechanisms, enabling the creation of larger entities with greater global competitiveness. At the same time, he notes that unifying management does not mean pooling assets in a single place; investments remain geographically and sector-wise diversified, which helps mitigate the impact of volatility and crises.
In Abu Dhabi, the emirate announced the merger of the assets and investments of “Lam’ad Holding” with Abu Dhabi Developmental Holding Company (ADQ), under a unified entity bearing the name “Lam’ad,” according to a statement from the Abu Dhabi Media Office.
The decision was issued by the Supreme Council for Financial and Economic Affairs, reflecting a reorganization of government assets as sovereign funds expand their role in vital sectors of the economy. The new entity is chaired by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, amid a push to strengthen its international footprint through investments and partnerships in global markets.
In Doha, Bloomberg reported, citing informed sources, that the Qatar Investment Authority is reviewing the structure of its portfolio, in discussions that include the possibility of separating domestic investments from foreign ones. No final decisions have been announced, but the move points to a reorganization of one of the world’s largest sovereign wealth funds.
In Saudi Arabia, the Public Investment Fund continues to expand its investment presence at home and abroad, a trajectory that research reports—including those by Global SWF—describe as reflecting its growing weight in the global sovereign investment landscape.
Gulf sovereign wealth funds featured prominently in the global investment scene in 2025, accounting for about 43 percent of total global sovereign spending—nearly $126 billion, the highest level ever recorded. Their influence is particularly evident in the artificial intelligence sector. Between 2020 and 2025, these funds accounted for roughly 63 percent of total global sovereign spending on AI.
According to a Global SWF report, total sovereign investment in this sector reached $21.2 billion, of which Gulf funds accounted for $13.4 billion, with activity extending into broader digital fields including infrastructure, data centers, and digital-economy technologies.
Economic consultant Amr Abdo says mergers give funds higher operational efficiency, making it easier to manage financing, liquidity, and risk within a single structure, while strengthening their negotiating power with banks, asset managers, and partners. He adds that data consolidation allows for more precise performance tracking, but warns of potential challenges, including increased concentration in specific sectors or markets and difficulties exiting some domestic investments.
Regarding the economic return for Gulf countries, Abdullah Al-Jabli says that the expanding role of sovereign funds comes with several challenges, including energy-market volatility, the imposition by some countries of restrictions on sovereign wealth fund investments for national-security reasons, and questions about the ability of new domestic projects to achieve long-term financial sustainability without continued reliance on fund support.
Sovereign wealth fund models vary according to each country’s priorities. Amr Abdo notes that the UAE has historically adopted a multi-arm model, combining a global savings arm with developmental and sector-specific arms, alongside a recent trend toward greater centralization of certain tools. In Saudi Arabia, the Public Investment Fund’s model is tied to explicit economic goals, most notably expanding non-oil GDP and building domestic sectors through international partnerships. Qatar, by contrast, has traditionally favored the global investor model, with increasing steps to support venture capital and artificial intelligence domestically. He adds that Kuwait follows a more conservative approach, focused on long-term savings compared with other Gulf experiences.
The article is a translation of the original Arabic.
Alhurra
Sakina Abdallah
A Saudi writer, researcher, and TV presenter
