In a dramatic shift of global capital flows, state-owned investors overwhelmingly favoured the United States in 2025, directing nearly half of all their investments there, according to a major annual report. This surge came even as the total assets managed by these sovereign wealth funds, public pension funds, and central banks soared to a historic peak of $60 trillion.
US Emerges as Undisputed Investment Champion
The report from the data platform Global SWF, released on January 1, 2026, reveals a striking concentration of capital. Sovereign and public pension fund investors channeled a staggering $132 billion into the United States last year. This mammoth sum represents a whopping 48% of all state-owned investments (SOI) made globally in 2025.
Diego Lopez, Managing Director of Global SWF, described this as a "change in paradigm." He attributed the US appeal to massive spending focused on future-oriented sectors like digital infrastructure, data centres, and artificial intelligence (AI) companies. The allure of the US market remained potent despite investors' stated goals to diversify their portfolios amidst economic reforms under President Donald Trump's second term.
The investment figures are even more remarkable considering they exclude the estimated $2.2 trillion worth of "Magnificent 7" tech stocks—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla—already held by these state-backed funds.
Emerging Markets Face a Sharp Downturn
The flip side of America's investment boom was a significant retreat from major emerging economies. Investments in these markets plummeted by 28% from 2024 levels, hitting their lowest point in at least five years. They accounted for a mere 15% of the total global state-owned investment pie.
"The big losers were emerging markets, especially China, India, Indonesia, and Saudi Arabia, which received in 2025 disappointing levels of investment," Lopez noted in the report. This decline occurred despite these markets often delivering stronger financial performance, highlighting a clear divergence between economic growth and investment sentiment.
In a contrasting trend, the report indicated that private credit investors are beginning to pivot towards these same emerging markets, lured by the potential for higher returns and more favourable project structures.
Gulf Pledges and the New Fund Landscape
The US windfall was significantly powered by eye-watering financial commitments from Gulf nations, often executed through their formidable sovereign wealth funds. These pledges followed high-profile diplomacy, including Trump's first foreign trip to Saudi Arabia and a White House meeting with Crown Prince Mohammed bin Salman in November 2025.
Saudi Arabia committed to investing $600 billion in the US, with plans to increase it to $1 trillion. Abu Dhabi pledged $1.4 trillion, and Qatar outlined a $500 billion plan for the next decade.
The top spenders of the year were Saudi Arabia's Public Investment Fund (PIF), with $36.2 billion deployed (80% earmarked for its takeover of game maker Electronic Arts), and Abu Dhabi's Mubadala, which invested a record $32.7 billion. Gulf funds are also key backers in Paramount Skydance's hostile bid for Warner Bros Discovery.
While the trend favoured established economies, all 11 new sovereign wealth funds launched in 2025 originated in emerging markets. However, Lopez cautioned that 2026 could challenge big spenders reliant on oil revenues, as crude prices remain under pressure. "SWFs reliant on oil will find 2026 another tough year as revenues stagnate, while natural gas and metals such as copper spur new flows," he wrote. Saudi Arabia's PIF has already signalled a spending refocus due to low oil prices and project delays.
The standalone assets of sovereign wealth funds also reached a new record of $15 trillion. Overall, their direct investments grew by 35% to $179.3 billion in 2025, cementing their role as titans of the global financial landscape.
