US Draws Bulk of State-Owned Investment in 2025 as Assets Hit Record $60 Trillion

Why Did the U.S. Attract Most Investments?

The U.S. attracted the most investment due to its focus on digital infrastructure, data centers, and AI companies. Gulf countries have pledged billions to U.S. investments, with Saudi Arabia committing $600 billion and Abu Dhabi pledging $1.4 trillion. These investments were driven by strategic alignment with U.S. economic priorities and strong returns in key sectors.

The U.S. received $132 billion in investments in 2025, which accounted for nearly half of the total state-owned investments. This figure does not include the estimated $2.2 trillion of Magnificent 7 stocks that sovereign wealth and pension funds already hold. The shift to the U.S. reflects its pulling power and strategic relevance in the global economy.

How Did Emerging Markets Fare?

Emerging markets received only 15% of total state-owned investments in 2025, a 28% drop from 2024. This decline was particularly evident in countries like China, India, and Saudi Arabia. Despite their strong performance in 2025, these markets struggled to attract the same level of capital as in previous years.

The drop in investment came despite the launch of 11 new sovereign wealth funds, all based in emerging markets. With crude oil prices under pressure, 2026 could bring change for the current big spenders. Emerging markets will need to address policy uncertainty and geopolitical risks to regain investor confidence.

What Lies Ahead for Global State-Owned Investors?

In 2026, the U.S. is expected to remain a key destination for state-owned investors, especially in the AI and infrastructure sectors. New capital will depend on the source of revenue, with oil-dependent sovereign funds facing tougher conditions as oil prices stagnate. Natural gas and metals like copper may drive new investment flows.

Emerging markets are likely to see a gradual shift in investment patterns, with private credit investors showing interest in higher-yield projects. However, geopolitical tensions and global tariff uncertainty could challenge the outlook for emerging markets. Investors will need to monitor these risks closely in the coming year.

Sovereign wealth fund assets alone hit a record $15 trillion in 2025, driven by strong investment growth and asset diversification. The U.S. and emerging markets will need to balance policy goals, economic performance, and geopolitical dynamics to attract and retain investor interest in the coming years.