Sovereign wealth and public pension funds directed a record $132 billion into the United States in 2025, capturing nearly half of their global deployments as assets under management reached unprecedented levels.

The Global SWF annual report reveals that state-owned investors channeled $132 billion—about 48% of total investments—toward American assets last year. This surge nearly doubled the prior year’s inflows and focused heavily on digital infrastructure, data centers, and AI-related companies amid strong U.S. equity performance.

Overall deployments by these funds rose 35% to $179.3 billion. Sovereign wealth funds alone now manage a record $15 trillion, contributing to a combined $60 trillion across sovereign investors, public pensions, and central banks.

Gulf funds dominated activity, with the seven largest accounting for 43% of global capital at $126 billion. Saudi Arabia’s Public Investment Fund led with $36.2 billion committed, while Abu Dhabi’s Mubadala completed a record 40 transactions totaling $32.7 billion after excluding outliers.

Tech and digitalization drew $66 billion, led by Middle Eastern players like Mubadala ($12.9 billion), Kuwait Investment Authority ($6 billion), and Qatar Investment Authority ($4 billion).

In contrast, emerging markets suffered sharp declines, receiving only 15% of flows—a 28% drop from 2024. China saw inflows plummet to $4.3 billion from $10.3 billion amid geopolitical risks.

This shift underscores America’s appeal for stable, high-return opportunities under the Trump administration’s policies. Strong S&P 500 rebounds and innovation leadership attracted capital away from volatile regions.

Looking ahead, oil-dependent funds face challenges in 2026 with stagnant revenues, though natural gas and metals like copper may drive new inflows. Existing holdings in Magnificent Seven stocks—estimated at $2.2 trillion—further bolster exposure without counting in deployment figures.

These massive inflows reinforce U.S. economic strength and strategic positioning in global finance. Conservative stewardship of capital flows benefits American growth while highlighting risks in overreliance on foreign state investors.