DUBAI: The quiet capital that once operated behind the scenes is no longer just writing the big checks; they are rewriting the rules.

Leading state-owned sovereign wealth funds, such as ADQ, Mubadala, the Abu Dhabi Investment Authority and newer heavyweight Lunate, are expanding their reach beyond capital deployment.

Their investments now include infrastructure development, regulatory engagement, and broader ecosystem support.

This approach signals a notable shift in global fintech dynamics, with Gulf-based funds increasingly directing not only where capital flows, but also which players and platforms gain prominence.

From petro capital to powerbroker  

In 2025, ADQ, Mubadala, and Lunate traded their quiet capital status for the driver’s seat of global fintech.

The three funds are backed by Abu Dhabi’s ruling elite, tasked with deploying the emirate’s oil wealth into strategic international assets. 

“While sovereign wealth funds are often associated with large-ticket late-stage investments, their role in seeding and scaling ecosystems is equally significant,” Farah El Nahlawi, research manager at MAGNiTT, told Arab News.

In 2022, the Abu Dhabi Developmental Holding company, ADQ, backed a $200 million fintech and digital-assets venture targeting early-stage startups, while Mubadala led the world’s sovereign investors by deploying $29.2 billion across 52 deals in 2025. 

Diego Lopez, founder and managing director of Global SWF, highlights the strategy behind Abu Dhabi’s sovereign wealth:  

“We have just updated the ranking for 2025, and Abu Dhabi is still at the top with $1,818 billion managed by the SWFs in town,” he said, adding that Abu Dhabi’s capital is spread out in different vehicles, “rather than concentrated in a single SWF, as it happens in other GCC countries.”  

Lopez said this strategy was initially for political reasons, but it allows the separate funds “to focus on their different mandates and strategies (i.e. Mubadala and ADQ raising debt) without the risk of commingling capital or overlapping.” 

This approach has enabled Abu Dhabi’s funds to pursue sector-specific investments, illustrated by Mubadala’s MGX’s recent strategic expansion into the cryptocurrency space. 

MGX Fund Management Ltd., a $330 billion artificial intelligence-investment project, expanded its portfolio to include a $2 billion minority stake in cryptocurrency exchange in Binance.  

This move, announced in March 2025, marks a departure from MGX’s initial focus on AI infrastructure investments, such as those in OpenAI and xAI. 

The decision to invest in Binance aligns with the UAE’s broader ambition to position itself as a global crypto hub, evidenced by its introduction of AE Coin, a UAE dirham-backed stable coin. 

This shift highlights the UAE’s approach to integrating blockchain technology into its financial ecosystem, aiming to enhance its influence in the rapidly evolving digital finance sector. 

How Mubadala, ADQ, and Lunate are picking winners 

From Africa to Southeast Asia, fintech investment has become a tool of financial diplomacy. 

Mubadala’s stake in Nigerian mobility-fintech Moove, contributing $76 million equity and debt financing round in 2023, or ADQ’s partnership with Ant International, Baykar, and Trendyol in Turkiye, are as much about market growth as they are about geoeconomic alignment. 

Through Further Ventures, ADQ is seeding a new generation of fintech firms focused on emerging markets. 

Mubadala’s MGX partnership with Binance signals more than just crypto exposure. It positions the fund within the exchange and infrastructure layer of global digital finance, potentially influencing regulatory alignment and exchange access. 

Meanwhile, Lunate, which launched in late 2023, now manages $110 billion in assets as of August 2025, and has moved quickly to stake out influence in both traditional and digital finance.

It went on to acquire a minority stake in European hedge fund Brevan Howard, alongside a $2 billion joint fund platform based in the Abu Dhabi Global Market.

Middle Eastern SWFs are now playing a “partner role,” a Mitsui & Co. Ltd March report said, adding that SWFs “have established a presence that is commanding the attention of major institutional investors in the US and Europe.” 

Quiet money, big stakes  

Despite concerns about the deployment of petro capital into high-impact technologies in the absence of formal legislative oversight, industry experts note a gradual shift in governance standards among sovereign investors.

“This year, we have noticed that some GCC funds have become more inward and opaque at the back of geopolitical risk,” Lopez told Arab News.

While concerns persist, others point to the strategic resilience of sovereign-backed ventures, particularly in how they adapt to global economic headwinds and recalibrate capital deployment in uncertain markets.

“It is worth noting that the impact of rising tariffs and tighter liquidity may still dampen late-stage fundraising, in the long run,” El Nahlawi said, adding that “sovereign-backed ventures are somewhat shielded, given their longer investment horizons and alignment with national strategic goals.”  

Still, she noted that a shift in investment preferences may be underway. 

“Global headwinds could likely motivate investors to pivot to sharper prioritization of scalable, revenue-generating fintech models by late 2025.” 

The new gatekeepers: What sovereign capital means for global fintech 

This rapid accumulation of capital not only underscores the growing financial clout of SWFs but also highlights the shift from passive investors to strategic actors shaping industry trajectories. 

Gulf funds collectively control around 40 percent of global SWF assets and account for six of the world’s 10 largest sovereign investors, according to Deloitte.  

With combined assets under management nearing $5 trillion and forecasts projecting growth to $7.6 trillion, these state-backed investors are playing an active role in developing infrastructure in emerging markets.  

As of July, the UAE controlled an estimated $2.49 trillion in sovereign wealth assets, making it the third-largest sovereign investor globally, according to Global SWF. 

As sovereign capital becomes more embedded in fintech, its long-term impact on market dynamics and regulation will continue to draw discussion as wealth funds transform into global business empires.