Graphics/Photo Credit: Semmi W.
If you’ve ever wondered what really fuels the world’s Sovereign Wealth Funds (SWFs), the answer can be boiled down to two buckets: commodities and non-commodities. Together, these categories determine how countries build wealth and wield power.
In this second installment of the SWF series, we’ll go deeper into what actually makes up these funds. The big split is nearly even: 51% commodity-based, 49% non-commodity. But the nuances of what sits inside each half (oil, diamonds, foreign reserves, real estate, public pensions) reveal a lot about which countries dominate and how they’re preparing for the future.
The pyramid chart below breaks down these categories visually. The latest available data is from end of year 2023, 2024 and mid-2025.
Data Sources: Global SWF, SWFI, TheCityUKInfographics Credit: Semmi W.
The Commodity Side (51%): Oil, Gas, and Natural Resources
Commodity-based SWFs are funded by profits from natural resources. Think oil, gas, minerals, and even, in some cases, agricultural exports. These funds exist because countries want to capture windfalls from finite resources and reinvest them for future generations rather than spending them all at once.
The clearest example? Oil and gas revenues. They dominate the commodity slice, especially in the Middle East.
Saudi Arabia’s Public Investment Fund (PIF) is one of the largest and most aggressive SWFs in the world, fueled by oil sales. It’s behind everything from mega-infrastructure projects like NEOM (a planned, futuristic city being built in Saudi Arabia) to stakes in global companies ranging from Uber ($3.5B+ invested) to Nintendo.
Norway’s Government Pension Fund Global, often called “the oil fund,” has become the world’s largest SWF by funneling petroleum revenues into global equities, bonds, and real estate. Despite being a small country, Norway controls over $1.6 trillion in assets.
Qatar Investment Authority, Abu Dhabi Investment Authority, and Kuwait Investment Authority are also textbook cases of oil-fueled sovereign wealth.
These funds aren’t just parking money. They are shaping industries. For instance, PIF’s recent investments in electric vehicles and AI technology show how oil wealth is being repurposed to back the energy transition and the next wave of innovation, hedging bets on a post-oil future while still depending on oil today. The thin purple line in the data visual (above) represents current commodity investments outside of traditional energy sources, minerals, and timber/forestry.
The Non-Commodity Side (49%): Foreign Exchange, Surpluses, and Pensions
Non-commodity SWFs don’t rely on natural resources. Instead, they are built from fiscal surpluses, foreign exchange reserves, land sales, or even public pensions. In short, they represent a country’s ability to save and invest without leaning on the oil pump.
Some of the largest non-commodity funds are based in East Asia:
China’s CIC (China Investment Corporation), one of the biggest SWFs globally, is funded primarily from foreign exchange reserves.
Singapore’s Temasek Holdings and GIC are textbook examples of non-commodity funds. They channel government savings, land proceeds, and budget surpluses into diversified portfolios. Temasek is especially known for its active equity plays, from biotech to tech startups.
South Korea’s National Pension Service (NPS) technically operates as a pension fund, but its sheer size and global investments often place it in the same conversation as SWFs.
Australia and Hong Kong also play a key role through their non-commodity investments. Singapore (a country smaller than New York City) has managed to build two of the most influential state investment vehicles in the world, relying on strategic financial planning rather than natural resources. As a city-state, it doesn’t have a choice.
Why the Split Matters?
On the surface, 51% commodity vs. 49% non-commodity seems like a basic, pretty even balance. But the categories reflect deeper realities:
Commodity funds are vulnerable to resource cycles. When oil/gas prices soar, funds grow. When prices crash, governments face tough decisions about drawing down reserves or slowing investments. This makes them powerful but also volatile.
Non-commodity funds play the long game. They are tied to investments in land leases, real estate, pensions, and currency reserves, which can be steadier sources. They don’t have the same volatility as oil/gas but are more sensitive to shifts to in global financial conditions.
Together, they show how the wealth map is changing. In a world of fragmented alliances, where sovereign money flows is as important as where armies march.
As this series continues, the next question becomes: not just what’s inside these funds, but where they plan to put their money next—and how that will shape the global economy we all live in.
If you missed it, here’s Pt. I in the SWF Series: The Top 10 Sovereign Wealth Funds in 2025
Scroll Around + Find Out: Related Reads/Views
Abu Dhabi’s Investment Surge—Financial Times
Temasek joins Microsoft, BlackRock & MGX to Backs AI Tech—Reuters
Norway’s Oil Fund Takes Ethical Action—Yahoo Finance
What do you think of SWFs? Drop your comments below!
Thanks for reading. :) More visuals and stats to come on GFW. Subscribe below for more data.— Semmi W.
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