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How Would a U.S. Sovereign Wealth Fund Compare to Other Countries?
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Key points
- On Monday, President Donald Trump signed an administrative order to establish a sovereign wealth fund.
- The Sovereign Fund Fund is a state -owned investment fund, which incorporate federal funds into income assets to help diversify its economy.
- Norway has the world’s largest sovereign wealth fund. The fund’s oil and natural gas income in its country and foreign investment abroad to fund their government budget.
- The United Arabian chief, other large sovereign wealth funds in Saudi Arabia and China.
On Monday, President Donald Trump signed an administrative order to laid the foundation for the establishment of the sovereign wealth fund in the next 12 months.
Sovereign wealth fundS is essentially a state -owned investment fund, which put federal funds into income assets. Most countries with such funds depends to a large extent on resource extraction, and income income helps to diversify its economy.
The Trump administration does not share many details about how to establish funds or funds. Although the US economy is The largest and most diverse in the worldIt also has deficit.
Trump said: “Other countries have sovereign wealth funds.” “They are much small countries, not the United States; we have great potential in this country.”
Here are obvious examples of other countries with sovereign wealth funds and how to use them.
Norway
There is a Norway $ 1.7 trillion sovereign wealth fund It is the largest in the world. It invests the country’s oil and natural gas income in the financial market, including stocks of foreign companies. One -fifth of the government budget is funded by the income of the sovereign wealth fund.
China
There is one in China $ 1.3 trillion sovereign wealth fundEssence It invested in Africa urbanization, Belt and road initiativeAnd the global energy market, including many foreign renewable energy assets. The fund is used to pay some government budgets.
United Arab Emirates
Abu Dhabi, the United Arab Emirates, has $ 1 trillion Sovereign wealth fundEssence It did not disclose its specific investment, but said it invested in extensive asset categories, such as index funds, internal, external and private equity stocks, fixed income and the Ministry of Finance.
Saudi Arabia
Saudi Arabia has a $ 925 billion sovereign wealth fund. it Invest in public and private Saudi Corporation And international investment. The fund supports commercial projects, such as oil refining plants and industries, pipelines and storage, transportation, energy, and energy and energy to Saudi Arabia’s economy.
Correction, February 5, 2024: The previous version of this story mistakenly recognized the number of federal deficits.
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