The concept refers to a government-owned investment fund that is financed by state revenues. These funds commonly originate from resource-rich countries with surpluses of revenue generated from oil, gas, or other commodities. The purpose is to invest these revenues for the benefit of the nation’s economy and its citizens, both present and future. Investments can include stocks, bonds, real estate, and other assets, both domestically and internationally.
Such a fund can play a significant role in stabilizing the national economy, diversifying revenue streams, and accumulating wealth for future generations. Historically, these funds have been used to finance infrastructure projects, support education and healthcare initiatives, and provide a cushion against economic downturns. Their long-term investment horizon allows them to weather market fluctuations and generate sustainable returns.
