Trump Wants a Sovereign Wealth Fund—Here’s How Other Nations Run Theirs

President Donald Trump talks to reporters after signing an executive order, "Unleashing prosperity through deregulation," in the Oval Office in Washington on Jan. 31, 2025. Chip Somodevilla/Getty Images

President Donald Trump has taken steps to create a sovereign wealth fund, a government-owned and operated investment fund.

Such funds are used by many countries and some states within the United States and function like venture capital. They typically use a nation’s surplus reserves and/or revenue from natural resources as seed money.

They invest in stocks, bonds, real estate, sports franchises, and other assets to yield a return that can be reinvested to support the government’s economic goals.

In his Feb. 3 order to create a plan for the fund, Trump noted that other nations have used the tactic successfully and that the United States can top even Saudi Arabia’s fund, which totals $925 billion.

“Eventually we’ll catch it,” he said.

Other countries or districts with sovereign wealth funds include Australia, Norway, China, Abu Dhabi, Qatar, Singapore, and Hong Kong.

Other Nations

More than 90 countries around the world utilize sovereign wealth funds totaling more than $8 trillion in assets, according to The Associated Press.

In the United States alone, 23 states have sovereign wealth funds, the strongest of which are in Alaska, New Mexico, and Texas.

The president’s order says the state funds control a total of $332 billion in assets. Those funds are supported by revenue from oil, gas, and other minerals.

The state funds are owned by the governments but primarily operate as standalone institutions with independent staff and independent investment strategies.

Qatar

Qatar’s sovereign wealth fund bought a stake in the parent company of several sports enterprises in a 2023 deal totaling $4.05 billion.

Reports from June 2023 indicated the fund bought about a 5 percent stake in the parent company of the NBA’s Washington Wizards, the NHL’s Washington Capitals, and the Women’s National Basketball Association’s Washington Mystics.

It was believed that the purchase was the first time any sovereign wealth fund bought into an American sports team.

Saudi Arabia

Nearby, Saudi Arabia has taken a similar tact. In 2023, the oil-rich country’s fund invested in the upstart LIV Golf League and partnered with the PGA Tour.

In March 2024, the country transferred another 8 percent of the kingdom’s oil company, Saudi Aramco, worth about $160 billion, into the fund.

The Public Investment Fund has been working toward “long-term initiatives to boost and diversify the national economy and expand investment opportunities in line with Saudi Vision 2030,” the announcement said.

Australia

Late in 2024, Australia’s sovereign wealth fund was instructed to target housing, infrastructure, and climate initiatives. The fund was created as part of an effort to lessen the government’s reliance on taxpayers.

Established in 2006, Australia’s Future Fund began with $60.5 billion in seed money from the federal government. Managers are required to deliver 4 to 5 percent returns and not become involved in any “excessive risk.”

Despite the turn toward green energy, the announcement included assurances that the fund’s primary focus is to maximize returns and benefit Australians.

By Sept. 30, 2024, the Australian fund’s value had grown to nearly $230 billion.

Trump’s Plan for the Fund

In his Feb. 3 order, the president pointed out that the UK announced plans for a similar fund and said the United States would “lead the way in long-term wealth generation.”

“The United States can leverage such returns to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish long-term economic security, and promote U.S. economic and strategic leadership internationally,” Trump said in his order.

Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick have been tasked with creating the plan for the fund, which would likely require approval from Congress.

The executive order includes recommendations for investment and a model for how to govern the fund. The plan is required to be submitted within 90 days.

According to Bessent, the Trump administration’s goal is to have the fund up and running within the next year

Using TikTok

The president has floated the idea of using proceeds from a possible TikTok sale as capital for the sovereign wealth fund.

In Trump’s Jan. 20 order granting an extension for the social media app to continue to operate until April, he stipulated that the platform must find an approved U.S. partner and for the United States to take on a 50 percent stake.

Currently, TikTok is owned by China-based ByteDance. The company’s continued operation of TikTok would violate a recently passed law concerning companies that are beholden to foreign adversaries operating in the United States

“We might put that in the sovereign wealth fund, whatever we make or we do a partnership with very wealthy people, a lot of options,” Trump said of TikTok.

“But we could put that as an example in the fund. We have a lot of other things that we could put in the fund.”

Emel Akan and The Associated Press contributed to this report.