Nurture leading domestic companies in strategic sectors, scale them up for positive multiplier effects on the economy. A sovereign wealth fund is the accumulation of assets managed on behalf of a country by its government, and invested into assets, thus bringing economic benefits to the citizens. For oil-rich countries like Norway, Kuwait, or Saudi Arabia, sovereign wealth funds are an important source of government revenues and tool for economic policy. This article describes what sovereign wealth funds are, where the funding for them comes from, and what drives them in their investment choices. It also highlights some of the policy considerations their activities present.
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