Middle Eastern Sovereign Wealth Fund (SWF)
Middle Eastern Sovereign Wealth Fund (SWF)
Challenge
1. A Middle Eastern Sovereign Wealth Fund (SWF) managing over $700B in assets needed a structured approach to oversee $122B in domestic investments.
2. Lack of centralized visibility made it difficult to:
- Track investment performance and ROI
- Identify factors that drive or hinder success
- Coordinate across multiple government stakeholders and ministries
3. There was no unified governance or monitoring framework to ensure accountability and efficient fund utilization.
Solution
1. Phronesis delivered a comprehensive approach including:
- Strategic direction and solution design
- Development of a governance apparatus for oversight and accountability
- Implementation of approval and tracking mechanisms
- Creation of an execution and operational framework across ministries
2. Conducted a pilot program within a single ministry:
- Managed a $18B domestic investment budget (2019)
- Tested monitoring systems and governance processes before full-scale rollout
3. Built a centralized organization to coordinate stakeholders and monitor investments effectively
Results
- Identified $65M in investments that failed to generate ROI
- Discovered $1.73B in unallocated funds, which were returned to the treasury and SWF
- Established a robust monitoring and governance system for future investments
- Demonstrated improved financial accountability and transparency
- Full rollout was temporarily paused due to COVID-19, with plans to expand ministry-wide from Q1 2023
Consulting WP really helped us achieve our financial goals. The slick presentation along with fantastic readability ensures that our financial standing is stable.
Amanda Seyfried
Microsoft Inc
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