The role of sovereign wealth funds in supporting fiscal policy and economic stability

Abstract

The primary goal of this study is to identify and analyze the role of sovereign funds in supporting the fiscal policy and economic stability. We took "mubadala" fund in Abu Dhabi as a case study. The study attempts to clarify some of the concepts relating to fiscal policy as well as the phenomenon of sovereign funds focusing on the experience of Abu Dhabi. We have reached to clarify the effectiveness of the role of "mubadala" as a tool to support fiscal policy and achieve diversified dynamic economic growth to Abu Dhabi, by investing in multiple economic sectors in different parts of the world.