SpaceX IPO Frenziedly Pursued by Middle Eastern Capital: Sovereign Funds from Saudi Arabia, Qatar, and Kuwait Splurge Billions of Dollars

Middle Eastern sovereign wealth funds are making massive bets on SpaceX's initial public offering, further cementing its core financing position in global artificial intelligence infrastructure development.

According to Bloomberg citing informed sources, the Saudi Arabian Public Investment Fund (PIF) and Kuwait Investment Authority (KIA) have respectively submitted subscription orders ranging from $1 billion to $5 billion, and the Qatar Investment Authority (QIA) may also make a significant commitment.

This enthusiasm for subscriptions is a microcosm of global institutional investors rushing into the deal—reports indicate individual investor subscriptions exceeding $10 billion, though actual allocations may end up lower than requested.

SpaceX plans to issue 555.6 million shares at a fixed price of $135 per share, raising around $75 billion, and is expected to begin trading on June 12. If successful, this IPO will surpass Saudi Aramco's 2019 record of $29.4 billion, becoming the largest IPO in history.

Middle Eastern Capital Has Deeply Invested in Musk's Ecosystem

Entities in the Middle East are already important shareholders of SpaceX. According to sources, based on Musk's targeted valuation of $1.8 trillion, related holdings have generated substantial paper profits.

Humain, PIF's AI investment platform, invested $3 billion in xAI this year, which will be converted into SpaceX shares. PIF also indirectly holds SpaceX exposure via Kingdom Holding. Abu Dhabi's sovereign fund MGX simultaneously holds stakes in Anthropic, OpenAI, and xAI, covering all three of the hottest AI companies. QIA has adopted a similar strategy, having invested in Anthropic and xAI in succession.

Elon Musk himself has established close relations with the Middle East. During his visit to the UAE last December, he appeared in photos with members of the Abu Dhabi royal family and Dubai crown prince.

His various companies also have deep penetration in the region: The Boring Company will build Dubai's underground loop; Emirates Airlines is using Starlink to upgrade its onboard Wi-Fi; Neuralink plans to start clinical trials for brain-machine interfaces in Abu Dhabi.

IPO Window Highlighted, Geopolitical Risks Can't Dampen Enthusiasm

The SpaceX IPO carries unique significance for Middle Eastern sovereign wealth funds—it marks the first genuine value realization point after years of investment in the AI industry chain.

Despite ongoing regional conflicts like Iran's attacks on Gulf countries, sovereign funds continue steady deployment, advancing deals in alternative asset management, private credit, technology platforms, and AI.

Notably, the Iranian conflict could hinder domestic AI development in Gulf countries, further strengthening their motivation to allocate capital to high-quality overseas targets.

Meanwhile, OpenAI announced Monday it had confidentially filed for an IPO, and Anthropic also completed a confidential filing last week. Estimates suggest if all three companies go public, they could collectively add about $3.6 trillion in market value to U.S. exchanges.

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