The new American sovereign fund .. What is it and why it focuses on “Tek Talk”?

US President Donald Trump has signed an executive order ordering the US Treasury and Trade Ministries to create a sovereign wealth fund that he may also be used to buy the social media platform “Tech Talk”, according to the British newspaper The Guardian.

American sovereign wealth fund

The American sovereign wealth fund would work as an investment fund for the country to operate outside the Federal Reserve Bank and the Treasury.
The establishment of the fund requires the approval of Congress, including the knowledge of its funding sources for its existence.
Also read: Hours before his inauguration .. “Trump”: We want 50% of the ownership of Tek Tok
“We have tremendous potential. I think within a short period of time we will have one of the largest boxes,” Trump said of the Oval Office.
Trump said that Treasury Secretary Scott Besent and Hurord Lottennik, Trump’s candidate for the post of Minister of Commerce, will lead efforts to establish a sovereign American fund.
“We will implement this matter during the next twelve months, and we will transfer the side of the assets in the United States’s public budget into money for the American people,” Besent told reporters.

The goal of the new American Fund

Among the goals of the fund is the development of infrastructure such as airports and highways and helping to expand America’s influence in areas such as Panama and Greenland.
There are sovereign wealth in more than 100 countries, including Saudi Arabia, China and the UAE, and there are currently sub -sovereign wealth in twenty US states, including Alaska, which has the largest fund among all American states worth more than $ 80 billion in 2024.

Sovereign funds around the world

The Saudi sovereign wealth fund is among the largest in the world, which invests in projects in the Kingdom and around the world, including in projects in the Silicon Valley.
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“For example, Saudi Arabia has a wonderful sovereign box and we will seek to catch up with it,” Trump said.
The Saudi Public Investment Fund (sovereign), which was the most active in 2023, focused its spending on local investments.
The data of the Sovereign Wealth Funds Institute revealed that the Kuwaiti sovereign fund ranked fifth in the world to assets estimated at 1.029 trillion dollars, up from the last level of 980 billion dollars.
The “Kuwaiti sovereignty” was ranked first in terms of the desired assets, the Norwegian Fund, with assets estimated at $ 1.74 trillion, followed by the Chinese Investment Authority at 1.33 trillion dollars.
The Chinese sovereign fund in Asia came third with 1.09 trillion dollars, then the Abu Dhabi Investment Authority, fourth with 1.06 trillion dollars.
Trump had put forward the idea of ​​establishing the sovereign wealth fund during his election campaign, where he previously said in September that the fund could use “all the money that he will receive through customs duties and so on.”
He said at the time: “We will have the largest sovereign wealth box ever,” he said at the time.

Trump is not the only idea

It is not clear how legislators in the Congress will respond to the establishment of the box. While Congress must approve the establishment of the fund, its control over it will be less once it is approved.
The senior officials of the Biden administration were working quietly to establish a sovereign wealth fund with a focus on financing local infrastructure and manufacturing before the US elections in November, according to multiple reports.
Trump said on Monday that the box can be used to facilitate the sale of Tek Tok, noting that the box may have a role by saying, “Maybe we will do something with Tek Tok and perhaps not.”

Buy the box for the “Tik Talk” application

The new fund may seek to purchase the Tech Talk application, which includes about 170 million American users, for a short period before the issuance of a law whose Chinese owner is obliged by “byte Dance” to either sell it for reasons related to national security or facing the ban that entered into force on January 19.
After taking office on January 20, Trump signed an executive order aimed at delaying the application of the law for 75 days.
The US President has also had talks with the number of business leaders, including Elon Musk, on the purchase of Tech Talk and may make a decision on the future of the famous application in February.