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Sovereign wealth funds (SWFs) are state-owned investment funds that manage national savings, usually derived from commodity exports, foreign investments, or budget surpluses. They serve a pivotal role in providing sustainable revenue streams, mitigating risks associated with market fluctuations, and planning for the long-term economic stability of a nation. Countries such as Norway exemplify successful models of these funds, using oil revenues to not only shore up financial reserves but also stabilize their economies against volatility in global oil prices.