Abu Dhabi Investment Council

Country: United Arab Emirates - Abu Dhabi

Established: 1976

US$ Billion: 875

Origin: Oil

Transparency Rating: 3

Summary:
The Abu Dhabi Investment Council invests the money for the United Arab Emirates. It is broken down into several sovereign wealth enterprises, SOEs, and holding firms.

Sovereign Wealth Enterprises:

1. Abu Dhabi Investment Authority (ADIA)

AUM: $700-750 Billion

Established in 1976, the Abu Dhabi Investment Authorityís (ADIA) main funding source is from a financial surplus from oil exports. It is rumored to be the largest of the Sovereign Wealth Funds. As much as 70% of its assets are administered by external managers.


2. Abu Dhabi Investment Company

AUM: n/a

Founded on February 24, 1977 as the first U.A.E. investment company in the capital, ADIC is a Joint Stock Company that specializes in providing investment and corporate finance in addition to advisory services. ADIC is jointly owned by the Abu Dhabi Investment Council and the National Bank of Abu Dhabi (2%). It also currently invests in private equity, real estate, asset management and infrastructure. The ADIC owns about 73% of the National Bank Abu Dhabi.


3. Mubadala Development Company

AUM: $10 Billion

Established in October 2002 as a Public Joint Stock Company is a wholly owned investment vehicle of the Government of the Emirate of Abu Dhabi, in the United Arab Emirates. They have a tendency to invest in high technology and aerospace firms. The firm has also invested in oil fields, real estate partnerships, and hospitals. Mubadala tends to be one of the most transparent subsidiaries as they list many of their ventures and ownership amounts on their website.


4. International Petroleum Investment Company

AUM: $6.5 Billion

(IPIC) is the Abu Dhabi state enterprise which is responsible for all foreign investments in the oil and chemicals sector. It is based in Abu Dhabi, United Arab Emirates. Established in 1984 as a 50-50 venture between ADIA and the Abu Dhabi National Oil Co. (ADNOC) to focus on oil-related acquisitions overseas. IPIC is also transparent in their holdings.


5. TAQA - Abu Dhabi National Energy Company

AUM: $9 Billion

TAQA is an energy investment company established in June 2005 as a public joint stock company (PJSC). The government of Abu Dhabi through ADWEA owns 51%, ADWEA transferred 24.1% of its shareholding to the Fund for the Support of Farm Owners in the Emirate of Abu Dhabi to provide farmers with an income stream and provide longer-term support to farming in the Emirate of Abu Dhabi. TAQA has made substantial international investments in Asia, Africa, North Sea, and Canada.


6. Tasameem
Tasameem is the real estate investment arm of ADIA.

Major Direct Foreign Investments (Public)

Company Country Industry % Ownership Comments
Spyker Cars Netherlands Consumer Goods 22.8% Mubadala (Subsidiary)
OMV AG - Underlying Austria Oil & Gas 17.6% IPIC (Subsidiary)
Eastern European Trust Plc 15.73% ADIC (Subsidiary)
Macquarie International Infrastructure Fund Ltd Bermuda Financials 9.97% ADIC (Subsidiary)
Compania Espanola de Petroleos SA Spain Oil & Gas 9.5% IPIC (Subsidiary)
Guinea Alumina Corporation Guinea Industrials 8.33% Mubadala (Subsidiary)
Egyptian Financial Group Hermes Holding Company Egypt Financials 8.3% ADIA (Subsidiary)
Advanced Micro Devices United States Technology 8.1% Mubadala (Subsidiary)
Suez Cement Company Egypt Industrials 7.61% ADIA (Subsidiary)
Ziopharm Oncology Inc United States Technology 5.09% ADIC (Subsidiary)
Ferrari Italy 5.0% Mubadala (Subsidiary)
Citigroup United States Financials 4.9% ADIA (Subsidiary)- Subprime Bailout

Major Direct Foreign Investments (Private)

Company Country Type % Ownership Comments
Pearl Energy Ltd. Singapore Buyout 100% Mubadala (subsidiary)
Hyundai Oilbank Co Ltd South Korea Joint Venture 70% IPIC (subsidiary)
John Buck International United States Joint Venture 51% Mubadala (subsidiary) - Real Estate
AMI Agrolinz Melamine Intíl. GmbH Austria Private Stock 50% IPIC (subsidiary)
SR Technics Switzerland Private Stock 40% Mubadala (subsidiary)
Piaggio Aero Industries Italy Private Stock 35% Mubadala (subsidiary)
LeasePlan Corporation Netherlands Joint Venture 25% Mubadala (subsidiary)
Apollo Management LP United States Private Equity Fund 9% ADIA(subsidiary)
Carlyle Group United States Private Equity Fund 7.5% Mubadala (subsidiary)

News and Updates

6/2/2008
US' Paulson says foreign direct investment is welcome in United States
Speaking on the home turf of the largest sovereign wealth fund in the world, U.S. Treasury Secretary Paulson had a simple message for foreign investors: Bring it on.
read more: Forbes

5/28/2008
Indra signs preliminary joint venture deal with Abu Dhabi's investment vehicle
Indra Sistemas SA. said it has signed a preliminary agreement with Abu Dhabi's state-owned investment vehicle, the Mubadala Development Company, to develop joint ventures for technology projects and products.
read more: Hemscott

4/10/2008
IPIC contemplates increasing stake in EDP Energias de Portugal, SA by 3 pct
LISBON (Thomson Financial) - Abu Dhabi's state-owned International Petroleum Investment Company (IPIC), which announced the acquisition of a 2 pct stake in EDP Energias de Portugal, SA last night, is seeking to increase this holding to a maximum of 5 pct, Jornal de Negocios reported without naming a source. Jornal de Negocios note that both IPIC and state owned Algerian oil and gas group Sonatrach, which currently holds 2 pct of EDP, are interested in increasing their stakes ahead of the group's renewables IPO, slated for the first half of this year.
read more: Hemscott

4/10/2008
Abu Dhabi firm buys into Shell's Algerian operations
According to Reuters, " Abu Dhabi's state investment arm Mubadala said on Tuesday its energy unit has bought 20 percent of Royal Dutch Shell's stake in production and exploration projects in Algeria. "Liwa Energy ... bought a 20 percent stake in the projects carried out by Shell's exploration and production in Algeria," Mubadala said in a statement, without giving the value of the deal."
read more: Reuters

4/3/08
Lend Lease & ADIA reported to build Sydney office Site
Bloomberg writes that, "Lend Lease Corp. won backing from the Abu Dhabi Investment Authority for plans to build a A$600 million ($549 million) office tower at Sydney's Darling Harbor, the Australian Financial Review reported, without saying where it got the information."
read more: Reuters

3/30/08
Mubadala in discussion to buy stake in US realty firm
"We are in discussions to buy a stake in The John Buck Company," Carlos Obeid, chief financial officer (CFO) of Mubadala, told a news conference in Abu Dhabi on Sunday, without giving further details. Mubadala said in a statement it had set up a new real estate company with Chicago-based The John Buck Company to develop projects in Abu Dhabi and the Middle East.
read more: Arabian Business

3/6/08
ADIA official joins Abu Dhabi Commercial Bank
Abu Dhabi Commercial Bank (ADCB) has appointed Simon Copleston as its first-ever general counsel. Copleston joined the bank from the Abu Dhabi Investment Authority (ADIA) on 8 January to become the first lawyer to hold the post. The appointment is Coplestonís latest in-house position in the Middle East after leaving Olswang in January 2006 to join investment house Dubai International Capital. It is understood he will be responsible for building up the bankís legal function to around five lawyers by the end of the year.
read more: Legal Week

2/20/2008
P180 Avanti II Displayed at Singapore Airshow
As an Affiliate of Mubadala Development Company, Piaggio Aero will display its P180 Avanti II at the First edition Singapore Airshow. The Airshow is being held from 18 through 24 of February 2008.

2/9/2008
ADIC and UBS Asset Management Launch Investment Fund
ADIC is forming a 50:50 joint venture with UBS to develop, promote and manage infrastructure investment funds focused on the Middle East and North Africa region. The fund size will be around $500 million.

1/31/2008
Standard Chartered invites UAE funds to buy stake

1/20/2008
Cash Infusion for Citigroup - $7.5 billion cash infusion

Location

Abu Dhabi Investment Company Head Office:
National Bank of Abu Dhabi Building, Khalidiya, Tariq Bin Ziad Street,
P.O. Box 46309 Abu Dhabi, United Arab Emirates
Tel: +971 (0) 2 665 8100
Fax: +971 (0) 2 665 0575
Telex: 23824 ADICGN EM _ 22968 ADICCR EM

Website

Abu Dhabi Investment Authority
Abu Dhabi Investment Company
Mubadala Development Company
International Petroleum Investment Company
TAQA - Abu Dhabi National Energy Company PJSC
Last updated May 12 2008