Abu Dhabi Investment Authority

Abu Dhabi Investment Authority

United Arab Emirates – Abu Dhabi US$ 627 Billion
Established: 1976
Transparency Rating: 5
View Sovereign Fund Transaction Data
View Asset Allocation		 Origin: Oil
Firm Investment Style: Mixed
Entity Structure: Fund
Pop Est.: 921,000 – 2013 – Abu Dhabi
Wealth Per Capita Est.: $680,782

 

Summary
Established in 1976, the Abu Dhabi Investment Authority’s (ADIA) main funding source is from a financial surplus from oil exports. ADIA replaced the Financial Investments Board created in 1967 part of the then Abu Dhabi Ministry of Finance. The Abu Dhabi Investment Authority is the largest sovereign wealth fund in the Middle East.

It is wholly owned and subject to supervision by the government of Abu Dhabi. The fund is an independent legal identity with full capacity to act in fulfilling its statutory mandate and objectives. As much as 80% of its assets are administered by external managers which includes around 60% that is passively managed through tracking indexed funds.

The Abu Dhabi Investment Authority’s funding sources derives from oil, specifically from the Abu Dhabi National Oil Company (ADNOC) and its subsidiaries which pay a dividend to help fund ADIA and its sister fund Abu Dhabi Investment Council (ADIC). These payments are on a periodic basis if the Government runs a surplus to its budgetary requirements and other funding commitments. About receiving 70% of any budget surplus is sent to ADIA, while the other 30% of surplus goes to the Abu Dhabi Investment Council (ADIC).

 Strategy & Objectives
The mission of the Abu Dhabi Investment Authority is to invest funds on behalf of the government of the Emirate of Abu Dhabi to make available the necessary financial resources to secure and maintain the future welfare of the Emirate.

The Abu Dhabi Investment Authority invests in a variety of asset classes. Benchmarks may range from the MSCI Index to the S&P 500 Index. Some of their asset allocation consists of:

  • Equities – Developed Markets
  • Equities – Emerging Markets
  • Hedge Funds
  • Managed Futures
  • Sovereign Debt
  • Corporate Debt
  • Real Estate (Funds or Direct Investments)
  • Private Equity
  • Infrastructure

Governance
ADIA’s board of directors is the supreme body having absolute control over ADIA’s offices and the control of its business. It is comprised of a chairman, managing director and other board members, all of whom are senior government officials appointed by Ruler’s Decree. Key decisions are made by various committees. The board of directors is not involved with ADIA’s investment and operational decisions. The managing director is responsible for such. There is an investment committee that assists the managing director by by reviewing and making recommendations on investment proposals originated by ADIA’s investment departments.

Sovereign Wealth Enterprises

Name Information
Procific Based in the Cayman Islands, Procific is an investment arm of ADIA.
Tamweelview European Holdings SA This sovereign wealth enterprise is the European Real Estate investment arm of ADIA. One of its significant real estate investments is Sturegallerian AB.
Tannadice Investments LLC Owns 25% stake in Chicago Parking Meters, LLC
Tawreed Investments Infrastructure
Infinity Investments SA Infinity Investments is a company that invests in European infrastructure assets and whose sole shareholder is the Abu Dhabi Investment Authority (ADIA). This sovereign wealth enterprise holds a stake 25% stake in Solveig Gas Norway AS, which is invested in a stake in Gassled joint venture (jv). Also invested in Thames Water.
Harina Company Limited Harina Company Limited is an investment company that invests in Australian real estate interests and is wholly owned by the Abu Dhabi Investment Authority (ADIA).

Other sovereign wealth enterprises include:

Arun Baga Berg Falgu Flamingo
Fundaq Ganges Gulab Indent Jhelum
Keep Leo Macro Magno Manly
Mark 5 Merlion Roic Rotate Segmo
Ssgain Way



Major Direct Foreign Investments (Public)

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Major Direct Foreign Investments (Private)

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Last updated: February 1, 2012

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