ADQ and Azerbaijan Investment Holding to Create a $1 Billion Joint Investment Platform

Posted on 12/15/2023

The state funds of Abu Dhabi are building closer ties to Central Asia. Abu Dhabi Developmental Holding Company (ADQ) and Azerbaijan Investment Holding (AIH), a strategic sovereign wealth fund located in Baku, announced the formation of a joint venture with the aim of investing in sectors of mutual priority and interest, such as agriculture, technology, pharmaceuticals, and energy infrastructure.

The platform will seek and leverage investment opportunities with the goal of generating sustainable financial returns on deployed capital. Investments will primarily be concentrated in Azerbaijan, the UAE, and Central Asia, with the potential to expand to other countries.

ADQ and AIH will each hold a 50 percent interest in the joint venture, with each party committing US$ 500 million to the platform. Established in 2020, AIH is a strategic fund entrusted with enhancing the management and operation of state-owned enterprises under its purview. Through its investments and initiatives, AIH actively participates in the long-term development and prosperity of Azerbaijan, which is further strengthened by the formation of this joint venture. ADQ is poised to contribute to the platform through its investment acumen, which encompasses key sectors of its economy including energy and utilities, food and agriculture, healthcare and life sciences, and mobility and logistics. Since 1992, the UAE and the Republic of Azerbaijan have maintained economic relations, marked by a more than threefold increase in the value of their non-oil trade over the past five years. Azerbaijan exports things such as tobacco, copper, and gold to the United Arab Emirates.

Earlier in the month, ADQ formed a co-investment platform with Qazaqstan Investment Corporation. The co-investment platform will be focused on high-growth sectors such as food and agriculture, mobility, healthcare, energy transformation and clean technology, financial services technology, and education technology. The platform aims to explore and leverage investment opportunities in Kazakhstan as well as other countries in the Central Asia and Caucasus region. As part of the collaboration, ADQ and Qazaqstan Investment Corporation will be committed to making equal financial and operational contributions to each investment.

As a fund of private equity funds with state participation, Qazaqstan Investment Corporation was established in 2007 to promote the growth and development of the national economy of Kazakhstan. Qazaqstan Investment Corporation is under Baiterek National Management Holding JSC.

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