Abu Dhabi Investment Authority

Last updated

Abu Dhabi Investment Authority
Company type Sovereign wealth fund
Industry Institutional investor
Founded21 March 1976;49 years ago (1976-03-21) [1]
Headquarters,
Key people
Tahnoun bin Zayed Al Nahyan, Chairman
Hamed bin Zayed Al Nahyan, Managing Director
AUM US$ 1.057 trillion
Owner Government of Abu Dhabi
Website www.adia.ae

The Abu Dhabi Investment Authority (ADIA) is a sovereign wealth fund owned by the Emirate of Abu Dhabi in the United Arab Emirates, founded to invest funds on behalf of the Government of Abu Dhabi. It manages the emirate's excess oil reserves and is estimated to manage $1.057 trillion. [2] ADIA is one of the largest sovereign wealth funds in the world. [3]

Contents

ADIA's operations have been characterized as secretive and opaque. [4] [5] [6]

History

In 1967, Abu Dhabi emirate created the Financial Investments Board which operated within its Department of Finance and was responsible for managing the Emirate's excess oil revenues. However, in 1976, Sheikh Zayed bin Sultan Al Nahyan, the founding president of the United Arab Emirates, converted it into the Abu Dhabi Investment Authority. [7] The goal was to invest the Abu Dhabi government's surpluses across various asset classes, with low risk. [8] At the time it was novel for a government to invest its reserves in anything other than gold or short-term credit. Even today, investment in short-term paper remains the strategy for the vast majority of countries. [8] [ citation needed ]

In the Bank of Credit and Commerce International scandal of the 1990s, ADIA reportedly lost hundreds of millions of dollars. [6]

The operations of ADIA have historically and to the present been secretive and opaque. [6] [4]

The fund is a member of the International Forum of Sovereign Wealth Funds. [9]

Investments and strategy

ADIA manages a substantial amount of capital and is one of the world's largest investment funds. [10] Due to its size, the fund has been influential in international finance. In 2008, ADIA co-chaired the International Working Group of 26 sovereign wealth funds that produced the "Generally Accepted Principles and Practices of sovereign wealth funds" (known as the Santiago Principles). These principles were created to demonstrate to home and recipient countries and the international financial markets that sovereign wealth funds had robust internal frameworks and governance practices and that their investments were made only on an economic and financial basis. [11]

Today ADIA invests in all the international markets — equities, fixed income and treasury, infrastructure, real estate, private equity, and alternatives (hedge funds and commodity trading advisers — CTAs). [8] ADIA's global portfolio is broken down into sub-funds covering a specific asset class. Each asset class has its own fund managers and in-house analysts covering it. Almost every asset class is managed both internally and externally. Overall between 70% and 80% of the organization's assets are managed outside, and over the last few years, the fund has become more indexed which given its unique asset liability structure is somewhat perplexing. The Abu Dhabi Investment Authority (ADIA) is a major purchaser of U.S. institutional real estate through various sub-entities. It often buys partial interest ownerships with leading real estate managers. [12] ADIA also invests in development projects including malls. [13]

Many of ADIA's investments have decreased substantially since investments were made at market peaks in 2007 and 2008. The $7 billion investment in Citigroup has lost approximately 90% of its value as of 26 November 2009, 2 years after it acquired a sizable stake in the bank. Its investments in global real-estate at the market top in 2008 have also decreased substantially in value. Though it talks of its long-term success in generating returns, the fact that it has moved closer to the index and manages most of its funds through external third-party fund managers shows that its tolerance for risk-taking has greatly diminished over the years. However, ADIA's ratio of third-party fund managers is being actively managed. In 2006, between 70% and 80% of the organization's assets were managed outside with an aim to bring that down to between 60% and 70%. In the year 2005, Abu Dhabi Investment Company purchased 51 percent of shares of Massar (Company) from Abu Dhabi Power Corporation, a subsidiary of Abu Dhabi Water & Electricity Authority. [14] [15]

On 27 May 2013, ADIA published its 2012 Review, with an overview of its activities during the past year as well as an explanation of its approach to investing – strategy, governance, and risk management. [16]

In February 2019, ADIA and Triton acquired 100% of IFCO, each receiving an equal 50% co-controlling stake. In 2025, ADIA agreed to sell their stake to Stonepeak. [17] [18] In 2019, ADIA announced that it would be investing over $1 billion into Saudi Aramco's initial public offering. [19] In 2020 the AIDA disclosed a share of $615 million in Cheniere Energry. [20] In June 2020, ADIA acquired a minority stake in India’s Jio Platforms, a provider of digital services and mobile networks, for $752.1 million. [21] [22] In October of the same year, ADIA acquired a 1.2% stake in Reliance Retail, an subsidiary of Reliance Industries, for $751.13 million, [23] followed by buying another $598 million stake in October 2023. [24] [25] In July 2021 made a $500 million contribution to EdgePoint Infrastructure, a telecom tower platform in Southeast Asia. [26] In October of the same year, ADIA took part in a $400 million pre-IPO funding round for the GoTo Group, an Indonesian firm operating across e-commerce, mobility, and digital payments. [27]

In 2022, ADIA contributed $2 billion to a data-centre development programme in Asia-Pacific, in a partnership with SC Capital. [28] [29] In March 2023, the fund put $500 million into Indian eyewear e-commerce firm Lenskart. [30] [31]

In 2024, AIDA invested $1.7 billion into Fisher Investments together with Lunate, $2.8 billion into Trans-Java Toll Roads with INA and APG, as well as $5.6 billion into NetCo SRL together with CDP Eq and CPP. [32]

In 2024, ADIA acquired a 40% stake in DigitalBridge, a U.S.-based data-centre platform and subsidiary of Landmark Dividend. [33] Later in the year, ADIA bought a minority stake in Qlik Technologies, a U.S. data integration and analytics company, [34] [35] and participated in the recapitalisation of IFS, a Swedish software firm. [36] [37]

Tawreed Investments is a subsidiary of ADIA that has investments in several Australian infrastructure projects including Queensland Motorways, [38] TransGrid, [39] and WestConnex. [40]

Board of directors

The board members currently serve for a period of three years and can be renewed. They are appointed by Emiri decree. As of 2023, the board consisted of: [41]

Former important board members include:

See also

References

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  2. "Sovereign Wealth Fund Institute - Abu Dhabi Investment Authority". Sovereign Wealth Fund Institute. Retrieved 18 December 2024.
  3. https://www.swfinstitute.org/fund-rankings/sovereign-wealth-fund Sovereign Wealth Fund Institute Retrieved 25 July 2014
  4. 1 2 "Gulf sovereign wealth funds among world's least transparent". Gulf sovereign wealth funds among world’s least transparent. Retrieved 13 July 2021.
  5. "Biggest Gulf Wealth Funds Are Faulted for Lagging on Governance". Bloomberg.com. 2021. Retrieved 13 July 2021.
  6. 1 2 3 Thomas, Landon Jr. (28 February 2008). "Cash-Rich, Publicity-Shy, Abu Dhabi Fund Draws Scrutiny". The New York Times. ISSN   0362-4331 . Retrieved 13 July 2021.
  7. "ADIA Review 2009" (PDF). Archived from the original (PDF) on 23 March 2012. Retrieved 4 May 2011.
  8. 1 2 3 "Money and mystery: Adia unveils its secrets". April 2006.
  9. International Forum of Sovereign Wealth Funds. "IFSWF Our members". Archived from the original on 27 September 2016. Retrieved 24 September 2016.
  10. Chen, James. "Abu Dhabi Investment Authority (ADIA)". Investopedia. Retrieved 31 August 2021.
  11. "Generally Accepted Principles and Practices (GAPP)—Santiago Principles". Archived from the original on 18 June 2012. Retrieved 18 May 2011.
  12. "The Abu Dhabi Investment Authority is a Buyer of Hotels Sovereign Wealth Fund Institute". SWFI. 21 August 2013.
  13. "ADIA Invests in Macau Mall Development". SWFI. 23 June 2016. Retrieved 23 October 2016.
  14. Barbuscia, Davide (3 February 2020). "Abu Dhabi Power to take control of TAQA in asset swap". U.S. via www.reuters.com.
  15. "Data". www.abudhabipower.ae. Archived from the original on 24 September 2020. Retrieved 19 July 2020.
  16. "Abu Dhabi Investment Authority Publishes 2012 ADIA Review". Dubai Chronicle. 27 May 2013. Retrieved 14 June 2013.
  17. "Triton and ADIA sign an agreement to acquire IFCO". www.triton-partners.com. Retrieved 3 September 2025.
  18. Dharma, RanjithKumar (10 July 2025). "Stonepeak to purchase co-control stake in reusable packaging company IFCO". Packaging Gateway. Retrieved 3 September 2025.
  19. Unwin, Jack (27 November 2019). "Abu Dhabi Investment Authority to invest in Saudi Aramco IPO". Offshore Technology. Retrieved 17 December 2024.
  20. Shirkhani, Nassir (17 September 2020). "Abu Dhabi builds $615 million stake in Cheniere LNG". upstreamonline.com. Retrieved 17 December 2024.
  21. "Jio Platforms-ADIA Investment Deal: What the Two Companies Said". News18. Retrieved 6 August 2025.
  22. "Jio Platforms set to raise Rs 5683.50 crore from Abu Dhabi Investment Authority by selling 1.16% equity stake". The Economic Times. 16 June 2020. ISSN   0013-0389 . Retrieved 6 August 2025.
  23. "Abu Dhabi Investment Authority to invest Rs 5,513 crore in Reliance Retail". The Times of India. 6 October 2020. ISSN   0971-8257 . Retrieved 3 September 2025.
  24. "India's Reliance Retail to raise $598m from ADIA at over $100b valuation". DealStreetAsia. Retrieved 6 August 2025.
  25. "2023 REVIEW" (PDF). ADIA. Retrieved 6 August 2025.
  26. "Abu Dhabi takes stake in EdgePoint Infrastructure, commits up to $500 million". Reuters. 8 July 2021. Retrieved 6 August 2025.
  27. Burgos, Jonathan. "GoTo Raises $400 Million From Abu Dhabi Fund-Led Investors As Indonesian Tech Giant Prepares For IPO". Forbes. Retrieved 6 August 2025.
  28. "SC Capital Partners forms data centre investment programme with Abu Dhabi Investment Authority subsidiary" . Retrieved 6 August 2025.
  29. Scaria, Seban. "UAE sovereign ADIA sets $2bln data centre investment strategy with SC Capital". ZAWYA. Retrieved 6 August 2025.
  30. "ADIA pumps in $500 mn in Lenskart at $4.5 bn valuation". Fortune India. 16 March 2023. Retrieved 6 August 2025.
  31. "ADIA puts $500 million into Lenskart at valuation of $4.5 billion". The Times of India. 17 March 2023. ISSN   0971-8257 . Retrieved 6 August 2025.
  32. "Top Gulf sovereign wealth funds invest $38.2 billion in 58 deals in H1 2024: Report". Economy Middle East. Retrieved 18 December 2024.
  33. Yadav, Niva (3 April 2024). "Abu Dhabi Investment Authority completes acquisition of 40% stake in Landmark Dividend". www.datacenterdynamics.com. Retrieved 7 August 2025.
  34. "Qlik Announces Close of Significant Investment Led by ADIA and Thoma Bravo". Businesswire. Retrieved 7 August 2025.
  35. "Qlik Secures Strategic Investment Led by ADIA". Business Review. 12 May 2025. Retrieved 7 August 2025.
  36. "IFS Hits €15 Billion Valuation Amid Surging Demand for Industrial AI". UAE-Business.com. 15 April 2025. Retrieved 7 August 2025.
  37. "EQT sells €3bn stake in software group IFS defying chill in deals". Financial Times. 9 April 2025. Retrieved 7 August 2025.
  38. The Transurban Consortium proposed acquisition of the assets on the Queensland Motorways Group Australian Competition & Consumer Commission
  39. TransGrid investor prepares to fly the coop Australian Financial Review 16 February 2020
  40. Undertaking to the Australian Competition & Consumer Commission Australian Competition & Consumer Commission
  41. "ADIA Annual Review 2023" (PDF). ADIA. Retrieved 18 December 2024.
  42. "Sheikh Ahmed Bin Zayed Al Nahyan: 1969-2010". Arabian Business. 4 April 2010. Archived from the original on 5 June 2016. Retrieved 9 September 2021.
  43. 1 2 "H.H. Sheikh Hamed bin Zayed Al Nahyan: ADIA 2013 Overview - WAM" . Retrieved 2 December 2016.
  44. "Abu Dhabi Investment Authority Director Jauan Al Dhaheri Dies". Bloomberg.com. 5 May 2013. Retrieved 2 December 2016 via www.bloomberg.com.
  45. "Sheikh Khalifa honours Emiratis for their service to the UAE - The National". 2 December 2013. Retrieved 2 December 2016.
  46. Kassem, Mahmoud (21 March 2016). "ADIA at 40: UAE Central Bank Chairman says fund has preserved and grown Abu Dhabi's capital". The National. Archived from the original on 9 September 2021. Retrieved 9 September 2021.
  47. "First American Corp. V. Al-Nahyan, 948 F. Supp. 1107 (D.D.C. 1996)". Justia Law.
  48. Kirdar, Nemir (11 July 2013). Need, Respect, Trust: The Memoir of a Vision. Orion. ISBN   9780297868590.