Today's Edition
Youssef Al Arabi (Abu Dhabi)
Global SWF, an institution which specialises in monitoring sovereign wealth funds, has confirmed that the sovereign wealth fund scene in Abu Dhabi is continuously changing, as the emirate's diverse funds make significant strides, both domestically and internationally.
In a report issued on Monday, the institution reported that the total assets managed by the sovereign wealth funds in Abu Dhabi currently amount to about $1.5 trillion, bolstering its status as the global "capital of capital".
The report also highlighted Abu Dhabi's efforts towards food security, healthcare, and sustainable energy, all of which are yielding positive results.
Among Abu Dhabi's most important important sovereign funds is the Abu Dhabi Holding Company (ADQ), which contributes approximately 22% of the emirate's non-oil GDP.
Since its establishment in 2018 and its rebranding to "ADQ Holding" in 2020, a diverse range of government-owned companies have been allocated to ADQ, most of which are in infrastructure and energy based. Over the past 12 months, the government has transferred the ownership of Abu Dhabi Waste Management Company (Tadweer) and Etihad Aviation Group to ADQ.
In March 2021, the Abu Dhabi Investment Authority (ADIA) was the first to estimate the assets under management for the company at $110 billion, after a detailed analysis of its key assets. Of this value, 40% was obtained through a 98.6% stake in Abu Dhabi National Energy Company (TAQA), a leader in the utilities and energy sector.
The company since sold 8.6% of its stake to Mubadala in 2022, enhancing the role of TAQA and significantly increasing the value of the company. Last month, the utility company listed bonds worth $1.5 billion on the Abu Dhabi Securities Exchange and the London Stock Exchange. Subscriptions were 10 times exceeded, and recently the market value of TAQA reached $93 billion, $84 billion of which constitutes ADQ Holding's 90% stake.
ADQ's portfolio and activities extend beyond TAQA. Among the seven sectoral portfolios of the fund, Global SWF estimates that transportation services, logistics services, and financial services are the most important after energy and utilities, each with more than $30 billion in assets.
