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{{Short description|Sovereign wealth fund}}
{{Use dmy dates|date=April 2013}}
{{Use dmy dates|date=July 2020}}
{{Infobox company
{{Infobox company
|name =Abu Dhabi Investment Authority
| name = Abu Dhabi Investment Authority
|logo =[[File:ADIA logo.png|250px]]
| logo = Abu Dhabi Investment Authority logo.svg
| logo_size = 250px
|type =[[Sovereign wealth fund]]
| image = ADIA Tower at night.jpg
|genre =
| image_size = 250px
|foundation ={{start date and age|1976}}
| image_caption = Headquarters at [[Abu Dhabi Investment Authority Tower]]
|founder =
| type = [[Sovereign wealth fund]]
|location_city =[[Abu Dhabi]]
| foundation = {{start date and age|1976|3|21|df=y}}<ref>{{Cite web |date=2016-03-21 |title=Abu Dhabi Investment Authority marks 40th anniversary |url=https://wam.ae/en/details/1395293162109 |access-date=2023-03-21 |website=[[Emirates News Agency|WAM]]}}</ref>
|location_country =[[United Arab Emirates]]
| founder =
|location =
| location_city = [[Abu Dhabi]]
|locations =
| location_country = [[United Arab Emirates]]
|key_people =Sheikh [[Khalifa bin Zayed Al Nahyan]], Chairman
| location =
MR (Hamidi Moloud)
| locations =
|industry =[[Institutional investor]]
| key_people = [[Tahnoun bin Zayed Al Nahyan (national security advisor)|Tahnoun bin Zayed Al Nahyan]], Chairman <br>
|products =
[[Hamed bin Zayed Al Nahyan]], Managing Director
|services =
| industry = [[Institutional investor]]
|revenue =
| products =
|operating_income =
| services =
|assets =Unpublished (estimated $60 - $85 billion)<ref name=assets/>
| revenue =
|equity =
| operating_income =
|owner =
| aum = [[US$]] 1,057 billion
|num_employees =
| assets =
|parent =
| equity =
|divisions =
| owner = [[Government of Abu Dhabi]]
|subsid =
| num_employees =
|slogan =
| parent =
|homepage =[http://www.adia.ae Official website]
| divisions =
|footnotes =
| subsid =
|intl =
| slogan =
| homepage = {{URL|http://www.adia.ae/}}
| footnotes =
| intl =
}}
}}


The '''Abu Dhabi Investment Authority''' (ADIA) is a [[sovereign wealth fund]] owned by [[Emirate of Abu Dhabi]] (in [[United Arab Emirates]]) founded for the purpose of investing funds on behalf of the Government of the Emirate of Abu Dhabi. It manages the Emirate’s excess oil reserves, estimated to be as much as $500 billion. Its portfolio grows at an annual rate of about 10% compounded.<ref>{{cite news| url=http://www.euromoney.com/Article/1018077/Money-and-mystery-Adia-unveils-its-secrets.html|title=Money and mystery: Adia unveils its secrets|work=Euromoney|date=April 2006}}</ref>
The '''Abu Dhabi Investment Authority''' ({{langx|ar|جهاز أبوظبي للاستثمار}}, '''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 and gas reserves and resource quantification|oil reserves]] and is estimated to manage $1,057 billion.<ref>{{Cite web |title=Sovereign Wealth Fund Institute - Abu Dhabi Investment Authority |url=https://www.swfinstitute.org/profile/598cdaa50124e9fd2d05a79b |access-date=2024-12-18 |website=Sovereign Wealth Fund Institute}}</ref> ADIA is one of the largest sovereign wealth funds in the world.<ref>https://www.swfinstitute.org/fund-rankings/sovereign-wealth-fund Sovereign Wealth Fund Institute Retrieved 25 July 2014</ref>


ADIA's operations have been characterized as secretive and opaque.<ref name=":0">{{Cite web|title=Gulf sovereign wealth funds among world's least transparent|url=https://www.trtworld.com/magazine/gulf-sovereign-wealth-funds-among-world-s-least-transparent-48159|access-date=2021-07-13|website=Gulf sovereign wealth funds among world’s least transparent|language=en}}</ref><ref>{{Cite news|date=2021|title=Biggest Gulf Wealth Funds Are Faulted for Lagging on Governance|url=https://www.bloomberg.com/news/articles/2021-07-04/biggest-gulf-wealth-funds-are-faulted-for-lagging-on-governance|access-date=2021-07-13|newspaper=Bloomberg.com}}</ref><ref name=":1">{{Cite news|last=Thomas|first=Landon Jr.|date=2008-02-28|title=Cash-Rich, Publicity-Shy, Abu Dhabi Fund Draws Scrutiny|language=en-US|work=The New York Times|url=https://www.nytimes.com/2008/02/28/business/worldbusiness/28fund.html|access-date=2021-07-13|issn=0362-4331}}</ref>
ADIA has never published how much it has in assets but estimates have been between $800 billion to approximately $875 billion USD.<ref name="assets">{{cite news|url=http://www.economist.com/finance/displaystory.cfm?story_id=10533428|newspaper=The Economist|title=Asset-backed insecurity|date=17 January 2008}}</ref> [[The Sovereign Wealth Fund Institute]] puts the figure at US$773 billion.<ref>{{cite news|url=http://www.swfinstitute.org/fund-rankings/|title=Sovereign Wealth Fund Rankings|work=SWF Institute|accessdate=4 July 2014}}</ref>


==History==
==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]] and leader of Abu Dhabi made the decision to create the Abu Dhabi Investment Authority instead and separate it from the government as an arms-length organization with its own management.<ref>{{cite web|title=ADIA Review 2009|url=http://www.adia.ae/en/pr/Annual_Review_Website2.pdf}}</ref> The goal was to invest the Abu Dhabi government’s surpluses across various asset classes, with low risk.<ref name="euromoney">{{cite news| url=http://www.euromoney.com/Article/1018077/Money-and-mystery-Adia-unveils-its-secrets.html|title=Money and mystery: Adia unveils its secrets|date=April 2006}}</ref> At the time it was novel for a government to invest its reserves in anything other than [[Official gold reserves|gold]] or short-term credit. Even today, investment in short-term paper remains the strategy for the vast majority of countries.<ref name=euromoney/>{{fact|date=June 2013}}
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.<ref>{{cite web|title=ADIA Review 2009|url=http://www.adia.ae/en/pr/Annual_Review_Website2.pdf|access-date=4 May 2011|archive-url=https://web.archive.org/web/20120323140521/http://www.adia.ae/en/pr/Annual_Review_Website2.pdf|archive-date=23 March 2012|url-status=dead}}</ref> The goal was to invest the Abu Dhabi government's surpluses across various asset classes, with low risk.<ref name="euromoney">{{cite news| url=http://www.euromoney.com/Article/1018077/Money-and-mystery-Adia-unveils-its-secrets.html|title=Money and mystery: Adia unveils its secrets|date=April 2006}}</ref> At the time it was novel for a government to invest its reserves in anything other than [[Official gold reserves|gold]] or short-term credit. Even today, investment in short-term paper remains the strategy for the vast majority of countries.<ref name=euromoney/>{{citation needed|date=June 2013}}


In the [[Bank of Credit and Commerce International]] scandal of the 1990s, ADIA reportedly lost hundreds of millions of dollars.<ref name=":1" />
==Investments==
ADIA manages a substantial amount of capital, and is one of the world's larger investment funds.{{fact|date=June 2013}} 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.<ref>{{cite web|title=Generally Accepted Principles and Practices (GAPP)—Santiago Principles|url=http://www.iwg-swf.org/pubs/gapplist.htm}}</ref>


The operations of ADIA have historically and to the present been secretive and opaque.<ref name=":1" /><ref name=":0" />
20-year and 30-year annualized rates of return for the ADIA portfolio were 7.6% and 8.1%, respectively, as of 31 December 2010.<ref>{{cite web|title=ADIA Review 2010|url=http://www.adia.ae/En/pr/Annual_Review_Website_2010.pdf}}</ref> ADIA is one of the largest sovereign wealth funds in the world. <ref>http://www.swfinstitute.org/fund-rankings/ Sovereign Wealth Fund Institute Retrieved 25 July 2014</ref>


The fund is a member of the [[International Forum of Sovereign Wealth Funds]].<ref name="IFSWF001">{{cite web|author=International Forum of Sovereign Wealth Funds|title=IFSWF Our members|url=http://www.ifswf.org/members|url-status=dead|archive-url=https://web.archive.org/web/20160927094338/http://www.ifswf.org/members|archive-date=27 September 2016|access-date=24 September 2016}}</ref>
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).<ref name="euromoney" /> 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.<ref>http://www.swfinstitute.org/swf-article/the-abu-dhabi-investment-authority-is-a-buyer-of-hotels-47998/ Sovereign Wealth Fund Institute Retrieved 21 August 2013</ref>


==Strategy==
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 Nov 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 is 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%.Some products have a higher proportion of funds placed with external managers than others.<ref name="euromoney" /><nowiki> {{who}}.</nowiki>
ADIA manages a substantial amount of capital and is one of the world's largest investment funds.<ref>{{Cite web|last=Chen|first=James|title=Abu Dhabi Investment Authority (ADIA)|url=https://www.investopedia.com/terms/a/abu-dhabi-investment-authority-adia.asp|access-date=2021-08-31|website=Investopedia|language=en}}</ref> 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.<ref>{{cite web|title=Generally Accepted Principles and Practices (GAPP)—Santiago Principles|url=http://www.iwg-swf.org/pubs/gapplist.htm|access-date=18 May 2011|archive-url=https://web.archive.org/web/20120618032244/http://www.iwg-swf.org/pubs/gapplist.htm|archive-date=18 June 2012|url-status=dead}}</ref>


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).<ref name="euromoney" /> 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.<ref>{{cite web|url=https://www.swfinstitute.org/news/12158/the-abu-dhabi-investment-authority-is-a-buyer-of-hotels-47998/| title=The Abu Dhabi Investment Authority is a Buyer of Hotels Sovereign Wealth Fund Institute |work=SWFI|date= 21 August 2013}}</ref> ADIA also invests in development projects including malls.<ref>{{cite web|url=https://www.swfinstitute.org/news/44561/adia-invests-in-macau-mall-development/|title=ADIA Invests in Macau Mall Development|work=SWFI|date=23 June 2016|access-date=23 October 2016}}</ref>
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.<ref>{{cite web|url=http://www.dubaichronicle.com/2013/05/27/abu-dhabi-investment-authority-publishes-2012-adia-review/|title=Abu Dhabi Investment Authority Publishes 2012 ADIA Review|work=Dubai Chronicle|date=27 May 2013|accessdate=14 June 2013}}</ref>


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.<ref>{{Cite news|url=https://www.reuters.com/article/us-taqa-m-a-adpower-idUSKBN1ZX0JB|title=Abu Dhabi Power to take control of TAQA in asset swap|newspaper=U.S.|date=3 February 2020|via=www.reuters.com|last1=Barbuscia|first1=Davide}}</ref><ref>{{cite web |url=http://www.abudhabipower.ae/en/about.html#section_5 |title= Data |website= www.abudhabipower.ae|access-date=19 July 2020}}</ref>
==Board of directors==
The board members currently serve for a period of three years, and can be renewed. They are appointed by Emiri decree. The current board dates back to the April 2010 reshuffle (Emiri decree n°4/2010) and it was fully renewed April 2013. Its current constitution is as follows:


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.<ref>{{cite web|url=http://www.dubaichronicle.com/2013/05/27/abu-dhabi-investment-authority-publishes-2012-adia-review/|title=Abu Dhabi Investment Authority Publishes 2012 ADIA Review|work=Dubai Chronicle|date=27 May 2013|access-date=14 June 2013}}</ref>
* [[Highness|His Highness]] Sheikh [[Khalifa bin Zayed Al Nahyan]], Chairman (President of UAE and Ruler of Abu Dhabi)
* [[Highness|HH]] Sheikh [[Sultan bin Zayed bin Sultan Al Nahyan|Sultan bin Zayed Al Nahyan]], Representative of His Highness the President of the State (UAE)
* [[Highness|HH]] Sheikh [[Mohammed bin Zayed Al Nahyan]], (Crown Prince of Abu Dhabi and Deputy Supreme Commander)
* [[Highness|HH]] Sheikh [[Mansour bin Zayed Al Nahyan]], Deputy Prime Minister and Minister of Presidential Affairs (UAE)
* [[Highness|HH]] Sheikh [[Hamed bin Zayed Al Nahyan]],Managing Director, (replacing his accidentally deceased brother Sheikh [[Ahmed bin Zayed Al Nahyan]])
* [[Highness|HH]] Sheikh [[Mohammed bin Khalifa bin Zayed Al Nahyan]], Member of the Executive Council (Abu Dhabi)
* [[Mohammed Habroush Al Suwaidi]] Head of the Department of Finance - Abu Dhabi
* [[Hamad Mohammed Al Hurr Al Suwaidi]], Head of the Department of Finance - Abu Dhabi
* [[Khalil Mohammed Foulathi]].


In 2019, ADIA announced that it would be investing over $1 billion into [[Saudi Aramco|Saudi Aramco's]] initial public offering.<ref>{{Cite web |last=Unwin |first=Jack |date=2019-11-27 |title=Abu Dhabi Investment Authority to invest in Saudi Aramco IPO |url=https://www.offshore-technology.com/news/abu-dhabi-investment-authority-saudi-aramco-ipo/ |access-date=2024-12-17 |website=Offshore Technology |language=en-US}}</ref> In 2020 the AIDA disclosed a share of $615 million in [[Cheniere Energy|Cheniere Energry]].<ref>{{Cite web |last=Shirkhani |first=Nassir |date=2020-09-17 |title=Abu Dhabi builds $615 million stake in Cheniere LNG |url=https://www.upstreamonline.com/finance/abu-dhabi-builds-615-million-stake-in-cheniere-lng/2-1-876765 |access-date=2024-12-17 |website=upstreamonline.com |language=en}}</ref>
Former important board members include :
*Sheikh [[Ahmed bin Zayed Al Nahyan]] (1969-2010), appointed as Managing Director in 1997, while still in his twenties. He died accidentally in 2010 and was replaced by his half-brother Sheikh [[Hamed bin Zayed Al Nahyan]]. He very much symbolized the growth of the fund during the 1990s and early 2000s.
*[[Khalifa Muhammad Khalifa Al Kindi]] (born 1959), appointed as Deputy Managing Director in 1997. He served until 2007, when he was dispatched to manage the newly established [[Abu Dhabi Investment Council]] (ADIC).


In 2024, AIDA invested $1.7 billion into [[Fisher Investments]] together with Lunate, $2.8 billion into Trans-Java Toll Roads with [[Indonesia Investment Authority|INA]] and [[APG (pension fund)|APG]], as well as $5.6 billion into NetCo SRL together with [[CDP Equity|CDP Eq]] and [[CPP Investments|CPP]].<ref>{{Cite web |title=Top Gulf sovereign wealth funds invest $38.2 billion in 58 deals in H1 2024: Report |url=https://economymiddleeast.com/news/top-gulf-sovereign-wealth-funds-invest-38-2-billion-in-58-deals-in-h1-2024-report/ |access-date=2024-12-18 |website=Economy Middle East |language=en-US}}</ref>
==Key personnel==
As of 2013, members of ADIA's investment and management team (in alphabetical order) include:<ref>{{cite web|url=http://www.adia.ae/En/News/media_news_1.aspx|title=ADIA Media & Resources|publisher=Abu Dhabi Investment Authority |date=27 May 2013|accessdate=14 June 2013}}</ref>


Tawreed Investments is a subsidiary of ADIA that has investments in several Australian infrastructure projects including [[Queensland Motorways]],<ref>[https://www.accc.gov.au/public-registers/mergers-registers/public-informal-merger-reviews/the-transurban-consortium-proposed-acquisition-of-the-assets-of-the-queensland-motorways-group The Transurban Consortium proposed acquisition of the assets on the Queensland Motorways Group] [[Australian Competition & Consumer Commission]]</ref> [[TransGrid]],<ref>[https://www.afr.com/street-talk/transgrid-investor-prepares-to-fly-the-coop-20200211-p53zm9 TransGrid investor prepares to fly the coop] ''[[Australian Financial Review]]'' 16 February 2020</ref> and [[WestConnex]].<ref>[https://www.accc.gov.au/system/files/public-registers/undertaking/Tawreed%20Investments%20Limited%20-%20signed%2029%20August%202018%20-%20PR%20version.pdf Undertaking to the Australian Competition & Consumer Commission] Australian Competition & Consumer Commission</ref>
*Tom Arnold, Head of Americas, Real Estate

*Glen Beamson, Chief Technology Officer
==Board of directors==
*Jean-Paul Villain, Chief Strategist
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:<ref>{{Cite web |title=ADIA Annual Review 2023 |url=https://www.adia.ae/en/pr/2023/pdf/adia_annual_review_2023bod.pdf |access-date=2024-12-18 |website=ADIA}}</ref>
*Ted Chu, Chief Economist

*Keith Collins, Chief Accounting Officer
* [[Tahnoun bin Zayed Al Nahyan (national security advisor)|Tahnoun bin Zayed Al Nahyan]], Chairman
*Pascal Duhamel, Head of European Real Estate Investments
* [[Hamed bin Zayed Al Nahyan]], Managing Director
*Gregory Eckersley, Global Head of Internal Equities
* [[Khaled bin Mohamed Al Nahyan|Khaled bin Mohamed bin Zayed Al Nahyan]]
*Eduardo Favrin, Head of Latin America Operations
* [[Mansour bin Zayed Al Nahyan]]
*Marc Keirstead, Chief Financial Officer, Private Equities Department
* Khalil Mohammed Sharif Foulathi
*James Kester, Chief Investment Officer, Private Equities
* Jassem Mohamed Bu Ataba Al Zaabi
*Colm Lanigan, Head of Principal Investments, Private Equities Department
* Hamad Mohammed Al Hurr Al Suwaidi
*John McCarthy, Global Head of Infrastructure

*Bill Schwab, Global Head of Real Estate
Former important board members include:
*Brian Shepard, Global Head of International Operations
*[[Ahmed bin Zayed Al Nahyan]] (1969–2010), appointed as Managing Director in 1997, while still in his twenties. He died in 2010 and was replaced by his half-brother Sheikh [[Hamed bin Zayed Al Nahyan]].<ref>{{Cite news|date=2010-04-04|title=Sheikh Ahmed Bin Zayed Al Nahyan: 1969-2010|url=https://www.arabianbusiness.com/sheikh-ahmed-bin-zayed-al-nahyan-1969-2010-152414.html|url-status=live|access-date=2021-09-09|website=Arabian Business|archive-url=https://web.archive.org/web/20160605022145/http://www.arabianbusiness.com:80/sheikh-ahmed-bin-zayed-al-nahyan-1969-2010-152414.html |archive-date=5 June 2016 }}</ref>
*Ben Weston, Global Head of Alternative Investments
*[[Jouan Salem Al Dhaheri]] (1948–2013), appointed in 1977.<ref name="wam.ae">{{cite web|url=http://www.wam.ae/en/news/economics-emirates/1395267279438.html|title=H.H. Sheikh Hamed bin Zayed Al Nahyan: ADIA 2013 Overview - WAM|access-date=2 December 2016}}</ref> He served as Deputy Managing Director, Deputy Head of the Investment Committee, and Head of the Audit Committee.<ref name="wam.ae"/><ref>{{cite news|url=https://www.bloomberg.com/news/articles/2013-05-05/abu-dhabi-investment-authority-director-jauan-al-dhaheri-dies|title=Abu Dhabi Investment Authority Director Jauan Al Dhaheri Dies|newspaper=Bloomberg.com|date=5 May 2013|access-date=2 December 2016|via=www.bloomberg.com}}</ref><ref>{{cite web|url=http://www.thenational.ae/uae/heritage/sheikh-khalifa-honours-emiratis-for-their-service-to-the-uae|title=Sheikh Khalifa honours Emiratis for their service to the UAE - The National|date=2 December 2013 |access-date=2 December 2016}}</ref>
*[[Khalifa Muhammad Khalifa Al Kindi]] (born 1959), appointed as Deputy Managing Director in 1997. He served until 2007 when he was dispatched to manage the newly established [[Abu Dhabi Investment Council]] (ADIC).<ref>{{Cite web|last=Kassem|first=Mahmoud|date=2016-03-21|title=ADIA at 40: UAE Central Bank Chairman says fund has preserved and grown Abu Dhabi's capital|url=https://www.thenationalnews.com/business/adia-at-40-uae-central-bank-chairman-says-fund-has-preserved-and-grown-abu-dhabis-capital-1.194011|url-status=live|access-date=2021-09-09|website=The National|archive-url=https://web.archive.org/web/20210909185745/https://www.thenationalnews.com/business/adia-at-40-uae-central-bank-chairman-says-fund-has-preserved-and-grown-abu-dhabis-capital-1.194011 |archive-date=9 September 2021 }}</ref>
* Ghanim Faris Ghanim Ateish Al Mazrui, former financial advisor to Sheikh [[Zayed bin Sultan Al Nahyan]], and former chairman of ADIA and former director of the UAE Central Bank.<ref>{{Cite news|url=https://law.justia.com/cases/federal/district-courts/FSupp/948/1107/2098581/|title = First American Corp. V. Al-Nahyan, 948 F. Supp. 1107 (D.D.C. 1996)| newspaper=Justia Law }}</ref><ref>{{Cite book | url=https://books.google.com/books?id=-X01AgAAQBAJ&q=ghanem+faris+al+mazrui&pg=PT216 |title = Need, Respect, Trust: The Memoir of a Vision|isbn = 9780297868590|last1 = Kirdar|first1 = Nemir|date = 11 July 2013| publisher=Orion }}</ref>

==See also==
*[[Chicago Parking Meters]]


==References==
==References==
Line 89: Line 88:


==External links==
==External links==
*[http://www.swfinstitute.org/swfs/abu-dhabi-investment-authority/ Sovereign Wealth Fund Institute – Abu Dhabi Investment Authority]
*[https://www.swfinstitute.org/profile/598cdaa50124e9fd2d05a79b Sovereign Wealth Fund Institute – Abu Dhabi Investment Authority]

{{Authority control}}


[[Category:1976 establishments in the United Arab Emirates]]
[[Category:Economy of the United Arab Emirates]]
[[Category:Economy of the United Arab Emirates]]
[[Category:Sovereign wealth funds]]
[[Category:Sovereign wealth funds of Abu Dhabi]]
[[Category:Government agencies of Abu Dhabi]]
[[Category:Government agencies of Abu Dhabi]]
[[Category:Government agencies established in 1976]]
[[Category:Government agencies established in 1976]]
[[Category:Emirati companies established in 1976]]
[[Category:Financial services companies established in 1976]]

Latest revision as of 15:14, 18 December 2024

Abu Dhabi Investment Authority
Company typeSovereign wealth fund
IndustryInstitutional investor
Founded21 March 1976; 48 years ago (1976-03-21)[1]
Headquarters
Abu Dhabi
,
United Arab Emirates
Key people
Tahnoun bin Zayed Al Nahyan, Chairman
Hamed bin Zayed Al Nahyan, Managing Director
AUMUS$ 1,057 billion
OwnerGovernment of Abu Dhabi
Websitewww.adia.ae

The Abu Dhabi Investment Authority (Arabic: جهاز أبوظبي للاستثمار, 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 billion.[2] ADIA is one of the largest sovereign wealth funds in the world.[3]

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

History

[edit]

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]

Strategy

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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 2019, ADIA announced that it would be investing over $1 billion into Saudi Aramco's initial public offering.[17] In 2020 the AIDA disclosed a share of $615 million in Cheniere Energry.[18]

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.[19]

Tawreed Investments is a subsidiary of ADIA that has investments in several Australian infrastructure projects including Queensland Motorways,[20] TransGrid,[21] and WestConnex.[22]

Board of directors

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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:[23]

Former important board members include:

See also

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References

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  1. ^ "Abu Dhabi Investment Authority marks 40th anniversary". WAM. 21 March 2016. Retrieved 21 March 2023.
  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. ^ a b "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. ^ a b c 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. ^ a b c "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. Retrieved 19 July 2020.
  16. ^ "Abu Dhabi Investment Authority Publishes 2012 ADIA Review". Dubai Chronicle. 27 May 2013. Retrieved 14 June 2013.
  17. ^ Unwin, Jack (27 November 2019). "Abu Dhabi Investment Authority to invest in Saudi Aramco IPO". Offshore Technology. Retrieved 17 December 2024.
  18. ^ Shirkhani, Nassir (17 September 2020). "Abu Dhabi builds $615 million stake in Cheniere LNG". upstreamonline.com. Retrieved 17 December 2024.
  19. ^ "Top Gulf sovereign wealth funds invest $38.2 billion in 58 deals in H1 2024: Report". Economy Middle East. Retrieved 18 December 2024.
  20. ^ The Transurban Consortium proposed acquisition of the assets on the Queensland Motorways Group Australian Competition & Consumer Commission
  21. ^ TransGrid investor prepares to fly the coop Australian Financial Review 16 February 2020
  22. ^ Undertaking to the Australian Competition & Consumer Commission Australian Competition & Consumer Commission
  23. ^ "ADIA Annual Review 2023" (PDF). ADIA. Retrieved 18 December 2024.
  24. ^ "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.
  25. ^ a b "H.H. Sheikh Hamed bin Zayed Al Nahyan: ADIA 2013 Overview - WAM". Retrieved 2 December 2016.
  26. ^ "Abu Dhabi Investment Authority Director Jauan Al Dhaheri Dies". Bloomberg.com. 5 May 2013. Retrieved 2 December 2016 – via www.bloomberg.com.
  27. ^ "Sheikh Khalifa honours Emiratis for their service to the UAE - The National". 2 December 2013. Retrieved 2 December 2016.
  28. ^ 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.
  29. ^ "First American Corp. V. Al-Nahyan, 948 F. Supp. 1107 (D.D.C. 1996)". Justia Law.
  30. ^ Kirdar, Nemir (11 July 2013). Need, Respect, Trust: The Memoir of a Vision. Orion. ISBN 9780297868590.
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