Abu Dhabi Investment Authority
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The Abu Dhabi Investment Authority (ADIA) is one of the biggest government investment authorities in the world. Founded in 1976, it is responsible for investing all of the Abu Dhabi government's oil revenues and assets in countries across the world. Estimates of its size range from $200 billion to "way north of $500 billion", making it one of the most influential and wealthy players in the global market, considered to be the world’s second largest institutional investor. Owns the Abu Dhabi Investment Company (ADIC).
Adia was established in by Sheikh Zayed bin Sultan Al Nahyan, the founder of the United Arab Emirates. The goal was to invest the Abu Dhabi government’s surpluses across various asset classes, with low risk 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, although Kuwait, Singapore and Norway have followed Abu Dhabi’s lead. [Euromoney 2006: cited below]
Two things make Adia special. One, 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. As such Adia is the world’s second biggest institutional investor, behind only the Bank of Japan, according to the Oxford Business Group. Its pulling power is immense. According to a former HSBC banker, it’s one of the few organizations Stephen Green, or his predecessor as chairman of HSBC, John Bond, will drop everything to go and see. They won’t be the only senior bankers and corporate executives prepared to do this. [Euromoney 2006: cited below]
But what makes Adia so interesting is the veil of secrecy that shrouds its activities. Abu Dhabi Investment Authority is one of the world’s biggest institutional investors. It is also one of the most guarded. It publishes no numbers. In the 30 years since it was established, it has never publicly declared the amount of assets it has under management. Its website lists just its contact details; nothing more. It seldom makes any public statements. However, the Abu Dhabi Investment Authority has an influence in the markets that few investors can match. It has unrivalled access to the best strategists and advisers. [1]
[edit] External links
[edit] References
- Euromoney - Money and mystery: Adia unveils its secrets(2006)., the first interview of its kind, two of its most senior officials speak with Euromoney about the strategies behind its success.
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