Sovereign Wealth Funds
Abu Dhabi’s global investors
The administration of Sovereign Wealth Funds
generally remain the privilege of nations rich in
natural resources. The public perception of these vast
investment vehicles has changed a great deal since the
onset of the financial crisis. These funds were once
viewed with suspicion as geopolitical tools enabling
one country to exercise undue influence over another.
Concerns that investments may be politically rather
than commercially motivated were forgotten when
excess western capital evaporated, and such funds
began to be actively solicited by liquidity hungry
markets.
Abu Dhabi is home to the world’s largest sovereign
wealth fund, the Abu Dhabi Investment Authority
(ADIA).
Tragically, the Managing Director of ADIA, and
member of the ruling Al Nahyan Family, Sheikh
Ahmed bin Zayed Al Nayhan perished in a glider
accident in Morocco in March 2010. Sheikh Ahmed
was regarded very highly both domestically and
internationally.
A full brother of Sheikh Mohammed bin Zayed, the
Crown Prince, Sheikh Ahmed took over control
of ADIA at the young age of 28, after three years
learning the ropes from within. He shied away from
the media spotlight, preferring to keep a low profile,
in line with that of the organisation itself.
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His successor has been named as Sheikh Hamed bin
Zayed Al Nahyan.
“I do not expect any significant change to the fund
with the appointment. The new person is well
experienced and has been heading some important
economic bodies in the region.” said Efraim
Chalamish, a sovereign wealth fund expert and global
fellow at New York University Law School.
Both Sheikh Ahmed and Sheikh Hamed are from
a family of 19 brothers, led by the eldest, Sheikh
Khalifa bin Zayed, Ruler of Abu Dhabi and President
of the United Arab Emirates. The Al Nahyans are
one of the world’s most powerful families and have
been referred to as the “Kennedys of the Gulf” by
The Daily Telegraph.
The exact worth of ADIA’s funds is something that
the organisation keeps close to its chest. Estimates
range from $450 billion to $850 billion.
A low-profile investment and media policy is
underlined by the fact that most stakes in highranking international enterprises are kept below 5%.
ADIA also has a policy of passive investment. This
makes them an attractive investor for management
teams, as an interest in a company on ADIA’s part
will not interfere with the day-to-day running of the
business.