Abu Dhabi’s largest sovereign wealth fund in the face of Covid structural upheaval

Posted on Sep 14, 2021 at 12:08 PMUpdated Sep 14, 2021, 1:28 PM

Abu Dhabi Investment Authority (Adia), the main sovereign wealth fund of Abu Dhabi but also of the United Arab Emirates as a whole, remains cautious about the global Covid crisis. Its effects “will still be felt for years to come,” wrote the fund’s managing director, Hamed ben Zayed Al Nahyane in the sovereign fund’s annual report which has just been published. The challenge for the state investor is to identify the structural changes (consumption habits, investments, etc.) caused by the health crisis, then to integrate them into its portfolio and its management policy.

The rebound in the stock markets allowed the fund to see its long-term average return (over 30 years) increase from 6.6% to 7.2% between 2019 and 2020. The fund does not disclose its annual performance. However, the return on its portfolio for 2020 is estimated at 20.9% by the independent institute Global SWF. Its capital is valued at $ 650 billion by the Sovereign Wealth Fund Institute. It is ranked 4th in the world for state investment funds behind Norway, China and Kuwait.

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