Abu Dhabi’s newly minted sovereign wealth fund L’imad Holding is taking control of the eight-year-old Abu Dhabi Developmental Holding (ADQ) as the emirate looks to create a “sovereign investment powerhouse”.
ADQ is the 14th largest sovereign wealth fund in the world, with US$263 billion of assets under management as of January. Established in 2018, the ADQ will cease to exist after it’s swallowed by the new wealth fund.
L’imad was launched on January 15. It is taking over ADQ to “create a sovereign investment powerhouse with a diversified asset base, supporting the government of Abu Dhabi’s policy on sustainable investment and contributing to enhanced economic development for Abu Dhabi and the UAE”, the Supreme Council for Financial and Economic Affairs says in a statement on February 2.
The council, which oversees economic development and investment strategies in the United Arab Emirates, did not specify when the takeover will be completed.
It says L’imad will have differentiated operational, industrial and technological capabilities, and pursue direct and indirect investments through investment funds and in public and private financial markets.
According to the council, L’imad seeks “to develop globally competitive investment platforms focused on building national champions in sectors of strategic importance”.
The sectors include energy, real estate development and infrastructure, healthcare, food, aviation, ports, and financial and banking.
