Abu Dhabi announced the consolidation of its sovereign wealth funds on Friday, a significant shakeup of the UAE’s state finances that saw the newly formed L’IMAD Holding Co acquire the $263 billion ADQ.
What happened: The UAE’s Supreme Council for Financial and Economic Affairs issued the resolution to merge the funds under the L’IMAD umbrella, according to a statement by the Abu Dhabi Media Office on Friday. The council oversees the principal sovereign investment funds of the Government of Abu Dhabi, namely the Abu Dhabi Investment Authority, Mubadala Investment Company and L’IMAD, as well as the Abu Dhabi National Oil Company.
The statement said the merger “aims to create a sovereign investment powerhouse with a diversified asset base” to support the economic development of Abu Dhabi and the UAE more widely.
Chaired by Sheikh Khaled bin Mohammed, the crown prince of Abu Dhabi and the eldest son of the UAE President Sheikh Mohammed bin Zayed, L’IMAD will develop investment platforms across energy, real estate, infrastructure, health care, transport, logistics and financial services as well as industry and technology, the statement said. L’IMAD will also pursue direct and indirect investments through investment funds and in public and private financial markets.
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