Tuesday, November 27, 2007

abu dhabi investment authority

Abu Dhabi Investment Authority
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The new ADIA head quarters in Abu Dhabi, United Arab Emirates
The Abu Dhabi Investment Company (ADIC) is one of the government investment companies of Abu Dhabi Emirate. Founded on February 24, 1977 as the first U.A.E. investment company in the capital. ADIC is a Joint Stock Company that specializes in providing investment and corporate finance in addition to advisory services. ADIC is jointly owned by Abu Dhabi Investment Council nd the National Bank of Abu Dhabi (NBAD)[1]. Contrary to popular belief it is NOT responsible for investing any of the Abu Dhabi government's oil revenues and assets in countries across the world.

1 History
2 Subsidiaries
2.1 Islamic Finance Consultants (E.C.)
2.2 Industrial City Cooling Company LLC
2.3 Al Wathba Company is the procurement company
3 Associates
3.1 Emirates Ship Investment Company LLC
3.2 Maar Storage Company NV
3.3 Finance House PJSC
3.4 Al Jazeera Pipe Industries & Oil Supplies
4 Investments
5 External links
6 References

[edit] History
ADIC was established in 24th Feb 1977 by Sheikh Zayed bin Sultan Al Nahayan, the founder of the United Arab Emirates. The goal was to form a Government backed investment company, which would have public ownership restricted to the local citizens - as a means of sharing the wealth from investments at low risks. Being a subsidiary if the Abu Dhabi Investment Authority (ADIA - www.adia.ae) gave ADIC a significant advantage in accessing investment opportunities world wide. Back in 1977 this was an extremely far - sighted measure by the then Sheikh of Abu Dhabi.

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]

[edit] Subsidiaries

[edit] Islamic Finance Consultants (E.C.)
This is incorporated as an exempt company in Bahrain. It is engaged in providing advisory services for financial, project finance and brokerage companies. It was recently licensed to arrange deals in financial instruments and advising of financial instruments. Its activities include providing Islamic investment banking advisory services to clients in the Islamic Countries and worldwide.

[edit] Industrial City Cooling Company LLC
This was established and started operations in 2004. The company's principal activities are to acquire, construct, own, maintain and operate central cooling plants and supply chilled water. ICCC currently owns two district cooling plants operated by Tabreed.

[edit] Al Wathba Company is the procurement company
The companies supply transportation vehicles, both light and heavy vehicles, machinery, and equipment, lease vehicles, cars, and equipment.

[edit] Associates

[edit] Emirates Ship Investment Company LLC
A chartering and maritime logistics company focusing on the Persian Gulf, Arabian Sea and Rea Sea markets. eShips has a handling capacity of three million tons a year.

[edit] Maar Storage Company NV
A limited liability company established in Curacao, Netherlands. Its main operations are holdings in warehouses and storage facilities in Florida, USA, which provide independent storage solutions. The acquisition, possession, alienation, management, and development of real estate, inter alliance storages. On-going lease of warehouse.

[edit] Finance House PJSC
It commenced operations in July 2004. Its principal activities consist of financing, investments, commercial and other banking activities. The formation of Finance House aims at establishing a first of its kind independent finance company. Activities include Retail, Financing, Investments, commercial and other banking activities.

[edit] Al Jazeera Pipe Industries & Oil Supplies
plant consists of two bending mills (steel pine & hot pips) to be allocated in Abu Dhabi Industrial City with targeted completion date in 2 years.

[edit] Investments
Two things make ADIA special. One, it manages the emirate's excess oil reserves, estimated to be as much as $875 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 is one of the few organizations Stephen Green, or his predecessor as chairman of HSBC, John Bond, will drop everything to go and see. They will not 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. [2]

DUBAI (Zawya Dow Jones) -- The Abu Dhabi Investment Authority, or ADIA, may buy more shares in banks and distressed real estate companies after taking a $7.5 billion stake in Citigroup Inc. (C:C
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, , ) , a senior executive at ADIA told Zawya Dow Jones.
"We'll be seeing more deals similar to the Citigroup stake," the executive, who declined to be identified, said on Tuesday.
"There's an increasing appetite for real estate and financial services companies that are undervalued," he added. "These were the most hit anyway."
Middle East corporate raiders flush with cash from the region's record oil revenues have increased their buying of international assets as competition from international competitors is crimped by the global credit crunch.
The ADIA executive said that other Gulf sovereign wealth funds are also looking at a portfolio of global firms that have been hit by the credit turmoil
[edit] External links


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