The emergence of Abu Dhabi as the biggest outside investor in Glencore speaks volumes for the willingness of the Gulf state to develop deep ties with global business groups.In making industrial investments, Abu Dhabi is following in the footsteps of Kuwait, which more than 20 years ago bought into British Petroleum and other US and European companies. But Abu Dhabi is putting far more emphasis on trying to draw its partners into helping to develop the Gulf state economy. As Glencore will have been told, this is not just about money. It’s about building Abu Dhabi into a global commercial centre.
At first sight it might seem strange that the $1bn investment in Glencore – $850 million plus $150 million in the Glencore’s IPO – is coming through Aabar Investments, a diversified state-owned investment vehicle, that holds, for example, 9 per cent of Daimler.
After all, Abu Dhabi already boasts its own commodities trader - Abu Dhabi Sources (ADS), which was established last year, as the FT reported. It might seem the logical vehicle for the Glencore investment.
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