Abu Dhabi to combine two sovereign wealth funds into new $200bn vehicle

Abu Dhabi to combine two sovereign wealth funds into new $200bn vehicle:

"Abu Dhabi is consolidating two of its leading sovereign wealth funds into a $200bn vehicle, deepening financial consolidation in the oil-rich emirate. Sheikh Mohammed bin Zayed Al Nahyan, the crown prince and de factor ruler of the emirate, said Abu Dhabi Investment Council would join Mubadala Investment Company group, which last year merged with the International Petroleum Investment Company, or Ipic. “An investment vehicle of such scale will enhance the country’s competitive position,” he tweeted. Abu Dhabi’s original and largest sovereign fund, the $800bn-plus Abu Dhabi Investment Authority, remains a separate entity, leading efforts to invest excess oil revenues for future generations. Bankers say Adic was set up in 2007 with a mandate to deploy surplus revenues into the region as a complement to Adia’s global focus. The council also holds the government’s stakes in domestic banks. Adic, which ended up replicating the strategies of Adia and Mubadala, was closely associated with United Arab Emirates President Sheikh Khalifa bin Zayed Al Nahyan, who is recovering from a stroke away from public life."



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