Abu Dhabi has folded state holding vehicle ADQ into L’imad, a new sovereign wealth fund chaired by the emirate’s crown prince, Sheikh Khaled bin Mohammed bin Zayed al-Nahyan.
The consolidation of ADQ, which has $263bn in assets including major stakes in Abu Dhabi’s airline, ports and nuclear generation company, marks a generational shift of investment influence to the 44-year-old heir apparent, who is being groomed for power by his father, UAE President Sheikh Mohamed bin Zayed.
“L’imad marks a new pillar in Abu Dhabi’s investment strategy — the time was right for the crown prince to control his own sovereign wealth fund,” said one senior investment banker.
Abu Dhabi’s estimated $1.8tn in sovereign wealth, an increasingly important factor in global transactions, is expanding the emirate’s global influence, including a recent push into Africa.
The merger “aims to create a sovereign investment powerhouse with a diversified asset base”, said a statement from the emirate’s supreme council for financial and economic affairs on Friday. The council oversees Abu Dhabi’s investment funds and oil company.
Greater responsibility for Sheikh Khaled within the emirate’s investment framework through L’imad echoes the establishment of the $330bn sovereign fund Mubadala, which was formed in 2002 when Sheikh Mohammed was consolidating power under his father, Sheikh Zayed.
L’imad, formed in late 2025, has already acquired Abu Dhabi’s CYVN automotive holdings, including McLaren and an 18 per cent stake in Chinese EV manufacturer Nio, as well as a vast property portfolio via Modon.
Jassem al-Zaabi, the powerful head of the emirate’s department of finance, is chief executive of the new fund, which is also leading Abu Dhabi’s participation in the $108bn hostile bid for Warner Bros launched by David Ellison’s Paramount.
Government-owned ADQ has formed a key aspect of the investment empire controlled by Sheikh Tahnoon bin Zayed, the UAE’s national security adviser. He also chairs the Abu Dhabi Investment Authority, the emirate’s original $1.1tn sovereign wealth fund.
Sheikh Tahnoon, whose influence spans security, diplomacy and investment strategy, controls extensive private assets, including the sprawling conglomerate IHC and tech-focused development arm, G42.
The founding chief executive of ADQ, Mohamed al-Suwaidi, has shifted to become executive chair of asset manager Lunate, which has $115bn of assets under management within the business empire of Sheikh Tahnoon.
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