The government of Abu Dhabi established Abu Dhabi investment
Council in June 2006. The Council has a mandate to invest a
portion of government surpluses to broaden the
emirate’s economic base and facilitate the
international development of local companies. It was seeded
with Abu Dhabi Investment Authority’s holdings in
12 domestic companies, mostly banks, and a portion of Abu Dhabi
National Oil Co.’s profits.
The Council has no liabilities to the Abu Dhabi government.
Rather, it is required to generate the highest possible
long-term returns on the assets entrusted to it, with little
need for liquidity. The Council manages its domestic companies
to improve their profitability and competitiveness in the long
term as part of Abu Dhabi Economic Vision 2030, the
government’s plan to diversify the economy away
from its dependence on oil production.
Its international portfolio is largely invested in funds,
with a few co-investment positions. The Special Situations
department invests directly in privately held companies, real
estate and infrastructure. The Council has an absolute return
mandate, so it takes a macroeconomic view, hoping to benefit
from long-term growth cycles and harvesting the premium returns
that often come from holding illiquid investments.
In June 2015, the Abu Dhabi government appointed Sheikh
Mohammed bin Zayed al-Nahyan, the emirate's crown prince, as
ADIC's new chairman. Al-Nahyan, who also serves as chairman of
ADIC’s peer Mubadala Development Co., replaced
U.A.E. President Sheikh Khalifa bin Zayed al-Nahyan at the head
of the fund. The move was part of a wider reshuffle which also
saw Isa Mohammed al-Suwaidi, who sits on the board of some of
Abu Dhabi's largest financial institutions, named managing
director of ADIC. He replaces Khalifa Mohammed al-Kindi, who
had served as managing director since ADIC launched in