The Abu Dhabi Investment Authority (Adia) recorded a fall in long-term returns last year amid volatility in global financial markets.
Investments generated returns of 6.9 per cent at the end of the year, compared with 7.6 per cent a year earlier, measured in US dollars over 20 years. Returns averaged 8.1 per cent over 30 years, unchanged from a year earlier. The fund does not disclose annual performance.
“The distinction between the developed and emerging economies is fading faster than many had imagined,” said Sheikh Hamed bin Zayed Al Nahyan, the managing director of Adia, in its annual review published yesterday.
“The clearest sign of this is the contrast between widespread downgrades in the credit ratings of developed economies and the continued strengthening of many emerging countries.”
Adia has grown to become one of the world’s largest sovereign wealth funds (SWFs) since its creation in 1976 with a mission to invest on behalf of the Government of Abu Dhabi, focusing on long-term value creation.
While it does not disclose the value of its assets, research organisations such as the Peterson Institute for International Economics and the Sovereign Wealth Fund Institute rank it as the world’s largest state-owned investment vehicle.
Adia restructured several departments last year as its workforce grew to 1,275 – an increase of about 6 per cent on 2010.
That included combining its property and infrastructure activities into one department. At the same it merged four geographically focused external equities departments into two units – the Indexed Funds Department and the External Equities Department.
Global SWFs controlled about US$4 trillion (Dh14.69tn) in assets in March last year, up from $3.6tn in 2010, according to PricewaterhouseCoopers (PwC).
Some of the world’s largest SWFs are to be found in the Middle East, where governments spend money earned from oil and gas exports on long-term investments.
But the emergence of large Asian funds in recent years is fast changing the landscape, analysts say.
“Commodity-based funds, centred largely in the Middle East, are being challenged for ascendency by funds which are financed from trade or fiscal surpluses,” said PwC’s Impact of Sovereign Wealth Funds on Economic Success report.
“Whilst Singapore has been saving in this type of fund since the early 1980s, the establishment of a number of funds in China and elsewhere mean that non-commodity funds now account for around 40 per cent.”
Asia has also become an increasing focus of SWFs from the Arabian Gulf seeking to tap the region’s fastest-growing economies.
Qatar Investment Authority, a fund based in Doha, plans to invest as much as $5 billion in China under the qualified foreign institutional investor programme, the China Securities Journal reported this week.
Adia started publishing some performance figures two years ago. The move followed its appointment as co-chair with the IMF of the International Working Group of Sovereign Wealth Funds in 2008.
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Name: Hassan Mohsen Elhais
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How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
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*Annual tuition fees covering the 2024/2025 academic year
The Vines - In Miracle Land
Two stars
Scoreline:
Manchester City 1
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MATCH INFO
Europa League final
Who: Marseille v Atletico Madrid
Where: Parc OL, Lyon, France
When: Wednesday, 10.45pm kick off (UAE)
TV: BeIN Sports
The biog
Favourite film: Motorcycle Dairies, Monsieur Hulot’s Holiday, Kagemusha
Favourite book: One Hundred Years of Solitude
Holiday destination: Sri Lanka
First car: VW Golf
Proudest achievement: Building Robotics Labs at Khalifa University and King’s College London, Daughters
Driverless cars or drones: Driverless Cars
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
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Types of bank fraud
1) Phishing
Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.
2) Smishing
The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.
3) Vishing
The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.
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Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.
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Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
6) Prize scams
Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.
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NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Fixtures
Wednesday
4.15pm: Japan v Spain (Group A)
5.30pm: UAE v Italy (Group A)
6.45pm: Russia v Mexico (Group B)
8pm: Iran v Egypt (Group B)
Key facilities
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The biog
Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
Favourite animal: Ferrets, they are smart, sensitive, playful and loving
Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can
Name of first pet: Eddy, a Persian cat that showed up at our home
Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big
