Abu Dhabi Investment Authority
The Abu Dhabi Investment Authority is a sovereign wealth fund established by the government of Abu Dhabi to invest public funds in global markets.
Sovereign wealth fund: A state-owned investment fund that manages public assets, often derived from commodity revenues or foreign-exchange reserves. ADIA is one of the world’s largest examples of this state investment model.
Abu Dhabi: An emirate in the United Arab Emirates and the federation’s capital. The emirate owns ADIA and supplies the public funds it invests.
Global equity: Ownership investment in publicly traded companies across international markets. Listed equities provide ADIA exposure to companies and economies worldwide.
Mubadala Investment Company: An Abu Dhabi government-owned investment company that builds and manages strategic businesses and investments. Mubadala has a more active strategic-investment profile than ADIA’s diversified portfolio model.
Santiago Principles: A voluntary framework of principles for governance, transparency, and accountability in sovereign wealth funds. ADIA’s governance is discussed in relation to standards developed for sovereign investors.
Asset allocation: The distribution of investments among asset classes, markets, and strategies. ADIA divides its portfolio across multiple asset classes and geographic regions.
United Arab Emirates: A federation of seven emirates on the southeastern Arabian Peninsula, established in 1971. ADIA operates within the federation, though its owner is the government of Abu Dhabi.
Private equity: Investment in companies whose shares are not publicly traded, often through dedicated funds or direct stakes. ADIA allocates capital to private companies through this investment category.
Qatar Investment Authority: Qatar’s sovereign wealth fund, which invests state assets internationally. It is a national peer to ADIA, but belongs to a different Gulf state.
State capitalism: An economic system in which the state owns or directs significant commercial enterprises and investments. ADIA illustrates how governments can act as major global capital owners.