And to build holiday resorts

Small moored fishing boat, with dredging and cargo ships in background, Luanda, Angola — Photograph: Getty Images

Sovereign wealth funds seldom worry about foreign policy. Those that invest abroad typically do so in order to ensure stable returns or diversify holdings, meaning they tend to hold Treasuries and Western stocks. Many have started to spend more at home in order to advance national growth plans. But ADQ, one of the United Arab Emirates’s wealth funds, is heading in a different direction.

With $199bn of assets under management, an amount equivalent to two-fifths of the UAE’s GDP, the fund has decided to take a new approach. Although more than 80% of its capital is tied up in domestic infrastructure and related firms, such as Etihad Airways and AD Ports, this reflects spending in the years after the fund was established in 2018. The new ambition is to exert the UAE’s influence abroad—on which it is willing to spend big.

This article appeared in the Finance & economics section of the print edition under the headline "Dirham diplomacy"

From the April 27th 2024 edition

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