L’Imad takes over ADQ in shake-up of Abu Dhabi wealth funds

Abu Dhabi is consolidating the assets of ADQ, its third-largest sovereign wealth fund, under its newly-created investment vehicle L’Imad Holding.

L’Imad, which was launched late last year, will now hold a portfolio of 25 investment companies and platforms, with more than 250 subsidiaries including Etihad Airways, Etihad Rail, Abu Dhabi Ports, McLaren, Louis Dreyfus, PureHealth, Modon Properties, Wio Bank and Taqa.

The decision to create another investment giant is one of the most significant overhauls of Gulf sovereign funds in years and comes after it was announced on Thursday that Mohamed Alsuwaidi would step down as CEO of ADQ after seven years to take up a new role at alternative investment manager Lunate.

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, was appointed Chairman of L’Imad in January, with Jassem Al Zaabi, Chairman of the Abu Dhabi Department of Finance and Vice Chairman of the UAE Central Bank, appointed as Managing Director and CEO.

The resolution to roll ADQ’s $263 billion in assets into L’Imad was issued by the Supreme Council for Financial and Economic Affairs, the body which oversees Abu Dhabi’s principal sovereign funds, including the Abu Dhabi Investment Authority, Mubadala and L’Imad, as well as state oil company ADNOC.

ADQ, which was set up in 2018, quickly became one of the world’s fastest-growing investors. It is chaired by Sheikh Tahnoon bin Zayed, the UAE National Security Advisor who oversees a broad swath of Abu Dhabi investment entities, including ADIA and AI firm MGX. 

L’Imad first made headlines in October, when it bought a $7 billion stake in real estate investor Modon from IHC Real Estate Holding and Alpha Dhabi Holding, both subsidiaries of Sheikh Tahnoon’s International Holding Co.

Since then, it joined the fray in the Warner Bros. bidding war, backing a hostile offer for the entertainment giant from David Ellison’s Paramount, and took over ownership of McLaren Automotive from another state investment firm.

G42 Chair Sheikh Tahnoon meets Satya Nadella at Microsoft HQ

UAE National Security Advisor Sheikh Tahnoon bin Zayed, who also chairs Abu Dhabi artificial intelligence firm G42, headed for Microsoft’s headquarters in Redmond, Wash., following a three-day state visit to Washington, D.C.

He met with CEO Satya Nadella on Thursday to discuss “ways to strengthen collaboration,” according to a post on X. Microsoft, the biggest backer and partner of generative AI market leader OpenAI, made a $1.5 billion investment in G42 in April.

The deal brought Abu Dhabi’s AI champion into the fold of American companies leading tech’s big wave. The investment required G42 to sever its ties with Chinese manufacturers like Huawei.

Sheikh Tahnoon, who also chairs two Abu Dhabi sovereign wealth funds – Abu Dhabi Investment Authority and ADQ – is now working on behalf of the UAE to finalize a data protection and intellectual property agreement with the U.S.

The aim is to assuage fears over national security as the trade relationship increasingly funnels investments to machine learning, semiconductors and aerospace. 

Sheikh Tahnoon seeks UAE-U.S. AI pact as Washington trip concludes

UAE National Security Advisor Sheikh Tahnoon bin Zayed concluded a three-day trip to Washington, D.C. on Wednesday as the UAE and U.S. look to nail down a common policy framework that protects intellectual property and data.

Amid increasing commercial activity between the two countries on advanced technology, artificial intelligence is among the fastest-growing areas of bilateral commerce, the UAE Embassy to the U.S. noted in a summary of Sheikh Tahnoon’s visit.

The relationship is a two-way street: more than $1 trillion is currently invested by the UAE in the U.S. economy, with significant backing from Emirati funds in semiconductors, AI, space and clean energy.

UAE Ambassador to the U.S. Yousef Al Otaiba called the U.S. “our partner of choice” on AI development with “ambitious plans to do even more.”  

Sheikh Tahnoon, who is the brother of UAE President Sheikh Mohamed bin Zayed and chairman of sovereign wealth funds Abu Dhabi Investment Authority and ADQ, met with former President Barack Obama on Wednesday to discuss joint efforts to use technology to improve education. 

He also met with his counterpart Jake Sullivan on Tuesday and held discussions with Secretary of Commerce Gina Raimondo, a key figure in Microsoft’s $1.5 billion investment in G42.

Others who met with Sheikh Tahnoon included Deputy Secretary of State Kurt Campbell; Deputy Secretary of the Treasury Wally Adeyemo, Director of National Intelligence Avril Haines; Principal Deputy National Security Advisor Jon Finer; and Special Presidential Coordinator for Global Infrastructure and Energy Security Amos Hochstein.

Also, White House Coordinator for the Middle East and North Africa Brett McGurk; Assistant Secretary of State for Near Eastern Affairs Barbara Leaf, Deputy Assistant Secretary of Defense for Middle East Policy Dan Shapiro; Senator Chris Coons (D-DE) and Senator Mark Warner (D-VA).

Traveling with Sheikh Tahnoon were UAE Minister of Investment Mohamed Alsuwaidi; Executive Affairs Authority Chairman and Mubadala Investment Co. CEO Khaldoon Al Mubarak; Supreme Council for National Security Secretary-General Ali Al Shamsi; National Emergency Crisis and Disaster Management Authority Chairman Ali Al Neyadi and G42 CEO Peng Xiao, who is a member of the Artificial Intelligence and Advanced Technology Council.