Lira was in the freefall and warnings of deep crisis in Turkey were growing as ADQ, Abu Dhabi motor vehicle finance, did what a few foreign investors have been willing to do: it promised to pump billions into local businesses.
Now the fund is looking at money, from financial institutions to goods and food, despite the financial crisis. Mohammed Hassan al-Suwaidi, ADQ chief executive, told the Financial Times that the weakening of the lira could provide an opportunity, saying it was a “good time” to buy if you take a “long-term view”.
He added that the fund was already “negotiating with the Turkish independent fund [TWF] in a number of opportunities, ”including TWF companies.
“They have a rare resource that they can bring you, or you can build a platform, so we see a few things with them,” Suwaidi said.
ADQ’s commitment of $ 10bn confirms the rise of the fund which has been one of the largest fundraisers in Abu Dhabi since its inception in 2018.
It came on a missing trip to Turkey in November Sheikh Mohammed bin Zayed al-Nahyan, prince of Abu Dhabi and leader of the United Arab Emirates. This is seen as part of an effort to repair the strained relations between the UAE and Turkey, as the oil-rich Gulf region shifts from a decade of foreign policy to what Emirati officials describe as economic talks.
Turkey is currently grappling with a sharp fall in its currency – the lira lost about 45 percent of its value last year – as well as rising inflation, a problem that President Recep Tayyip Erdogan did. unofficial financial plan, in particular its insistence on lower interest rates despite rising inflation.
Suwaidi said the country is an opportunity to make money.
“My favorite thing about Turkey is sending it to Germany in 12 hours depending on the location, [and] has a population of 84m, “he said.” It is a major industrial power; [has] great movement skills, so we are definitely interested in movement; big food businesses there, I really like that. ”
He added that the fund was also “very popular” in the Turkish economy.
Last year, ADQ invested Turkish origins Getir, a grocery delivery company, by Trendyol, the largest commercial company in the country.
During Sheikh Mohammed’s visit, ADQ signed a memorandum of understanding with TWF, which has 28 companies, including state-owned banks, mining, transportation and power companies.
Suwaidi said the main purpose of the fund, which he compared to Tamasek, a Singapore government fund, is to develop local experts in industries ranging from waste management to agriculture and pharma. But he insists it has “commercially driven development projects”.
In the three years since its inception, ADQ has spent a fortune that included a 45 percent stake in Louis Dreyfus’ French group, purchasing the Swiss pharmaceutical company Acino, including local and regional businesses, and setting up operating costs, one that put money into the Israeli lab farming business.
Global SWF, a data warehouse, estimates it has invested nearly $ 16bn over the past two years.
“They are very active, perhaps very busy with a lot of business,” said Gulf Central Bank. “They are in a hurry.”
ADQ started life as a Abu Dhabi state-owned enterprise with aids, Etihad, carrier, ports and its nuclear company. He is now said to be in charge of $ 110bn- $ 120bn and is being led by Sheikh Tahnoon bin Zayed al-Nahyan, a UAE national security adviser, who is Sheikh Mohammed’s brother and oversees business growth.
The fund has four key components, according to Suwaidi: health and life sciences; food and agriculture; traffic; it is useful. It is a history that is in line with the interests of Abu Dhabi because the emirate wants to create industries in areas such as technology and life sciences, as well as to promote food security in the desert-dependent country.
It announced this month that it is making a significant contribution to the UAE by merging several government agencies into Pure Health, a company that once belonged to a registered group also led by Sheikh Tahnoon. ADQ will be a major partner in Pure Health, a government-controlled economic growth index.
The main difference between the ADQ and other Abu Dhabi currencies, in particular a car worth $ 230bn Mubadala“Its purpose is primarily in the Middle East, Europe and Africa,” Suwaidi said.
“I believe we should always be in the airport for five hours…[as]we are trying to change our professionals, these markets are close to us, ”he said. “It’s much better to have the time to do this job than to take your waste management company to the US and try to get back.”
The risk is the disruption of various financial responsibilities and the “disputes” between them, a Gulf banker said. In 2016, Abu Dhabi merged International Petroleum Investment Company into Mubadala as one way to try to integrate more vehicles, after the former was hit by 1MDB corruption in Malaysia.
“There is a bit of controversy right now, but I think one day it will be quiet,” the banker said. “Authority is better than it used to be, I just hope they have found the right balance between leadership and leadership.”
Emirati officials said there was more connection between the funds than people expected. In 2020, Abu Dhabi established the Supreme Council for Economic Affairs, which includes royalty and seats for commercial vehicles. His job involves coordinating government financing mechanisms.
Suwaidi said if both the ADQ and Mubadala look for the same agreement they will work together – they all set aside funds to support Getir in June.
“Sometimes we pull, or they pull. . . The competition you will hear from the UAE leadership is healthy, “he said.” Our ambitions are big and I think in the next five years our goals are even bigger. “
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