ADIA exec calls for joint deals from sovereign funds

An executive at the Abu Dhabi Investment Authority (ADIA) has called for greater cooperation between the world’s largest sovereign wealth funds (SWFs).

Majed Al Romathi, executive director of the real estate and infrastructure department at ADIA, made the comments ahead of his appointment as new chairman of the International Forum of Sovereign Wealth Funds (IFSWF), the industry body for SWFs.

“With their long-term mandates, SWFs are natural investment partners,” he told the IFSWF annual conference. “There are many examples where this has already happened, but I believe we are still only touching the surface when it comes to opportunities for joint investments.”

Sovereign wealth funds account for more than $8 trillion of assets however there have been few joint investments between state-owned funds. Recent exceptions are the joint industrial investment fund established by Russian and Chinese sovereign investors in June and the joint venture funds set up by Ireland’s SWF and the Chinese Investment Corporation.

The call for more joint ventures between SWFs comes amid concerns over growing economic protectionism. The institute was formed in 2008 to promote the Santiago Principles, which were devised to convince governments that such state-backed funds are commercial and not political investment vehicles.

©2018 funds global mena

Related Articles