By: Mahmoud Gamal
Dubai – Mubasher: UAE President Sheikh Khalifa bin Zayed Al Nahyan has issued a law to turn Abu Dhabi Investment Council (ADIC), an investment arm of the super-rich emirate, into a public joint-stock company in an effort to revive the GCC nation’s financial markets and attract further foreign investment.
Converting ADIC into a joint-stock company is a significant push to the UAE’s economy and strengthens its financial foothold, economists told Mubasher.
Capital market analyst Basel Abu Teima said that transforming ADIC into a joint-stock firm led by Abu Dhabi state investor Mubadala Investment Company (MIC) will pave the way to divide its capital into equal tradable equities.
Abu Teima added that the decision allows foreign investors to acquire stakes in the company, which in return pumps fresh liquidity into the Abu Dhabi Securities Exchange (ADX).
Moreover, the move coincides with UAE’s potential plan to merge both the ADX and the Dubai Financial Market (DFM), he noted.
Under the new law, Mubadala-led ADIC will be able to list and establish other companies under the umbrella of its board, the analyst noted.
The decision to transform ADIC into a Mubadala-managed firm will attract fresh liquidity and foreign investment to the markets, in addition to bolstering investors’ confidence, commented NamaaZone CEO Iyad Aref.
Higher competence standard
The move marks adopting policies based on a new framework for governance and transparency in a bid to achieve the highest efficiency standard in managing Abu Dhabi state-run entity’s financial resources, in addition to raising the performance indicator, Mubasher’s economic advisor Ali Alhamoudi said.
ADIC
In 2017, Abu Dhabi, the UAE’s capital and biggest sheikhdom, announced the merger between ADIC and MIC to create a wealth fund with assets of about $250 billion.
Sovereign wealth fund
It is worth noting that MIC’s ranking is expected to be advanced three spots to 14th in the world's biggest sovereign wealth funds, according to Sovereign Wealth Fund Institute’s expectations.
Translated by: Kholoud Mohamed Hussein
