There's Some Money Here...

The National is the newest local English paper. They are supposed to be "more" critical and objective about their reporting. They do and they don't. Anyway, they have an article on the Abu Dhabi Investment Authority and its government spin-offs. Good piece.

Adia was started as an emergency government fund. With oil prices prising since 2005 to today price over $140 a barrel, there is somewhat of a surplus on hand. AD government balance sheet at the end of 2006 was 100 billion dirhams (~28 billion USD). Even after AD boosted gov't spending in 2006 by 50% from levels in 2002. Oil was below $100/barrel then...do the math for 2007 and 1H08. Four fifths, according to IMF, of AD's revenues come from Abi Dhabi National Oil Company (Adnoc) and its 14 subsideraries. Which at todays prices add up to $128billion/year.

Here are some government entities and their assest under management (AuMs):

Abu Dhabi Fund for Development (ADFD): Oldest fund with only 4 billion dirhams and most recently have looked into investing in Sudan to begin growing food to shore up food reserves and combat dougle digit inflation.

Abu Dhabi Investment Authority (ADIA): No one on the outside knows what the AuM really is, but when pushed the Sheikh Ahmed bin Zayed said $800 billion was too high... The consensous is just below that. Ten years ago, it was between $100-200 billion. Early investments were 9% in Rueters and 5% in French oil company - Total. Recent investment was a $2billion stake in CitiBank. Other relevations recently annouced, figured out, are that 45% of their investments are in North America (that includes Canada for those US-centric thinkers). They also have a 60% stake in the bank I work for...in cash we get short on cash...dont think there will be a problem finding some help!

Abu Dhabi Petroluem Investment Company (IPIC): Does exactly what is sounds like, investing $13 billion portfolio in oil and energy projects, up and downstream. Recent news is the 370km pipline that will bybass the Straight of Hormez incase Iraq decides to be mean to George W.

Abu Dhabi Retirement Pensions and Benefits Fund: One of the newest additions (2001) it recieves monies from Emirati employers for Emirati's. Recieves close to $2billion a year, far more than they should based on the % of pay they recieve.

Mubadala Development Corp: AuM of $10 billion and created in 2002 it has a 5% stake in Ferrari, 8.2% in AMD and 7.5% staek in Caryle Group. It also had a hand in luaching of the newspaper this article was in.

Abu Dhabi National Energy Company (Taqa): Latest acquistion was $5billion for Canadian oil and gas producer, Primewest Energy Trust. That was just part of a $10billion investment spree in the last couple years.

Abu Dhabi Invest Council: Simpley known as the "Council." These guys are the ones that just bought the 80% stake in The Chrysler Building.

So what? Well, for starters, the governemnt here has made a conserted effort to diversify and relieve itself from oil and gas. This is good because it means that AD has a very good portfolio going for the longterm live-ability of this Emirate. So yeah, there is a bit of money here in case you didn't know...