Today, Tuesday, the Abu Dhabi Investment Authority issued its annual report containing its achievements and procedures during the year 2022.
Sheikh Hamed bin Zayed Al Nahyan, Managing Director of the Authority, said that the Authority’s annual return rates over 20 years and 30 years reached 7.1 percent and 7 percent, respectively, until December 31, 2022, compared to 7.3 percent in 2021, according to the Emirati news agency WAM.
Al Nahyan stressed that the agency has made great efforts in recent years to increase its flexibility in investment and its ability to adapt to changing market conditions during the year 2022.
He explained that the Abu Dhabi Investment Authority succeeded in benefiting from opportunities to recover a quick portfolio across asset classes, which confirms the value of its diversified portfolio in a year in which stocks and bonds witnessed an unusual correlation.
During 2023, financial markets are likely to remain vulnerable to a range of external influences, including the path of global growth and inflation, the possible negative consequences of tightening monetary policy on financial institutions, and ongoing geopolitical risks.
He pointed out that estimates indicate that more than $3 trillion must be provided annually to support global economic growth aspirations and provide basic services to citizens, and it is important that this includes projects that aim to accelerate the energy transition.
He stressed that the Abu Dhabi Investment Authority is fully aware of the profound impact of climate change on the investment landscape and the opportunities it presents, noting that the agency participated last year in organizing the Summit of Leaders of Sovereign Wealth Funds, Asset Managers and One Planet Investment Funds in Abu Dhabi, which brought together global institutional investors who own assets of more than $37 trillion.
The Abu Dhabi Investment Authority has succeeded in developing its operations significantly in recent years, which has increased its ability to achieve superior performance in a dynamic and changing investment landscape.
The report indicated that structural changes in the Abu Dhabi Investment Authority contributed to improving the agency’s focus and enabled it to mobilize resources more effectively to seize fast-moving opportunities and achieve optimal returns at the overall portfolio level.
He explained that one of the main elements in this is strengthening investment and support activities in the Abu Dhabi Investment Authority through the establishment of two integrated and interconnected departments, the Core Assets Portfolio Department and the Central Investment Services Department.
He noted that both departments were formed in 2021, and they further developed their business models in 2022, which made significant progress in enabling the Abu Dhabi Investment Authority to manage the total portfolio and support the investment departments to implement their strategies.
The report pointed out that in 2022, the Abu Dhabi Investment Authority further refined its investment activities by separating the real estate and infrastructure investment teams into independent departments.
It is noteworthy that the Sovereign Fund of the Abu Dhabi Investment Authority topped the Gulf sovereign wealth funds, according to the classification of the DBRS Morningstar credit rating agency, as its assets reached $993 billion. This is equivalent to 320 percent of the gross domestic product of the Emirate of Abu Dhabi.
