Highlights
- New ADQ FWD paper highlights the role of sovereign investors in building resilient economies and intergenerational value through broad mandates, co-investments and national champions
ADQ, an Abu Dhabi-based investment and holding company, published its latest paper that delves into the dynamic role of sovereign wealth funds in accelerating economic transformation and sustainable growth.
The paper, Foundation for Prosperity: The Contributing Role of Sovereign Wealth Funds in Laying the Building Blocks for Economic Growth, captures the insights from a roundtable hosted by ADQ as part of its thought leadership series ‘ADQ FWD.’ Government officials, sovereign investors, policy advisors and investment bankers discussed the contributions of sovereign wealth funds to national economies.
Strategic development sovereign wealth funds have gained prominence among various sovereign investors, driving the execution of economic transformation plans within their nations to meet shifting government priorities in the wake of slowing globalization. While generating financial returns for future prosperity remains a priority, strategic development sovereign wealth funds also address governmental priorities, build domestic capacity and drive sustainable economic growth.
Five key factors underpin the substantial role of strategic development sovereign wealth funds to their nations:
- Driving impact domestically: Spurring direct investments, joint ventures, nurturing new partnerships, and participating in overseas infrastructure projects
- Creating national champions: Nurturing prominent domestic companies within strategically important sectors, expanding their capabilities for positive multiplier effects on the economy
- Stimulating innovation and R&D: Establishing partnerships with private sector companies, encouraging foreign direct investment to promote R&D and innovation within portfolio companies
- Driving sustainable outcomes: Embedding ESG considerations within investment approaches, aiming to contribute to building more resilient economies while supporting national sustainability aspirations
- Creating resilient, competitive economies: Enhancing in-country productivity, forging co-investment partnerships, supporting the growth of SMEs, plugging market gaps and embracing a geographic diversification strategy
Jaap Kalkman, Group Chief Investment Officer, ADQ, said: “This ADQ FWD paper is a testament to the profound impact of sovereign investors in spearheading sustainable economic growth, cultivating national prosperity and forging a better future for all. As sovereign wealth funds continue to support strategic government objectives, embrace innovation and navigate market complexities, their significance to nations becomes indispensable, fostering large-scale transformation in mature and emerging economies worldwide. As such, the latest generation of sovereign wealth funds are poised to accelerate growth and bolster resilience at a national, regional and global level.”
About ADQ
Established in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises. Its investments span key sectors of the UAE’s diversified economy including energy and utilities, food and agriculture, healthcare and life sciences, and mobility and logistics, amongst others. As a strategic partner of Abu Dhabi’s government, ADQ is committed to accelerating the transformation of the Emirate into a globally competitive and knowledge-based economy.
For more information, visit adq.ae or write to media@adq.ae. You can also follow ADQ on X, Instagram and LinkedIn.
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