Abu Dhabi-based sovereign wealth fund ADQ has initiated the year by forming two significant global investment partnerships aimed at enhancing its influence in emerging markets. The fund plans to deploy capital in critical areas such as infrastructure and urban development.

On February 12, ADQ announced a Memorandum of Understanding (MoU) with the International Finance Corporation, which is the private finance arm of the World Bank. This agreement focuses on exploring co-investment opportunities in sectors like agriculture and healthcare infrastructure in developing nations. Just days prior, ADQ signed a separate MoU with Vietnam’s State Capital Investment Corporation (SCIC) to identify and invest together in areas vital for Vietnam’s economic growth.

Established in 2018 as Abu Dhabi Developmental Holding Company (ADDH) and rebranding to ADQ in 2020, the fund currently manages approximately $249 billion in assets. Despite being a relatively young sovereign investor, ADQ has made a substantial impact, particularly in emerging markets. For instance, it invested $35 billion in Egypt in February 2024 and acquired development rights for the prime coastal area of Ras El-Hekma, which Egyptian Prime Minister Mostafa Madbouli described as the largest foreign direct investment in the country’s history.

This investment played a crucial role in alleviating Egypt’s foreign reserves crisis, which had persisted since 2023, and contributed to the country securing an $8 billion loan program from the International Monetary Fund in March 2024.

ADQ has also stepped up to support the Turkish economy, providing up to $8.5 billion in earthquake relief financing bonds following devastating earthquakes in southern and central Turkey in February 2023. Additionally, the fund offered a $3 billion credit export facility to Turkish companies.

The recent partnership with SCIC marks ADQ’s inaugural collaboration with a Southeast Asian state-owned entity, although it has already been an active venture capital investor in the region. In 2020, ADQ launched an externally managed venture program aimed at investing in Indian and Southeast Asian startups while encouraging them to establish operations in Abu Dhabi.

Trade between the United Arab Emirates and Vietnam significantly increased, reaching $4.7 billion in 2023 and nearly $4.5 billion in the first eight months of 2024, reflecting a 45 percent year-over-year surge. Mohamed Hassan Alsuwaidi, ADQ’s managing director and group CEO, stated that the collaboration with SCIC would further strengthen the bilateral relationship between the two nations.

During a board meeting in December, ADQ’s chair, Sheikh Tahnoon bin Zayed Al Nahyan, emphasized the fund’s vital role as a catalyst for economic growth in Abu Dhabi and the expansion of international investment opportunities. Currently, ADQ operates over 25 portfolio companies across more than 130 countries, focusing on various economic clusters, including priority sectors such as energy, healthcare, and agriculture.

According to a research paper released by ADQ in December, the growth market capital is experiencing significant expansion, with new sovereign wealth funds emerging from nations between the G7 and more frontier markets. The paper noted a shift in investment strategy, where capital from growth markets, which traditionally flowed into safe assets like U.S. Treasury bonds, is now being directed towards investments closer to home.

ADQ encourages growth markets to standardize their economic operations, including the implementation of flexible exchange rate systems and increased trade openness. The fund asserts that capital will flow to markets where it is treated favorably, indicating a dynamic shift in global investment patterns.