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First
Published Oct. 15, 2007;
Last updated April 30, 2008
The
sovereign wealth funds accumulated
by oil-rich Arab sheikdoms is
reported as much as $4.5 trillion to
$7 trillion today. The exact amount
is impossible to ascertain due to
lack of their transparency and
accountability.
Abu
Dhabi Investment Authority
Abu Dhabi Investment Authority (ADIA)
was established in 1976 by Sheikh
Zayed bin Sultan Al Nahyan, the
founder of the United Arab Emirates.
Established to channel the Emirate's
surplus oil revenues into profitable
investments both at home and abroad,
ADIA has since become the second
most important institution in Abu
Dhabi's economic system next to the
Supreme Petroleum Council (SPC).
ADIA, now the world's largest
government controlled investment
pool, is estimated to have assets
worth over $1000 billion (U.S.).
Thanks to high oil and gas export
prices since March 1999. Sheikh
Khalifa bin Zayed Al Nahyan, son of
late ruler, is the chairman of the
ADIA. The emirate of Abu Dhabi is
controlled by him and in accordance
with the constitution, he is also
the president of the UAE. He assumed
that dual role upon his father’s
death on Nov. 4, 2004.
Abu Dhabi is the largest and
wealthiest of the seven emirates in
the UAE. It owns 10 per cent of the
world's proven oil and gas reserves.
The emirate owns 95 per cent of the
oil and gas reserves of the UAE
One view (ADIA's genesis in 1976*) is that ADIA's penchant for
secrecy stems from its experience
during the BCCI scandal of the late
1980s, during which ADIA is said to
have lost hundreds of millions of
dollars. The Al-Nahyan family became
embroiled in regulatory
investigations, although no charges
were ever brought against them. Read
More about 'ADIA' background at: (The
BCCI Banking Scandal)
ADIA's genesis in 1976*
(View the external link for more
information)
The New York Times article about the
world's largest sovereign wealth
fund ["Cash-Rich,
Publicity-Shy, Abu Dhabi Fund Draws
Scrutiny" by Landon Thomas, Jr.,
28 February 2008].
Abu Dhabi
Investment Company (ADIC)
The Abu Dhabi Investment Co. (ADIC)
is the executive arm of ADIA. ADIC
is one of the leading financial
services firms in the region.
Established by Emiri Decree on
February 24, 1977, the company was
majority owned by Abu Dhabi
Investment Authority (ADIA) and
National Bank o Abu Dhabi.
The BCCI Affair
The
chapter on BCCI's early history
describes in detail the early
history of Abu Dhabi and BCCI. The
Bank of Credit and Commerce
International (BCCI), this bank
expedited the heroin shipments,
financed numerous militant
organizations and laundered money
generated by illicit drug, arms
trafficking and other illegal
activities, including involvement
in prostitution.
Shaikh Zayed bin Sultan Al Nahyan,
the founder of United Arab Emirates,
the then
UAE
President and Emir of Abu Dhabi,
was
the person behind Bank of Commerce
and Credit International (BCCI). (The
BCCI banking scandal).
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