Abu Dhabi’s sovereign fund takes over ADQ

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Abu Dhabi’s sovereign fund takes over ADQ in major wealth reshuffle

January 31, 2026

DUBAI,— Abu Dhabi has merged two of its major sovereign wealth funds under a new entity, L’imad Holding, the government media office announced Friday.

The move creates one of the largest investment groups in the emirate, directly overseen by Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the eldest son of UAE President Sheikh Mohammed.

L’imad Holding first drew international attention in December when it joined other Gulf investors in Paramount’s $108 billion bid for Warner Bros.

This month, the fund’s board was publicly disclosed for the first time. Sheikh Khaled, appointed crown prince in 2023, chairs the board. He now controls hundreds of billions of dollars in state assets, including airline Etihad Airways, utilities, and ports.

The fund it absorbed, ADQ, managed $263 billion before the merger. ADQ was chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the president’s brother and national security adviser.

Sheikh Tahnoun also leads the Abu Dhabi Investment Authority (ADIA), the emirate’s largest sovereign fund, which Global SWF estimates manages nearly $1.2 trillion.

Global SWF Managing Director Diego Lopez told Reuters that the merged fund now manages roughly $300 billion in assets. Its holdings include power and utilities company TAQA, Abu Dhabi Ports, McLaren Racing, and agricultural trader Louis Dreyfus.

Abu Dhabi’s other major wealth fund, Mubadala, is chaired by Sheikh Mansour, who also owns the Manchester City football club.

Collectively, the emirate’s sovereign funds manage more than $1.8 trillion in assets, reflecting Abu Dhabi’s status as the UAE’s main oil hub and political center since the federation’s founding in 1971.

Sheikh Khaled has taken on expanded responsibilities in recent years, serving as chairman of the Abu Dhabi Executive Council and joining the boards of ADNOC and ADIA.

On Thursday, UAE Investment Minister Mohammed Hassan Alsuwaidi stepped down as ADQ CEO to lead Abu Dhabi alternative investment firm Lunate.

The consolidation was carried out under a resolution of the Supreme Council for Financial and Economic Affairs (SCEFA), which oversees the emirate’s wealth funds and state entities including ADNOC.

Sheikh Khaled serves as vice chair of SCEFA, with the president as chair. L’imad’s board also includes Chief Executive Jassem Al Zaabi and Mubadala Group CEO Khaldoon Al Mubarak.

In addition to its international activities, L’imad has moved into domestic investments, acquiring a 42.54% stake in real estate company Modon from International Holding Company and an additional 7.5% from Alpha Dhabi in November.

Abu Dhabi’s media office said the merger “aims to create a sovereign investment powerhouse with a diversified asset base, supporting the Government of Abu Dhabi’s policy on sustainable investment and contributing to enhanced economic development.”

(With files from Reuters)