Abu Dhabi's Sovereign Capital Reshapes Global Financial, Energy And AI Markets

Abu Dhabi's biggest sovereign investors -Abu Dhabi Investment Authority, Mubadala Investment Company and ADQ- have significantly increased their global footprint in finance, energy and artificial-intelligence infrastructure, edging the emirate ever closer to a central role in global capital flows and technology investment.

ADIA has expanded its exposure to public and alternative asset managers, allocating roughly $40 billion to hedge funds in 2025, part of a long-term strategy to diversify across equities, fixed income, private equity, real estate and infrastructure worldwide. Its allocation to private equity - especially second-hand stakes and carve-outs - reflects a shift away from traditional public markets. This pivot allows ADIA to respond more dynamically to global investment opportunities while still managing a globally diversified portfolio.

At the same time, Mubadala has emerged as one of the world's most active sovereign wealth investors. In 2024, it deployed roughly $32.4 billion in new investments, an increase of almost a third over the prior year, and raised its assets under management by 9 per cent. The surge was driven by heightened activity in North America, private equity, infrastructure and AI-linked ventures. Mubadala's growing stake in AI and advanced manufacturing positions it squarely within the global race to scale next-generation technologies.

ADQ has reshaped its mandate beyond traditional holdings. Over the past four years, its assets more than doubled. Today ADQ holds a varied portfolio encompassing pharmaceuticals, logistics, infrastructure, critical minerals and real estate. This diversification underscores Abu Dhabi's broader economic strategy: mitigate reliance on hydrocarbons and build resilience across sectors crucial for long-term stability.

These funds' ambitions are increasingly manifesting in the AI domain via MGX - a vehicle widely backed by Mubadala and ADQ and chaired by key UAE leadership figures. MGX is reportedly exploring up to $25 billion in third-party capital to fuel its investments in AI infrastructure globally. The firm has already participated in major fundraisings targeting AI data centres, chips and computing - many in partnership with global players in technology and finance, reflecting a convergence of sovereign funds and frontier venture capital.

Abu Dhabi's expanding financial influence has encouraged a broader wave of institutional entrants. The emirate's financial free zone, Abu Dhabi Global Market, saw the number of active companies surge by 42 per cent in the first half of 2025, as firms and asset managers from around the world flock to capitalise on close proximity to sovereign wealth capital and favourable regulatory conditions.

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