State-owned Abu Dhabi Investment Co. is planning to launch an international property fund together with four other funds in the next four weeks, to invest in those companies whose valuations have been affected by the economic downturn.
Abu Dhabi has a cushion of surplus oil export revenues during the six-year rally in crude prices and the government is now looking abroad for investments. According to a private equity firm, the next two years will be an excellent time to invest in private equity. Although the funds will be focusing on the Middle East and North Africa region, it will also be looking at investing in global real estate.
As the stock markets in the region have been hit by the global financial crisis, the valuations for companies have dropped by about 40 to 50 per cent across all sectors. ADIC is looking for firms that are less likely to be affected by the financial crisis, such as education, healthcare and telecommunications.
UBS and ADIC in November said that they plan to set up funds of the value of $1 billion, of which $200 million would be invested in two infrastructure projects in the Gulf.