The move to create L’imad Holding, the fourth major investment pillar in Abu Dhabi, reflects the emirate’s ambitions to continue diversifying its economy and generate wealth for future generations, analysts say.
The new investment vehicle launched last year has already carved out a multibillion-dollar deal and is set to help Abu Dhabi channel investment into the local economy, as well as pursue high-profile international investment.
Sovereign funds are “an economic diversifier and generate income for the future generation, and that’s the main thing for any sovereign investment vehicle”, said Faisal Hasan, head of asset management at Al Mal Capital in Dubai.
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, was this week appointed chairman of the sovereign fund, as the emirate’s Supreme Council for Financial and Economic Affairs announced the board members of investment vehicle.
Jassem Al Zaabi, chairman of the Abu Dhabi Department of Finance, and of the Board of e&, as well as vice chairman of the UAE Central Bank, was appointed managing director and chief executive of the L’imad, Abu Dhabi Media Office said.
Also on the board is Khaldoon Al Mubarak, managing director and chief executive of the emirate’s other sovereign fund, Mubadala Investment Company, and finance veterans Ahmed Al Mazrouei, Mohamed Al Shorafa, Saif Ghobash, Waleed Al Muhairi and Kamal Almaazmi.
L’imad mandate
As a sovereign investment platform of the Abu Dhabi government, L’imad is mandated to support economic growth, diversify revenue sources and boost investment returns.
Through an integrated investment approach, it “develops and manages a diversified portfolio of assets and projects across priority sectors within the UAE and internationally”, the media office said.
Its interests span sectors including infrastructure and property, financial services and asset management industry, advanced industry and technology, urban mobility and smart cities.
“L’imad also works with local and international partners to create long-term economic and social value, and reinforce Abu Dhabi as a global centre for investment and innovation,” the media office said.
Last October, in its first public deal, L’imad acquired a 42.54 per cent stake in Abu Dhabi real estate company Modon Holding from International Holding Company, the largest listed firm in the UAE.
IHC at the time said it was divesting its shareholding in the company to avoid the "overconcentration" of its portfolio in any one sector.
More recently, L’imad was part of the Paramount consortium bidding to acquire Warner Bros Discovery, along with Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority.
The fourth pillar
L’imad is the latest investment vehicle in Abu Dhabi, which is home to some of the world's biggest wealth funds including the Abu Dhabi Investment Authority, Mubadala and the ADQ, one of the biggest holding companies in the Middle East.
Sovereign wealth funds have been key factor in encouraging economic growth in the UAE. These funds, which in the past invested predominantly in international markets, now channel investment in domestic markets, which has helped in diversifying the economy from oil and gas.
"The funds have been successful in doing that over the last four to five years,” said Ali El Adou, head of asset management at Entrust Capital in Dubai.
Adia, which does not disclose its assets, invests on behalf of the Abu Dhabi government. It is the largest sovereign wealth fund in the Gulf, with assets of about $1.1 trillion, according to consultancy Global SWF.
Adia, which has been expanding its portfolio for almost five decades, invests across asset classes such as equities, fixed income, infrastructure, private equity and property.
In its last annual report, the fund said it had expanded its private credit exposure in real estate across the US, Europe, India, Australia and South Korea. Tight monetary policies prompted traditional institutions to restrict lending criteria, allowing private credit providers to fill the void.
Mubadala, over the past decades has been at the heart of the emirate’s efforts to diversify its revenue base and generate income from sources other than oil. The sovereign wealth fund's $330 billion portfolio spans investments in future-focused sectors including artificial intelligence, health care, advanced manufacturing and renewables.
ADQ, which was formed in 2018, is a strategic partner of the Abu Dhabi government and focuses its investments on critical infrastructure and global supply chains. Its total assets amounted to $263 billion in June 2025.
Its portfolio comprises companies across sectors including energy and utilities, transport and logistics, food and agriculture, health care and life sciences, financial services, infrastructure and critical minerals, real estate and sustainable manufacturing. The investment holding company has boosted its portfolio of assets with a string of deals in the UAE and in global markets in recent quarters, according to Mr El Adou.
The more sovereign wealth funds are created, the better it is for the economy. Different funds will have different mandates and different sizes and they can invest in key growth sector that the government aims to develop over time according to their separate mandates, he said.
“Sovereign wealth funds are not one size fit all,” Mr El Adou said.
L’imad has a different mandate as well as each SWF has a “certain specialisation” in terms of their international investment role as well as investing domestically, he added.
