L’imad and the Architecture of Abu Dhabi’s Sovereign Assets
How Abu Dhabi’s newest SWF reflects the emirate’s evolving sovereign governance model
Abu Dhabi’s creation of L’imad Holding Company represents a deliberate restructure of the emirate’s sovereign asset architecture. It is not merely a transfer of state‑owned enterprises from one balance sheet to another; it is a recalibration of mandate, governance and strategic intent. As with previous restructurings in the emirate’s sovereign ecosystem, the establishment of L’imad reflects a broader institutional logic. The state continuously re-organises its capital to align with evolving economic priorities and leadership mandates.
Establishment of L’imad: Consolidating Domestic Strategic Assets
The announcement of L’imad Holding Company in early 2025 formalised the transfer of a wide portfolio of operating companies previously held under ADQ. L’imad now houses assets across infrastructure, property, financial services, advanced industries, technology, mobility, and smart cities. It is effectively becoming the central repository for Abu Dhabi’s domestic strategic enterprises.
The appointment of HH Sheikh Khaled bin Mohammed Al Nahyan, Crown Prince of Abu Dhabi, as Chairman signals the political and economic significance of the new entity. L’imad is positioned not as a traditional sovereign wealth fund but as a strategic development institution, designed to shape the emirate’s economic trajectory through coordinated oversight of its most consequential SOEs.
ADQ: From SOE Aggregator to Expansive Investment Vehicle
When ADQ was established in 2018, its mandate was intentionally narrow:
to consolidate Abu Dhabi’s state‑owned enterprises under a single holding company, introducing corporate governance, financial discipline, and strategic alignment. Prior to ADQ, these SOEs reported directly to the Executive Council, the central policy‑making body of the emirate, through their respective boards and later through the Office of State‑Owned Enterprises. This was a shift from administrative oversight of SOEs to corporate governance structures that clarify ownership, accountability, and performance expectations.
For a primer on the difference between SOEs and Strategic Development Funds see Codifying Capital: A Taxonomy of Sovereign Wealth
As with many sovereign holding companies, ADQ’s remit expanded. Over time, it moved beyond its original role and began investing in venture capital, food and agriculture security, international transactions and sectoral development initiatives.
This “mandate drift” is neither unusual nor accidental. Once governance structures mature and capital pools deepen, sovereign institutions often evolve from passive asset holders into active investors. ADQ’s trajectory fits this pattern.
The Supreme Council for Financial and Economic Affairs: Centralising Sovereign Governance
Running parallel to ADQ’s expansion was the establishment of the Supreme Council for Financial and Economic Affairs (SCFEA) on 27 December 2020, created by a law issued by the late President Sheikh Khalifa bin Zayed Al Nahyan. SCFEA became the apex body responsible for Abu Dhabi’s financial, investment, economic, petroleum, and natural resources affairs.
Its oversight extends across the emirate’s principal sovereign institutions:
Abu Dhabi Investment Authority (ADIA) - Fiscal Stablisation Fund
Mubadala Investment Company - Strategic Development Fund
L’imad Holding Company - Strategic Development Fund
Abu Dhabi National Oil Company (ADNOC) - National Oil Co / SOE
This consolidation of supervisory authority reflects the increasing complexity of Abu Dhabi’s sovereign ecosystem. What began decades ago as the Supreme Petroleum Council, later the Supreme Investment Council, has now evolved into a comprehensive governance body overseeing hydrocarbons, sovereign wealth, and economic strategy.
SCFEA’s role is not operational but architectural; it ensures that sovereign entities with the same ultimate shareholder do not duplicate efforts, compete for similar transactions, or drift into misaligned mandates.
Why L’imad, and Why Now?
The restructuring of ADQ and the creation of L’imad can be understood through two strategic drivers; ADQ’s mandate drift and the economic stewardship of the Crown Prince
1. ADQ’s mandate had expanded beyond its original purpose
Under H.E. Mohammed Al Suwaidi, who also serves as the UAE’s Minister of Investment, ADQ’s portfolio had grown into areas far removed from its initial SOE‑holding function. Separating its domestic operating assets into L’imad allows Abu Dhabi to refocus, though the future of ADQ’s structure and existence remains unclear.
2. HH Sheikh Khaled bin Mohammed’s stewardship of Abu Dhabi’s economic development
As Crown Prince, Sheikh Khaled is shaping the emirate’s next phase of economic transformation. L’imad provides a consolidated platform for executing domestic development priorities. Its stated focus — infrastructure, property, financial services, advanced industries, technology, mobility, and smart cities — is explicitly aligned with Abu Dhabi’s long‑term economic strategy.
The Evolution of Sovereign Capital alongside Stronger Governance in Abu Dhabi
The establishment of L’imad fits a familiar pattern in the evolution of sovereign wealth institutions: mandates rarely remain static. As domestic priorities mature and asset bases expand, diversification becomes a natural progression, much as Mubadala evolved into a global investor following its merger with IPIC.
L’imad may ultimately follow a similar trajectory, balancing its domestic development role with the need to avoid crowding out private enterprise while eventually deploying capital abroad to generate returns.
Throughout this process, governance remains the stabilising force. Concerns about duplication across Abu Dhabi’s sovereign funds are mitigated by the overarching authority of the Supreme Council for Financial and Economic Affairs, which ensures strategic coherence across ADIA, Mubadala, L’imad, and ADNOC under a single ultimate shareholder: the Government of Abu Dhabi.