New $1 billion fund launched at ADGM

Abu Dhabi Global Market (ADGM), will be home to a newly established $1 billion fund, Abu Dhabi Catalyst Partners. The new enterprise will pursue opportunities that satisfy a mandate of creating a hub for pioneering companies to locate at ADGM, to generate attractive returns while having a positive impact on the ADGM ecosystem.

Abu Dhabi Catalyst Partners seeks to realise commercial returns by partnering with top tier and up-and-coming investment firms and industry-leading businesses and professionals who will benefit from building a meaningful and sustainable presence in Abu Dhabi Global Market.

The fund will be backed by Mubadala Investment Company with the endeavour to leverage Mubadala’s networks locally and around the world to originate attractive investment opportunities in the region. Where applicable, the firm will also work with Mubadala investment teams and portfolio companies to pursue ADGM-related opportunities.

Commenting on the announcement, Ahmed Ali Al Sayegh, Minister of State and ADGM Chairman, said, «We congratulate Mubadala Investment Company on the launch of Abu Dhabi Catalyst Partners, and we welcome the establishment of their fund in ADGM.

«Today’s event embodies the vision and ambition of the leadership of Abu Dhabi in establishing ADGM to enable investments and capital flow through our Capital City. ADGM remains focused on its role and responsibility as a leading International Financial Centre with trusted regulatory, judicial, commercial and dispute resolution regimes and infrastructure supporting the economic development of Abu Dhabi.» With an employee base of over ten experienced investment professionals, half of whom are UAE Nationals, the fund will explore opportunities locally and abroad. Abu Dhabi Catalyst Partners will leverage Mubadala’s extensive networks across key capital markets.

The new fund will target opportunities across asset management, speciality finance and financial infrastructure, with investees expected to have a presence in ADGM. Criteria will also include the investees’ impact on job creation and engagement with the broader ADGM-based service ecosystem.

Guy Hurley, CEO, Abu Dhabi Catalyst Partners, said, «It’s exciting to be partnering with one of the most influential global investment companies at one of the fastest-growing international financial centres anywhere in the world. There are tremendous opportunities for strong returns built around Abu Dhabi’s robust economy. As a gateway to the region and major financial markets, the Emirate also offers unrivalled opportunities for companies looking to expand internationally. We have a brilliant team of local and global talent and are looking forward to pursuing our ambitious investment strategy.»

Meanwhile, The Dubai Gold & Commodities Exchange (DGCX) in partnership with RAKBANK, announced plans to launch a Mini-Gold Futures product, offering investors the chance to trade gold in smaller denominations. The contract will be the first-of-its-kind, and is in response to feedback from market participants that emphasized a strong desire from smaller investors to increase their exposure in the precious metals market.

The Mini-Gold product will be made available on the DGCX platform and cleared by the Dubai Commodities Clearing Corporation (DCCC). Initially, delivery will take the form of electronic transfer at RAKBANK, although as the contract develops it is envisaged that the additional capability of physical redemption will be added. The launch of the Mini-Gold contract is targeted for Q3 subject to the appropriate approvals.

Les Male, CEO of DGCX, said: «The DGCX’s decision to expand its precious metals portfolio is a direct result of the partnership we forged with RAKBANK in 2017. We are delighted to have built on this relationship, and excited to announce the launch of the MENA’s first exchange listed Mini-Gold product together. There is a strong desire to own gold in the UAE, but at present, it is difficult for smaller investors to buy Gold Futures given the large size of the contracts. This significant move will open up access for them and permit accumulation of Gold as part of their savings, while ultimately contributing to the development of the region’s bullion market.» Vikas Suri, Managing Director of Treasury at RAKBANK, said: «We were very pleased to join hands with the DGCX and DMCC two years ago to start work on the development of a platform that would allow customers, large and small, from across the region to acquire gold at competitive prices with just a click of a button through an integrated Digital Banking platform. I am delighted to note that this vision has now become a reality and that the end product of a significant amount of hard work, commitment and determination from all sides has culminated in the agreement to launch the DGCX Mini-Gold product.

WAM