ADQ and Azerbaijan Investment Holding form investment platform

ADQ, an Abu Dhabi-based investment and holding company, and Azerbaijan Investment Holding (AIH), a strategic sovereign wealth fund located in Baku, have announced the formation of a joint venture with the aim of investing in sectors of mutual priority and interest, such as agriculture, technology, pharmaceuticals and energy infrastructure.

The platform will seek and leverage investment opportunities with the goal of generating sustainable financial returns on deployed capital. Investments will primarily be concentrated in Azerbaijan, the UAE, and Central Asia, with the potential to expand to other countries.

ADQ and AIH will each hold a 50 per cent interest in the joint venture, with each party committing $500 million to the platform.

Established in 2020, AIH is a strategic fund entrusted with enhancing the management and operation of state-owned enterprises under its purview. Through its investments and initiatives, AIH actively participates in the long-term development and prosperity of Azerbaijan, which is further strengthened by the formation of this joint venture.

ADQ is poised to contribute to the platform through its investment acumen, which encompasses key sectors of its economy including energy and utilities, food and agriculture, healthcare and life sciences, and mobility and logistics.

Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer at ADQ, commented: “The establishment of this joint investment platform not only strengthens the bilateral ties between our two countries but also underscores ADQ’s commitment to fostering meaningful partnerships in strategic markets that align with our investment priorities. We are confident in the value and expertise we bring as an asset owner to the platform, which has the potential to unlock growth opportunities in sectors that play a key role in the development of target geographies.”

Mikayil Jabbarov, Minister of Economy of the Republic of Azerbaijan, Member of the Supervisory Board at AIH, commented: “This partnership reflects the significance of economic, political and commercial relationships between the two countries. The new fund will serve as an instrument of implementation of joint projects aimed at long-term development of both respective countries and the wider region.”

Since 1992, the UAE and the Republic of Azerbaijan have maintained robust economic relations, marked by a more than threefold increase in the value of their non-oil trade over the past five years. The two countries continue to explore areas of mutual interest.

In the start of this month, ADQ, an Abu Dhabi-based investment and holding company, and Qazaqstan Investment Corporation, the main driver of the direct investment market in the Republic of Kazakhstan, have announced the establishment of a co-investment platform focused on high-growth sectors such as food and agriculture, mobility, healthcare, energy transformation and clean technology, financial services technology, and education technology.

The platform aims to explore and leverage investment opportunities in Kazakhstan as well as other countries in the Central Asia and Caucasus region. As part of the collaboration, ADQ and Qazaqstan Investment Corporation will be committed to making equal financial and operational contributions to each investment.

ADQ is set to contribute its investment expertise across a comparable range of sectors to the co-investment platform.

As a fund of private equity funds with state participation, Qazaqstan Investment Corporation was established in 2007 to promote the growth and development of the national economy of Kazakhstan. Through its investments, the organization plays an increasingly prominent role in the advancement of neighboring and nearby countries, which will be further strengthened through the new platform with ADQ.

Mohamed Hassan Alsuwaidi, Managing Director and CEO of ADQ, commented, “The co-investment platform underlines ADQ’s commitment to developing partnerships in key markets that complement our investment strategy, which allows other nations to benefit from the considerable, diverse expertise our portfolio encapsulates. We are confident that our collaboration will bring forward notable investments that will unlock tangible value and contribute to the economic growth of the UAE, Kazakhstan and the wider Central Asia and Caucus region.”

Nurlan Baibazarov, Chairman of the Management Board of Baiterek National Management Holding JSC (parental organisation of Qazaqstan Investment Corporation), said, “We are interested in developing bilateral relations between Kazakhstan and the UAE, in particular attracting direct investment to implement investment projects in the manufacturing industry and infrastructure. Investment cooperation between Qazaqstan Investment Corporation and ADQ will have great potential for further economic development of the entire region.”