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Abu Dhabi Wealth Fund targets Africa, renewables to lift returns

Abu Dhabi’s top sovereign wealth fund is looking to Africa and renewable energy to generate greater returns while relying more on artificial intelligence to mine data and spot new investment opportunities.

“With an abundance of natural resources and young, growing and increasingly educated populations, African countries are among those offering the greatest potential for long-term investors,” said Abu Dhabi Investment Authority Managing Director Hamed bin Zayed Al Nahyan.

“We already routinely incorporate climate change considerations into all of our investment proposals, and have been steadily expanding our exposure to renewable energy.”

Also read: UAE fund signs US$25M project financing to support SMEs in Mozambique

The US$710B fund, known as ADIA, this year started a climate-change equity portfolio aimed at boosting its green economy exposure, and is a shareholder in sustainable energy projects that generate more than 20 gigawatts of power.

ADIA’s 20-year annualized returns through December of last year were 4.8%, the lowest since 2008, according to the fund’s 2019 review.

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