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Spending Spree Puts Abu Dhabi Under Spotlight

Posted Feb 28, 08 3:23 PM CST in World,  Business 

(Newser) – When Abu Dhabi's investment arm poured $7.5 billion into Citigroup, to bail out America's biggest bank, the move didn't escape notice in Washington. The world’s biggest sovereign wealth fund has been flexing its muscle, making increasingly aggressive investments  in foreign interests, the New York Times reports. And though there’s nothing to suggest it has any goals beyond making money, the secretive fund is raising some concerns.

With 9% of the world’s oil and only 0.02% of its population, Abu Dhabi is estimated to have around $700 billion to invest. While the Arab emirate's investments are still passive—they don't seek board seats— some fear the potential for them to be leveraged for political aims. “In the short run, that they are investing here is good,” one senator says, “but in the long run it is unsustainable.”

Source New York Times

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Two workers walk at the Sheikh Zayed Bin Sultan Al Nahyan Grand Mosque in Abu Dhabi, United Arab Emirates, Tuesday, Feb. 19, 2008. (AP Photo/Kamran Jebreili)   (Associated Press)
A worker climbs up scaffolding in front of the 85 meter height main dome of the Sheikh Zayed Bin Sultan Al Nahyan Grand Mosque in Abu Dhabi, United Arab Emirates, Tuesday, Feb.19, 2008. (AP Photo/Kamran...   (Associated Press)
U.S. Secretary of Energy, Sam Bodman, right,and UAE Minister of Energy Mohammad bin Dhaen Al Hamli enjoy a moment at the keynote session 1 of World Future Energy Summit in Abu Dhabi, United Arab Emirates,...   (Associated Press)
U.S. President George W. Bush, left, meets with Abu Dhabi Crown Prince Shiek Mohamed Bin Zayed Al Nahyan, right, at the Saadiyat Island Cultural District Exhibition and Masdar Exhibition at the Emirates...   (Associated Press)
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Citigroup  • hedge fund  • Abu Dhabi  • United Arab Emirates  • sovereign wealth funds  • Evan Bayh  • Abu Dhabi Investment Authority  • Toll Brothers


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