Abu Dhabi's Adia Highlights Artificial Intelligence as Key Investment Driver Amid Economic Shifts

The Abu Dhabi Investment Authority (Adia) will continue to pursue artificial intelligence-driven investment opportunities this year, as it navigates geopolitical headwinds, market volatility and global economic uncertainties. The sovereign investor aims to diversify its approach across sectors to manage concentration risks, as it builds on the momentum that helped it deliver strong returns last year, Adia said in its 2025 annual report on Thursday.

Adia’s 20- and 30-year annualised rates of return on a point-to-point basis were 6.6 per cent and 7.2 per cent, respectively, in 2025. It was 6.3 per cent and 7.1 per cent the previous year. The AI boom has attracted heavy investment in infrastructure, with companies deploying capital at an unprecedented scale, Adia noted. While the push to build data centres, secure electrical transmission and expand semiconductor capacity has broadened the investment universe, it has also unlocked opportunities beyond the technology sector.

"This shift has significant implications for global markets," said Sheikh Hamed bin Zayed, Adia's managing director. "The economic benefits of technological advancement – historically concentrated within the technology sector itself – are now spilling over into the broader industrial landscape." As this cycle matures, the fund expects increased opportunities across traditional industries as they leverage new productivity tools.

Adia, which does not disclose its exact assets, manages funds on behalf of the Abu Dhabi government and stands as the largest sovereign wealth fund in the Gulf, with assets touching $1.1 trillion according to Global SWF. Internally managed assets represented 63 per cent of Adia's total portfolio last year, with the remaining 37 per cent managed externally. Developed equities accounted for the largest portion of the portfolio at 32 per cent to 42 per cent, while emerging market equities ranged between 15 per cent and 17 per cent, and private equity stood at 15 per cent to 20 per cent.

Geographically, North America accounted for 45 per cent to 60 per cent of Adia’s investment spread, Europe represented 15 per cent to 30 per cent, emerging markets made up 10 per cent to 20 per cent, and developed Asia held 5 per cent to 10 per cent. Despite global headwinds, the fund has maintained an active deal pipeline, including a student housing portfolio sale by a joint venture with Landmark Properties to Morgan Stanley Investment Management and Global Student Accommodation, a co-investment in Froneri alongside PAI Partners and Goldman Sachs Alternatives, and a $1.5 billion commitment to Singapore-based GLP.