Abu Dhabi: ADQ, an Abu Dhabi-based investment and holding company, and Azerbaijan Investment Holding (AIH), a strategic sovereign wealth fund located in Baku, have formed a joint venture to invest in agriculture, technology, pharmaceuticals and energy infrastructure sectors.
The platform, valued at $1 billion, will focus on investments in sectors of mutual priority and will seek and leverage investment opportunities to generate 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 percent 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.
H.E. Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer at ADQ, commented: “The establishment of this joint investment platform strengthens the bilateral ties between our two countries.”
“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,” said Mikayil Jabbarov, Minister of Economy of the Republic of Azerbaijan, Member of the Supervisory Board at AIH.
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.