Norway’s sovereign wealth fund, the world’s largest, raised its investments in 19 Emirati companies by 13.3%, or $40.5 million, in the full-year 2018.
The fund’s, formally known the Government Pension Fund Global, investments in the UAE companies reached $346.55 million last year, compared to $306.06 million in 2017.
The banking sector
The UAE’s banking sector acquired the majority of the fund’s total investments in the GCC nation with 37.11%, or $128.61 million, by the end of 2018, according to Mubasher’s statistics.
The UAE bank shares made up the biggest stake of the world’s largest fund investment due to the interest rate hike, which in return generated continuous revenue growth, along with burgeoning projects with the advent of Expo 2020, analysts told Mubasher.
Recent data showed that the fund had investments in six of the UAE banks over the course of the previous year, capped by Dubai Islamic Bank (DIB) with $35.74 million, followed by Union National Bank (UNB) and Emirates NBD with $33.03 million and $25.26 million, respectively.
National Bank of Ras Al Khaimah acquired almost $17.05 million of Norway’s sovereign wealth fund’s total investments, while Abu Dhabi Commercial Bank (ADCB) and First Abu Dhabi Bank (FAB) received $12.48 million and $5.04 million, respectively.
Real estate sector
Investor concern about the real estate sector has played a significant role in remodelling the world’s largest investment fund’s positions, the managing director of asset management at MENACORP Tariq Qaqish told Mubasher
He affirmed that the financial results of the UAE property sector were against expectations, noting that it may witness more sovereign investments in the future.
The world’s largest fund invested $91.3 million, or 26.4% of its total holdings in the UAE in the Emirati real estate firms during the 12-month period ended December 2018.
Emaar Properties received $27.81 million of the fund’s total investments, followed by Aldar Properties and Emaar Malls with $25.61 million and $19.26 million.
The Transportation sector
By the end of 2018, the UAE transportation sector acquired around 23.09% of the fund’s total investments, or $80.02 million.
DP World made up $58.96 million, followed by Aramex and National Central Cooling Company (Tabreed) with $11.39 million and $4.89 million, respectively.
The Oil & gas sector
The UAE’s gas and oil sector acquired 9.6%, or $33.16 million, of total investments of Norway’s $1 trillion sovereign wealth fund during the period between January to December 2018.
ADES International Holding, listed on the London Stock Exchange (LSE), received total investments worth $20.72 million, followed by ADNOC Distribution with $12.43 million.
It is worth noting that Norway’s sovereign wealth fund suffered a 6.1% loss in 2018, the highest since 2011, compared to $57 billion in 2017.
The fund has a small stake in more than 9,000 companies across 73 countries with an aim to ensure responsible and long-term management of revenue from Norway’s oil and gas resources in the North Sea.