Abu Dhabi’s wealth funds weigh Turkey investments worth billions

Wealth funds in Abu Dhabi are on the prowl in Turkey, scouting for targets for billions of dollars in investments, according to people familiar with the matter.

Talks between the funds from Abu Dhabi and companies in Turkey have been ongoing for months, the people said. The interest preceded a breakthrough phone conversation in August between Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed Al Nahyan and Turkish President Recep Tayyip Erdogan, amid increasing signs of a thawing of relations.

The investment discussions provide further evidence of a turnaround in ties between the two countries.

Among funds eyeing Turkish investments in recent weeks are Abu Dhabi Investment Authority, or ADIA, the emirate’s biggest wealth fund that’s amassed assets estimated at $686bn, and ADQ, according to three people. ADQ alone is considering spending as much as $1bn on healthcare and fintech targets, one of the people said. With an estimated $110bn in assets, ADQ is the emirate’s third-largest sovereign wealth fund after ADIA and Mubadala Investment.

ADQ could not immediately be reached for comment, while ADIA and the Turkish government’s investment office declined to comment.

More interest

International Holding, or IHC, the UAE’s second-most valuable listed company, said it’s evaluating investment opportunities in the healthcare and industrial sectors. “Turkey has one of the most significant food-processing facilities, which can be a great investment opportunity for us,” its spokesperson said.

Another fund looking at Turkey is Chimera Investments, a private investment firm that is part of Abu Dhabi’s Royal Group, which may allocate as much as $1bn, according to a person familiar with the talks.

Last month’s call between the two countries’ leaders followed a surprise August meeting between Erdogan and the UAE’s national security adviser, Sheikh Tahnoon bin Zayed Al Nahyan. Tahnoon is chairman of ADQ, IHC and Royal Group.

For now, the Arab nation’s biggest investment in Turkey is Emirates NBD’s $2.75bn acquisition of Istanbul-based Denizbank AS from Russia’s Sberbank in 2019.

Earlier this month, Aramex, a Dubai-based logistics company in which ADQ bought a stake of about 22 per cent last year, said it’s in talks with MNG Kargo about a takeover of the Istanbul-based delivery company.