We reproduce this article of Al Jazeera English published on 22 November 2015, under the title of “Why is ADIA closing its London office?” for basically its interestingly relevant to date item of news that was perhaps the most significant piece of precursor news to what would possibly come afterwards.
In effect, Abu Dhabi Investment Authority being an investment company during the happy $100+ a barrel used to offer investment advice and invests money on behalf of its shareholders: the UAE’s sheikhdom. It was based at 1, Knightsbridge, London, SW1 that is by the way, one of the most prestigious postal address of the whole of the United kingdom. London being a city with a rich and truly limitless heritage is the largest in West Europe.
The right question would be then; why opening an office at this address in the first place.
Most obvious answer would be that it owns the building complex of Lanesborough.
We look at the Abu Dhabi Investment Authority’s decision to close its London office and what this means for UK-UAE ties. Details can be found at http://aljazeeratoday.co.uk/shutting-up-shop-whys-adia-closing-its-london-office/
Why is ADIA closing its London office?
Shutting up shop !
The Abu Dhabi Investment Authority (ADIA) , one of the world’s richest wealth funds, is planning to close its London offices. Worth an estimated $773bn, ADIA has issued a statement saying the decision won’t affect its investments or commitments to the UK.
The fund, which has a stake in the UK’s Gatwick airport and Thames Water, opened its London office, its only international hub, in the mid-1980s. While it’s not often that we at Counting the Cost delve into the world of sovereign wealth funds, ADIA’s announcement comes at a time of perceived tensions between both countries.
There have been repeated claims lately that the UAE has been trying to use its financial clout to influence British foreign policy.
Central to the claims are reports that UAE officials promised the UK a $9bn arms contract only if Prime Minister David Cameron ordered a clampdown on the Muslim Brotherhood.
And just last month, Saudi Arabia’s ambassador to the UK said that trade links could be threatened after opposition leader Jeremy Corbyn criticised the Kingdom and its human rights record.
Sara Bazoobandi, a lecturer in International Political Economy at Regent’s University London, joins Counting the Cost to discuss ADIA’s planned closure and what it means for both countries.
Christine Lagarde in a stiff message to Gulf countries
Countries in the Gulf region are struggling to keep their balances in check as oil and gas prices have dropped sharply over the past year, leading to significant revenue shortfalls.
In a recent report, the International Monetary Fund (IMF) warned that if countries such as Saudi Arabia didn’t adapt to the price drop and seek alternatives they could run out of buffers in just five years.
Christine Lagarde, managing director of the IMF, recently spoke to Al Jazeera’s Martine Dennis and said the Gulf should start looking at ways other than oil and gas to bring in money.
Source: Al Jazeera