Engineering the Capital Network

Okay. Well, thank you all for paying attention to this very important conversation. Our guest now is uh a person who has enormous number of different roles in Abu Dhabi. But let's go through one of them first. ADQ.

What is ADQ and what is its mission?

Well, ADQ is a sovereign fund uh established in 2018. Its primary objective is to build critical infrastructure and invest in supply chains. It's built off the back of existing assets that we took over from the government in 2018 in ports, airports, airlines, uh, sewage, power, water networks, uh, all the way through to hospitals, food security, and of course, pharmaceuticals and critical mining.

Okay. Now, where did the Q come from? I know where Abu Dhabi AD came from. Where did the Q come from?

Uh, it's a bit of a secret, but uh, we'll divulge it. everybody here. Nobody will tell anybody.

Uh yeah, can't control it at this point. Um I think there's a bit of a branding story. I won't go into that, but the Q stands for which means holding in Arabic and AD is Abu Dhabi, of course. Okay. So that's one of your jobs.

But you have another job that is um in get people to invest in uh Abu Dhabi. Is right. Well, I my second role is the minister of uh investment for the federal government

and it has two critical roles. One role is directing investment outward where the UAE sees it's a priority and then attracting investment into the UAE.

And what do you what's more important to you getting which of these jobs is more important? And when you how do you decide to spend ex half half your day on one and half your day on the other?

I don't get to decide. I think uh you know leadership decide which one gets priority in a given day. That being said, we do manage uh critical infrastructure for the nation and supply for example power uh to everyone other than Sharah and Dubai. And so one would argue is that as important as directing investment into the country the answer probably would be yes. So I have to be a bit balanced.

Now you grew up in Abu Dhabi. How has the country changed the most since you grew up? ah very different. Um first of all for those of you who used to walk on the Cornesh uh and today you drive on the Cornesh, the Cornesh is now probably I don't know 1 kilometer inland uh from where it used to be. So the city has changed a lot.

I mean everything from the quality of service you get to the access in terms of infrastructure um everything really the world has changed the even existence of more than one sovereign fund you know used to be just and let's suppose I'm an American company or I'm a European company and I want to invest in the Middle East and specifically in the GCC why should I invest in Abu Dhabi versus Saudi or Qatar or Oman why what's the better advantage in to investing here. Here

is that the best question.

I'm sure this is too easy to answer, but let me answer anyway.

Well, I'm sure there must be a reason why it's better to invest here, but maybe maybe there isn't. I don't know. Tell us.

First of all, I think needless to say the quality of infrastructure, needless to say, the quality of life, needless to say the the action, but I would probably argue that the the best reason really is we're probably the most progressive economy and society in the Middle East. And so I don't think anyone has been more advanced or willing to change as fast as we are. So I I I would argue there is no other place to go to. Hey, now some people who are not familiar with this part of the world might say what's the difference between Dubai as a place to invest in in Abu Dhabi. What would you tell people is the principal difference between Abu Dhabi and Dubai?

Well, I'm in Abu Dhabi's neighborhood, so I have to be careful here. I may not be able to leave the room. I would say the UAE as a whole. Abu Dhabi, Dubai, Rasula, everyone has an equal has an equal opportunity for investment today. You know the casino in ina there is no other like it in the middle of of all the UAE.

So there's an opportunity to invest around hospitality. There's hospitality in Abu Dhabi around the new islands and there's hospitality in Dubai around some of the existing features. So the opportunity is there across the UAE. Uh each one has a unique value proposition uh which they can describe better than I can. I think every investor should be given a choice.

We don't force anyone to go anywhere.

But there are clear winners in certain sectors and you should focus on your sector. Many of the countries in the GCC and other countries in the Middle East are trying to wean themselves off of oil and natural gas. How long do you think it would take before Abu Dhabi really doesn't care whether it's producing oil or not? Would that be 10 years, 20 years, 30 years from now or more? Well, our president has given us a clear timeline which is by 2050 we will celebrate the last barrel of oil which is a figurative meaning, you know, we should be celebrating at that point of time.

We're today 70% non oilbased economy and so is it another 5 years or 10 years? One can argue but it's somewhere in there that that that space.

And where does ADQ get its money from? Does the government give you money or how do you get money to do all these investments?

Well, in our in our early days, we were seated with assets which were giving us cash returns and so those assets today are our main source of capital and we're going to continue to capitalize on the existing portfolio to create new investment opportunities.

So, have people ever come to you requesting money and you said they're so brilliant. so talented, so charismatic, you gave them money on the spot. Has that ever happened?

Hasn't happened. While I'm the CEO,

okay,

because if I would, I there's something called Abu Dhabi Accountability Authority, which would probably pick me up and send me to jail. So,

is anybody that's not good governance?

Has anybody ever come to you who made a presentation asking you for money, they were so bad that you were embarrassed that they were so bad and you just wish they would go away?

There's countless of those.

Those happens a lot. No, it's probably 90 95% of of those pitches are are worthless.

And which people come in are the most arrogant? Are they the Americans or the Europeans or

or is there a race for that?

Ah, too many.

I don't know.

You're not going to answer that one. Okay,

I can't answer that one.

So, what when you're looking for an investment to make for ADQ? Can

I answer it? I actually argue the most arrogant are those who think that we still ride camels and they come here expecting and they, you know, they say, "We're surprised. We didn't expect to see this.

They still think we're on camels."

Well, when you go to the United States on visits, uh, and you tell them you're from Abu Dhabi, do they know where that is? Well, they call it Abu Dubai. But that being said, uh yes, most people today versus 10 years ago know Abu Dhabi a lot more than they used to. Dubai used to be a stronger brand. I would say Abu Dhabi, especially in the financial world, has become

Now you have uh five or six siblings. Is that right?

Well, I have from my mother eight. Yes.

Eight. And were you the favorite child?

Uh I may be today.

Today? Uh I but I you know

does your mother call you with investment

my sisters in the background my brother somewhere so they're probably feeling jealous.

Does your mother call you with investment advice ever?

My who?

Your mother.

My mother. Uh no. She does say what she should do with her money.

Okay.

Which I tell her no just leave it where it is. So

all right. And so today um the area that you find most attractive for putting money out for the next 5 10 years is that artificial intelligence are there technology or is it infrastructure? Where do you think the greatest return risk adjusted is going to be? Depends if you're asking this question from an ADQ lens or you're asking this from a global lens.

Are you asking it from an ADQ lens?

From ADQ.

From an ADQ lens. We are not an investor in technology. We believe our strong suit is around infrastructure and and supply chains. And so what we're going to continue to focus is on infrastructure and we believe there is a return to be made in the infrastructure space given our long-term horizon. So we're differentiated in that way.

Now you work around the clock. You're famous for working around the clock. Um what do you most enjoy about your job? Is it people giving you exciting ideas to invest in or helping your country? What is it that you actually enjoy the most?

Well, I I don't know. There's something about it that's addictive. It's uh you know, it's a sport to me. How do I make today a better day? How do we create more value today?

How do we extract more value? It's you're constantly thinking. You can never have a dull day. You can have a a tiring day where you just say, I just I want to stop thinking, but every day is a challenge. Every day is different.

You can never have the same day again. for young people who are let's say teenagers and they're figuring out should they go to college outside of Abu Dhabi and get their schooling outside of Europe, United States or they sh they stay here does it make a difference you you stayed here but does it make a difference in your view whether you get educated outside Abu Dhabi or stay here if you want a career in Abu Dhabi I would argue that it doesn't matter where you study it used to be I think people would would associate you with a college or a university I don't believe that's important I've never believed it's important. When I was younger, I believed it was important. I felt it was important for me to study abroad because that would give me the highest probabilities of success knowing what I know today. I think it's all about your hard effort and what you commit to.

And when you've made an investment and it did not work out uh or as well as you wanted to do, what was the principal mistake? The people, the concept, the timing, what is the mistake that you feel you and your team have made where in deals it didn't work out? What was the mistake? I think the most common mistake is and it's hard to hard to say but believing you you you have a I'm not saying you shouldn't. You should always believe this but it is probably the most common mistake believing that you can when you can't.

You should continue to believe you can when you can't but is always the mistake of when you make mistakes. I mean it's counterintuitive but you have to make mistakes to be able to continue to grow but it's probably the biggest reason you make mistakes is you believe you can and you actually can't.

And when you look make an investment for ADQ is it a 5year return you're looking for 10 years 15 how do you judge the success of your investments? How long a time frame?

Well I mean there are valuations and we look at valuations as if we needed to exit in a five or 10 year horizon. depends on the asset, but we're actually buying it to hold for a very long term. So, we're thinking about generational. How can we actually build platform businesses that can survive me as a CEO, my next CEO, and the guy after. So, our power company, TA, we've owned it for the last 25 years.

We're probably going to own it for another hundred years. So, how do we keep it growing? So, for somebody who wants to have the kind of job you have, what is the skill set that you think is most helpful? being good in math, being good in economics, being good in engineering, uh reading a lot, talking well. What is a skill set you recommend to young people to get?

I don't think there's every every CEO is successful for a different reason. I think every CEO has an edge that makes him unique and different. I I can't say that every CEO out there is the same as me. And so, how can I say it's what I have? But I would say willingness to learn is is probably up there on the top.

Final question, we're out of time. So, when people visit you in Abu Dhabi and they've never been to Abu Dhabi before, what are they most surprised about? What do they tell you they didn't expect or that they are most pleased or uh to see? I think what they tell us and what they're thinking are two different things. I think what they tell us is they didn't expect to see the shiny buildings.

I think what they're thinking is they didn't think we were so educated and capable. So, I think they're two different things, but let's let's we're being presumptuous in that.

They don't they don't ask you where the camels are, right?

But maybe I ask you a question. I know we've run out of time,

right?

David, you've known the UAE for 20 or more years, maybe more.

Uh what have you seen as a difference? Well, I would say uh this about 30 years ago um a very famous music critic was watching somebody perform music and he said, "I've just seen the future of music and its name is Bruce Springsteen." And I would say today, "I've seen the future of capitalism and its name is Abu Dhabi."

Thank you.

Congratulations.