Emirates Investment Authority - Explained
What is the Emirates Investment Authority?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is the Emirates Investment Authority?
The Emirates Investment Authority (EIA) refers to an investment fund that is owned by the state government of United Arab Emirates (UAE). It was regulated in the year 2007 for identifying better investment opportunities both in local and global markets. It emphasizes on investments that will support the UAE economy in its growth and development.
What Does the Emirates Investment Authority Do?
Being the one and only sovereign wealth fund prevailing in the United Arab Emirates, the objective of EIA is to receive returns on its investments made, and expand its exposure to assets and securities. The Emirates Investment Authority was the result of Federal Decree Law No. 4 in the year 2007, and functions as an authority that the federal parties own in the United Arab Emirates. When the EIA was founded, its core objective was to develop a platform that managed investments following the supreme policies and strategies related to allocating capital effectively, corporate governance, and the management of associated risks. The United Arab Emirates is a confederation of seven states including Abu Dhabi, Ras Al Khaimah, Sharjah, Fujairah, Dubai, Ajman, and Umm al-Quwain situated on the Arabian Peninsula. EIA focused on regulating the UAEs wealth so as to offer help the country in growing in the long-run. The EIA involves a set governing framework followed by a dynamic approach so as to make it easier for the organization to work effectively. The EIA makes capital investments after keen observation, and further prefers investing in assets in different industries and regions where they can achieve the target of generating long-term value. It focuses on portfolio diversification strategy that is controlled by a group of individuals who hold an expertise in this field. Also, these EIA experts tend to support and advise the firms where they have made investments. This support helps the companies in operating better, growing more, and adding to their value. The federal government authorities offer required funds to the organization for the Emirates Investment Authority. The EIA has many functions to perform:
- Manage funds and assets of the UAEs federal government.
- Invest the federal wealth of the United Arab Emirates so as to achieve the long-run objective of gaining value.
- Offer advisory and consultation services to the UAE government on matters relating to the economic and industrial strategy.