The UAE is using a wealth fund to gain diplomatic sway

Sovereign wealth funds seldom worry about foreign policy. Those that invest abroad typically do so in order to ensure stable returns or diversify holdings, meaning they tend to hold Treasuries and Western stocks. Many have started to spend more at home in order to advance national growth plans. But ADQ, one of the United Arab Emirates’s wealth funds, is heading in a different direction.

With $199bn of assets under management, an amount equivalent to two-fifths of the UAE’s GDP, the fund has decided to take a new approach. Although more than 80% of its capital is tied up in domestic infrastructure and related firms, such as Etihad…