16 Sep 2012
(MENAFN) A new report by Fitch Ratings estimated the value of foreign assets held by Abu Dhabi’s sovereign wealth fund to be at least USD300 billion, Arabian Business reported.
The USD300 billion assets compared to direct sovereign external debt of just USD3 billion after the maturing of a USD1 billion eurobond earlier this year, Fitch said.
Fitch also affirmed Abu Dhabi’s long-term foreign and local currency issuer default ratings at ‘AA’ with a stable outlook.
The ratings agency added that the emirate’s foreign assets have increased in 2011, despite a weaker investment turnovers, as the general government budget moved further into a surplus, despite a substantial spending increase.
The report also estimated Abu Dhabi’s sovereign net foreign assets to have accounted for 131 percent of GDP last year.
It also expected total assets to continue rising despite a projected drop in the overall fiscal surplus, based on current oil price assumptions, to USD110 in 2012, falling to USD100 in 2013-2014.
The rating agency said Abu Dhabi Investment Authority’s (ADIA) average return in the 20 years to 2011 dropped slightly to 6.9 percent from 7.6 percent in the 20 years to 2010.
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