Sheikh Tahnoon bin Zayed al-Nahyan has been appointed chair of the $790bn Abu Dhabi Funding Authority, the principle sovereign wealth fund of the United Arab Emirates’ capital, in a sign of his increasing affect.

Sheikh Tahnoon is the UAE’s nationwide safety adviser, however he additionally chairs the state holding firm ADQ, the nation’s largest lender First Abu Dhabi Financial institution, and Worldwide Holding Firm. IHC is a listed group linked to the ruling household that has undergone an astonishing rise to grow to be the area’s second-largest firm by market capitalisation after the oil firm Saudi Aramco.

He replaces as chair of Adia the late Sheikh Khalifa, the previous UAE president, who died final yr and was succeeded by Sheikh Tahnoon’s brother, Sheikh Mohammed bin Zayed al-Nahyan. The brand new president has but to call an inheritor.

Adia, established in 1976, has for many years invested in abroad capital markets, turning into one of many area’s most vital sources of funding for international asset managers. It has additionally branched out into asset courses corresponding to personal fairness, actual property and infrastructure.

The sovereign wealth fund acts as a automobile to deploy extra hydrocarbon revenues to ship long-term returns for the federal government.

Sheikh Tahnoon has more and more risen to prominence, coping with delicate international coverage points as nationwide safety adviser. These have included repairing relations with Qatar and Turkey, with which the UAE clashed through the Arab Spring, whereas additionally making an attempt to maintain a lid on tensions with regional rival Iran.

His longstanding pursuits as a home and international investor have additionally stood out. IHC, a listed automobile that emerged from the personal Royal Group, which Sheikh Tahnoon has lengthy managed, has perplexed bankers with its surge on Abu Dhabi’s inventory trade over the previous few years. ADQ has additionally grow to be one of the lively buyers in regional markets.

His elevation comes as Abu Dhabi, buoyed by excessive oil costs, has cemented its position as one of many few international places of extra capital. Bankers and corporations have been interested in the UAE’s capital to lift funds.

However the UAE, like different Gulf states, can be in search of to reinvest revenues domestically. The nation is making an attempt to adapt its oil-reliant financial system for a post-oil future, in addition to taking higher management over how its capital is deployed abroad.

Earlier this week, ADQ and IHC, each chaired by Sheikh Tahnoon, teamed up with Basic Atlantic to launch a worldwide asset administration agency based mostly in Abu Dhabi.