Forget about the Russian Bear, Germany has got into
a tight embrace with another bear this time around in West Asia. UAE sovereign
wealth Fund had its noose tightened over Germany. Specific attention: Abu
Dhabi Investment Authority better known by its initials ADIA. Let me assess this
in terms of geoeconomics:
Here is a review of one investment by the ADIA:
Open Grid Europe GmBH (OGE)
ADIA held a major stake in OGE, a top German gas
network operator around 25%, via her subsidiary Infinity Investments. As a gas grid operator, OGE
is a key player in the energy transition and also one of the pioneers of green energy
transformation in Germany. She achieved this by transporting green gases, such
as renewable and decarbonised gases and CO2 using pipeline network stretching over
12,000 km along the line, building
compressor stations for gas energy carriers.
Even though the company employs 1.450 persons most
of whom being Germans fundamental questions
about the sensitivity of this project under scrutiny of a West Asian Fund had been raised on and off to the displeasure
of AFID which finally agreed, for a divestment.
But none of the efforts of divestment bore fruit. The latest being, the failure of negotiations with
Italy’s Snam which at the last moment broke down in November 2025.
It is relevant to state that apart from the energy,
German trade volume with UAE of non-energy trade amounts to close upon USD 13.8
Billion. The sectors include aviation, logistics and finance other than clean
energy as represented by OGE.
Analysis
When setting investment plans for Germany by outside financiers, care should be taken to define the volume, the percentage and the duration of the investment and be reduced in writing. This relates specifically for investment funds. In the case of joint-ventures and/or partnerships the duration part may be dispensed with.
Moreover, priority sectors such as real-estate, housing, infra-structure,
roads & railways be selected from the bank of eligible targets. Investing
in these targets could be allowed for both wealth funds as well as enterprises
willing to invest in Germany.
Synthesis
One good thing happened as regards to ADIA was her
involvement in VTG
Aktiengesellschaft a major international railcar leasing and logistics
company based in Hamburg whose product portfolio include but not limited to, rail
freight, wagon leasing, tank container leasing and multimodal logistics
services Serving industries such as chemicals, petroleum, automotive, paper,
and agriculture with a fleet of 85,000 freight wagons and about 5,000 tank
containers this firm does a great job. So is ADIA.
My strategy advice
Geoeconomics matter a lot in choosing investment priorities, partners,
collaborators, fund managers throughout globally without restricting to
wealth fund managers located only in West Asia. Every such effort must be made
with clear goals centred upon elevating the status of Germany in her
Geoeconomics profile.
Hence, navigating strategy amid geoeconomics cautions
Germany to choose the right partners, collaborators and fund managers.
Cheers!
Muthu Ashraff
Strategy Adviser
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Strategy Adviser
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