Abu Dhabi to tap its sovereign wealth fund to plug deficit

Abu Dhabi

ABU Dhabi Investment Authority's assets will probably shrink by billions of dollars by the end of this year as the emirate's government taps its sovereign wealth fund to bridge a deficit brought on by low petroleum prices, Fitch Ratings said.

Assets will drop to US$475 billion at the end of this year, from an estimated US$502 billion at the end of 2014, Fitch said in a report, adding that it expects them to rise again in 2017. The government may also issue local and foreign currency bonds to finance its deficit this year and next, according to the ratings company. Abu Dhabi's department of finance has "intensified" talks with the central bank and commercial banks on a local debt sale, it said.