This is confirmed by the company’s annual results in numbers indicating the growth of its investments in the UAE, with the continued expansion of its investment portfolio and the strengthening of its role as a global investor.
The following are Mubadala Investment’s most prominent investments in future sectors:
At the UAE level, Mubadala has established two new companies with G42, a technology company based in Abu Dhabi. Space42, a leading company in the field of space technology, was established through the merger between Yahsat, which specializes in the field of satellite communications, and Bayanat, a leader in the field of geospatial data supported by artificial intelligence.
As part of its strategic investments in the growing healthcare sector with G42, Mubadala established M42, an integrated healthcare company powered by artificial intelligence, the first of its kind.
Mubadala and G42, as founding partners, contributed to the establishment of MGX (MGX) in Abu Dhabi, which is a comprehensive investment company to accelerate the development and adoption of artificial intelligence and advanced technologies. It also aims to enable, develop and employ leading technology, with the aim of improving the lives of current and future generations.
MGX’s investment strategy will focus on three main areas:
- AI infrastructure (including data centers and connectivity)
- Semiconductors (including design and manufacture of memory modules and logic operations)
- Basic technologies and applications of artificial intelligence (including artificial intelligence models, software, data, life sciences, and robotics).
Mubadala invested in Aligned; One of the fastest growing data center companies in the Americas.
Mubadala also announced, through its subsidiary Mubadala Capital, its intention to acquire Fortress, a leading global investment management company, from the SoftBank Group.
Mubadala completed its acquisition of a stake in GlobalConnect; A leading provider of fiber optic data communications and data center services, serving businesses, public institutions and consumers in Northern Europe.
Masdar, a leading global clean energy company founded by Mubadala in 2006, has completed the acquisition of a 50 percent stake in the Big Beau thermal power and battery storage platform in California from EDF Renewables North America.
In Asia, Global Foundries announced: The leading company, which was founded by Mubadala in 2009, announced the official opening of its semiconductor factory in Singapore, worth US$4 billion. Mubadala also invested alongside KKR in CoolIT Systems; Leading provider of liquid cooling solutions for computing environments.
Mubadala also invested in Osstem, a dental care company in South Korea. Last December, Mubadala Energy Company announced the discovery of one of the largest natural gas fields in Indonesia, with a capacity of 170 billion cubic metres.
During 2023, Mubadala expanded its investments in the field of private credit opportunities, as it established, alongside Aris, a joint project aiming to invest approximately one billion US dollars, to benefit from the expected growth and great demand for liquidity solutions allocated to the secondary credit asset class.
Mubadala, Ares and Aldar also entered into a new strategic partnership to jointly invest US$1 billion in private real estate credit in Europe. Mubadala has also established a long-term partnership with Apollo to invest with other partners in credit opportunities worth up to 9 billion dirhams, over the next five years.
On this occasion, Khaldoun Khalifa Al Mubarak, Managing Director and CEO of the Group, said: “The vision of Sheikh Mohammed bin Zayed Al Nahyan, President of the State, and the diligent follow-up and supervision of Sheikh Mansour bin Zayed Al Nahyan, Vice President of the UAE, Deputy Prime Minister and Head of the Presidential Office, has represented… The Chairman of the Company’s Board of Directors is the greatest motivation for us to move forward in our journey and maintain the group’s strategic growth path in the main business sectors.”
He added: “Mubadala achieved strong performance in its investment portfolio during the year 2023, as it made investments in areas essential for growth and innovation in various places in the world. Our vital investments in sectors that shape the future contribute to consolidating Mubadala’s position as a global investor in solutions that support the journey of Human Progress. Globally, we continue to strengthen our presence and partnerships in key markets, and increase investments across a range of sectors in line with our vision and investment approach.”
The UAE is racing against time to achieve global leadership in AI
The UAE has set a clear vision for its aspirations through its artificial intelligence strategy. The vision is for the UAE to become a global leader in the field of artificial intelligence by 2031. Achieving this vision requires determination and taking clear actions that define the path leading to success.
The UAE’s artificial intelligence strategy includes eight strategic objectives:
1. The first goal: Consolidating the country’s position as a destination for artificial intelligence
2. The second goal: Increase the competitiveness of the United Arab Emirates in priority sectors through the development of artificial intelligence
3. Third goal: Develop a fertile environment for artificial intelligence
4. Fourth goal: Adopting artificial intelligence in the field of customer services to improve the standard of living and government performance
5. Fifth goal: Attracting and training talent for future jobs that will be enabled by artificial intelligence
6. Sixth goal: Bringing world-leading research capabilities to work in the targeted sectors
7. Seventh goal: Providing the data and basic supporting infrastructure necessary to serve as a testing platform for artificial intelligence
8. Eighth goal: Ensure strong governance and effective regulation
It is noteworthy that artificial intelligence has the potential to generate up to 335 billion dirhams (about 91.2 billion dollars) in the UAE economy, and achieving this will be stimulated by supporting pilot projects in sectors where such intervention can create the greatest amount of economic or social value. .
Most notable financial and operational achievements for the year 2023:
Returning to the results of Mubadala Investment last year, it succeeded in strengthening its investment portfolio, as the value of its assets reached 1.1 trillion dirhams, in a year that witnessed continuous global inflation, and many challenges that affected the continuity of supply chains in various places in the world.
• The value of assets increased to more than 1.111 trillion dirhams (approximately $302 billion), compared to 1.015 trillion dirhams in 2022, an increase of 9.45 percent.
• Employing investments worth 89 billion dirhams ($24 billion) in vital sectors, including technology, digital infrastructure, life sciences, renewable energy, and private credit.
• Achieving revenues worth 99 billion dirhams (about $27 billion), including the sale of a number of mature assets and employing them in new investments in priority investment areas, in line with the company’s strategy and responsible investment agenda.
• A diversified and consistent investment portfolio year after year, consisting of 38 percent direct and indirect investments in private companies, 25 percent in listed stocks, and 16 percent in real estate and infrastructure.
• A gearing ratio of 10.3 percent, with us enjoying a very strong cash position.
• Achieving a cumulative rate of return over five years of 10.3 percent.
In line with its strategic approach of investing in innovation-focused sectors, Mubadala has invested AED 89 billion in core sectors that shape the future, such as artificial intelligence, technology, digital infrastructure, life sciences and clean energy, while strengthening its private credit business. Despite the challenges witnessed in the markets, the company sold a number of its shares, taking advantage of the available opportunities, and achieved revenues amounting to 99 billion dirhams.
Mubadala continued its global expansion by making promising investments in North America, Asia and Europe in key sectors for future growth.
The company also continued its investments aimed at accelerating the pace of economic transformation in the UAE, through innovation supported by artificial intelligence in sectors such as health care and space technology, as they are key sectors in the company’s business strategy.
In this regard, Carlos Obaid, Group Chief Financial Officer, said: “Global markets witnessed many fluctuations in various business sectors in 2023, as a result of high interest rates, inflation, geopolitical tensions, and supply chain disruptions. Despite these challenges, Mubadala’s cumulative return rate reached 10.3 percent over the period.” five years”.
He added: “In addition to the growth achieved in the value of assets, the year 2023 witnessed attracting financing in ways that reflect wise management, as we succeeded in attracting financing commitments amounting to approximately 30 billion dirhams through various instruments that were issued strategically to refinance outstanding debts and support Mubadala’s investment activities, in line with With our expansion plans, as part of these financing solutions, we succeeded last October in issuing our first green bonds after establishing the “Green Financing Framework” with the aim of contributing to achieving the UAE’s climate neutrality initiative by 2050, which was launched during the COP28 climate conference, and we continue in Mubadala Maintaining a debt portfolio in a relatively stable position in terms of interest rates, with a leverage ratio of 10.3 percent and a flexible financial position that allows us to continue our business at this stage.”
It is noteworthy that Mubadala had announced its intention to begin publishing multi-year benchmark comparisons, instead of other measurement indicators such as annual return, net income, or total comprehensive income, which no longer apply to Mubadala as a long-term investor, and the company issues multi-year measurement indicators, which is what I started advertising it since 2021.
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