Mubadala Investment Company Achieves Strong Performance In 2024 Financial Results With AED1.2 Trillion In Assets

Mubadala Investment Company, based in Abu Dhabi, has reported robust financial results for 2024. The company's assets under management increased by 9.1% to AED1.2 trillion, with a five-year annualised return of 10.1%. This performance highlights the effectiveness and resilience of Mubadala's strategic approach.

In 2024, Mubadala's portfolio was strategically designed to handle market fluctuations and focus on future-oriented sectors. These include artificial intelligence, clean energy, life sciences, semiconductors, and advanced manufacturing. Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO, stated that these sectors align with national priorities and reflect the company's commitment to long-term competitiveness.

The year also saw the establishment of MGX by the Artificial Intelligence and Advanced Technology Council. This new AI investment entity was co-founded by G42 and Mubadala, marking a significant milestone for Abu Dhabi. Al Mubarak noted that many top-tier investors continued to collaborate with Mubadala across various regions and sectors, demonstrating confidence in its strategy.

Mubadala's financial highlights for 2024 further emphasise its role as a reliable steward of national wealth. The company achieved a five-year return rate of 10.1%, while assets under management rose by 9.1% year-over-year to AED1.2 trillion. Capital deployment surged by 33.7% to AED119 billion, and proceeds from monetisations increased by 10% to AED109 billion.

The portfolio composition remained largely stable compared to the previous year: private equity accounted for 40%, public markets for 23%, and infrastructure and real estate for 17%. Mubadala successfully raised AED30.5 billion through various capital market instruments, including the world’s first AA-rated sovereign Sukuk.

Carlos Obeid, Group Chief Financial Officer, remarked on the company's disciplined capital allocation strategy: "Mubadala’s 10.1 percent return over the last five years reflects our disciplined capital allocation strategy, resilient execution and consistent focus on long-term value creation." He highlighted their strong balance sheet and low debt cost as key factors supporting future investments.

Long-Term Value Creation Focus

Mubadala remains committed to creating long-term value in line with its sovereign investment mandate. Since 2021, it has focused on multi-year performance metrics rather than annual figures like revenue or net income. In 2024, it began publishing its rolling ten-year IRR, which stood at 8.7%.

The company continues to diversify across different sectors and geographies while maintaining a conservative gearing ratio of 7.8%. This strategic approach positions Mubadala well for future investments and growth opportunities worldwide.

With inputs from WAM