Mubadala Reports AED1.1 Trillion Assets Under Management In 2023

Abu Dhabi sovereign investor, Mubadala Investment Company, has announced its 2023 financial results, showcasing impressive growth and strategic investments. Despite a challenging year marked by global inflation and disruptions to supply chains, Mubadala's assets under management (AUM) reached over AED1.1 trillion, a 9.45% increase from the previous year.Mubadala's investment strategy focused on innovation-centric industries, with AED89 billion deployed into sectors shaping the future. These sectors include artificial intelligence, technology, digital infrastructure, life sciences, and clean energy. The company also capitalized on market opportunities to generate total proceeds of AED99 billion through its monetization strategy.As a global investor, Mubadala strategically deployed capital in North America, Asia, and Europe, targeting sectors crucial to regional growth. The company's investments aimed to accelerate the transformation of the UAE economy through AI-enabled innovation in sectors like healthcare and space technology.In collaboration with Abu Dhabi's technology group G42, Mubadala founded two new businesses in the UAE. Space42, a home-grown space and satellite technology champion, was created through the merger of satellite company Yahsat and AI-enabled geospatial solutions company Bayanat. Additionally, Mubadala and G42 made strategic investments in the healthcare sector, including the establishment of M42, an integrated healthcare company enabled by technology.Mubadala also played a significant role in Abu Dhabi's MGX, an investment vehicle focused on accelerating the development and adoption of AI and advanced technologies. The company invested in Aligned, a rapidly growing data center provider in the Americas, as well as Brightspeed, a US-based broadband and telecommunications services company.Through its portfolio company Mubadala Capital, Mubadala announced its acquisition of Fortress Investment Group LLC from the Softbank Group. The company also completed the acquisition of its stake in GlobalConnect, a leading data communication and data center services provider in Northern Europe.In the clean energy sector, Masdar, established by Mubadala in 2006, acquired a 50% stake in the Big Beau combined solar and battery storage project in California. Mubadala's investments extended to Asia, with GlobalFoundries, created by Mubadala in 2009, opening a US$4 billion semiconductor fabrication plant in Singapore. The company also invested in CoolIT Systems, a provider of liquid cooling solutions, and Osstem dental care in South Korea.Mubadala Energy made a significant natural gas discovery in Indonesia, with the potential of up to 170 billion cubic meters. The company also expanded its private credit business through joint ventures with Ares and Aldar, aiming to deploy approximately US$1 billion in customised liquidity solutions for the credit secondaries asset class and European private real estate credit.Carlos Obeid, Mubadala's Group Chief Financial Officer, highlighted the challenges faced by global markets in 2023. Despite these challenges, Mubadala achieved a five-year rate of return of 10.3%. Obeid also emphasized the company's prudent debt raising strategy and successful execution of funding commitments amounting to almost AED30 billion. These funds were strategically issued to refinance maturing debt and support Mubadala's investment activities.Mubadala's commitment to sustainability was evident through its inaugural Green Bond issuance in October. The company established a Green Financing framework to align with the UAE's commitment to Net-Zero by 2050. With a conservative gearing ratio of 10.3% and a strong liquidity position, Mubadala is well-positioned to navigate through market cycles.Mubadala's 2023 financial results demonstrate its strength as a global investor and its dedication to driving innovation and growth in key sectors. With its strategic investments and focus on AI-enabled innovation, Mubadala continues to play a pivotal role in shaping the future of the UAE economy.

With inputs from WAM