Mubadala, which invests on behalf of the Abu Dhabi government and has $243 billion in assets, is central to the emirate’s economic diversification drive
Mubadala Investment Company has bagged the global sovereign wealth fund industry’s top honour, becoming the “2021 Fund of the Year”, a recognition of its investment acumen and the part it has played in helping the industry to grow last year despite headwinds.
The award, from industry tracker Global SWF, is also an acknowledgement of the Abu Dhabi strategic investment arm’s high level of deal activity in 2021, partnerships it has forged with governments and investment entities across the globe, and the crucial role it has played at home in the economic recovery.
For its significant contribution to the development of Abu Dhabi and the UAE, for its leadership in pursuing global partnerships, for its unparalleled investment and divestment activity displayed throughout the year, and, in general, for its contribution to the advancement of the SWF industry, Global SWF believes that Mubadala Investment Company is a worthy recipient of the 2021 Fund of the Year award, said Diego Lopez, Global SWF managing director.
Mubadala, which invests on behalf of the Abu Dhabi government and has $243 billion in assets, is central to the emirate’s economic diversification drive.
The fund, which invests at home and abroad, aims to double the size of its portfolio in the next decade, Ahmed Al Calily, Mubadala’s chief strategy and risk officer, said in an interview with SWF Global this week.
Mubadala’s organisational structure, strategy and global partnerships enables the fund to invest in sectors with significant ‘tailwinds’, including technology, life sciences, renewable energy and FinTech. It continues to seek opportunities in ‘more traditional sectors’, he said.
As a responsible investor, we are committed to supporting the economic diversification of Abu Dhabi while leaving a positive lasting impact on the communities where we invest worldwide, Al Calily said.
Mubadala expects challenges in the short term from the pandemic, rising interest rates and inflation. However, it does plan to change the company’s investment strategy and its view on sectors it invests in, chief executive Khaldoon Al Mubarak said at the recent Global Manufacturing and Industrialisation Summit in Dubai in November.
When I look at 2022, for us as Mubadala, there’s no shift in terms of our strategy, in terms of themes in which we are investing in and in terms of how we look at the next five- to 10-year cycle, he said.
The company is a long-term investor that takes a ‘patient’ approach to investing and it will continue to focus on strategic sectors including technology and life sciences and expand its portfolio of renewable and energy transition assets, Al Mubarak said at the time.
Mubadala’s comprehensive income in 2020 soared 36 per cent to a record Dh72 billion ($19.6bn) in 2020 from Dh53bn ($14.43bn) a year earlier, as it navigated its portfolio through one of the toughest years for the global economy in decades. Equity and fund investments as well as growth of assets across sectors drove income.
2020 was one of our most successful years, during which we achieved record investments, profit and growth. We deployed $29.4bn while realising $28.3bn through monetisations and distributions, Al Calily said. 2021 was also one of our most active years.