UAE’s Mubadala plans double its investment to make the top ten

By Rahul Vaimal, Associate Editor
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Abu Dhabi’s sovereign wealth fund Mubadala is revamping its structure and investing capital around half a trillion dollars in the next decade in a plan that will help to vault it into the top ranks of sovereign wealth funds in the world.

With stakes in companies from India-based Reliance Industries’ retail unit to the American private equity firm Silver Lake, Mubadala has been one of a few sovereign investors who took advantage of the market opportunities created by the coronavirus pandemic last year.

According to the reports, Mubadala will introduce several operational changes later this month to help achieve its goals. The focus will be on technology, infrastructure, life science, and other “future-oriented asset classes,” alongside continued investment in renewables and other clean technologies.

Mubadala said, “We did not pause during the COVID-19 pandemic, but kept investing according to our strategy.”

According to the New York-based adviser and data firm Global SWF, Doubling in size would turn Mubadala into the 10th largest wealth fund around 2030 and will require an annual growth rate of about 7 percent.

“The organization will be pressured to drive the growth of the emirate in the years to come, bringing in diversification and sustainability,” said Diego Lopez, managing director of Global SWF.

The Fund reported that its structure is being reshaped to concentrate on four market platforms such as UAE investment, disruptive investment, direct investment, real estate, and infrastructure.

Ahmed Al Calily, Mubadala’s chief strategy, and risk officer said, “This new structure aligns with our aspirations to grow significantly in the coming years, in key asset classes and important geographies.”

Mubadala is also changing the way it reports its results. It removed categories such as annual revenue and net profits, moved to multi-year benchmarking against long-term indices similar to those of other sovereign institutions, and began developing a long-term ESG (Environmental, social and corporate governance) framework.