The Abu Dhabi’s Strategic Investment Arm, Mubadala Investment Company, is overviewing for diversification of their asset base as it endures for disruptive industries as well as ramps up the investments within the technology as well as healthcare.
The Group Chief Executive of Mubadala, Khaldoon Al Mubarak stated out to the Financial Times that: “There is a huge shift within the Fund’s strategy that depicts out more selldowns in “legacy commodity sectors” either via market listings or private placements.”
Mr Al Mubarak restated that Mubadala, which has an asset base of $232 billion, remains engrossed on raging up investments in China and India.
As per the report, The corporation’s asset diversification and monetization strategy includes its earlier announced initial public offering for Emirates Global Aluminium, the UAE’s biggest industrial concern outside the oil and gas sector. An IPO for satellite company Yahsat and probable listing of GlobalFoundries, the US-based chip maker, are also on the cards.
Mr Al Mubarak stated out that: “The sectors we like, all have a significant growth trajectory in China and if you look at the overall portfolio and the percentage of coverage we have in China, it’s nowhere near where it should be. The same applies for India.”
The Covid-19 pandemic has fast-tracked Mubadala’s pivot to new technology as it pairs down on investment in clean energy, life sciences, mobility, automation, robotics and connectivity.
In September the preceding year, Mr Al Mubarak told the Global Manufacturing and Industrialisation Summit that: “the way the company operated, invested and looked at potential opportunities has changed and will continue to evolve as the pandemic subsides. Even before the pandemic, Mubadala was increasing its technology investment and the Covid-19 outbreak proved that Mubadala was “on the right path” in its shift from the traditional investment model.”
After investing $1.2bn in Jio Platforms, the digital business unit of India’s Reliance Industries, Mubadala is strong on exploring further prospects in India, China and other South-East Asian markets, Mr Al Mubarak said in June the preceding year. The sovereign wealth fund is chiefly interested in the technology sector, including medicine technology, artificial intelligence and agriculture technology in Asia.
Earlier this year, Mubadala transformed its organizational building along four lines of business – UAE investments, disruptive investments, direct investments as well as the real estate and infrastructure – and stated that the new operating model will boost the firm into the next stage of progress.
Mubadala deployed more funds and “monetized” more assets the preceding year than the highs it hit in 2019, when it invested $18.5bn and elevated $17bn through divestments, Mr Al Mubarak told the Financial Times, in addition to that annual results in June would divulge higher income.
In March Mubadala stated that it will invest £800 million ($1.01bn) into Britain’s Life sciences industry over the subsequent five years, as part of a £1bn Sovereign Investment Partnership between the UAE and UK. The outstanding £200m will come from the UK’s Life Sciences Investment Programme that was divulged the preceding year.
Mubadala, which is an anchor investor in SoftBank’s Vision Fund, created a $2.4bn obligation to a partnership with US private equity firm Silver Lake in 2020. The preceding week, Group 42, an Abu Dhabi-based artificial intelligence and cloud computing establishment, which counts Mubadala among its shareholders, acknowledged a “significant” investment from Silver Lake.
“We are not going to take a pause, the momentum is there and it’s the whole point with this shift in the portfolio,” Mr Al Mubarak told the newspaper. “I’m not saying we are going to completely exit headwind sectors, but the strategy of redeployment and rebalancing our portfolio strategy. . . has proven to be successful”.
Within the UAE, Mubadala’s focus is on the development of new industries in the country where “we can … be competitive globally and where we can have scale”. “It’s that next industrial play. Life sciences, that’s a sector we know is going to be growing immensely and we have the sort of competitiveness in that space where we can create the right industries here,” Mr Al Mubarak said. “Technology is [another] area we are very strong in.”
