Company broadens investments in AI, other industries of the future as assets under management grew to over AED 1.1 trillion.
- AED 89 billion deployed in key industries including artificial intelligence, technology, digital infrastructure, life sciences & clean energy, and private credit.
- Creation of new businesses in the UAE and growth in international investments underpinned Mubadala’s role as a global investor.
- Portfolio achieved a five-year rate of return of 10.3%.
Mubadala Investment Company (“Mubadala”), an Abu Dhabi sovereign investor, has released its 2023 financial results for the Group.
In a year marked by persistent global inflation and sporadic disruptions to supply chains, Mubadala grew its portfolio with assets under management (AUM) reaching more than AED 1.1 trillion.
In line with its strategy of focusing on innovation-centric industries, Mubadala deployed AED 89 billion into a range of sectors shaping the future, including artificial intelligence, technology, digital infrastructure, life sciences and clean energy, while growing its private credit business. The company capitalized on market opportunities to execute on its monetization strategy, generating total proceeds of AED 99 billion for the year.
Mubadala built on its role as a global investor through opportunistic capital deployment in North America, Asia and Europe in sectors key to regional growth. Investments to accelerate the transformation of the UAE economy through AI-enabled innovation in sectors such as healthcare and space technology remained central to Mubadala’s strategy.
Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO said: “Mubadala had a strong year across the portfolio, making investments in areas essential to growth and innovation around the world. Our foundational investments in industries shaping the future are positioning Mubadala as a global investor in solutions to support human progress. Globally, we continue to strengthen our presence and partnerships in key markets, ramping up investments across a range of sectors in line with our convictions.”
Mubadala invested in Aligned, one of the fastest-growing data center providers in the Americas. Through its portfolio company Mubadala Capital, Mubadala announced it would acquire Fortress, a world-leading investment manager, from the Softbank Group. Mubadala also completed the acquisition of its stake in GlobalConnect, a leading fiber-based data communication and data center services provider serving enterprises, public institutions, and consumers in Northern Europe. Masdar, the global clean energy powerhouse established by Mubadala in 2006 closed on a 50% stake in the Big Beau combined solar and battery storage in California from EDF Renewables North America.
In Asia, GlobalFoundries – which was created by Mubadala in 2009 – announced the official opening of a US$4 billion semiconductor fabrication plant in Singapore. Mubadala also invested alongside KKR in CoolIT Systems, a leading provider of scalable liquid cooling solutions for the world’s most demanding computing environments and invested in Osstem dental care in South Korea. Mubadala Energy also made one of the largest natural gas discoveries in Indonesia, in December, with the potential of up to 170 billion cubic meters.
In the UAE, Mubadala founded two new businesses alongside Abu Dhabi’s technology group G42. Space42 is a home-grown space and satellite technology champion, created through the merger of its satellite company Yahsat and AI-enabled geospatial solutions company Bayanat. Mubadala and G42 also made strategic investments in the growing healthcare sector including the creation of M42, a first-of-its-kind, tech-enabled, integrated healthcare company. Mubadala and G42 are also foundational partners in Abu Dhabi’s MGX, a comprehensive investment vehicle to accelerate the development and adoption of AI and advanced technologies.
Mubadala expanded its private credit business during the year. Mubadala and Ares formed a joint venture, aiming to deploy approximately US$1 billion to capitalize on the anticipated growth and substantial demand for customized liquidity solutions for the credit secondaries asset class. With Ares and Aldar, Mubadala also established a new strategic partnership to jointly invest US$1 billion in European private real estate credit. Mubadala also created a long-term partnership with Apollo to invest alongside partners up to AED 9 billion over the next five years in credit opportunities.
Group Chief Financial Officer, Carlos Obeid, said: “In 2023, global markets experienced significant turbulence across various sectors and industries, driven by rising interest rates, inflationary pressures, geopolitical tensions, and supply chain disruptions. Despite these challenges, our five-year rate of return stood at 10.3%.”
Obeid added: “Complementary to our growth in AUM, 2023 marked a year of prudent debt raising where we successfully executed almost AED 30 billion of funding commitments obtained across a diverse range of products, strategically issued to refinance maturing debt, and to also to support Mubadala’s investment activities in line with our exciting growth plans. As part of these debt issuances, we successfully executed our inaugural Green Bond in October following the establishment of our Green Financing framework to commemorate Mubadala’s decision to align with the UAE’s commitment to Net-Zero by 2050, during COP28. We continue to maintain a relatively interest rate immune debt portfolio with a conservative gearing ratio of 10.3% and a strong liquidity position to navigate through this cycle.”
Key financial and operational highlights:
- A five-year cumulative rate of return of 10.3%.
- AED 89 billion capital deployment in line with strategy, including technology, digital infrastructure, life sciences, renewable energy and private credit.
- Portfolio mix broadly similar year on year, with 38 percent direct and indirect in private equity, 25 percent in public markets and 16 percent in real estate and infrastructure.
- AED 99 billion in proceeds including divestments of certain legacy assets and capital recycling into priority investment areas in line with strategy and responsible investing agenda.
- Assets Under Management grew to AED 1,111 billion, compared to AED 1,015 billion in 2022 – a 9.45% increase.
- Gearing ratio of 10.3 percent, with a very strong liquidity position.
Mubadala does not release annual data irrelevant to a long-term investor, such as annual revenue or net income, or Total Comprehensive Income, instead using a multi-year metric, which it began to disclose in 2021.
