Abu Dhabi’s Mubadala looks beyond resource roots

Abu Dhabi’s Mubadala looks beyond resource roots

Abu Dhabi's most active investment fund Mubadala is turning away from its roots as it cuts its holdings in energy and other commodity-related assets while ramping up investments in technology, healthcare and disruptive industries.

Khaldoon al-Mubarak, chief executive, said the $232bn fund's strategy shift would mean more selldowns in "legacy commodity sectors“ either through market listings or private placements, including an initial public offering for Emirates Global Aluminium.

Mubadala is also planning an IPO for Yahsat, a satellite company set up 14 years ago, and is considering whether to list GlobalFoundries, the US-based chipmaker into which it has pumped billions of dollars over the past decade that turned its first profit in 2019.

At the same time, the fund is increasing its investments in Asia's two powerhouses as it aims to double its assets under management by 2030.

"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,“ Mubarak told the Financial Times. "The same applies for India.“

Mubadala deployed more funds and "monetised“ more assets last year than the highs it hit in 2019, when it invested $18.5bn