Mubadala set to double exposure to Asia by 2030

Abu Dhabi sovereign investor Mubadala plans to almost double its exposure to Asia by 2030 as part of its plan to bolster its presence in faster-growing emerging markets.

Of the nearly $300 billion in assets under management, Mubadala has only 12 per cent in Asia today, Camilla Macapili Languille, head of the fund’s life sciences and healthcare investments division, was quoted as saying by Bloomberg.

Mubadala, one of Abu Dhabi’s three main sovereign wealth funds, charged with helping diversify its oil-rich economy, wants to move that number closer to 25 per cent by as soon as 2030, she added.

While investments in North America and Europe make up a chunk of Mubadala’s portfolio, the Abu Dhabi-based sovereign wealth fund is shifting its attention to emerging markets where it is currently “underweight,” namely in China, India, Japan and South Korea, according to Macapili Languille whose unit is in charge of international healthcare investments.

“The US will continue to be a core market for us not only for healthcare but in general for the broader private equity business,” she said. Still, “we have always had an interest in Asia.”

Mubadala’s healthcare investment division will invest between $200 million and $500 million in Asia, compared with up to $1 billion in North America and Europe, the report said.

However, the company is flexible and can increase the investment, Macapili Languille added.

Last year, it combined its health business with G42 Healthcare, creating a new entity called M42 — the largest firm of its kind in the Middle East, according to its website.

“The overall plan for that business does include a potential initial public offering,” Macapili Languille said. Although there are no immediate plans to move in that direction yet, “if an IPO were to materialize, I think that would be a great outcome for that business,” she said.

Global SWF, which tracks the world’s sovereign investment funds, said in its 2024 annual report that three SWFs from the UAE invested a combined $36.5 billion in 2023.

Mubadala was ranked third in the top 10 list of SWFs with investments of $17.5 billion, followed by Abu Dhabi Investment Authority (Adia) with investments of $13.2 billion.

By then, Norway’s NBIM, Saudi’s PIF, and Japan’s GPIF will lead the table, with more than $2 trillion in assets under management each, Global SWF said.