Mubadala assets jump 80% on new investments

Dubai - Mubadala monetised a number of mature assets for a total of Dh55.4 billion in line with its strategy to diversify investment base.

Mubadala Investment Company said on Monday its assets under management jumped 80 per cent to Dh841 billion as it deployed Dh70 billion in new investments across key sectors in 2018.
The Abu Dhabi-based state fund said despite global macroeconomic turbulence in the fourth quarter of the year, the group delivered stable financial results, with total comprehensive income at Dh12.5 billion, up 21.3 per cent from Dh10.3 billion in 2017.
The results are the first since Abu Dhabi Investment Council (Adic), an investment arm of the Abu Dhabi government, joined Mubadala in 2018.
"The addition of the Abu Dhabi Investment Council was a transformational step, strengthening our position as an international investor across different sectors," said Khaldoon Khalifa Al Mubarak, group chief executive and managing director of Mubadala.
Recently, the Mubadala. CEO said in the sovereign fund's 20 years of operations, its investment portfolio has gone from being 100 per cent focused on the energy sector to under 20 per cent today. Speaking at seminar in Yekaterinburg, Russia, he has praised the vision of His Highness Sheikh Mohammed bin Zayed, and said the UAE leadership placed great emphasis on how the country was diversifying as an economy beyond oil and gas.
In 2018, Mubadala monetised a number of mature assets for a total of Dh55.4 billion in line with its strategy to diversify investment base, and it invested a total of Dh70.1 billion of additional and recycled capital across the group's existing investment sectors including technology, aerospace, commodities and financial services, as well as new sectors, including medtech, pharma and agribusiness.
"Mubadala is operating as a global investor to drive financial returns and strategic value for Abu Dhabi, towards a vision of an internationally-connected and future-focused economic base,' said Al Mubarak.
"Technological disruption is creating the potential for value across all sectors, which is an opportunity for us to deepen our position as a major global investor. We are also activating our investments and relationships to establish Abu Dhabi as the technology hub for the Mena region," he said.
"Our talent, capital structure, global partnerships and strong track record are enabling us to deliver on our mandate as an organization entrusted with supporting Abu Dhabi's economic progression," said Chief Financial Officer, Carlos Obeid. "The group's scale, diversification and stable cash flows delivered solid financial and operational performance in 2018, despite a year of challenging market conditions with volatile equities and uncertain yields," said Obeid.
He said the addition of ADIC has diversified Mubadala exposure and strengthened its portfolio. "While investing in new asset classes we remain focused on robust balance sheet management, maintaining a low leverage position and managing risk across the business."
In 2018, the wealth fund continued to deploy capital worldwide, including the launch of co-investment with Taneo, Greece's New Economy Development Fund. New offices opened in Moscow and San Francisco, adding to the existing network of offices spanning Rio De Janeiro, and a joint venture office in Hong Kong.
Mubadala also managed to reduce its corporate debt in 2018 through a combination of repayments, new issuances and favorable foreign exchange movements, it said. - issacjohn@khaleejtimes.com