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Abu Dhabi to commence operations of $125bn fund in May

EBR Staff Writer Published 17 February 2017

Abu Dhabi’s $125bn state owned sovereign fund Mubadala Investment Company will start operation in May this year, organized into four broader investment platforms.

The investment platforms include - petroleum and petrochemicals, alternative investments and infrastructure, technology, manufacturing and mining, and aerospace, information and communications technology and renewables.

Wholly owned by the Abu Dhabi government, Mubadala was formed by merger of Abu Dhabi’s two largest sovereign wealth funds Mubadala Development Co and International Petroleum Investment Co.

Mubadala Investment Company managing director and CEO Khaldoon Khalifa Al Mubarak was reported by Reuters as saying that the new fund aims to help Abu Dhabi to diversify its economy beyond oil sector, through strategic investments.

According to the Sovereign Wealth Fund Institute, the Mubadala Investment is said to be the 14th largest of its kind globally.

Mubarak said:  “Committees comprised of Mubadala and IPIC leaders, have worked very hard over the past six months to put in place a proposal for a structure that will best serve the new company’s mandate.

“The structure, governance and world-class talent will enable the Mubadala Investment Company to be an investment powerhouse for Abu Dhabi.”

Biggest among the investment platforms will be include petroleum and petrochemicals; technology, manufacturing and mining with each having a share of 31.1% in Mubadala’s assets.

Technology, Manufacturing & Mining will have 21.6% share while Aerospace, ICT & Renewables will have 10.6% share in Mubadala,

Petroleum division will operate CEPSA, Nova Chemicals, Borealis and Mubadala Petroleum.

Abu Dhabi, which is estimated to have 6% of the world’s proven oil reserves, has been reducing spending and merging companies amid plunging in oil prices, Reported Bloomberg.


Image: Abu Dhabi seeks to diversify its economy beyond oil sector, through strategic investments. Photo: courtesy of suwatpo/FreeDigitalPhotos.net.