The Mubadala power run continues, with Dh107 billion deployed across assets and geographies in 2022. Image Credit: Supplied

Dubai: The Abu Dhabi wealth fund Mubadala channeled Dh107 billion into investments through 2022, including a significant portion in next-gen technologies and companies in renewable energy, life sciences and also in digital infrastructure.

This comes despite the many global headwinds that had been coursing through the markets and investment landscape during the period. 

While Mubadala maintained a global spread for its funds, those deployed in the UAE continues to average around 23 per cent of the total. As of end 2022, Mubadala's asset size was at more than Dh1 trillion.

As of year-end, the fund also monetized Dh106 billion. Its return for the year came in at minus 3.1 per cent, which compares well against equity benchmarks and having to deal with multiple headwinds.

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"Mubadala also invested in sectors providing stable financial returns, such as real estate and hard infrastructure," said Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO,

We increased our exposure to other alternative investments, including private equity and private credit, to help weather the disruption to traditional asset classes.

- Khaldoon Khalifa Al Mubarak

"We continued our active monetization program, with proceeds of Dh106 billion to recycle capital into high-potential sectors and geographies, including Asia where we see significant investment potential in technology, digital infrastructure and the energy transition."

And stick to the long term mindset. “Although the macro-economic environment remains uncertain we are focused on investing for the long-term based on our convictions,” Al Mubarak added.

A wide geography

In 2022, Mubadala invested $525 million in tandem with BlackRock Real Assets in Tata Power Renewables, one of the largest renewable energy companies in India. The transaction was part of Mubadala’s 'rapidly growing clean energy portfolio'.

Along with others, the UAE firm also acquired 100 per cent in Skyborn Renewables, the world’s largest private offshore wind developer. (The investment includes a stake in co-investor Global Infrastructure Partners’ 50 per cent interest in Bluepoint Wind, a 1.6GW project off the coast of New Jersey and New York.)

Cashing out
Mubadala received Dh106 billion during the year, including from the sale of a 24.9 per cent stake in Borealis, the Austrian company dealing in base chemicals and fertilizers. The Abu Dhabi firm sold Minas de Aguas Teñidas (MATSA) for $1.87 billion with Trafigura. Mubadala also sold its remaining shares in Glencore.

'Institutional patience'

“As a sovereign investor, we have a long-term investment horizon and institutional patience," said Carlos Obeid, Group Chief Financial Officer. "Our five-year rolling rate of return is 8.5 per cent, with a return in 2022 of minus 3.1 per cent, meaning Mubadala significantly outperformed global benchmarks during the year.

"We continue to focus on our capital deployments in line with our strategy, supported by prudent management of our finances, underlining the strength of our business and investment approach.”

Mubadala's returns stack up well against major equity market benchmarks - Nasdaq Composite (-33.1 per cent), S&P500 (-19.4 per cent) and Dow Jones Industrial Average (-8.8 per cent) during 2022.