Mubadala Development's profit more than tripled last year as the performance of the company's investments benefited from improvements in financial markets and the global economy.
The Abu Dhabi Government-owned strategic investment company posted a profit attributable to the owner of the group of Dh1.5 billion, compared with Dh470 million the year before, Mubadala said yesterday.
It represents a second consecutive annual profit for the company after it rebounded from a loss in 2011.
“2013 was a strong year of financial returns and major project delivery for Mubadala,” said Khaldoon Al Mubarak, Mubadala’s chief executive and managing director. “Growth of our diversified global financial portfolio was complemented by significant accomplishments in the emirate, including the creation of a new global industrial champion in Emirates Global Aluminium and progress across other industry sectors. We also increased our international investments and formed new partnerships that will drive growth on our global platforms and increase our presence in key markets.”
Total comprehensive income rose to Dh5.3bn, up from Dh1.6bn in the year earlier, with the company citing higher income from financial investments and an increase in the value of its assets. Operating income dipped to Dh2bn compared to Dh3.7bn the year before because the cost of sale of goods and services went up.
The financial statement also provided more details of the change in terms of Mubadala’s Dh7.3bn loan to EBX Group as part of an investment the previous year in the conglomerate owned by the beleaguered tycoon Eike Batista.
An unnamed third party repaid Dh1.6bn in the form of cash and securities, with the remainder to be repaid “progressively” until June 30, 2017, according to the financial statement. A person familiar with the matter confirmed the information related to EBX, saying the new terms offered better repayment protection to Mubadala.
In February, Mubadala and Trafigura Group, the world’s second-largest metal trader, signed a US$955m deal to acquire a 65 per cent stake in a Brazilian iron ore port owned by MMX Mineração e Metálicos, a company previously owned by Mr Batista.
Boosting returns on Abu Dhabi’s oil income is one part of the dual mandate of Mubadala, which was created in 2002. The other is spearheading the expansion and diversification of the emirate’s economy.
Last year was an eventful one for Mubadala at home. It oversaw the merger of Emirates Aluminium and Dubai Aluminium, the country's two smelters.
The move, which was finalised earlier this month, makes Mubadala an equal shareholder in the new entity, Emirates Global Aluminium, which will create an extra 2,000 jobs by 2020. The deal helped to grow Mubadala’s asset portfolio to Dh223.8bn at the end of the year, up from Dh202bn in the year earlier.
Another highlight was the securing in November of Dh22bn in aerostructures and engine parts manufacturing deals with companies including Airbus, Boeing, GE and Rolls-Royce. The work, to be completed by Mubadala’s Strata Manufacturing unit, represents a boost to the emirate’s plan to become a major link in the global aerospace manufacturing supply chain.
Mubadala also oversaw the launch of Shams 1, the first concentrated solar power plant in the region, as well as YahClick, Yahsat’s sophisticated satellite broadband service.
tarnold@thenational.ae
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The biog
First Job: Abu Dhabi Department of Petroleum in 1974
Current role: Chairperson of Al Maskari Holding since 2008
Career high: Regularly cited on Forbes list of 100 most powerful Arab Businesswomen
Achievement: Helped establish Al Maskari Medical Centre in 1969 in Abu Dhabi’s Western Region
Future plan: Will now concentrate on her charitable work
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Types of fraud
Phishing: Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.
Smishing: The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.
Vishing: The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.
SIM swap: Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.
Identity theft: Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
Prize scams: Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.
* Nada El Sawy
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
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