Mubadala seeks significant global investment in AI and space tech

Investments will be based on attractiveness of opportunities in key markets, not geopolitical considerations, CEO Khaldoon Al Mubarak says

Khaldoon Al Mubarak, group chief executive and managing director of Mubadala, at the Investopia 2024 conference in Abu Dhabi on Wednesday. Victor Besa / The National
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Abu Dhabi's sovereign investor Mubadala Investment Company is open to making "significant" investments across key geographies and new economy sectors, as it looks to boost its footprint and build its portfolio of assets globally.

Mubadala is anticipating capital deployments across artificial intelligence and space technology, two of the hottest global sectors attracting significant investments, Khaldoon Al Mubarak, group chief executive and managing director of Mubadala, said at the Investopia conference in Abu Dhabi on Wednesday.

He did not provide any figures on Mubadala's expected investments, nor the timetable for these and any partnerships the company may be considering.

Mubadala is also considering stepping up its involvement in energy technology, health care, digital infrastructure, software and financing, "sectors that are advancing due to the global exchange of ideas, knowledge and long-term capital", he said.

"Any investment venture would be based on the attractiveness of the opportunities that would be identified in the key markets we are focused on and not on geopolitical considerations," Mr Al Mubarak said.

"This approach has been an essential driver for our success."

Mubadala is also planning to step up investment in the US market, while deepening "strategic and forward-looking investment ties in the UK, Europe and France", he said.

"Within Europe, we are scaling to participate in the long-term growth of large dynamic markets," Mr Al Mubarak said.

Meanwhile, Mubadala has increased its long-term allocations for Asia, including Japan, China, Korea and India, "in line with our focus on mega trends and global demographics", he said.

"Overall, sovereign funds now have the responsibility and opportunity to transform from asset allocators into enablers of global progress."

Mubadala's moves come amid a rush by sovereign investors to tap into high-growth industries, which are key to driving future-focused economy.

AI, long-used in various technology but gaining significant momentum with the advent of generative AI, is expected to be one of the hottest investment opportunities.

The global AI market is expected to hit nearly $739 billion by 2030, from an estimated $306 billion this year, at a compound annual growth rate of almost 16 per cent, data from Statista indicates.

The space race, meanwhile, is also in full swing, with more countries pouring investment into exploration.

Space tourism is expected to gain traction, with notable companies such as Richard Branson's Virgin Galactic, Jeff Bezos's Blue Origin and Elon Musk's SpaceX all racing to bring it into the mainstream.

The global space technology market is expected to reach nearly $750 billion by 2030, from an estimated $420.2 billion in 2022, according to Grand View Research.

Mubadala has been active boosting its portfolio in key markets.

This week, it teamed up with US banking major Goldman Sachs to sign a $1 billion partnership to co-invest in private credit opportunities in the Asia-Pacific region.

This month, Mubadala said it was investing in India’s Manipal Health Enterprises as part of its continued expansion in Asia’s third-largest economy.

In December, it teamed up with Abu Dhabi's Aldar Properties and US alternative investment manager Ares Management to jointly invest $1 billion in a new European private property credit platform to tap into opportunities in the key markets of the region.

"The bottom line is that we want to see more prosperity, more co-operation and more projects worldwide," Mr Al Mubarak said.

"We know economic prosperity brings stability and human opportunity, which is urgently needed in our transforming world."

Updated: February 28, 2024, 1:57 PM