Mubadala emerges as top global sovereign investor in 2024

Abu Dhabi fund and its subsidiaries deployed $29.2 billion, up from $17.5 billion in 2023, Global SWF says

Khaldoon Al Mubarak, chief executive of Mubadala. As much as 85 per cent of the fund's total capital went to developed markets, says the report by Global SWF. Bloomberg

Abu Dhabi's Mubadala Investment Company was the world’s largest sovereign wealth fund investor in 2024, outpacing Saudi Arabia’s Public Investment Fund, a report has shown.

Last year, Mubadala and its subsidiaries deployed $29.2 billion, up from $17.5 billion in 2023, industry specialist Global SWF said in its annual report on Wednesday. The investments were made across 52 deals, an increase of 67 per cent compared to the previous year.

“The Abu Dhabi-based SWF continues to expand across regions and industries, supported by subsidiaries such as Abu Dhabi Investment Council, Mubadala Capital, and MGX,” the report said.

Saudi PIF lost its position as the world's most active sovereign wealth fund, as its investment spending dropped by 37 per cent to $19.9 billion in 2024, from $31.6 billion the year before, the report added.

As much as 85 per cent of Mubadala’s total capital went to developed markets, with the US accounting for 57 per cent – the largest share. Only 5 per cent was deployed within the UAE, “which is testament to the evolution of the Abu Dhabi SWF”, the report said.

'Oil Five' top global dealmakers

Four other Gulf funds were ranked among the top 10 global dealmakers: Mubadala's peers Abu Dhabi Investment Authority and ADQ, as well as the PIF, and the Qatar Investment Authority. Along with Mubadala, they are collectively referred to as the Oil Five, the report said.

Overall, sovereign wealth funds invested a total of $136.1 billion in 2024, up 7.1 per cent from the previous year. They took part in 358 deals, an increase of 10 per cent from 2023. The average ticket size for these investments was $380 million, with the Oil Five maintaining their dominance in the market and playing a significant role in driving global sovereign wealth fund activity.

Last year, sovereign wealth funds also surpassed $13 trillion in assets under management for the first time in history, the report said. The majority of this capital is concentrated in two regions: the Gulf, representing 38 per cent of the total, and South-East Asia, holding 10 per cent.

Additionally, two countries dominate the sovereign wealth fund landscape with China holding 20 per cent of total assets, and Norway – home to the world's largest fund – holding 14 per cent of assets.

The investment preferences of sovereign investors also underwent significant changes in 2024.

For the first time in six years, North America saw a decrease in its relative importance, with investments in the US dropping by 12 per cent. Conversely, the UK, Australia, Italy, and Germany emerged as relative winners among developed markets, while India, China, and Indonesia gained prominence in the portfolios of sovereign investors as emerging economies.

Developed Asia, encompassing Japan and South Korea, continued to experience a decline in momentum.

Mubadala 'zooming in' on key sectors

Mubadala, which invests on behalf of the Abu Dhabi government, is at the centre of the emirate’s efforts to diversify its revenue base and generate income from sources other than oil. Its interests span six continents and include the aerospace, semiconductors, metals and mining, renewable energy, oil and gas, and petrochemicals sectors.

Mubadala – which has $330 billion of assets under management, from $200 million when it first started 20 years ago – is “zooming in” on key sectors that will be growing in the future including AI, technology, financial services, life sciences and healthcare, its chief executive and managing director Khaldoon Al Mubarak said last month.

Last month, it acquired an 80 per cent stake in Global Medical Supply Chain and Al Ittihad Drug Store from GlobalOne Healthcare Holding, expanding its footprint in healthcare logistics and pharmaceutical distribution.

Also last month, Mubadala and AlpInvest Partners, a global private equity investor and subsidiary of US-based Carlyle, established a new global partnership aimed at providing senior fund financing to private equity funds.