Abu Dhabi sovereign wealth fund Mubadala Investment Company plans to maintain annual investment of $39 billion with a focus on Asia, its chief financial officer said on Wednesday.
“Last year, we invested about $39 billion, which is roughly 10 per cent of our portfolio, and our aim is to continue doing that through all cycles. Every year, we want to deploy that same amount,” Carlos Obeid told the Milken Institute Asia Summit in Singapore.
Asia will be “important” as the fund continues to boost its investment around the globe, he added. China, the world’s second-largest economy, South Korea, India and Japan will be the main countries where it plans to ramp up investment in Asia.
“We’ve been trying diligently over the last few years to increase our exposure to Asia,” Mr Obeid said. “Three years ago, the share of the portfolio invested in Asia was about 10 per cent, it is now about 13 per cent, and we want to do more.”
“We’ve been present in China, South Korea, Japan and India, and want to grow those exposures because we believe there are a lot of opportunities across all the strategies and themes.”
Energy transition, “technology everywhere”, the recreation of global supply chains and the evolving consumer are four areas Mubadala wants to focus.
“Our strategy has been aligned with the objectives of the government: generating returns, but at the same time integrating the economy into the global economy,” Mr Obeid said.
“The way we do that is by partnering with the best companies through our private equity investments, both direct and indirect.”
Mubadala, which invests on behalf of the Abu Dhabi government, has been steadily expanding its global investment portfolio with a focus on sectors including renewables, mobility, advanced technology, AI and life science. The sovereign investor’s portfolio spans six continents across asset classes.
Last year, it reported a 17 per cent annual rise in assets to $385 billion, driven by growth sectors in the UAE and abroad.
Last month, it announced a significant minority investment in Chinese coffee chain Luckin Coffee alongside its controlling shareholder, Centurium Capital, in a deal worth about $1 billion.
Mubadala is betting on confidence in China’s consumer sector with demand for freshly brewed coffee continuing to grow in the country.
It has investments in India, including Reliance Industries telecom arm Reliance Jio and other companies. It is also investing in India through Investcorp, in which Mubadala has a 20 per cent stake.
