Mubadala's four main business units prepare it for next phase of growth

Abu Dhabi's strategic investment fund is consolidating all of its UAE investments under one arm

Mubadala investment company logo unveiling. WAM

Mubadala Investment Company's new organisational structure along four lines of business will gear the investment company for its next phase of growth.

The strategic investment fund with $232 billion of assets across six continents is being organised around four new entities: UAE investments, disruptive investments, direct investments and real estate and infrastructure.

The organisation is currently built around key areas of investment: petroleum and petrochemicals; technology, mining and minerals; alternative investments and infrastructure; and aerospace, renewables and ICT, but a review of this structure has been under way since 2019.

"This new structure aligns with our aspirations to grow significantly in the coming years, in key asset classes and important geographies, and to continue building on our job creation and economic growth engines here in the United Arab Emirates," Ahmed Al Calily, Mubadala's chief strategy and risk offer, told The National.

"Ultimately, it is meant to further Mubadala’s mandate to help accelerate Abu Dhabi’s economic progress, to deepen prosperity in the UAE and remain an important partner to countries and companies around the world," he added.

Mubadala's UAE investments business streamlines all of its assets in the Emirates, with the aim of “building national champions” as well as fostering industrial and commercial clusters that will contribute to economic growth and create jobs. Its assets include Emirates Global Aluminum, Strata, Yahsat, Mubadala Petroleum, G42, Mubadala Health, Zayed Sports City, Al Maryah Island and stakes in listed companies Aldar and Tabreed.

The plan for the unit, which will be led by Musabbeh Al Kaabi, is to grow these businesses and incubate new ones, as well as taking some companies public, where appropriate.

"We are taking a view and strategic initiative to focus, or refocus, into the UAE economy, build or expand and strengthen the existing businesses we have and create champions," Mr Al-Kaabi told the 2021 Atlantic Council Global Energy Forum last week.

The disruptive investments arm, led by Hani Barhoush, will contain Mubadala’s investments in ‘next generation’ companies and disruptive technologies. The division includes Mubadala’s investments in Softbank’s Vision Fund and in private equity firm Silver Lake, as well as its Mubadala Ventures arm, among others.

Direct Investments includes the significant direct stakes it owns in a variety of foreign businesses, such as US semiconductors company Global Foundries, India’s Reliance Retail Ventures, pharma company PCI, Cepsa, Nova Chemicals, Borealis and Evotec. It will be run by Ahmed Al Idrissi.

Finally, the real estate and infrastructure arm, led by Khaled Al Qubaisi, includes the company’s investments in Reliance’s Jio, smart metering firm Calisen, data centre specialist Cologix, wood pellet producer Enviva and a district heating fund run by Asper Investment Management.

Mubadala's board is unchanged and the company will continue to be led by Khaldoon Al Mubarak as chief executive, with Waleed Al Muhairi and Homaid Al Shimmari as deputies.

The Abu Dhabi Investment Council will also remain a part of Mubadala and will continue to operate under the same model, using ’top quartile’ fund managers to invest in public and private markets on an endowment basis.

Mubadala will also be guided by Abu Dhabi’s new Supreme Council for Financial Affairs, which was set up following a decree by Ruler of Abu Dhabi Sheikh Khalifa bin Zayed last month.