Group 42, the Abu Dhabi-based artificial intelligence and cloud computing company, is launching a $10 billion fund that will invest in emerging technology in high-growth regions across the globe as it looks to expand its portfolio of investments.
G42, which counts Abu Dhabi’s sovereign fund Mubadala Investment Company and Silver Lake among its shareholders, is setting up the new investment vehicle in partnership with government-owned Abu Dhabi Growth Fund, G42 said in a statement on Thursday.
The G42 Expansion Fund, which will be managed by a subsidiary of G42, will focus on accelerating the pace of global innovation by investing in late-stage growth companies with disruptive technologies and strong business fundamentals.
“With the G42 Expansion Fund, we aim to accelerate our global impact not only through the deployment of capital, but also by providing unique access to our networks, management, and operational assets to our portfolio companies,” Peng Xiao, G42's chief executive, said.
The new fund will operate as a private equity investor, with a significant share of investment earmarked for high growth regions.
"In addition to providing investment support, G42 will leverage its operational assets and ecosystem of operating companies to accelerate value creation across the G42 Expansion Fund’s portfolio of investments," the company said.
The fund's investment priorities will cover technologies that have the potential "to shape the global economic landscape in the next decades".
It will invest across sectors including computing and communications technologies, intelligent mobility, clean technology and renewables, digital infrastructures, new materials, multiverses, FinTech, health care and life sciences.
“The G42 journey to date has been marked by success stories in a wide range of industries, addressing the most complex challenges faced by our customers," Mr Xiao, who is also chairman of the Growth Fund, said.
"With the foundation built by our operating businesses and support from our strategic partner ADG, the next era of G42 will be marked by our ability to turbocharge new ventures around the world."
The new fund will help G42 accelerate its global impact as the company is eager to engage with entrepreneurs who share its core values and growth ambitions.
"We are excited to be partnering with ADG to further cement Abu Dhabi as a global hub for innovation and progress,” Mr Xiao said.
G42, which owns and operates the world's 26th-most powerful supercomputer, is carrying out high-level fundamental and applied research into AI as well as developing cloud computing for the most demanding use cases.
In November 2020, Mubadala, became an investor in G42 by integrating its Injazat and Khazna Data Centres into the company. Last year, the Abu Dhabi company also secured a "substantial" investment from US-based private equity manager Silver Lake, whose managing partner and co-chief executive Egon Durban joined G42's board as part of the deal.
“As a growth focused investor, we are very pleased to have a technology investment partner in G42 that possesses deep knowledge of emerging technologies combined with the operational requirements for global growth and value creation," Khalifa Al Suwaidi, chief executive of Abu Dhabi Growth Fund, said.
The fund is an "excellent fit with our investment strategy", he added.
G42's portfolio of companies includes G42 Healthcare, G42 Smart Nation, open data portal Bayanat, G42 Cloud, Injazat, Khazna, Presight, among others.
Earlier this month, G42 Healthcare joined forces with Amazon Web Services (AWS) to develop genomics, proteomics and biobanking services.
G42's health care subsidiary owns Biogenix Labs, the UAE’s first large-scale, throughput Covid-19 laboratory. It also arranged the 4Humanity clinical trials, the world’s first Phase 3 trial for a vaccine to fight against the coronavirus, with more than 43,000 volunteers taking part.
G42 also teamed up with Beijing-based Sinopharm in March 2021 to set up Hayat Biotech, a joint venture that makes Covid-19 vaccines in the UAE.
Last year, Mubadala partnered with G42 to set up a biopharmaceutical manufacturing campus in Abu Dhabi, to tap into global vaccine and therapeutic products.
In June this year, the UAE’s biggest telecom operator e& and G42 merged their data centre services under Khazna Data Centres to cater to increasing digital infrastructure requirements in the region. With the consolidation, Khazna now operates 12 data centres, making it the largest data centre provider in the Middle East and North Africa.
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South Africa 66 (2) beat Sri Lanka 57 (2)
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1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
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4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
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