Mubadala looks to step up tech investments in Europe and India

Abu Dhabi's strategic investment arm is also on the hunt for opportunities in Israel

Ibrahim Ajami, head of ventures, Mubadala. Covid-19 has led to the emergence of new technology hubs around the world. Victor Besa/The National

Mubadala Investment Company, Abu Dhabi's strategic investment entity, is looking to step up its investments in the technology sector across Europe, India and the Middle East, according to a senior company executive.

“We are excited about the Silicon Valley [in the US]. We will continue to be excited about the Silicon Valley … but we are also looking at Europe, Middle East, India … we are also very active in China,” Ibrahim Ajami, head of ventures at Mubadala, told a panel at FinTech Abu Dhabi on Wednesday.

“We are also excited about opening of dialogue with Israel and opportunities there … there are incredible entrepreneurs,” he added.

The UAE is looking to strengthen investment ties with Israel, with which it normalised relations in September by signing the Abraham Accord.

Mubadala is creating the right infrastructure in Abu Dhabi to support Israeli companies’ regional growth, said Mr Ajami, adding that the company is currently looking at potential funds and high growth opportunities to invest in Israel.

“Just like we did in Europe, Asia and the US … [we will] just go and find which is the best to partner [with] and take a long-term view or perspective.”

Mubadala has been doubling down on tech investments  over recent months. In March, the company joined a consortium that invested $2.25 billion in Waymo, the self-driving technology company owned by Google’s parent Alphabet. It has also committed $15bn to Softbank's first Vision Fund and has its own technology funds in the US, Europe and the Middle East.

The company has also diversified its geographical reach. Last month, Mubadala announced an investment of Dh3.1bn for a 1.4 per cent stake in India's Reliance Retail Ventures. This followed on the heels of a $1.2bn investment in Jio Platforms this year.

“We made a significant investment in Jio ... it is not just about telecoms but Jio is enabling hundreds of smart businesses. Look at the potential of hundreds of small businesses emerging out of these countries and their impact on the society,” said Mr Ajami.

The Covid-19 pandemic has significantly accelerated the pace of tech innovations in 2020 and has led to the emergence of new technology hubs around the world, he added.

“Covid-19 has demonstrated and proven that innovation can happen from anywhere, we can connect from anywhere. We see talent and exciting innovations emerging from different parts of the world that well-positioned us as a global investor.”

Mubadala’s investment portfolio covers the aerospace, information and communications technology, semiconductor, metals and mining, petrochemicals, renewable energy, and oil and gas industries.

With its $232bn asset base spanning six continents, it is looking to boost its investments in the technology sector as it diversifies its portfolio.

“2020 has been a vintage year for Mubadala. We have been investing in technology for many years and we set up our pillars and foundations in a right way that enabled us to have one of our busiest and exiting years,” Mr Ajami said.

“We invested in technology all over the world … regardless of what’s happening on global side, we are seeing the power of the tech platforms and we will continue to grow.”