Mubadala’s total comprehensive income reaches Dhs53b in 2019

Mubadala Investment Company, an Abu Dhabi sovereign investor, on Thursday released its 2019 Annual Review, which revealed that the company achieved a total comprehensive income of Dhs53 billion for the year, compared to Dhs12.5 billion in 2018, driven by Mubadala’s public equities portfolio and funds, as well as the company’s assets across various sectors.

Mubadala concluded a number of key transactions as it established new partnerships to invest locally and internationally across sectors that contribute towards the advancement of Abu Dhabi’s economy and its diversification. A total of Dhs68 billion was deployed in various asset classes and across growth sectors, ranging from credit to technology, life sciences, health care, renewables, transportation and agribusiness.

The review also found that monetization of mature assets and distributions from investments totalled Dhs63 billion in 2019, as Mubadala continued to align and optimise its portfolio according to its long-term strategy.

At year-end, Assets under Management stood at Dhs853 billion, compared to Dhs840 billion in 2018.

Group Chief Executive Officer and Managing Director, Khaldoon Khalifa Al Mubarak, said, “Responsible deployment of capital, strong partnerships and agile investing remain at the core of Mubadala’s strategy. And now, as the world faces a global pandemic, we are working across our portfolio in partnership with communities which have been hit hard by COVID-19.”

 “2019 was a remarkable year for Mubadala. Not only did we deliver strong financial results, but we also continued to grow our presence across multiple asset classes in key sectors and markets to help further diversify Abu Dhabi’s economy.” Chief Financial Officer, Carlos Obeid, added, “In 2019, we continued to manage our balance sheet carefully, with a prudent debt-to-equity ratio of 11.8 per cent. With a strong cash position, we will continue to look for opportunities in public funds and private assets as we manage through this complex economic cycle, while remaining a long-term, patient investor.”

In 2019, Mubadala realised Dhs63 billion in monetisation of mature assets and distributions from investments locally and abroad

Mubadala deployed Dhs68 billion across new and existing priority sectors and funds, including: Two new MENA technology funds that will invest $250 million in tech start-ups in the Middle East region, in line with the mission of supporting the development of the tech ecosystem in Abu Dhabi’s Hub71; acquired Amana Healthcare to complement its portfolio of healthcare assets; signed an agreement to invest up to Dhs1.8 billion ($500 million) in Cologix, the leading network-neutral interconnection and hyperscale edge data center company in North America; a Dhs477.4 million ($130 million) investment in Equinox Gold, an emerging gold producer operating in North and South America with a strong growth pipeline; Cornerstone investor through Masdar in the UK Government’s £400 million Charging Infrastructure Investment Fund (CIIF), with an investment of Dhs158.6 million (£35 million) and over Dhs40 billion in various funds covering real estate, equities, private equity, global infrastructure, technology and others.

Mubadala also reiterated its intent to begin publishing, as part of its public disclosure in 2021, benchmarking against long-term indices, rather than other metrics, which it said are no longer relevant to a long-term investor such as annual revenue or annual net income.

Mubadala Investment Company recently announced a strategic collaboration between its wholly owned subsidiary, Strata Manufacturing, and Honeywell, to produce N95 respirators at Strata’s Al Ain facility.

The new N95 respirator manufacturing line, which has now commenced operations, will be the first of its kind in the GCC region, and will have an annual output capacity of over 30 million masks.

The collaboration between Strata and Honeywell aims to address the need for Personal Protective Equipment (PPE), one of the most significant challenges currently facing governments and organizations globally as they work to limit the spread of COVID-19. N95 masks are respiratory protective devices that play an important role in filtering out airborne particles.

Currently, the UAE imports all N95 respirators from abroad. This manufacturing line will not only be able to meet the national requirements of the UAE’s health industry for the masks, but also transform the UAE into an exporter of this critical PPE product.

This new manufacturing capability will help address the critical demand for N95 respirators, and bolster the resilience of UAE’s PPE supply chains.”

Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for its shareholder, the Government of Abu Dhabi.

WAM