2021 Was Mubadala’s Strongest Financial Year in a 20-Year History

Posted on 05/12/2022

Abu Dhabi-based Mubadala Investment Company released its 2021 financial results. In 2021, Mubadala achieved a Total Comprehensive Income (TCI) attributable to the owner of AED 122 billion for the year, compared to AED 72 billion in 2020. The 69.4% surge in income was a reflection of the downward valuation of assets during the 2020 portion of the COVID-19 pandemic. At year end 2021, Mubadala’s assets under management across the group stood at AED 1,045 billion compared to AED 894 billion in 2020. Mubadala is much larger in size than originally when it was just the Mubadala Development Company. Mubadala absorbed both International Petroleum Investment Co. (IPIC) and the Abu Dhabi Investment Council (ADIC).

Growth was supported through investment returns, monetizing certain assets, and new partnerships. Mubadala listed its wholly owned semiconductor manufacturing company, GlobalFoundries, on the NASDAQ, valuing the company at nearly US$ 26 billion in one of the biggest flotations of 2021 in the United States. Mubadala still holds around 89% of the company’s shares. Yahsat’s initial public offering on the Abu Dhabi Securities Exchange supported the growth of Abu Dhabi as a capital marketplace and raised US$ 731 million. ADNOC and Taqa became shareholders in Masdar, which was founded by Mubadala in 2006, to boost its renewable energy capacity to over 50 gigawatts by 2030. In 2021, Mubadala invested AED 125 billion of capital. Some notable deals by Mubadala include partnering with Warburg Pincus in buying Informa’s Pharma Intelligence and a stake in Israel’s Tamar offshore gas field.

Managing Director and Group Chief Executive Officer Khaldoon Khalifa Al Mubarak said in the release: “Mubadala continues to invest in sectors that are changing the world and impacting global business. As markets rose and the economy began to recover from the pandemic, we looked for opportunities to take some of our strongest companies public and invest with world-class partners in high-growth sectors and geographies.”

“2021 was Mubadala’s strongest financial year in its 20-year history. We are managing for value as well as staying focused on our long-term mandate to find commercial opportunities despite the current challenging and complex global economic outlook, with headwinds such as inflation, supply chain disruptions and tighter monetary policy.”

Mubadala Capital is also keen on managing more third-party capital and continues to expand its partnership with asset management firms.

Sovereign Partnerships
Mubadala invested AED 125 billion during 2021 in key sectors in the United Arab Emirates and internationally. In the United Kingdom, Mubadala invested AED 2.5 billion in CityFibre, the UK’s largest independent fibre infrastructure platform, and expanded an existing partnership with Bpifrance with €4 billion to invest in developing French enterprises with proven growth potential, and high growth technology sectors in France.

Its current five-year rolling rate of return is 12.2%.

NOTE: Yahsat (Al Yah Satellite Communications Company).

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