Abu Dhabi’s US$302 billion fund deepens AI and private credit push

MUBADALA Investment with total assets under management that grew 9.5 per cent to US$302.2 billion deployed 89 billion dirhams (S$32.6 billion) last year into a range of sectors including private credit and artificial intelligence, an area where Abu Dhabi is seeking to make greater inroads.

The wealth fund, which ranks as the emirate’s second-largest sovereign investor, reported a five-year rate of return of 10.3 per cent, according to a statement. Performance was better than the 8.5 per cent for the period to 2022, though the latest figure included 99 billion dirhams of divestments.

During the year, the wealth fund prioritised investments in artificial intelligence, technology, digital infrastructure, life sciences and clean energy. Key deals included an investment in data centre provider Aligned. 

Alongside G42, Mubadala was one of the founding partners of a technology investment firm called MGX in the UAE. That entity added to Abu Dhabi’s growing push into the sector and assets could surpass US$100 billion in assets under management in a few years, Bloomberg News has reported.

G42, part of a US$1.5 trillion empire controlled by UAE National Security Adviser Sheikh Tahnoon Zayed Al Nahyan, has been at the forefront of the country’s AI efforts. Mubadala also partnered with the firm to set up two new businesses last year, including a satellite technology company and another focused on healthcare.

Like some other regional investors, the fund also took significant strides towards growing its private credit business through a joint venture with Apollo Global Management to lend about US$2.5 billion and a JV with Ares Management to deploy about US$1 billion. BLOOMBERG