Abu Dhabi’s Mubadala Investment Company has emerged as the largest sovereign wealth fund investor globally in 2024, according to a recent report.
In 2024, Mubadala and its subsidiaries allocated $29.2 billion, a notable increase from $17.5 billion in 2023, as detailed in the annual report from industry expert Global SWF. These investments spanned 52 deals, reflecting a 67 percent rise compared to the prior year.
Expansion across regions and industries, focus on developed markets
“The Abu Dhabi-based SWF continues to expand across regions and industries, supported by subsidiaries such as Abu Dhabi Investment Council, Mubadala Capital, and MGX,” the report noted.
A significant 85 percent of Mubadala’s total capital was directed toward developed markets, with the United States representing 57 percent of that allocation, marking the largest share. In contrast, only 5 percent was invested within the UAE, which is “a testament to the evolution of the Abu Dhabi SWF,” the report stated.
For the first time in six years, North America witnessed a decline in its relative significance, with US investments decreasing by 12 percent. In contrast, the UK, Australia, Italy, and Germany emerged as notable beneficiaries among developed markets, while India, China, and Indonesia gained traction in the portfolios of sovereign investors as emerging economies.
Developed Asia, which includes Japan and South Korea, continued to see a downturn in momentum.
Diversifying revenue streams
Mubadala, investing on behalf of the Abu Dhabi government, plays a crucial role in the emirate’s strategy to diversify its revenue streams and generate income from sources beyond oil. Its investments span across six continents and encompass various sectors, including aerospace, semiconductors, metals and mining, renewable energy, oil and gas, and petrochemicals.
Strategic focus on future growth
With $330 billion in assets under management—up from an initial $200 million 20 years ago—Mubadala is “zooming in” on key sectors poised for future growth, such as AI, technology, financial services, life sciences, and healthcare, according to its CEO and Managing Director Khaldoon Al Mubarak last month.
In December, Mubadala acquired an 80 percent stake in Global Medical Supply Chain and Al Ittihad Drug Store from GlobalOne Healthcare Holding, thereby expanding its presence in healthcare logistics and pharmaceutical distribution.
New global partnerships, investing in AI and digitization
Additionally, Mubadala and AlpInvest Partners, a global private equity investor that is a subsidiary of Carlyle, announced a new global partnership designed to provide senior fund financing to private equity ventures.
Abu Dhabi is significantly investing in the AI sector, driving $27.7 billion in digitization through partnerships with companies such as G42 and MGX, alongside Mubadala. This emphasis on AI aims to position the region as a competitive hub outside the US, challenging established tech giants and opening up new investment opportunities. With sovereign fund deal activity increasing by 5 percent to $216 billion and average deal sizes reaching unprecedented levels, the market is on the brink of transformative changes that could redefine the investment landscape.
Strategic acquisitions in healthcare
In December 2024, Mubadala Investment Company finalized the acquisition of an 80 percent stake in Global Medical Supply Chain (GMSC) and Al Ittihad Drug Store (IDS) from GlobalOne Healthcare Holding (GHH), which retained a 20 percent interest. This strategic move enhances Mubadala’s influence in the healthcare logistics and pharmaceutical distribution industries and aligns with the UAE’s vision for a robust local life sciences infrastructure.
The acquisition complements Mubadala’s strategic growth in the sector, following another significant deal by its newly established specialty pharmaceutical division, KELIX bio, which recently acquired a 100 percent stake in four pharmaceutical assets from GlobalOne Healthcare Holding, the healthcare division of Yas Holding.
In the same month, Mubadala announced its agreement to acquire a minority stake in Zelis, a leading provider of healthcare technology solutions in the United States. Mubadala is the lead investor alongside a consortium that includes Norwest and HarbourVest, while Parthenon and Bain Capital retain majority ownership of Zelis.
Aerospace innovation partnership
In November 2024, Mubadala and Safran, a leading French aerospace and defense company, joined forces to advance aerospace innovation and development within the UAE.
This partnership was anchored in a strategic framework agreement that emphasizes essential areas such as Maintenance, Manufacturing, Human Capital Development, Advanced Materials, and Space. The collaboration sought to leverage Mubadala’s established aerospace assets, including Strata Manufacturing and Sanad, while integrating Safran’s expertise to revolutionize the aerospace sector.