What Is the Mubadala Development Company?

The Mubadala Development Company is a sovereign wealth fund established in 2002 as a public joint stock company by the government of Abu Dhabi, which remains its sole shareholder. Its mandate is the economic diversification of Abu Dhabi. As of 2017, the Mubadala Development Company now operates as the Mubadala Investment Company.

Key Takeaways

  • The Mubadala Development Company is a sovereign wealth fund established in 2002 as a public joint stock company by the government of Abu Dhabi, which remains its sole shareholder.
  • As of 2017, the Mubadala Development Company now operates as the Mubadala Investment Company.
  • The Mubadala Development Company strategy focuses on long-term, capital-intensive projects that deliver strong financial results and tangible social benefits to Abu Dhabi.

Understanding the Mubadala Development Company

The Mubadala Development Company strategy focused on long-term, capital-intensive projects that deliver strong financial results and tangible social benefits to Abu Dhabi. Mubadala has a diverse portfolio, with investments in a number of sectors including aerospace, energy, healthcare, infrastructure, real estate, and hospitality and services. Its total assets are in the tens of billions (in terms of U.S. dollars).

The late Sheikh Zayed bin Sultan Al Nahyan, known as the founding father of the United Arab Emirates, founded the Mubadala Investment Company. Sheikh Zayed bin Sultan Al Nahyan began channeling the funds of the newly-discovered oil resources of Adu Dhabi in the 1950s into investments that the country needed, such as hospitals and schools to benefit the country in the future.

To continue the efforts to manage the petroleum wealth of the country, the International Petroleum Investment Company (IPIC) was founded in 1984. Then, in 2002, the Mubadala Development Company was created. Both entities acted globally as investment agencies. The third evolution of the investment strategy happened in 2017 when the Mubadala Investment Company was created. As of 2018, the Mubadala Investment Company works with over 30 countries globally. The company’s investments are diverse; they include everything from natural resources to airline partnerships to recycling facilities.

Example of the Mubadala Development Company

Over the years, the Mubadala Development Company has made many significant investments. For example, one of the organization’s first investments was in Cepsa, a leading integrated energy company in Spain. Ceps is now one of the single largest producers of raw materials for household essentials, such as detergents and personal care products, in the entire world. Cepsa has more than 11,000 employees working in eight countries.

In 2017, Mubadala Development Company contributed to the satellite-manufacturing company Yahsat. At the time, Yahsat was in the process of launching its third satellite, Al Yah 3. In February 2018, the company announced that it had launched the satellite into orbit. The new satellite will bring Ka-band coverage to a large new market of over 19 areas, including many in Africa, the Middle East, South West Asia, and Brazil, and provide affordable Internet access. The goal was to provide satellite broadband Internet access to everyone, from governments and enterprises to end users at home.