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.
BREAKING DOWN 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 towards investments 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 and both entities acted globally as investment agencies. The third evolution of the investment strategy happened in 2017, when the Mubadala Investment Company was created in 2017. As of 2018, the Mubadala Investment Company works with over 30 countries globally. The company’s investments are diverse and include everything from natural resources to airline partnerships to recycling facilities.
Examples 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 and today, Ceps is the single largest producer of raw materials for household essentials such as detergents and personal care products in the entire world. The company now boasts 11,000 employees across eight countries. More recently, in 2017, Mubadala Development Company contributed to the satellite-manufacturing company Yahsat, which is currently launching its third satellite, Al Yah 3. The new satellite will bring Ka-band coverage to a large new market of over 19 areas, including many in Africa. The Africa satellite addition, when complete, will reach more than 60 percent of the population. Additionally, Yahsat will be the first entry into Brazil, reaching more than 95 percent of Brazil residents.