Despite global macroeconomic turbulence in the fourth quarter of the year, the group delivered stable financial results, with Total Comprehensive Income at AED 12.5 billion ($3.4 billion).
In line with Mubadala’s strategy to diversify its investment base, it monetized a number of its mature assets for a total of AED 55.4 billion ($15.08 billion), and it invested a total of AED 70.1 billion ($19.083 billion) of additional and recycled capital across the Group’s existing investment sectors including technology, aerospace, commodities and financial services, as well as new sectors, including medtech, pharma and agribusiness.
Group Chief Executive Officer and Managing Director, Khaldoon Khalifa Al Mubarak, said: “Mubadala is operating as a global investor to drive financial returns and strategic value for Abu Dhabi, towards a vision of an internationally-connected and future-focused economic base. The addition of the Abu Dhabi Investment Council was a transformational step, strengthening our position as an international investor across different sectors.
“Technological disruption is creating the potential for value across all sectors, which is an opportunity for us to deepen our position as a major global investor. We are also activating our investments and relationships to establish Abu Dhabi as the technology hub for the MENA region.
"Our talent, capital structure, global partnerships and strong track record are enabling us to deliver on our mandate as an organization entrusted with supporting Abu Dhabi’s economic progression.”
Chief Financial Officer, Carlos Obeid, said: "The group's scale, diversification and stable cash flows delivered solid financial and operational performance in 2018, despite a year of challenging market conditions with volatile equities and uncertain yields.
"The addition of ADIC has diversified our exposure and strengthened our portfolio. While investing in new asset classes we remain focused on robust balance sheet management, maintaining a low leverage position and managing risk across the business.”
Key financial and operational highlights from 2018 included:
Assets under Management (AUM) reached AED 841 billion/$229 billion (2017 AUM of AED 469 billion).
- Total Comprehensive Income* (TCI) was AED 12.5 billion/$3.4 billion Full Year 2018 (AED 10.3 billion in 2017)*.
*AUM and TCI Increases include contributions from the Abu Dhabi Investment Council
Monetization of mature assets: During the year, Mubadala realized AED 55.4 billion through monetization of assets locally and abroad.
Deploying capital across new sectors and geographies: Mubadala deployed AED 70.1 billion across new and existing priority sectors. New sectors included specialty pharma, MedTech and agribusiness. The company continued to deploy capital worldwide, including the launch of co-investment with Taneo, Greece's New Economy Development Fund. New offices opened in Moscow and San Francisco, adding to the existing network of offices spanning Rio De Janeiro, and a joint venture office in Hong Kong. Mubadala in early 2019 opened an office in New York City. This expansion underlines Mubadala’s willingness to invest and seek returns in a broad range of geographies and asset classes.
Building on momentum toward a leading technology and innovation investor: The company launched a new Ventures tech fund, targeting founder-led and high-growth tech companies in the United Kingdom and continental Europe.
Managing leverage: Mubadala reduced its corporate debt through a combination of repayments, new issuances and favorable foreign exchange movements.
*Attributable to the owner of the group