ABU DHABI, May 6, WAM – The total comprehensive income of Mubadala Investment Company increased in 2020 to 72 billion dirhams, compared to 53 billion dirhams in 2019.
This is the largest annual gross income in the company’s history, and several factors have contributed to it, the most important of which are the growth of the stock portfolio, the performance of its investment funds, and the growth of its assets in various business sectors, according to the group’s financial results issued today.
The company’s strategic direction towards increasing investment in sectors experiencing strong growth, such as technology, life sciences and consumer goods, contributed to this performance through direct investments and partnerships with elite companies specialized in managing investment funds.
Investments during the year 2020 played an important role in promoting this strategy, including long-term investment agreements in the field of technology with “Silver Lake”, in the field of life sciences with “BCI Pharma” in the United States, and in the consumer goods sector and communications with the Group Reliance in India, as well as new investments in Apax Partners, Citadel, I-Squared Capital and CVC.
His Excellency Khaldoon Khalifa Al Mubarak, Managing Director and CEO of Mubadala Investment Company, said: “It was the vision of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the State, ‘may God protect him’, and the directives of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander For the Armed Forces, the Chairman of the Board of Directors of the company, and the close follow-up and supervision of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs and Vice Chairman of the Company’s Board of Directors, the greatest motivation for us to face the challenges of the previous period, to move forward in the process of progress and contribute to achieving more Achievements”.
He added: “During the past year, as the world faced the repercussions of the spread of the Covid-19 epidemic, we worked with our partners in various sectors to provide support and assistance to the communities that have been severely affected by this epidemic, and all employees of the Mubadala Group have shown a high degree of dedication. And keenness to lend a hand and help, and we are keen to continue our efforts in this field. ”
Al-Mubarak affirmed Mubadala’s success in overcoming the challenges that it brought about in 2020, and said, “We have succeeded in overcoming the repercussions of the sharp decline that occurred on the global economy at the beginning of 2020 by increasing investments that enabled us to achieve record results and profits at the end of the year … and in accordance with our long-term strategy We have been keen to invest in promising sectors that have strong growth potential, and in investment funds with outstanding performance … The technology and life sciences sectors, in particular, have achieved significant growth during the past year … and we seek to enhance our presence in these important areas and geographical areas while continuing The global economy is recovering. ”
On the whole, the United Arab Emirates and the United States remain the two largest geographical areas for Mubadala investments .. The year 2020 saw the employment of new investments in India, and Mubadala has also invested through its sovereign partnerships in France, China and Russia.
The current assets of the group at the end of the year amounted to 894 billion dirhams, compared to 853 billion dirhams in 2019.
On his part, Carlos Obaid, Chief Financial Officer of Mubadala Investment Company, said: “This strong performance by Mubadala reflects the high flexibility that the company enjoys, as well as the strength and durability of our diversified investment portfolio .. We benefited from lower interest rates during 2020 by reducing the cost of borrowing. And the extension of its term, taking advantage of the high demand from investors for our bond issues, as we maintain a debt ratio equivalent to 9.1% and enjoy strong liquidity at the current stage in our endeavor to achieve our vision in the long term.
In a related context, the value of Mubadala’s assets increased to 894 billion dirhams in 2020 compared to 853 billion dirhams in 2019, while 34% of Mubadala’s investment portfolio consists of direct and indirect investments in private companies, 29% of which are in listed stocks and 14% in Real estate and infrastructure, in addition to other investments.
In 2020, Mubadala achieved 104 billion dirhams through the sale of a number of its investment assets and investment returns inside and outside the country, including the sale of 39% of its stake in Borealis to OMV, with a value of 16.7 billion dirhams in the largest deal. Alone in the history of the company.
Mubadala also invested AED 108 billion in new projects, including 4.3 billion dirhams in “Geo”, the leading company in the telecommunications sector in India, in addition to 2.7 billion dirhams in “Silver Lake”, the global leader in Technology investment in addition to an investment of 3 billion dirhams in Reliance Retail, which is one of the fastest growing Indian companies in the retail and consumer goods sector, in addition to 2.2 billion dirhams in PCI Pharma, the world leader in pharmaceutical industries. … as well as 7.5 billion dirhams in the investment funds of “CVC”, “Citadel”, “IceQuird Capital” and “Apax Partners”.
Mubadala has also announced a cumulative return of 9.8% for a period of five years as of 2016 .. The company had previously announced its intention to start publishing benchmark comparisons against long-term indicators in place of other measurement indicators such as annual return or net annual income, which were not It is applicable to Mubadala as a long-term investor.
Inspired by the efforts of the wise leadership in the UAE, Mubadala has worked side by side with its partners in more than 50 countries and across various economic sectors, with the active participation of its employees who number more than one hundred thousand around the world to confront the Covid-19 pandemic .. Mubadala has focused on supporting societies. Surrounding its investment areas around the world, where it launched a campaign # We work to get rid of, with the aim of coordinating its initiatives and publicizing them in order to achieve the desired support.
In recognition of its responsibility towards the homeland, Mubadala launched, during the year 2020, a number of initiatives aimed at supporting the community, as the Mubadala Healthcare Network joined forces in providing health care to patients and supporting the state’s efforts in light of these exceptional circumstances .. The services provided to patients included providing medical advice over the phone and using Other communication technologies, home delivery of prescriptions, and home care for COVID-19 patients.
Mubadala’s Strata Manufacturing Company entered into a strategic partnership with Honeywell International to produce N95 face masks at Strata’s facilities in Al Ain. The new production line, which has entered the production phase, is the first of its kind in the Gulf region, and has an annual production capacity of more than 30 Million muzzles.
To contribute to the efforts to discover and diagnose the Covid-19 virus in the UAE, the global leading technology group “42G”, in which Mubadala invested in 2020 and the pioneering company “BGI” in genetic code research, has established a laboratory in Masdar City, Abu Dhabi, that can conduct tens of thousands. Of tests daily, which is the first laboratory of its kind in the world of this size outside of China.
Yahsat has expanded its contribution to the distance education initiative by providing free satellite internet service to students in some areas where regular internet service is not available within the country .. The Mubadala Real Estate and Infrastructure Unit has also committed to providing a financial support package of 420 million AED for tenants of retail, residential, office and hospitality facilities.