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Investments by Abu Dhabi’s second largest sovereign investor Mubadara spiked for the third time last year.
The rapid rise in capital deployment by the now $330 million fund is one of the biggest sovereign expenditures last year, and is putting a big bet on the US despite the economic uncertainty since President Donald Trump took office.
Mbadara invested DH119BN ($32.4 billion) in 2024, up from DH89BN the previous year. Industry Tracker Global SWF last year said it was the world’s most active sovereign wealth fund.
In 2024, investors’ assets under management also rose 9% to DH1.2TN, with Mubadara saying it had earned 10.1% annual revenue over the past five years, slightly below the 10.3% five-year return rate reported last year. We do not report returns every year.
Chief Executive Officer Khaldoon Al-Mubarak said the 23-year-old fund’s portfolio was “built to navigate the market cycle and expand future sectors, from AI and clean energy to lifecycles, semiconductors and advanced manufacturing.”
Mbadara said North America is the prominent region of trading, with investment nearly doubled each year.
Abu Dhabi, regardless of administration, is keen to emphasize support for the US economy and pledged to invest in the next $140 million worth of the next year. Trump is scheduled to visit the United Arab Emirates next week.
AI is a particular focus for Mbadara, who owns 50% of Abu Dhabi’s AI investment vehicle MGX along with Abu Dhabi AI Group G42, chaired by Sheikh Tanoon bin Zayed Arnahian, a powerful national security adviser.
Last year, MGX supported a $30 billion AI infrastructure fund, including BlackRock, Microsoft and others.
The UAE has established itself as a regional hub for AI, seeking better access to the sophisticated US-made chips needed to drive emerging technologies.
Mbadara also increases the proportion of assets deployed in private equity investments, reduces public market amounts, and reflects broader long-term trends.
Investors said 40% of their assets are in private equity from 38% last year, but the percentage invested in the public market is now 23%, down from 25% in 2023.
Mubadara has also increased its bets on infrastructure and private credit, and its private debt portfolio is currently worth $20 billion, the fund said.
According to a Deloitte report published in March, oil-rich Gulf-controlled sovereign funds control 40% of the world’s sovereign wealth.
