Mubadala’s investment focus to be unchanged

Mubadala Investment Company, Abu Dhabi’s strategic investment arm, expects shortterm challenges stemming from rising interest rates and inflation.

However, these will not change the company’s investment strategy or its view on sectors it invests in, its chief executive said.

“When I look at 2022, for us as Mubadala ... there’s no shift in terms of our strategy, in terms of themes in which we are investing [and] in terms of how we look at the next five to 10-year cycle,” Khaldoon Al Mubarak said at the Global Manufacturing and Industrialisation Summit yesterday.

Inflation is on the rise in many parts of the world and tightening of monetary policy will have “implications”. But their impact will vary from market-to-market, he told delegates. “From a short-term perspective, yes, there are challenges ahead,” he said. “I expect there would be some adjustments here and there, but not to the point where I would change my perspective, or our perspective as Mubadala, from an investment and thematic view.”

The global economy, which tipped into its worst recession last year since the 1930s, is rebounding this year. More than $25 trillion in monetary and fiscal support pumped in by central banks and governments has helped the strong economic bounce back.

US inflation advanced to 6.2 per cent in October, the highest level in more than three decades. It is significantly higher compared with the 0 per cent that the Federal Reserve is using as the benchmark interest rate. Central banks are now under growing pressure to change their monetary position.

However, Mubadala is a longterm investor that takes a “patient” approach to investing and it will continue to focus on technology investments, opportunities in life sciences and expand its portfolio of renewable and energy transition assets, Mr Al Mubarak said.