In a year that may go down in history as one of the most important for the global financial system, there has been a noted increase in the activity level of the most active sovereign wealth fund in the year 2024 of the United Arab Emirates’ Mubadala Investment Company. Mubadala has deployed $29.2 billion to investment, placing it squarely among the world’s most active investors today, thereby greatly influencing markets such as artificial intelligence, private credit, and healthcare.
That accounts for about 20% of the near $136.1 billion that sovereign wealth funds have spent in the same period and signals the influential position Mubadala now occupies in the global economic landscape.
However, the aggressive investment strategy chased Mubadala to pass the once-dominant Saudi Arabia’s Public Investment Fund, PIF, after notable reductions characterized the latter’s spending as the country realigned its focus to domestic investments.
This significant change is described in a study published Wednesday by the research consulting company Global SWF. Following a strategic reorganization, the PIF’s international investment activity decreased by 37% in 2024, from $31.6 billion to $19.9 billion. As a result, Mubadala’s investments increased from $17.5 billion in 2023 to an incredible $29.2 billion in 2024.
Mubadala is one of the three sovereign wealth funds of the UAE, with a total of $1.7 trillion of assets under management. Such finance represents not only the solid economic system of the UAE but also the unified global financial approach driven by the powerful political leadership of the UAE. The operation of such assets is a (family) business run by President Mohammed bin Zayed’s brothers in the UAE. The National Security Advisor, Sheikh Tahnoun bin Zayed (President) also oversees Abu Dhabi Investment Authority and ADQ, as well as Mubadala which is managed by a different sibling, Mansour bin Zayed.
Although the Mubaddala Authority is a less strategic wealth management asset than the Abu Dhabi Investment Authority, Mubaddala has also established itself as having a specialized role (those who adopt cloud storage and artificial intelligence). A key influencer of the UAE’s strategic vision of numerous future industries, Mubadala is one of the main investors of Abu Dhabi-based artificial intelligence company G42. In this session when sheikh Tahnoun was chairing the group got a lot of boosts when in April 2024 Microsoft invested $1.5 billion for a huge amount.
All these advances are demonstration of the stimulus of Mubadalato and the technological change. Huge investments in capital expenditures in AI and new technologies not only build Mubadala’s own financial platform, but also create a Mubadala Outlook for the UAE, which is at the leading edge of the international technology market. This strategic focus on innovation is also at the core of the UAE’s vision for its economy to change away from dependence on oil and towards the development of sustainable and profitable sectors of the economy.
Mubadala’s strategic investments reflect a wider pattern of diversification within a broadly global environment of sovereign wealth funds aiming to acquire a foothold in technology domains driving future economic forces. This is the case for global trends in investment in green sectors, and it is the trend of concern for the contribution of AI and technology to future global economic community.
Together with its growing list of investments and strategic outlook, Mubadala’s experience provides example to other SWF, who want to take the full advantage of the current global economic environment which is filled with risks if properly managed. The achievements of the Fund in 2024 easily recognize its leadership position on the international financial scene while at the same time enhancing the international position of the UAE, presenting examples of pioneering economic trends, and charting the course for the future investment climates.
As the international financial markets may one day regard 2024 as one of the most crucial in history, the activity level of the most dynamic sovereign wealth fund in 2024 for Mubadala Investment Company of the United Arab Emirates appears to have risen. Global investment is $ 292 billion to investment by Mubadala today placing it among the most aggressive investors of today affecting inventions such as artificial intelligence, credit, healthcare among others.
