faq
What is Mubadala?
Mubadala is a business development and investment company that works to a mandate laid out by our single shareholder, the Government of Abu Dhabi - to be the catalyst that will realize Abu Dhabi’s ambition to diversify and transform the economy, develop a new generation of business leaders and build a sustainable future for its people.
What are Mubadala’s activities?
We bring together and manage a diverse portfolio of opportunities and assets, investing across a number of different sectors, including aerospace, technology, energy, industry, healthcare, infrastructure, real estate, hospitality and services.
How involved does Mubadala get in its projects?
We are active investors who focus on delivering world-class business performance by managing and developing our broad portfolio of current assets. We manage our businesses with the same rigor with which we examine new opportunities, constantly analyzing potential cost or efficiency benefits.
Is there an investment strategy to Mubadala?
We invest for the long term as active and diligent partners, and the discipline of financial return is inherent in everything we do. As we build businesses, we work collaboratively with world class partners for mutual benefit. Bringing together managerial expertise allows us to search for new and innovative ways of realizing value.
This investment strategy ensures a flourishing, sustainable future for Abu Dhabi through diversification and transformation of the economy, and development of a new generation of business leaders.
Does Mubadala receive automatic contributions from the Government?
Mubadala submits a business plan / budget to the Government for the next fiscal year and gets allocated contributions from the Government’s budget based on the approved Mubadala budget. Such contributions are paid by the Government pursuant to a cash call from Mubadala, as and when the need arises.
What kind of Government contribution does Mubadala receive?
Mubadala receives cash in the form of equity contributions or non-interest bearing, non-repayable loans as well as to a lesser extent contributions in kind, such as land or certain fixed assets.
How is Mubadala funded?
Mubadala has diverse funding sources.
Firstly, we agree annually the capital contribution required from the Government. These come in the form of equity contributions or interest free, non-repayable loans.
Secondly, in 2009 we issued USD1.75 billion of bonds through a Global Medium Term Note program and a further USD100 million in private placements. Thirdly, we use financial leverage to finance our assets, increasing capital efficiency, instilling financial discipline and transferring risk. Debt financing is also raised on a recourse and non-recourse basis by Mubadala, its subsidiaries and joint ventures. Lastly, Mubadala has a history of operating cash flow and retained earnings, which we use to further grow and develop our businesses.
Is Mubadala a Sovereign Wealth Fund?
Although we receive funding from the Government, we are not a Sovereign Wealth Fund. Rather, we are a business builder. We harness expertise and resources - including partnerships with international best-in-class companies - to generate sustainable financial returns and build businesses, clusters of expertise and new industries.