Mubadala assets climb to $327 billion amid AI, credit push
Mubadala Investment Co., Abu Dhabi’s second-largest sovereign wealth fund, grew more than 9% last year, with assets under management reaching $327 billion.
In a 2024 earnings statement released today, Mubadala cited its co-founding of the MGX tech fund specializing in AI investments as a highlight of the year’s activities.
Also notable were its establishment of satellite company Space 42 through a merger, co-investments in real estate with Aldar Properties, and private credit lending in partnership with Apollo, Goldman Sachs, Carlyle and other U.S. money managers.
“Our portfolio has been constructed to navigate market cycles and scale future-focused sectors – from AI and clean energy to life sciences, semiconductors, and advanced manufacturing,” Group CEO Khaldoon Al Mubarak said.
Carlyle buys Energean gas assets in Mediterranean for $945 million
Carlyle Group is developing plans to form a new Mediterranean-focused oil and gas company after the private equity fund agreed to acquire Energean’s assets in Egypt, Italy and Croatia for up to $945 million.
The deal announced Thursday will allow the U.S. private equity fund to tap into the eastern Mediterranean gas market that has grown rapidly in recent years as gas demand in Egypt soars and Europe seeks alternatives to Russian gas, Reuters reports.
Carlyle International Energy Partners, which handles the firm’s non-U.S. energy investments, said the new company will upgrade existing assets and grow through acquisitions, the news agency said.
London-based Energean, whose main production comes from a gas facility off Israel’s Mediterranean coast, plans to expand to the wider Europe, Middle East and Africa region, Reuters said.
Carlyle’s Rubenstein explores investments in Dubai
David Rubenstein, Co-Founder and Co-Chairman of The Carlyle Group, met with Sheikh Maktoum bin Mohammed, the First Deputy Ruler of Dubai over the weekend, as competition heats up to attract private capital to the region.
“We discussed the unique model for public-private partnerships established by the UAE and Dubai, and the new investment opportunities resulting from this approach,” Sheikh Maktoum, who is also UAE Deputy Prime Minister, Minister of Finance and President of the Dubai International Financial Center (DIFC), wrote in a post to Instagram.
Carlyle, one of the world’s biggest private equity and alternate asset managers with $425 billion under management, opened an office in Dubai’s DIFC in 2006.
Rubenstein said the firm is looking to expand its footprint in the region and eyeing new opportunities in emerging markets, according to a statement carried by state media WAM.
The meeting was attended by Carlyle CEO Harvey Schwartz and Ani Khatri, the group’s Managing Director, Partner and Senior Relationship Manager responsible for overseeing Investor Relations in the Middle East, Turkey and Central Asia.
From the government, Minister of State for Financial Affairs Mohamed bin Hadi Al Hussaini, DIFC Governor Essa Kazim and Dubai Holding Group CEO Amit Kaushal were also present.
ADIA eyes Carlyle stake in Indian data centers
Abu Dhabi Investment Authority is among a handful of investors in formal talks with U.S. private equity firm Carlyle Group over the sale of a stake in Indian data centers.
ADIA, the biggest sovereign wealth fund in the Middle East, along with Singapore’s GIC and global private equity majors like KKR are in discussions on the sale of Carlyle’s 24% stake in Nxtra Data, the data center business of Indian telecom company Bharti Airtel, Moneycontrol reports.
Carlyle had picked up the stake in the company in 2020 for $235 million.
News of the potential deal comes amid a wave of interest in data centers by Gulf sovereign wealth funds. ADIA has earmarked billions of dollars over the last several years to deploy into this critical infrastructure amid the artificial intelligence boom.
In 2022, ADIA joined hands with Singapore’s SC Capital to deploy as much as $2 billion into data center infrastructure in developed Asian economies.
The Daily Circuit: Abu Dhabi meets “Star Wars” + Altman seeks trillions for chips
👋 Hello from the Middle East!
Today we’re looking at Sam Altman’s unprecedented chipfunding odyssey, Aldar’s co-investment with The Carlyle Group on European real estate, Palantir’s partnership deal with Bahraini oil company Bapco Technologies and what’s on the culture calendar in AlUla, as the annual Saudi arts festival gets underway. But first, Abu Dhabi is rolling out the red carpet for Hollywood.
Nerds and culture vultures have more than one reason to make a stop in Abu Dhabi this month as Comic Con gets underway today and the capital is set to host the Middle East premiere of “Dune: Part Two” on Feb. 18. The 12th annual pop culture fest is the largest in the region, with actor Oscar Isaac of “Dune,” Marvel Universe and “Star Wars” fame headlining this year’s event. It’s all in good fun — but movies and gaming are also big emerging businesses in the Gulf.
“We are proud to have supported an incredibly successful filming franchise once again,” Mohamed Dobay, acting director-general of the UAE’s Creative Media Authority, said today. “Dune” and “Dune: Part Two” are among at least 150 productions that have used Abu Dhabi as a location in recent years.
In addition to Warner Bros. and Legendary Pictures, the capital has lured the likes of Disney, Netflix, Paramount and Universal, marketing its diversity of locations — the city, Arabian Sea and the Liwa Desert — its pool of production talent and the incentive of a 30% rebate for production costs. Films that have been shot in Abu Dhabi include movies from the “Mission Impossible,” “Star Wars” and “Fast & Furious” franchises, as well as Bollywood productions.
Major theatrical productions are a part of a wider effort by the UAE and Saudi Arabia into developing entertainment and gaming. The countries have poured billions of dollars into studio investments, developing talent and building up local capabilities to support the creative industries. Saudi Arabia invested $8 billion into gaming in 2022 and the first half of 2023, the Financial Times reported at the time, mainly through purchasing shares in leading global companies. But its war chest remains intact: the kingdom has earmarked $38 billion to become an international gaming center.
TRILLIONS FOR CHIPS
OpenAI CEO Sam Altman is seeking to raise as much as $7 trillion to reshape the global semiconductor industry, the Wall Street Journal reports. Topping the list of Altman’s prospective sources for funds is the UAE, a regional hub for artificial intelligence development. Altman reportedly met recently with Sheikh Tahnoun bin Zayed, the UAE’s National Security Advisor and Chairman of G42, the country’s leading company dedicated to AI.
ON THE MOVE
Aldar Properties is continuing its foray outside the Middle East with a $111 million co-investment with private equity firm The Carlyle Group in logistics and storage assets across Europe. Aldar will join the Carlyle Europe Realty platform, the investment firm’s pan-European real estate portfolio, as part of the deal. Abu Dhabi’s largest listed developer, which is 25% owned by Mubadala and 26% owned by International Holding Co., also unveiled this week a $1.4 billion investment plan to develop a range of income-generating assets in Abu Dhabi.
Public Investment Fund: China’s MSA Capital, backed by the PIF’s Jada Fund of Funds, will seek to raise $1 billion to back Middle East technology startups, Bloomberg reports.
ADQ: Tadweer, the ADQ-owned Abu Dhabi Waste Management Co., announced a new branding campaign and strategy to “revolutionize the waste management industry, unlock value from waste, and set new standards in the circular economy.”
🚢 Port of Concern: Supply chain disruptions on the Red Sea slowed business activity in Dubai’s non-oil private sector economy in January, according to new data from the S&P Purchasing Managers’ Index.🔒 Who are You?: Cisco is building a cloud data center in Dubai for its Duo multifactor authentication feature that is aimed at strengthening cybersecurity in the region and improving connectivity.
🛫 Turkish Partner: EDGE, the Abu Dhabi-based defense conglomerate, signed a preliminary agreement to integrate its advanced payloads and sensors with Turkish Aerospace products.
🕺 Rent-a-Suit: UAE startup Cloudset is launching a “dynamic ownership” program that lets customers rent its clothes and pay only for a set period before returning them to the store.
🇧🇭 Upstream Capacity: Palantir signed a partnership deal with Bapco Technologies that will enable the Bahraini oil company to use Palantir’s AI software to improve its upstream performance.
☕ Coffee Klatch: New York’s Apollo Global Management is in talks to buy a minority stake in the MENA franchise of Starbucks, which is operated by Kuwait’s AlShaya Group, Reuters reports.🛢️ Aramco Share Sale: Saudi Arabia plans to hire Citigroup, Goldman Sachs and HSBC to manage a secondary share sale in Saudi Aramco that aims to raise $20 billion, Bloomberg reports.
📈 Omani IPOs: Oman’s state energy company OQ is considering selling shares in its exploration and liquified petroleum gas units, acting CEO Ahraf Al Marmari told Bloomberg.
🌴 Beach Resort: Abu Dhabi is in talks with Egypt on a $22 billion deal to develop a series of beach resorts in Ras Al Hekma, a stretch of the Mediterranean coast north of Cairo.
🏢 Property Tech: Rize, a Saudi property tech startup, raised $2.9 million in seed funding from investors including SEEDRA Ventures,Joa Capital and RZM Investments.
UAE President Sheikh Mohamed bin Zayed received a letter on bilateral cooperation from King Felipe VI of Spain on Thursday. The message was received by Sheikh Mansour bin Zayed, UAE Vice President and Deputy Prime Minister, during his meeting with José Manuel Albares, Minister of Foreign Affairs of the EU, at Qasr Al Watan in Abu Dhabi.
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, visited the General Women’s Union in Abu Dhabi on Thursday, an organization started in 1975 to support female participation in national development and chaired by ‘Mother of the Nation’ Sheikha Fatima bint Mubarak.
Ziad Soukkarie, general manager at UM KSA, was named managing director of the OMD media agency’s Saudi Arabia office.
Yohan Kadoche, former CEO of Israel’s Psagot Investment House, acquired control of Sigma Clarity Investment House in Tel Aviv from Andorra-based AndBank.
Fouzi Lekjaa, Morocco’s Minister Delegate for the Budget and President of the Royal Moroccan Football Federation, met with U.S. Ambassador Puneet Talwar for talks that focused on earthquake disaster relief and Morocco’s hosting of the 2030 World Cup.
🪨 Outdoor Gallery: The AlUla Arts Festival opens today and continues through March 2, turning Saudi Arabia’s ancient city into an open-air museum. The three-week program aimed at boosting tourism includes contemporary and installation art featuring works by Saudi and international artists.
🏀 NBA Partner: Emirates announced a partnership deal with the NBA in which the airline will sponsor a basketball tournament to be renamed the Emirates NBA Cup.
Feb. 3-11, Abu Dhabi, UAE: Mubadala Abu Dhabi Open. WTA brings top women tennis players to the nine-day tournament. International Tennis Center, Zayed Sports City.
Feb. 9-11, Abu Dhabi, UAE: Middle East Comic Con. Nerds unite for the biggest pop culture gathering in the region. Abu Dhabi National Exhibitions Center.
Feb. 12-14, Dubai, UAE: World Governments Summit. Artificial intelligence takes center stage this year at the global gathering. Madinat Jumeirah.
Feb. 12-13, Riyadh, Saudi Arabia: Global Smart City Forum. AI and smart city experts convene to discuss the future of these cities and their impact on communities. The Arena.
Feb. 16-18, Munich, Germany: Munich Security Conference. Defense industry, foreign policy and national security leaders gather for annual summit. Hotel Bayerischer Hof.
Feb. 19-20, Riyadh, Saudi Arabia: Saudi Capital Markets Forum. A gathering of government ministers, banks and local publicly traded companies to discuss integrating emerging markets with established financial systems. King Abdullah Financial District.
Feb. 21-22, Dubai, UAE: Step Conference. The Dubai edition of the leading tech festival for emerging markets. Internet City.
Feb. 22-23, Miami Beach, FL: FII Priority Miami. A summit on disruptive technology and investment trends hosted by the Future Investment Initiative Institute. Faena Hotel Miami Beach.
Feb. 26-29, Doha, Qatar: Web Summit Qatar. A Middle East edition of the technology crowd mega-event, gathering investors, entrepreneurs and business leaders. Doha Exhibition and Convention Centre.
Feb. 28-29, Abu Dhabi, UAE: Investopia. A gathering of investors hosted by SALT and Investopia, an investment platform launched by the UAE Ministry of Economy and backed by Mubadala and the Department of Economic Development. St. Regis Saadiyat.
March 1, Abu Dhabi, UAE: Abu Dhabi Family Office Summit. One of the largest meetings in the region for family office leaders and investors. Saadiyat Rotana.
March 4-7, Riyadh, Saudi Arabia: LEAP. A global technology conference for developers, startups, investors, C-suite and media. King Abdul Aziz International Conference Center.
March 5-6, Doha, Qatar: International LNG Forum. Gathering of industry leaders and key stakeholders to discuss the future of gas in a key export market. InterContinental Doha Beach.
Aldar Properties to co-invest with Carlyle on European real estate
ABU DHABI, United Arab Emirates – Aldar Properties is continuing its foray outside the Middle East with a $111 million co-investment with private equity firm The Carlyle Group in logistics and storage assets across Europe.
Aldar will join the Carlyle Europe Realty platform, the investment firm’s pan-European real estate portfolio, as part of the deal.
Abu Dhabi’s largest listed developer, which is 25% owned by Mubadala and 26% owned by International Holding Co., also unveiled this week a $1.4 billion investment plan to develop a range of income-generating assets in Abu Dhabi.
