Mubadala plans to focus on investments in Asia this year as China recovers from the pandemic faster than expected and India’s economy continues to grow. The $284B Abu Dhabi wealth fund expects a “strong recovery” in China this year and also sees “very exciting opportunities” in Indonesia, South East Asia, Japan and Korea, CEO Khaldoon Khalifa Al Mubarak said in Davos on Wednesday.
The Abu Dhabi wealth fund will continue to invest in semiconductors, technology, energy transition, digital infrastructure and credit in the short-to-medium term, Al Mubarak said and is also looking at potential investments in technology and venture capital globally.
China’s top economic official said that his country’s economy will likely rebound to its pre-pandemic growth trend this year after coronavirus infections passed their peak. India, meanwhile, recently overtook the UK to become the world’s fifth-largest economy.
Why it matters
Mubadala is among sovereign wealth funds from the oil-rich Gulf region that remains, active acquirers, even as global deal volumes fall and banks cut bank lending for acquisitions. Buoyed with cash from last year’s commodity boom and spurred on by equally ambitious neighbours such as Qatar and Saudi Arabia, the United Arab Emirates — home to about 6% of the world’s proven oil reserves — is investing billions of dollars to diversify its economy away from crude.