Mubadala Assets Hit $385B As UAE Sovereign Funds Boost Global Clout

(MENAFN- Khaleej Times) Assets under management at Mubadala Investment Company rose 17 per cent to $385 billion in 2025, reinforcing the growing financial clout of Abu Dhabi's sovereign investment institutions as they expand their role in reshaping the UAE's economic future and strengthening global capital influence.

The fund reported annualised returns of more than 10 per cent over both five- and 10-year horizons, underlining the resilience of its diversified investment strategy despite heightened geopolitical uncertainty and market volatility. Capital deployment climbed 20 per cent year-on-year to Dh143 billion, while proceeds increased 27 per cent to Dh138 billion, reflecting strong portfolio rotation and monetisation activity.

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Khaldoon Khalifa Al Mubarak, managing director and Group CEO of Mubadala Investment Company, said the results demonstrate the strength of a long-term strategy focused on sectors critical to future growth.

“The strength of Mubadala's performance in 2025 reflects the long-term strategy to invest in key sectors of growth in the UAE and abroad,” he said, adding that sustained returns over the past decade position the fund well to navigate evolving regional and global economic conditions.

Nearly a quarter of Mubadala's investments remain concentrated in the UAE, supporting industrial development and innovation across priority sectors, while the United States accounted for the largest geographical exposure at 44 per cent of the portfolio. Technology continues to dominate new allocations, particularly artificial intelligence, semiconductors, robotics and digital infrastructure - industries seen as central to the UAE's transition toward a knowledge-based economy.

The fund also strengthened its domestic footprint through increased exposure to Aldar Properties, signalling confidence in the long-term outlook for Abu Dhabi's real estate and infrastructure ecosystem.

By asset class, private investments accounted for 42 per cent of the portfolio, followed by public markets at 20 per cent and real estate and infrastructure at 17 per cent, highlighting a balanced approach between growth-oriented opportunities and income-generating assets.

Mubadala's expansion forms part of a broader rise in Abu Dhabi's sovereign wealth complex, widely regarded as one of the most powerful globally. The Abu Dhabi Investment Authority (Adia), the emirate's largest sovereign investor, is widely estimated by industry trackers to manage close to $1 trillion in assets, although it does not publicly disclose an official figure. Its globally diversified portfolio spans equities, fixed income, infrastructure and private markets across more than two dozen asset classes.

Alongside Adia and Mubadala, ADQ has emerged as a key strategic investment platform supporting national champions in logistics, food security, healthcare, energy transition and advanced manufacturing. Analysts note that the emirate's sovereign investment architecture has been evolving further following the creation of the newer L'imad investment entity as part of a broader restructuring of Abu Dhabi's capital deployment strategy.

According to Global SWF, Abu Dhabi remained the world's leading sovereign capital hub in 2025, with roughly $1.7 trillion in assets managed across its major funds, underscoring the scale of financial firepower available to support domestic transformation and international expansion.

Industry observers say the emirate's sovereign investors are increasingly shifting from passive capital allocators to active architects of industrial policy and innovation ecosystems. PwC noted in its Middle East transactions review that sovereign wealth funds across the region are playing a central role in enabling economic diversification and accelerating strategic sector development, particularly in technology, infrastructure and energy transition.

The International Forum of Sovereign Wealth Funds similarly emphasised that leading sovereign investors are evolving into long-term stabilising institutions that help economies navigate volatility while positioning them for structural growth.

For the UAE, that evolution is already visible. Investments in artificial intelligence platforms, semiconductor supply chains, advanced manufacturing clusters and clean-energy infrastructure are strengthening the country's competitiveness while reducing reliance on hydrocarbons.

As global capital flows become more selective amid rising geopolitical uncertainty, the disciplined expansion of Abu Dhabi's sovereign wealth institutions is reinforcing their position as pillars of economic resilience - and as increasingly influential players shaping the next phase of global investment trends.

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