Abu Dhabi’s Mubadala Investment Co., which has recently bought a 1.85% stake in Reliance Industries’ Jio Platforms for $1.2 billion, is now preparing to double down on its investment in Technology sector, announced Khaldoon Al Mubarak, CEO of Mubadala, at the Bloomberg Invest Global virtual conference.
Speaking about areas in which Mubadala aims to build experiences and expertise, and wants to deploy significant capital, he said that the $232-billion fund is looking at India, China and Southeast Asia for potential investments in areas like — med-tech space, artificial intelligence, life sciences, agribusiness.
Mubadala, which is a state-owned holding company that can be characterized as a sovereign wealth fund, has 9% of its portfolio invested in Asia and it is the second-biggest state investor in Abu Dhabi behind Abu Dhabi Investment Authority (ADIA), which too has bought stakes in Jio Platforms for $752 Million.
In March 2020, Mubadala Investment Company joined a consortium of investors to invest a total of $2.25 billion in Google’s parent Alphabet-owned Waymo Inc autonomous driving technology company.
Notably, an another investment firm owned by Mubadala called “Advanced Technology Investment Company (ATIC)” wholly owns GlobalFoundries, which is the world’s second largest semiconductor foundry company by revenue.
Besides investment activities, Mubadala has also been doing divestment in some of its portfolio assets in order to redeploy proceeds to new investments. Last year, it sold 34.9 million shares in Advanced Micro Devices Inc.
Besides Asia, Mubadala will also invest in the U.S companies, as Al Mubarak also said, “The U.S. will continue to be a very interesting place to invest in.” Mubadala has no plans to reduce its exposure there, but will continue to grow its portfolioMubadala’s investment strategy in the wake of the coronavirus pandemic is “on the offense rather than on the defensive”“There are high valuations at the market. If you look at, let’s say, the U.S. market right now, it does not reflect the reality of the macro situation we see in the U.S.”