The largest in the history of the "company" ... despite the repercussions of "Covid-19"

Mubadala’s income increased to 72 billion dirhams in 2020

Mubadala achieved a cumulative return of 9.8% for a period of 5 years as of 2016. From the source

Mubadala Investment Company announced yesterday the group's financial results for the year 2020, as the total comprehensive income (attributable to the owner) increased last year to 72 billion dirhams, compared to 53 billion dirhams in 2019.

The company indicated in a statement that this is the largest annual gross income in its history, despite the repercussions of the "Covid-19" pandemic, explaining that there are several factors that contributed to its achievement, the most important of which are the growth of the stock portfolio, the performance of its investment funds, and the growth of its assets in various business sectors. .

Mubadala indicated that 34% of its investment portfolio consists of direct and indirect investments in private companies, 29% of them in listed shares, and 14% in real estate and infrastructure, in addition to other investments.

Assets and investments

In addition, the current assets of the group at the end of last year amounted to 894 billion dirhams, compared to 853 billion dirhams in 2019.

During the past year, Mubadala achieved 104 billion dirhams, through the sale of a number of its investment assets and the proceeds from its investments inside and outside the country. Among them was the sale of 39% of its stake in Borealis to OMV, at a value of 16.7 billion dirhams. The largest single deal in the company's history.

The company invested 108 billion dirhams in new projects, including: 4.3 billion dirhams in "Geo", the leading company in the telecommunications sector in India, 2.7 billion dirhams in the "Silver Lake" company working in the field of technological investment, and 3 billion dirhams. At Reliance Retail, which is one of the fastest growing Indian companies in the retail and FMCG sector.

Cumulative return

Mubadala also announced a cumulative five-year return of 9.8%, starting from 2016.

The company had previously announced its intention to start publishing benchmark comparisons against long-term indicators, in place of other measurement indicators, such as annual return or annual net income, which no longer apply to Mubadala as a long-term investor.

The biggest motivation

The managing director and CEO of the group, Khaldoon Khalifa Al Mubarak said: “It was the vision of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the State, and the directives of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, Chairman of the Board of Directors of the company, And the close follow-up and supervision of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs and Deputy Chairman of the Board of Directors of the company, the greatest motivation for us to face the challenges of the previous period, move forward in the process of progress and contribute to achieving more achievements.

Support

Al-Mubarak added that “during the past year, and at a time when the world faced the repercussions of the spread of the (Covid-19) epidemic, we worked with our partners in various sectors to provide support and assistance to the communities that have been severely affected by this epidemic. Mubadala) A high degree of dedication and eagerness to provide a helping hand, and we are keen to continue our efforts in this field.

Overcoming challenges

Al-Mubarak affirmed Mubadala’s success in overcoming the challenges it brought about in 2020, saying: “We succeeded in overcoming the repercussions of the sharp decline that occurred on the global economy at the beginning of 2020, by increasing investments that enabled us to achieve record results and profits at the end of the year, in accordance with our long strategy Long-term, we were keen to invest in promising sectors that have strong growth potential, and in investment funds with outstanding performance. ”

Strong performance

For his part, the Chief Financial Officer of Mubadala Investment Company, Carlos Obaid, said, “The strong performance achieved by (Mubadala) reflects the high flexibility of the company, and reflects the strength and durability of our diversified investment portfolio.

He added: “We benefited from low interest rates during the past year, by reducing the cost of borrowing and extending it, taking advantage of the high demand from investors for our bond issues, as we maintain a debt ratio equivalent to 9.1%, and enjoy strong liquidity at the current stage in our pursuit of our vision on the long term".

strategy

Mubadala stated that the company's strategic direction towards increasing investment in sectors witnessing strong growth, such as technology, life sciences and consumer goods, contributed to its strong performance, noting that investments during the year 2020 played an important role in promoting this strategy.

894

One billion dirhams were the value of Mubadala’s assets at the end of last year.

The company has invested 108 billion dirhams in new projects.

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