Abu Dhabi’s Mubadala 2013 Profit Jumps On Financial Investments

Mubadala, the Abu Dhabi state-owned investment fund with a mandate to develop the emirate’s economy, said on Thursday its 2013 net profit tripled as soaring stock markets boosted the value of its financial investments.

Mubadala, which has stakes in General Electric and private equity firm Carlyle, said it earned Dhs1.45 billion ($395 million), up from Dhs470 million in 2012.

Financial investments swung from a loss of Dhs1.39 billion in 2012 to a profit of Dhs3.36 billion, helping push total comprehensive income to Dhs5.3 billion from Dhs1.6 billion.

Stock markets in the United Arab Emirates were among the strongest performers globally in 2013, with Dubai’s bourse more than doubling in value and Abu Dhabi’s index jumping 63 per cent. Mubadala also has holdings in firms including Aldar Properties, telecom operator du and cooling firm Tabreed.

The gains came despite problems with its investment in EBX Group, a troubled Brazilian conglomerate run by billionaire tycoon Eike Batista. Mubadala bought a 5.6 per cent stake for $2 billion in March 2012.

While making no direct reference to EBX, Mubadala said it had been repaid Dhs1.65 billion in a combination of cash and securities as part of a loan restructuring. The rest of the loan, which is backed by guarantees and securities in various entities, would be returned in stages by June 2017.

Unlike other regional sovereign wealth funds such as the Abu Dhabi Investment Authority (ADIA) and Qatar Investment Authority (QIA), Mubadala’s main aim is to help boost the local economy.

The fund has interests in semiconductors, oil and gas, aerospace and real estate among others.

Total assets held by Mubadala grew 11 per cent to Dhs223.8 billion at the end of 2013, which it attributed to a gain from last year’s merger of Emirates Aluminium – of which Mubadala owned 50 per cent – with Dubai Aluminium.