UAE’s Mubadala signs two investment agreements with French entities

Abu Dhabi-based sovereign investor, Mubadala Investment Company (Mubadala), has signed two agreements aimed at facilitating investments in sectors of mutual priority and interest in France.

These two agreements are part of comprehensive economic agreements valued at more than €15 billion signed between Emirati and French companies. The latest two agreements were signed were signed during the official state visit of the French President Emmanuel Macron to the UAE.

The first agreement between Mubadala and Bpifrance, the French public investment bank, will see the co-investment partnerships between the two companies extend by an additional EUR4bn to be invested over the next ten years, with each party committing EUR2bn to the French Emirati Fund Partnership (FEF Partnership) and the Innovation Partnership.

Bpifrance and Mubadala have built a strong relationship since the launch of the FEF Partnership in 2014 and the Innovation Partnership in 2017. The FEF Partnership, which is aimed at supporting, directly or through investment funds, the development of French enterprises with a proven growth potential, has been allocated EUR3.2bn. Meanwhile, the Innovation Partnership, which is focused on investments in high-growth French technology companies and tech/VC funds, has been allocated EUR800m.

In the presence of HH @MohamedBinZayed, and during the official state visit by French President @EmmanuelMacron to the UAE, we signed two agreements aimed at facilitating investments in key sectors in France, and strengthening our bilateral relations. pic.twitter.com/QWC7CNQWT3

— Mubadala (@Mubadala) December 4, 2021

“We are proud of this major step forward in our partnership with Mubadala, which was initiated in 2014. The renewal of our commitments for the next ten years, demonstrates our shared willingness to establish a long-term relationship to support French companies in a value creation approach with the support of our respective ecosystems,” said Nicolas Dufourcq, CEO of Bpifrance. In 2020, Mubadala also made a EUR1bn commitment to Bpifrance’s flagship Lac1 Fund, which is focused on investing in listed French multinational companies.

The second agreement struck between which Mubadala and the French Ministry of the Economy, Finance and Recovery, provides a framework for funds associated with the Abu Dhabi government to potentially invest EUR1.4bn in funds based in France or with significant exposure to the French economy. The agreement will cover funds with exposure to all French economic sectors, including key strategic sectors such as energy, semiconductors, and space, according to state-run news agency WAM.

“The scale of these agreements reflects the significant opportunities we see in the French economy, which is entering a new era of innovation-led growth. Following today’s announcement, we will be able to accelerate our investments in the sectors rapidly emerging as the drivers of this growth,” said Khaldoon Khalifa Al Mubarak, Mubadala’s managing director and group CEO.

Also on Saturday, the UAE Ministry of Defense announced that the UAE signed a contract with France to purchase 80 Rafale fighter jets to replace the UAE Air Force Mirage fleet, in addition to training and maintenance purposes.

“The signed contract with France is not a substitute for the US F-35 ongoing discussions. It’s rather a complementary to our Air Force capabilities as we continue to develop our air defense systems and seek new products and advanced technologies as part of our overall National Security Strategy,” said Major General Staff Pilot Ibrahim Nasser Al Alawi, UAE Commander of the Air Force and Air Defense, of the deal Rafale deal which is estimated to be worth $19bn.