The firm Mubadala Development Co, owned by the Abu Dhabi government, is planning to spend more in 2011, reaching the AED 60 billion level (or $16.3 billion) based on information reported in Bloomberg News. Mubadala has a stake in General Electric Co and the Carlyle Group.
There will be a considerable amount of investment expenditures and capital put into Masdar, Mubadala GE Capital and Advanced Technology Investment Co between 2011 and 2015, based on information in a bond prospectus recently released. Funds will also make their way into oil and gas, the real estate industry and partnerships between public and private sources. In the last three years there has been AED 16.4 billion in spending within the group.
Over 7 percent of the global proven oil reserves are found in Abu Dhabi. The emirate is looking to diversify away from oil and into industries such as aerospace and real estate.
Beginning on April 6, meetings that have been arranged between banks and investors will take place in London due to Mubadala’s initiative. These meetings have already occurred in Dubai and Abu Dhabi.
According to the bond prospectus, contributions of capital totaling AED 37.8 billion have received government approval.
In 2010 Mubadala reported AED 315 million (or $85.5 million) in comprehensive losses due to declining “mark-to-market” investments.
Mubadala held a stake of 0.72 percent in General Electric Co at the close of 2010, based on the information give by the company out of UAE. A 9.35 percent stake is also held in Carlyle Group at the close of 2010, according to the prospectus.
In December the development company invested $500 million into the Carlyle Group, exchanging the investment for more equity and convertible subordinated notes in the Carlyle Group, the second largest private equity firm in the world. Mubadala agreed to an additional investment, up to $600 million into Carlyle-managed funds.Paul Holdsworth, Staff Writer, Gulf Jobs Market News