Interview: Waleed Al Mokarrab Al Muhairi
How is the international push to divest from fossil fuels impacting renewables-focused investment initiatives in Abu Dhabi and further afield?
WALEED AL MOKARRAB AL MUHAIRI: Helping to find solutions to the world’s biggest challenges and maximising our positive impact is a key focus for Mubadala. In 2006 we played a crucial role in establishing Masdar, a renewable energy company. Now active in more than 40 countries and having invested in clean energy projects with a combined value of over $30bn, Masdar has been successful in this endeavour. Its goal is to develop 100 GW of renewable capacity by 2030. Another area of opportunity is hydrogen, which has broad potential as an energy source. Mubadala is a joint founder of the Abu Dhabi Hydrogen Alliance, which aims to build a substantial green hydrogen economy in the UAE.
Beyond Abu Dhabi, Cepsa – an energy company based in Spain in which Mubadala holds a majority stake – has committed to invest up to €8bn in its transformation over the next decade to become a leader in Europe’s energy transition. An important component of Cepsa’s strategy is leveraging partnerships with Abu Dhabi organisations across the clean energy value chain.
Other examples of renewables-focused partnerships include a $525m investment with the UK’s BlackRock Real Assets in Tata Power Renewables, one of India’s largest renewable energy players, and joining forces with Global Infrastructure Partners to acquire a 100% stake in Taiwan-based Skyborn Renewables, the largest private offshore wind developer in the world.
Which factors does Mubadala consider when developing its investment strategy?
AL MUHAIRI: When it was established in 2002, Mubadala’s mission was to support Abu Dhabi’s economic development and diversification. While our commitment to delivering financial returns and creating value for future generations remains, our investment strategy has evolved. Today we are a global investor with the ambition to double the size of our portfolio in the coming decade. Therefore, we consider sectors and geographies that have the potential to deliver strong and sustainable financial returns. Furthermore, we continue to invest in stable, yield-producing asset classes – including real estate, infrastructure and private credit – to enhance the predictability of returns and safeguard against future economic cycles. Our overarching goal is to remain agile, capitalise on major global trends, prudently manage risk and continuously adapt within a competitive global landscape.
In what ways can investment in technology, life sciences and manufacturing help local businesses in these areas become more competitive?
AL MUHAIRI: Technology, life sciences and manufacturing have always been sectors of interest for Mubadala, and over the years we have supported their development in the UAE. Our UAE Investments platform is focused on accelerating the diversification of the UAE’s economy by engaging with global partners and building homegrown champions. As well as supporting companies such as Emirates Global Aluminium, Strata Manufacturing, Sanad and Yahsat, among others, to become globally competitive, Mubadala also manages initiatives to catalyse future-focused sectors such as aerospace, health care and technology.
An example is Hub71, which Mubadala helped establish in 2019. Today Hub71 is a community of more than 240 start-ups that serves as an incubator for early-stage companies and drives growth by attracting businesses and foreign investment to the UAE. For entrepreneurs and founders, Hub71’s appeal is that it provides access to global markets, a capital ecosystem, a global network of partners, and a vibrant and skilled community, and it is governed by forward-thinking regulation. By the end of 2022 Hub71 had onboarded start-ups that have collectively raised almost Dh4.5bn ($1.2bn) in venture capital and helped to create more than 900 jobs.
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