1:14 am - February 14, 2026
UAE: Middle Eastern sovereign wealth funds, led by Mubadala’s $330bn portfolio, are boosting investments in AI, renewable energy, and advanced manufacturing. With Mubadala’s 67% surge in 2023 tech investments, funds aim to reduce oil reliance and deepen ties with global markets, notably South Korea’s tech sector.
Middle Eastern sovereign wealth funds are increasingly reaping the rewards of strategic investments across new technological sectors, driven by a strong mandate for economic diversification. Recent reports indicate that the global assets under management (AUM) for these funds surged to $13 trillion, with Gulf Cooperation Council (GCC) countries holding an impressive $5.33 trillion—accounting for 41% of the total. A prominent player in this arena is the Mubadala Investment Company, which has reported substantial growth, reflecting its commitment to diversify investments away from traditional oil dependency.
Mubadala’s AUM rose notably to approximately 1.2 trillion dirhams (around $330 billion) as of 2024, following a robust 9.1% growth from the previous year. The fund is increasingly allocating resources to sectors like artificial intelligence (AI), renewable energy, and advanced manufacturing, revealing a strategic pivot towards the future-oriented market landscapes. In 2023 alone, Mubadala invested a staggering $29.2 billion across various fields, marking a 67% increase from the prior year.
Khaldoon Khalifa Al Mubarak, the Managing Director and CEO of Mubadala, articulated the fund’s approach, stating that its portfolio is designed to navigate market cycles while positioning itself in sectors that are poised for growth. The diversification strategy is not merely reactive; it aligns closely with the UAE’s broader economic objectives, which aim to transition the nation from a reliance on hydrocarbons to a more sustainable and diverse economic framework.
A significant aspect of Mubadala’s strategy involves its increasing presence in South Korea’s advanced industries. The recruitment of Ahn Seung-gu, a former executive at the Korea Investment Corporation, highlights Mubadala’s dedication to strengthening its ties with South Korean markets. Recent collaborative ventures include a notable partnership with VIG Partners to acquire a minority stake in Kakao Mobility, indicating a keen interest in the burgeoning tech landscape of South Korea.
Mubadala’s investments underscore a wider trend among Middle Eastern sovereign wealth funds, which are reshaping their investment philosophies to mirror the economic diversification policies established by their governments. This trend aligns with the UAE’s ambitious commitment to invest an astounding $1.4 trillion over the next decade to position itself as a global leader in AI. Such investments signal a dedication not only to fostering local tech ecosystems but also to expanding UAE influence in international markets.
The implications for global investment opportunities are considerable. With Mubadala and other funds actively seeking partnerships in North America, Europe, and Asia, the potential for collaborative ventures across diverse sectors is growing. As noted in industry analyses, this increased interest in technology investments is likely to persist, especially as the UAE establishes agreements in AI and technology with several nations.
The forthcoming Global Alternative Investment Conference will serve as a platform for further dialogue on these trends, bringing together domestic and international experts to explore collaborative opportunities between Korea and the MENA region as both work towards economic diversification.
In this evolving landscape, the dialogue surrounding economic diversification and investment strategies is becoming increasingly relevant. As sovereign wealth funds continue to adapt to changing global dynamics, their role in shaping the future of various industries, particularly in technology, will be pivotal in steering both regional and global economic progress.
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Source: Noah Wire Services
- https://www.edaily.co.kr/News/Read?newsId=04424726642168592&mediaCodeNo=257&OutLnkChk=Y – Please view link – unable to able to access data
- https://www.ft.com/content/007541e5-74cf-4e70-911f-fea444994886 – In 2024, Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, experienced a 33% increase in investments, reaching Dh119 billion ($32.4 billion). This growth was driven by deals in North America, private equity, and the artificial intelligence sector. Mubadala now manages Dh1.2 trillion ($330 billion) in assets, with a five-year annualized return of 10.1%. The fund allocated 40% of its assets to private equity, reducing public market exposure to 23%, and expanded its private credit holdings to $20 billion. Mubadala holds a 50% stake in MGX, an AI-focused entity that joined a $30 billion fund alongside BlackRock and Microsoft. The UAE has pledged $1.4 trillion in investments over the next decade to establish itself as a global AI leader, reinforcing its commitment to economic diversification and technological advancement.
- https://www.reuters.com/world/middle-east/abu-dhabi-fund-mubadalas-asset-under-management-rise-302-bln-2024-05-17/ – Abu Dhabi’s sovereign wealth fund, Mubadala, saw a 9.5% increase in assets under management, reaching 1.11 trillion dirhams ($302.2 billion) in 2024. The fund focuses on strategic investments in technology, digital infrastructure, life sciences, renewable energy, and private credit across North America, Asia, and Europe. Despite divestments of legacy assets, Mubadala’s portfolio mix remained stable, with significant investments in private equity, public markets, real estate, and infrastructure. The fund emphasizes AI-driven innovation, particularly in healthcare and space technology, to support the UAE’s economic transformation.
- https://www.ft.com/content/3b29763e-62e1-4b23-907d-7da36676fc6b – Mubadala Capital’s $3 billion acquisition of a majority stake in Fortress Investment Group has cleared a significant regulatory hurdle after reaching concessions with the Committee on Foreign Investment in the United States (Cfius). Mubadala agreed to keep data and technology within the U.S. and waived day-to-day control over Fortress. This deal reflects growing regulatory scrutiny over foreign investments, especially by Middle Eastern funds in U.S. assets, and positions Mubadala as a major global credit investor.
- https://www.mubadala.com/en/news/mubadala-investment-company-reports-2023-financial-results – Mubadala Investment Company reported its 2023 financial results, with assets under management (AUM) exceeding AED 1.1 trillion. The company deployed AED 89 billion into sectors shaping the future, including artificial intelligence, technology, digital infrastructure, life sciences, clean energy, and private credit. Mubadala’s portfolio achieved a five-year rate of return of 10.3%. The company emphasized investments in AI-enabled innovation, particularly in healthcare and space technology, to support the UAE’s economic transformation.
- https://www.ft.com/content/eaf31187-d5cf-4c5c-a153-a1d36da2defd – Abu Dhabi-based artificial intelligence company G42, backed by Mubadala, is expanding its presence in the United States as part of the UAE’s broader strategy to invest tens of billions of dollars in the U.S. and emerge as a global leader in AI. G42 has incorporated a U.S. entity, G42 USA, in Delaware, and its cloud computing subsidiary, Core42, is establishing operations in the country. This move is part of a $1.4 trillion, 10-year UAE investment framework in the U.S., significantly larger than Saudi Arabia’s pledged investments.
- https://www.mubadala.com/en/news/abu-dhabi-launches-comprehensive-global-investment-strategy-on-artificial-intelligence – The Artificial Intelligence and Advanced Technology Council (AIATC) of the UAE announced the creation of MGX, a technology investment company with Mubadala and G42 as founding partners. MGX aims to advance and deploy leading-edge technologies to improve lives globally. The company’s investment strategy focuses on AI infrastructure, semiconductors, and AI core technologies and applications. Mubadala’s previous investments include a significant stake in AMD and the creation of GlobalFoundries, a leading semiconductor manufacturing company.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative includes recent figures and events, such as Mubadala’s AUM growth and 2024 investments, which are contemporary. However, a lack of specific dates for some events could slightly reduce the score.
Quotes check
Score:
6
Notes:
The quote from Khaldoon Khalifa Al Mubarak is not verified against an original or earlier source. It is unclear if this is a first-time use or a repetition from another article.
Source reliability
Score:
7
Notes:
The narrative originates from edaily.co.kr, which is less well-known globally compared to major international news outlets like Reuters or the Financial Times. However, it does provide some reputable references.
Plausability check
Score:
9
Notes:
The claims about Middle Eastern sovereign wealth funds diversifying investments are consistent with known trends in economic diversification efforts. The focus on AI and renewable energy aligns with current global investment trends.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative appears generally plausible, aligning with current trends in economic diversification and investment strategies. However, some aspects like the freshness of specific events and the reliability of the source could be improved. The quote from Khaldoon Khalifa Al Mubarak lacks verification against earlier sources.
