Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Mubadala has emerged as one of the world’s top-performing sovereign investors, underpinned by double-digit returns over the past decade and a particularly strong performance in the UAE in 2025, according to Khaldoon Al Mubarak, CEO of Mubadala.
Speaking to Bloomberg Television’s Joumanna Bercetche on the sidelines of the World Economic Forum in Davos, Al Mubarak said Mubadala has delivered average annual returns of more than 10% over both the past five and 10 years, placing it among the strongest-performing sovereign investors globally.
He said that the investments in the UAE have been particularly rewarding in 2025. “It was an exceptional year for us domestically, with returns exceeding 20% across sectors such as real estate, infrastructure, industrials, technology and healthcare,” Al Mubarak said. Mubadala is well positioned to benefit from the exceptional growth of the UAE, the CEO said.
He said 2025 was another highly active year, driven by opportunities across priority sectors and geographies. “Markets have presented compelling opportunities in the sectors and geographies we prioritise,” Al Mubarak said, adding that Mubadala has accelerated its pace of activity over the past two years as an institution.
During 2025, Mubadala deployed between $35 billion and $40 billion globally, while executing monetisations of a similar scale. “We effectively monetised probably the same amount, around $35 billion to $40 billion,” he said, highlighting the fund’s active portfolio management approach.
Al Mubarak said Mubadala’s sector strategy has remained consistent, with a strong long-term focus on artificial intelligence and technology across the full value chain. “That remains a key area of focus for Mubadala,” he said, noting that digital infrastructure continues to be a core investment pillar. He added that healthcare, consumer, financial services and credit have also performed strongly over the past two years, reinforcing confidence in these sectors.
Addressing concerns about potential over-exuberance in artificial intelligence, Al Mubarak said: “We continue to have a high level of conviction in the space. Setting aside the noise and hype, we have a very clear view of where the truly investable opportunities lie within technology and AI enablement. These are areas where we have invested successfully and where we intend to continue investing.”
Private credit has also become a significant contributor to Mubadala’s balance sheet. Al Mubarak said the firm has built dedicated capabilities in private credit over recent years, with the asset class delivering strong results. While it was the best-performing asset class in 2024, it remained resilient in 2025, generating mid-double-digit returns. "While there are emerging headwinds, we believe that with the right partners and the platforms we have built, private credit remains an attractive and resilient area for us,” Al Mubarak added.
The United States remains Mubadala’s largest market, particularly in technology and other priority sectors. Al Mubarak said: “We have been investing there since inception, particularly in technology and other priority sectors. 2025 was a good year, and we expect to remain active in 2026. We understand the market, and we have the right partners.”
Al Mubarak also highlighted Asia as an increasingly important growth region. He said Mubadala has spent the past decade building knowledge and capabilities across Asian markets after being under-invested in the region earlier. “Today, we have strong operations in China and deep familiarity with markets across Southeast Asia,” he said, noting strong performance in Korea, Japan and China during 2025.
On rising geopolitical tensions and concerns around geoeconomic fragmentation, Al Mubarak said Mubadala remains cautious but confident. “Geopolitics increasingly affects all businesses and investment institutions, and it is something we monitor carefully,” he said.
Mubadala and the UAE as a whole have navigated the geopolitical environment very well, Al Mubarak said.
“We aim to remain agnostic, focus on the right sectors, and work with the right partners across regions — east, west, north and south.” Al Mubarak added that operating in a multipolar world aligns well with Mubadala’s global investment model and long-term strategy.
