Friday, Apr 13, 2012
Gulf News
Dubai Mubadala Development Company, the Abu Dhabi Government’s investment arm, posted a loss of Dh4.2 billion for 2011 yesterday, against a loss of Dh338 million the previous year, driven by negative market fluctuations in the fair market value of its investments.
Mubadala is a vital component of Abu Dhabi’s strategy to diversify its economy away from a reliance on oil. The firm has investments in a wide range of sectors, including aerospace, oil and gas, infrastructure, real estate, health care and renewable energy.
Market volatility
“While our financial investments’ performance was impacted by the volatility in the global marketplace during 2011, we continue to maintain a long-term financial investment perspective,” Khaldoon Khalifa Al Mubarak, Mubadala’s chief executive officer, said in a statement.
Mubadala has stakes in companies ranging from General Electric to the Carlyle Group and recently unveiled plans to buy a $2 billion (Dh7.35 billion) stake in Brazil’s EBX Group. However, it has been adversely affected by problems closer to home, including helping to recapitalise the National Central Cooling Company, known as Tabreed.
Buying Aldar bonds
The company also took part in a government rescue of real estate developer Aldar last year by subscribing to a $2.8 billion convertible bond issued by the developer in March 2011. “Aldar is thinking through a consolidation of [Abu Dhabi’s] real estate sector but throughout that process, we are confident its future is with us,” Waleed Al Mokarrab, Mubadala’s chief operations officer, said.
By Kevin Scott ?Staff Reporter
Gulf News 2012. All rights reserved.
