Losses strike Abu Dhabi’s Mubadala

Graph downThe Mubadala Development Company, a sovereign fund of Abu Dhabi, suffered a total comprehensive loss of nearly 5 billion dirhams ($1.4 billion) in the first half of the year, compared with a profit of 478 million dirhams in the same period in 2015.

The fund blamed “lower commodity prices, decreased gains from financial investments, higher depreciation and impairments” for the the decline.

As a result of the difficult environment, the fund’s assets fell to 233 billion dirhams at the end of the first half.

“The global economic challenges we have faced since the beginning of 2015 persist,” said Khaldoon Al Mubarak, chief executive of Mubadala Group, in a statement.

Founded in 2002, Mubadala is tasked with helping to diversify the economy of Abu Dhabi by investing in sectors that can deliver financial returns and supply social benefits.

Earlier this year, Abu Dhabi revealed plans to merge Mubadala with another sovereign fund, the International Petroleum Investment Company.

Mubadala is one of the few sovereign funds in the Gulf region to reveal detailed financial information. The Abu Dhabi Investment Authority, whose assets are thought to be much larger than Mubadala’s, does not disclose its wealth.

©2016 funds global mena

Related Articles