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Mudabala Investment Company

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Mubadala introduces two funds worth $250 million for MENA startups

For both developing and developed countries, the private sector is essential in various ways. Therefore, private sector engagement means the interests donors put in working systematically and strategically with businesses to meet sustainable development goals. Mudabala, a state-owned company characterized by a wealth fund, participates significantly in supporting private investments' startup and growth. According to Wadhwa (2019), the company introduces funds worth $ 250 million for startups. Dividing the funds into two, $ 150 million dabbed 'fund of funds is directed to support Hub71 investors and startup ecosystems, while the other $ 100 million is set for direct startup investments.

Usually, private sector businesses face several challenges that hinder their sustainability and growth; most of them end up closing down after few years of operation. Some of the challenges include inadequate diversification, inadequate finance and credit access, low-profit ratio, inadequate expertise (Barungi & Nakazi, 2019). Despite the various setbacks, the major shortage lies in finances which Mudabala munificently contributes to.

The funds can support the businesses in several ways. One, it subsidizes the cost of doing business by acting as an incentive. The money helps in set-up, health insurance costs, office rent, and licensing costs. These factors allow the businesses to start on a high note and operate at a higher profit margin. To curb the lack of management expertise and exposure, Mudabala organized an international tour that attracted startups; the companies starting up can also arrange for their exposure events. These arrangements help the companies have the expertise required to startup and sustain a successful business.

With AED 853 billion of Assets under Management, our portfolio spans a range of investments in numerous sectors in more than 50 countries

Private sectors play a key role in society. Thus society as a whole suffers when they die. Some of the key benefits of private sectors in society include advising the government of ease recruitment costs, preparing strategies to integrate immigrants into workforce, adding to the global compact on migration, engaging policymakers, networking with peers, and getting tools to move through the complex world. With 43% of Mudabala Investment Company's portfolio in the private sector, it shows the company's weight to the private startups.

Mudabala Investment Company is able to distribute 43% of its portfolio to private investments through various investing dimensions. In 2019, the company launched a $ 250 million plan to support a thriving ecosystem. Outside, United Arab Emirates, Mudabala actively engage private technology companies fund has since funded them with $ 400 million, particularly in European companies on a global scale. This generosity has also been extended to FinTech companies in the US, Mudabala healthcare, which achieves groundbreaking milestones such as 17000 capacity cancer treatment centers and high yield real estate investments.

With the benefits visible from the proceeds of the 43% investment breakdowns, the effects are accompanying. Businesses are able to grow and sustain themselves; for instance, Cleveland Clinic in Abu Dhabi was able to erect a cancer center with a capacity of up to 17000 square meters, the real estate investments were also able to produce a consistent healthy yield even though there were various challenges. These plans increased the company's ability to also invest in different categories such as supporting other organizations like Arclight and Riverstone that lead in private equity.

We are supporting the development of a world-class, commercially sustainable private healthcare sector in the UAE

As much as Mudabala Investment Company invests in startups, it also broadly engages the private healthcare system. Partnering with international institutions practicing medical matters, the company employs a network of specialized facilities to enhance healthcare assistance. The efforts address United Arab Emirates' most demanding healthcare needs. Thus patients don't need to travel outside the country to search for specialized care.

As much as healthcare is a basic need provided by the government, the private sector plays an important role by keeping the government in check. Private healthcare provides competent specialized treatments with a greater focus to prove ability with sufficient infrastructure. For instance, Mudabala Healthcare has erected a state-of-the-art hospital, 17000 square meters capacity treatment center, diabetes specialist's hospital, and much more; therefore, there is no need for an individual to travel overseas to look for the treatments that can be provided within.   

Mudabala Investment Company diversified its operations into different categories to drive its success. In private equity, the company manages to invest and make commitments through direct investment support. In MENA tech funds, the company set aside 250 million US dollars to support technology companies, aiming to make UAE a technology hub in the region; $ 150 million for supporting technological ecosystem and $ 100 million for direct startup investments. Lastly, the company focused also on real estate and infrastructure. Despite economic headwinds, the company set aside a UAE development team to consolidate its real estate, land, and projects. Despite challenges faced in running up funds companies, Mudabala is commendable in running its financing affairs, thus supporting various companies to meet their objectives.

References

Barungi, M., & Nakazi, F. (2019). How to overcome the challenges faced by private companies engaged in agricultural research and development (No. 675-2019-2720).

Wadhwa, P. (2019). Mubadala introduces two funds worth $250 million for MENA startups. Retrieved at https://www.sme10x.com/whats-the-deal/mubadala-introduces-two-funds-worth-250-million-for-mena-startups

 

 

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