Davos: Mubadala CEO Al Mubarak on Monetization, AI, Private Credit

Mubadala Investment Company: 2025 Performance & 2026 Outlook

Key Concepts:

• Sovereign Wealth Fund (SWF): A state-owned investment fund composed of pools of money derived from a country’s reserves.
• A.I. Enablement: Technologies and infrastructure that facilitate the development and deployment of Artificial Intelligence.
• Private Credit: Debt investments made directly to companies, bypassing traditional capital markets.
• Geopolitical Risk: Risks arising from political instability and international relations that can impact investments.
• Monetization: The process of converting assets into cash or other liquid forms.
• U.A.E.: United Arab Emirates.
• ESG: Environmental, Social, and Governance factors considered in investment decisions (implied through discussion of responsible investing).

I. 2025 Investment Activity & Performance

Mubadala Investment Company experienced a highly active 2025, deploying between $35 to $40 billion in investments globally. This represents a significant increase in activity compared to previous years, driven by a focused strategy on preferred sectors and geographies. The organization has demonstrably “cranked it up” as an institution, improving its operational efficiency and investment execution. Alongside substantial investment, Mubadala also achieved significant monetization of assets. The U.A.E. portfolio delivered returns exceeding 20% across various sectors including real estate, infrastructure, industrials, technology, and healthcare, highlighting the strength of the domestic market.

II. Sectoral Focus: 2026 & Beyond

Mubadala’s sectoral strategy remains consistent. Key areas of focus include:

• Artificial Intelligence (A.I.): A strong and continued commitment to the entire spectrum of A.I. technology, viewing it as a high-growth area despite market “noise and hype.” Investment is targeted towards “investable spaces” within A.I. enablement.
• Digital Infrastructure: Remains a core investment area.
• Healthcare: Continues to be a high-performing sector.
• Consumer: A sector demonstrating strong performance.
• Financial Services & Credit: Areas with proven track records.

The company maintains conviction in these sectors, believing they will continue to deliver strong returns.

III. Private Credit Performance & Outlook

Private credit has emerged as a significant contributor to Mubadala’s balance sheet, achieving its best performance in 2024 (mid-double-digit returns). Despite increasing headwinds and new market entrants, Mubadala remains “quite bullish and firm” on private credit, leveraging established platforms and strong partnerships. The success is attributed to the capability built over the past couple of years.

IV. Geographic Investment Strategy

Mubadala’s geographic focus is threefold:

• United Arab Emirates (U.A.E.): The U.A.E. remains a crucial part of the portfolio, with significant investments across multiple sectors. The U.A.E. is considered well-positioned for future growth, and Mubadala aims to capitalize on these opportunities.
• United States: The U.S. is Mubadala’s largest market, particularly for technology investments. The company views the U.S. as a familiar and reliable investment destination, possessing the necessary partnerships and market knowledge. The previously announced commitment to invest $1.4 trillion in the U.S. is described as “business as usual.”
• Asia: Mubadala has significantly increased its focus on Asia over the past decade, building knowledge and establishing operations in key markets like China, South Korea, and Southeast Asia. 2025 saw strong performance in these regions.

V. Navigating Geopolitical Risks & the “Weaponization of Economy”

Acknowledging the increasing impact of geopolitics on global business, Mubadala emphasizes a cautious and diversified approach. The company aims to remain “agnostic” – selecting sectors and partners strategically across all regions (West, East, North, South) to mitigate risk. This strategy has demonstrably yielded strong returns, with average returns exceeding 10% over the past 10 years, positioning Mubadala among the top-performing sovereign wealth funds. The company asserts that geopolitical considerations will not fundamentally alter its investment decisions, as its existing approach is well-suited to navigate such challenges.

VI. Performance Metrics & Comparative Standing

Mubadala’s consistent double-digit returns (over 10% average over the last 10 years) demonstrate its strong performance relative to other sovereign wealth funds. The 2024 performance of the private credit asset class was particularly strong, delivering mid-double-digit returns. The U.A.E. portfolio also achieved returns exceeding 20% in 2025.

VII. Notable Quote

“Today when I look at our returns over 10 years, over five years, double digits. We continue to be north of 10% on average over the last 10 years, which shows again among sovereign funds, we are probably top of the list.” – His Excellency, regarding Mubadala’s investment performance.

Conclusion:

Mubadala Investment Company is demonstrating a proactive and strategic approach to global investment. Its continued focus on key sectors like A.I., digital infrastructure, and healthcare, coupled with a diversified geographic strategy and a robust risk management framework, positions it for sustained success. The company’s strong performance metrics and commitment to long-term value creation underscore its position as a leading sovereign wealth fund. The ability to navigate geopolitical complexities while maintaining investment discipline is a key differentiator for Mubadala.