Executive Summary
Mubadala Investment Company located in United Arab Emirates, was formed in 2017 after merging Mubadala Development Company and International Petroleum Investment Company. The organization, through maximization of global opportunities makes profits majorly by financing other institutions. intellectual property law protects the organization’s economic activities hence ability to execute duties diligently. As well, Mubadala Investment Company is an autonomous organization, meaning that operations are conducted independently. Economic crisis such as COVID-19 affected organization’s capabilities in accumulating profits. The organizations came up with other strategies hence experiencing financial benefits.
Introduction
Mubadala Investment Company is a government holding corporation located in the United Arab Emirates and categorized under autonomous wealth fund. The company was formed in 2017 by merging two independent companies, Mubadala Development Company and International Petroleum Investment Company. Combining the two companies resulted in a Public Stock Joint Company. In the United Arab Emirates, Mubadala Investment Company is responsible for facilitating Abu Dhabi’s economy. Moreover, the company manages long-term, capital-intensive investments to deliver solid financial returns and noticeable social profits for the emirates.
Additionally, in 2016, merging Mubadala Development Company and International Petroleum Investment Company achieved possibilities and intentions by transferring ownership to the newly formulated company. As a result of Mubadala Investment Company, other companies such as Global Foundries are believed to be the second-largest semiconductor foundry globally by revenue. Since 2017, Mubadala Investment Company has financed over D100 million in examination grants, constructing a global-competitive expertise R&D economy with the country (Salim & Alsyouf, 2020). Leadership in Mubadala Investment Company includes: His Highness Sheikh Mohammed bin Zayed Al Nahyan as the chairman, His Highness Sheikh Mansour bin Zayed Al Nahyan as the vice-chairman, Khaldoon Khalifa Al Mubarak as Group Chief Executive Officer and managing director. There is an investment committee, comprising of Khaled Abdulla Al Qubaisi as the Chief Executive Officer, Aerospace, Renewables and ICT, Ahmed Yahia Al Idrissi as the CEO of Manufacturing, technology and mining, Waleed Al Mokarrab Al Muhairi as the Deputy group CEO Alternative investments and Infrastructure, as well as Musabbeh Al Kaabi, Hani Barhoush, Homaid Al Shimmari, and Carlos Obeid. Legal aspect of Mubadala Investment Company directs the organization into delivering right information to the public concerning financial statements and processes utilized towards goal achievement.
Formation Details
In 2008, Advanced Technology Investment Company was established and later merged with Advanced Micro Devices to create the third-largest independent foundry. The progress is experienced in 2009 when Advanced Technology Investment Company attained Chartered Semiconductor Manufacturing of Singapore, the second-largest global enthusiastic semiconductor foundry. In 2010, Advanced Technology Investment Company amalgamated with other financiers to fund Texas-based Calxeda by then a start-up company purposed to yield ARM architecture-based computers for the server economy. Advanced Technology Investment Company operated with Massachusetts’s Institute of Technology to advance a master’s program in microelectronics based in Masdar Institute of Science and Technology in Abu Dhabi. In the same year, research was conducted in the Abu Dhabi region through a partnership between Advanced Technology Investment Company and Semiconductor Research Corporation. Additionally, Advanced Technology Investment Company announced investments to expand operations in Singapore, Saratoga, and Dresden in the United States of America. Eventually, in 2014, Advanced Technology Investment Company became Mubadala Technology which later in 2016 changed to Mubadala Development Company.
The formation process continued in 2017, Mubadala Development Company and International Petroleum Investment Company merged to form Mubadala Investment Company. The organization made several adjustments towards goal achievement. Through the development and merging processes, Mubadala Development Company presented its change accommodation ability by forming organization(Salim & Alsyouf, 2020). Changing from one organization to the other, Mubadala Investment Company experienced profits differently. Merging with other companies, the Mubadala Investment Company maximizes profit-making opportunities while accumulating social-economic development benefits. Salim and Alsyouf (2020) indicate that the government facilitated the merger process, acquiring total supervisory capacity over the overall classes’ organization. The organization also targets utilizing available resources in different countries globally, thus merging with one of the best companies in the United Arab Emirates. The formation led into public limited company financed by the United Arab Emirate government hence allowing to have different functionality under different classes in business world.
Legal Aspects of the Company
Mubadala Investment Company is entirely owned and supervised by the Abu Dhabi government. The Emirate government has an independent legal identity consisting of total capacity to achieve statutory directives and objectives. As a top strategic investment company in Abu Dhabi, Mubadala Investment Company is active in thirteen sectors and globally in more than fifty countries. The company also deals in developing industrial sectors such as metal and mining, semiconductors, aerospace, renewable energy, utilities, Information and Computer Technology, and management of various financial properties (Yilanci et al., 2021: Salim & Alsyouf, 2020). Moreover, Mubadala Development Company focuses on investing with the best organizations, forming ideas on strategies to influence the health sector, defense services, and real estate. The organization, through commitment, concentrates on practicing and maintaining high governance standards.
Mubadala Investment Company performs as per guiding legal framework and policies. The policy of the organization should be clearly defined and publicly disclosed for clarity purposes. Following the idea that the government formed Mubadala Investment Company, the organization is responsible for exercising government investment strategy (Salim & Alsyouf, 2020). Mubadala Investment Company, through management, understands the potentials of operating in a global capacity as an international investment business. The organization also focuses on sustainable risk-adjustment in financial returns to realize the government’s intended objective of the global cohesive and differentiated economy. The public should be aware of the strategies utilized towards Mubadala’s goal achievement (Yilanci et al., 2021: Salim & Alsyouf, 2020). Practices that may result in environmental deterioration and economic degradation ought to be avoided by all means. Strategic plans enable the organization to plan better on the goal achievement path. Following on government guidelines towards successful operations, Mubadala Investment Company has the mandate to perform activities that lead into raising societal standards.
Mubadala Investment Company’s legal framework should be sound and support its practical operations and achievement of the stated goals and transactions. The merging procedure between Mubadala Development Company and International Petroleum Investment Company was facilitated by His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates ruler of Abu Dhabi. The organization was formulated under the government’s supervision and has autonomy in exercising duties through independent operations (Yilanci et al., 2021). Moreover, the organization has the mandate to operate without causing harm to human life. As well, throughout since merger process, the organization has attained successful operations while protecting the environment.
The Abu Dhabi Government solely controls the management of Mubadala Investment Company. It is the government that has the authority to make management changes in the organization. All staffs working in the organization are answerable to the government of any demands and development ideas (Salim & Alsyouf, 2020). The managing director and all other Board Members get appointed by a Decree of the Ruler of Abu Dhabi’s Emirate. As well, Mubadala Development Company performs investment programs and activities with autonomy and independence. The government has the authority to terminate any suspicious activities associated with Mubadala Investment Company.
However, in situations where Mubadala Investment Company operations have significant and direct domestic macro-economic consequences, the activities closely coordinated with the domestic fiscal and monetary authorities ensure uniformity with the inclusive macroeconomic policies. The organization works towards global economic growth across different sectors (Salim & Alsyouf, 2020: Yilanci et al., 2021). Mubadala’s local economy operates in close coordination with the Abu Dhabi Ministry of Finance and other fiscal and monetary entities to ensure consistency with other financial authorities.
Mubadala Investment Company should have clear and publicly disclosed policies, procedures, rules, and arrangements related to funding, spending, and withdrawal operations. Over the past years, the government has provided Mubadala with financial support in the form of additional shareholder contributions, equity, subordinated interest-free loans as well as monetary grants (Salim & Alsyouf, 2020). Furthermore, the government has made several non-monetary contributions such as land grants to the organization. Through operating cash flow, Mubadala funds its capital and investment expenditures and financial obligations.
Financial Stands
In 2019, Mubadala Development Company experienced positive returns due to a diversified and universal assortment of assets. Total comprehensive income accumulated to AED53 billion, considered better than 2018, which resulted in AED12.5 billion (Salim & Alsyouf, 2020). Factors contributing to 2019 successful financial achievements include performance of public equalities and funds, leading to organizational asset growth across different sectors (Salim & Alsyouf, 2020). Additionally, in line with Mubadala’s investment strategy, the management monetized some assets and received distributions from investors amounting to AED 63 billion both locally and across the world (Salim & Alsyouf, 2020: Yilanci et al., 2021). Mubadala deployed another AED 68 billion into funds and sectors such as technology and renewable energy, strengthening its position as a diversified global investors (Yilanci et al., 2021)
With the support of AED 853 billion of assets under management, Mubadala’s portfolio spans investment in various sectors globally in over fifty countries, especially in emerging and industrialized markets. Directly or indirectly, forty-three percent of Mubadala’s portfolios are in the private sector, twenty-one percent in public markets, sixteen percent in mining, and eleven percent in real estate and Infrastructure (Yilanci et al., 2021). The organization in 2019 took advantage of the historically low cost of funding hence the ability to approach the debt capital market. According to Salim & Alsyouf (2020) Mubadala Development Organization distributed $3.5 billion as part of Global Medium-term Note Programmer, therefore, controlling multi-tranche connections in collective size. In the same year, the organization managed to access new liquidity pockets and issue a thirty-year bond with the Formosa component (Salim & Alsyouf, 2020). The robust balance sheet in the organization acts as one of the drivers behind the market’s confidence, enabling a solid cash position and low influence.
However, the year 2020 presented different challenges into the market through societal and economic consequences of the COVID-19. The organization focused on checking on employees and their family’s well-being, partners and formulating investment strategies globally during the pandemic period. The management assured sourcing for new investment opportunities during the current economic climate to create long-term value. The organization was well-positioned to overcome the recent financial crisis and formulate other beneficial organizational goal achievement strategies.
Company’s Intellectual Properties
Mubadala Development deals with a wide range of activities and is structured around global business platforms. The platforms available such as intellectual property law enable Mubadala to scale and manage a portfolio for growth while upholding the highest international standards of supremacy and risk management. There are direct investments, disruptive investments, and real estate and infrastructure investments (Salim & Alsyouf, 2020: Yilanci et al., 2021). In this case, disruptive investments, are described by next-generation pioneering invention technologies in all sectors and topographies. Through intellectual property law, the organization invests across the capital arrangement and asset classes in industries that revolutionize businesses such as artificial intelligence, ride-sharing, smart cities, mobility, machine learning, and driverless automotive. Salim & Alsyouf (2020) states that the government protects dedicated and determined team together with the global network on the ground as the key markets globally, the organization is capable of sourcing for proprietary investment opportunities primarily in private equity to commercial lending and investing with both public and private government partners.
Mubadala Development Company enables the creation of economic opportunities globally through intellectual property law. The organization made global learning facilitation easier through technological inventions. Implementation and sourcing for better learning devices have made Mubadala unique in terms of innovation and creativity. Salim and Alsyouf (2020) elaborate that intelligent cities’ development ensures raised living standards for industrialized markets and developing countries globally hence securing confidence from investors. Driverless automobile enables individuals and organization preserve more energy towards state’s economic development. Mubadala Development Company creates an opportunity for organizations to protect power hence the ability to higher productivity.
Real estate and infrastructure investments are part of Mubadala’s intellectual investments. Through intellectual property law, the organization indicates the ability to globally deploy capital into physical assets and offer sustainable returns across business progression (Salim & Alsyouf, 2020). The organization also focuses on physical and digital infrastructure properties and real estate investment internationally (Salim & Alsyouf, 2020). Mubadala Development Company has persistently offered support to institutions that require a change in terms of technology implementation and creations. Through intellectual property law, offering financial support and advice to developed markets and developing countries enables an organization to venture into functional economic strategies. The ability to influence other organizations through financial support enables debt considerations, ending on a standard agreement in terms of economic development.
Conclusion
In conclusion, Mubadala Investment Company merged with International Petroleum Investment Company to form a more serious and reliable company known as Mubadala Development Company. Numerous changes such as innovation and invention and intellectual property and management capacity experienced since 2017. In 2019, the company encountered innumerable profits through the maximization of potential resources available globally. The organization has over fifty companies internationally, operating under different classes and capabilities. Additionally, Mubadala Development Company, since its formation, created various opportunities for states, private organizations, and individuals in terms of economic growth. During the COVID-19 pandemic, the organization formulated investment ideas, captured economic crisis potentials and maximized profits. Participation in protecting the public from malpractice and offering financial advice to business partners made Mubadala a unique and reliable business organization. The legal aspect of the organization indicates that the public should be aware of any changes made in the organization and understand financial expenditures and profits accumulated. Organizations such as Mubadala Investment Company should focus on protecting the environment as the intellectual property law protects organizational operations towards goal achievement.
References
Salim, A.M., & Alsyouf, I., (2020), “Development of renewable energy in the GCC region: status and challenges”, International Journal of Energy Sector Management, vol. 14 (6) pp. 1049-1071. Web.
Yilanci, V., Haouas, I., Ozgur, O., & Sarkodie, S. A. (2021). Energy Diversification and Economic Development in Emergent Countries. Evidence From Fourier Function-Driven Bootstrap Panel Causality Test.Frontiers in Energy Research, 9, 95.