As we welcome 2025, the worldwide economic outlook is the brightest it has been for several years. The Organisation for Economic Co-operation and Development is predicting global gross domestic product growth of 3.3 per cent this year, up from 3.2 per cent in 2024. The OECD also expects inflation to ease further with unemployment remaining low by historical standards.
Into this promising picture steps this week’s news that not only did sovereign wealth funds invest more than $136 billion last year – a 7.1 per cent increase from 2023 – Abu Dhabi’s Mubadala Investment Company was the world’s largest sovereign wealth fund investor in 2024. The sums presented by industry specialist Global SWF in its annual report are certainly eye-catching but a deeper look at Mubadala’s performance and strategic choices tells us much about 21st-century investing and even offers clues as to how the world of the near future is taking shape.
Last month, Khaldoon Al Mubarak, Mubadala’s chief executive and managing director, told the Milken Institute’s Middle East and Africa Summit in Abu Dhabi that the capital’s strategic investment arm is “zooming in” on key sectors such as artificial intelligence, technology, financial services, life sciences and health care. The company has also been a central figure in developing renewable energy – for example, Mubadala Capital’s energy company Acelen said in 2023 that it would invest $2.5 billion in the next 10 years to produce renewable diesel and sustainable aviation kerosene in Brazil.
In fact, renewable energy is a prime example of how investment funds such as Mubadala can shape the future. According to TheCityUK, a British financial industry advocacy group, sovereign wealth funds are “significant drivers of the transition to renewable energy and broader sustainability”, adding that in 2023, sovereign investment vehicles’ $21.6 billion investments in green assets such as electric vehicles and renewable battery storage were more than double that invested in assets such as fossil fuels or mining.
For Mubadala to have made diverse investments totalling $29.9 billion last year is a significant milestone, but it is also an important reflection of the UAE’s overall strategy for a sustainable future amid an energy transition. Global SWF’s report ranked Mubadala alongside four Gulf peers – Abu Dhabi Investment Authority and ADQ, as well as Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority. To have five GCC sovereign wealth funds in a list of the top 10 global dealmakers shows the strategic direction many of the Gulf countries are taking to diversify their economies.
For Mubadala to have made diverse investments totalling $29.9 billion last year is a significant milestone, but it is also an important reflection of the UAE’s overall strategy for a sustainable, post-oil future
As noted earlier, this year’s economic outlook is optimistic even despite the challenges posed by several unresolved international conflicts. But it was not always this way; during the economic doldrums of the Covid-19 pandemic, Mubadala continued to make significant investments – in 2020, it invested more than $11 billion, an almost 50 per cent increase from 2019. These bold choices, based on strategic insights, are clearly paying off.
The results of this approach, as seen in this week’s news, should offer some lessons for investors about resilience and long-term strategic thinking. Essentially, successful sovereign investing is about making the right choices for future prosperity – an approach that the UAE has been taking for decades.
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If you go
Flying
Despite the extreme distance, flying to Fairbanks is relatively simple, requiring just one transfer in Seattle, which can be reached directly from Dubai with Emirates for Dh6,800 return.
Touring
Gondwana Ecotours’ seven-day Polar Bear Adventure starts in Fairbanks in central Alaska before visiting Kaktovik and Utqiarvik on the North Slope. Polar bear viewing is highly likely in Kaktovik, with up to five two-hour boat tours included. Prices start from Dh11,500 per person, with all local flights, meals and accommodation included; gondwanaecotours.com
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UAE currency: the story behind the money in your pockets
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Nancy 9 (Hassa Beek)
Nancy Ajram
(In2Musica)
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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UAE Falcons
Carly Lewis (captain), Emily Fensome, Kelly Loy, Isabel Affley, Jessica Cronin, Jemma Eley, Jenna Guy, Kate Lewis, Megan Polley, Charlie Preston, Becki Quigley and Sophie Siffre. Deb Jones and Lucia Sdao – coach and assistant coach.
Manchester City (0) v Liverpool (3)
Uefa Champions League, quarter-final, second leg
Where: Etihad Stadium
When: Tuesday, 10.45pm
Live on beIN Sports HD
The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
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Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
