Assets drive Mubadala profit surge

Mubadala Development, the Government’s strategic investment arm, said yesterday that profits more than quadrupled in the first half of this year, after rising prices for its growing pool of assets offset higher costs incurred as the company expanded into new operations.

Most of the surge in Mubadala’s profits was the result of recognising higher market prices for its holdings of oil and stocks. Without such revaluations on investments, the company’s net income from operations actually fell.

“Mubadala is showing strong financial metrics while delivering projects that deliver on the double bottom line – financial performance and strategic interests,” said Waleed al Muhairi, the chief operating officer. “Part of the core mission of Mubadala is diversifying our economy from oil and gas and therefore reducing the risk of our portfolio. And so while oil and gas remains our biggest contributor, there’s no question we’re developing other contributors.”