Look beyond short-term threats of inflation, rate hikes, Mubadala’s chief executive urges investors at GMIS2021

DUBAI — As the world begins to recover from the COVID-19 pandemic, investors must remain wary of expected inflation and spiking interest rates, said Khaldoon Al Mubarak, Managing Director and Group CEO at Mubadala Investment Company.

Addressing the fourth edition of the Global Manufacturing and Industrialisation Summit (#GMIS2021) on Monday, Mubarak, elaborated on the investment themes of technology, life sciences and the energy transition, according to a GMIS statement.

“From a short-term perspective, there are challenges ahead with inflation creeping in and anticipated interest rate hikes, which will undoubtedly have implications.

“But Mubadala’s approach is that of the long-term, patient investor with convictions and thematic views. This has helped us to weather through difficult cyclical periods that would have challenged others,” said Mubarak, who pointed to Mubadala’s investment in Masdar in 2006 and GlobalFoundries in 2009.

Mubarak added that the Abu Dhabi Future Energy Company (Masdar) is now a global renewables player, with investments and assets across 33 countries, representing investments of over $20 billion (Dh73.4 billion) and nearly 11 gigawatts of renewable power generation.

“Fifteen years ago, we had started investing in the renewable energy transition, before it became the popular subject it is today. We are now well-positioned in that sector, empowered with the ability to continue growing at scale,” Mubarak said.

Commenting on the recent virtual summit between US President Joe Biden and Chinese President Xi Jinping, Mubadala’s Chief Executive said: “The world wants and needs continued economic prosperity, and maintaining these open lines are in the best interest of stability.”

“As a global trade and economic hub, the UAE has acted as the transiting point between the East and the West with substantial trade ties on both sides. Global stability is crucial, and only enhances our proposition in terms of trade, business and economic growth,” said Mubarak.

On Mubadala’s strategic partnership with the semiconductor manufacturer GlobalFoundries, Mubarak said that Mubadala had invested in what was a “challenging and competitive” sector, but is now critical to global supply chains and every major future industry.

Co-chaired by the UAE Ministry of Industry Advanced Technology and the United Nations Industrial Development Organisation, #GMIS2021 will draw on key global leaders from government, business and civil society to discuss and debate how data and connectivity are shaping the future of the manufacturing sector while presenting opportunities for investments in technology, innovation and industrialisation.

#GMIS2021 will be held during the six-day GMIS Week from November 22-27 at EXPO’s Dubai Exhibition Centre, featuring over 250 global speakers.