Mubadala’s First Annual Report

Ashby Monk

Mubadala has just joined the list of formerly secretive SWFs. It just issued its first annual report. It joins the likes of Temasek and the Government of Singapore Investment Corporation, which issued their first reports last year. As far as I know–and as far as Andrew England of the FT knows–Mubadala is the first of all of the Middle Eastern SWFs to do so. This is thus a significant development.

According to the report, Mubadala incurred a net investment loss of Dh11.8bn. Nevertheless, the fund is set for a global expansion in 2009/10. Indeed, the act of releasing an annual report can be interpreted as a signal to countries around the world that it is ready to play (to a certain extent) by western rules and norms. This, it is likely hoped, will avoid protectionism by target countries. According to Mubadala’s Chief Executive Khaldoon al Mubarak:

“The publication of this annual report marks an important milestone in the evolution of Mubadala and reflects an ongoing commitment to transparency in relation to our investment strategy, finances and operations.”

While Mubadala did not participate in the International Working Group of SWFs (the Abu Dhabi Investment Authority represented the UAE), it is clear that the Santiago Principles have had an impact on this increasingly important SWF.

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This website is a project of Professor Gordon L. Clark and Dr. Ashby Monk of the School of Geography and the Environment at the University of Oxford. Their research on sovereign wealth funds is funded by the Leverhulme Trust and The Rotman International Centre for Pension Management.

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