Mubadala's new venture capital arm is a feather in its cap



Mubadala Investment Company, Abu Dhabi's strategic firm with US$127 billion in assets, has always been a savvy investor. Once again it has proved that it has its finger on the pulse. The tech pulse, that is.

This May, Mubadala announced a $15bn commitment to the $100bn Softbank Vision fund, the high-profile tech investment brainchild of Japan's Softbank Group, which has already secured investment commitments from other high profile names including Saudi Arabia's  Public Investment Fund (PIF), Apple, Qualcomm and Taiwan's Foxconn.

On Wednesday, Mubadala took its tech-investment strategy a step further, with the announcement of a venture capital arm based in San Francisco.

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In addition to overseeing and managing Mubadala's commitment to Softbank's Vision fund, a dedicated ventures investment team will also oversee the Mubadala Ventures Fund, a $400 milion collaboration with Softbank, and a $200mn fund of funds.

The new venture capital arm will fall under Mubadala Capital, the financial investment arm of the company that manages more than $10bn in assets across its portfolio.

Mubadala is already a seasoned global investor, with stakes in companies such as private equity firm the Carlyle Group, British energy major BP and EMI Music publishing. Its further push into the venture capital world is the latest extension of its technology strategy, one that is shared by many regional peers.

Saudi Arabia's PIF has invested $3.5bn in ride-hailing app Uber, while Saudi Arabian billionaire Prince Alwaleed bin Talal owns 5 per cent of Twitter.

Technology investments are not just clever moves. They also help transfer technology to local economies, which falls within the mandate of Mubadala.

The Abu Dhabi strategic investor has already been successful in attracting big names to the UAE to develop local industries that need technology. These include Al Ain-based aerospace company Strata, a unit of Mubadala which is manufacturing parts for Airbus and Boeing aircraft through contracts that will generate Dh16n in work up to 2030.

Mubadala may be a global investor but it is also a national champion that will develop industries aimed at creating jobs and new revenue streams for the UAE, which has an ambitious diversification agenda.

Investing in technology is the right tool for an economy that wants to be a leader in emerging industries and Mubadala is leading the way.

5 of the most-popular Airbnb locations in Dubai

Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:

• Dubai Marina

The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.

Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739 
Two bedroom: Dh627 to Dh960 
Three bedroom: Dh721 to Dh1,104

• Downtown

Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure.  “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."

Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154

• City Walk

The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena.  “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”

Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809 
Two bedroom: Dh682 to Dh1,052 
Three bedroom: Dh784 to Dh1,210 

• Jumeirah Lake Towers

Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.

Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629 
Two bedroom: Dh549 to Dh818 
Three bedroom: Dh631 to Dh941

• Palm Jumeirah

Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.

Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770 
Two bedroom: Dh654 to Dh1,002 
Three bedroom: Dh752 to Dh1,152 

COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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Squid Game season two

Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5