Abu Dhabi’s Mubadala reports Dh4.2 billion profit first half of 2017

Mubadala’s first-half profit was at Dh4.2 billion, compared with a Dh4.7 billion loss in the same period of 2016. (AFP)
Updated 28 September 2017
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Abu Dhabi’s Mubadala reports Dh4.2 billion profit first half of 2017

DUBAI: Abu Dhabi’s state-owned Mubadala Investment Company on Thursday reported a profit for the first half, in its first financial report after merging with International Petroleum Investment Company earlier this year.
The company’s first-half profit was at Dh4.2 billion, compared with a Dh4.7 billion loss in the same period of 2016, Mubadala said in a statement.
First-half revenues also rose to Dh83.4 billion, from Dh72.9 last year, driven by higher returns across Mubadala’s oil and gas, semiconductors and aerospace platforms.
Total assets were pegged at Dh465.5 billion as of June 30, versus Dh449.7 billion at the end of 2016 primarily due to an increase in the value of financial investments, a $ 2.1-billion bond raised by Nova Chemicals and dividends from financial investments, Mubadala said.
The results incorporated the Mubadala and IPIC financial statements from the first half of 2017, the company noted.
“The results from the first half of 2017 reflect the strength and scale of Mubadala Investment Company’s diversified global portfolio and robust balance sheet,” Khaldoon Khalifa Al-Mubarak, the group chief executive and managing director, said.
“We will continue to integrate, optimize and grow the company’s assets under our global business platforms, to create and realize maximum financial and strategic returns to support diversification of the economy of Abu Dhabi and the country.”
Abu Dhabi’s strategic investment company in its financial report said it cashed in on 45 million shares of Advanced Micro Devices in March, valued at Dh2.25 billion, another 40 million shares worth Dh1.93 billion in August. Mubadala how remains the largest shareholder of the US chipmaker at 12.9 percent.
Mubadala also said it sold a 40 percent stake in Tabreed to Engie, a French-based energy company, for Dh2.9 billion, but remained the major shareholder with a 42 percent interest.


Gulf defense spending ‘to top $110bn by 2023’

Updated 15 February 2019
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Gulf defense spending ‘to top $110bn by 2023’

  • Saudi Arabia and UAE initiatives ‘driving forward industrial defense capabilities’
  • Budgets are increasing as countries pursue modernization of equipment and expansion of their current capabilities

LONDON: Defense spending by Gulf Arab states is expected to rise to more than $110 billion by 2023, driven partly by localized military initiatives by Saudi Arabia and the UAE, a report has found.

Budgets are increasing as countries pursue the modernization of equipment and expansion of their current capabilities, according to a report by analytics firm Jane’s by IHS Markit.

Military expenditure in the Gulf will increase from $82.33 billion in 2013 to an estimated $103.01 billion in 2019, and is forecast to continue trending upward to $110.86 billion in 2023.

“Falling energy revenues between 2014 and 2016 led to some major procurement projects being delayed as governments reigned in budget deficits,” said Charles Forrester, senior defense industry analyst at Jane’s.

“However, defense was generally protected from the worst of the spending cuts due to regional security concerns and budgets are now growing again.”

Major deals in the region have included Eurofighter Typhoon purchases by countries including Saudi Arabia and Kuwait.

Saudi Arabia is also looking to “localize” 50 percent of total government military spending in the Kingdom by 2030, and in 2017 announced the launch of the state-owned military industrial company Saudi Arabia Military Industries.

Forrester said such moves will boost the ability for Gulf countries to start exporting, rather than purely importing defense equipment.

“Within the defense sector, the establishment of Saudi Arabia Military Industries (SAMI) in 2017 and consolidation of the UAE’s defense industrial base through the creation of Emirates Defense Industries Company (EDIC) in 2014 have helped consolidate and drive forward industrial defense capabilities,” he said.

“This has happened as the countries focus on improving the quality of the defense technological work packages they undertake through offset, as well as increasing their ability to begin exporting defense equipment.”

Regional countries are also considering the use of “disruptive technologies” such as artificial intelligence in defense, Forrester said.

Meanwhile, it emerged on Friday that worldwide outlays on weapons and defense rose 1.8 percent to more than $1.67 trillion in 2018.

The US was responsible for almost half that increase, according to “The Military Balance” report released at the Munich Security Conference and quoted by Reuters.

Western powers were concerned about Russia’s upgrades of air bases and air defense systems in Crimea, the report said, but added that “China perhaps represents even more of a challenge, as it introduces yet more advanced military systems and is engaged in a strategy to improve its forces’ ability to operate at distance from the homeland.”