Abu Dhabi forms global technology investment company

New Abu Dhabi investment company could build tech portfolio worth $100 billion

#UAE #investment - Abu Dhabi’s newly formed Artificial Intelligence and Advanced Technology Council (AIATC) has announced a new global technology investment company, called MGX. The new company will focus on investing in AI infrastructure, semiconductor, and AI core technologies and applications, globally and locally. G42 and Mubadala have been named as foundational partners in the new company, which according to Bloomberg, aims to achieve a target of $100 billion of assets under management.

SO WHAT? - Over the past 6-7 years, Abu Dhabi has invested hundreds of millions of dollars simultaneously in the government’s digital transformation, in building a world-class R&D ecosystem drawing thousands of researchers analysts and coders to Abu Dhabi, in creating a stable of home-grown tech leaders, while increasingly focusing its investment funds on artificial intelligence and other emerging technologies.

Abu Dhabi has also pivoted from a global investment strategy focused primarily on financial returns, to one that also prioritises the role of global investment in bringing business, R&D and intellectual property (IP) to Abu Dhabi. The formation of MGX, creates an investment entity that can put this new strategy front and centre, whilst making the synergies across its future technology investment portfolio a clear part of its value proposition.

Key details about this announcement:

• A new global technology investment company called MGX, was announced by the Artificial Intelligence and Advanced Technology Council (AIATC) of the Government of Abu Dhabi. The council states that Mubadala and G42 will serve as ‘foundational partners’ in the creation of the new company.

• The emirate formed the AIATC in January 2024, to develop and implement policies and strategies related to research, infrastructure and investments in AI and advanced technology in Abu Dhabi. Its launch reinforced Abu Dhabi's strong belief in the importance of technological leadership in building the economy of the future.

• Core to MGX’s goals are to accelerate the development and adoption of responsible AI and associated technologies, and so to play a global role in shaping the future of artificial intelligence.

• MGX’s investment strategy will focus on three main areas: AI infrastructure (including data centers and connectivity); semiconductors (including logic and memory chip design and manufacturing); and AI core technologies and applications (including AI models, software, data, life sciences and robotics).

• The new investment company will not only build on Abu Dhabi’s own technology investments, but also invest alongside global technology and investment companies, helping to bolster the emirate’s position as a global tech hub.

• His Highness Sheikh Tahnoun Bin Zayed Al Nahyan, chair of the AIATC, is the chairman of the new company, while His Excellency Khaldoon Khalifa Al Mubarak, Managing Director and Group Chief Executive Officer of Mubadala, will serve as vice-chair. Other board members include His Excellency Jassem Mohamed Bu Ataba Al Zaabi, chair of Abu Dhabi's Department of Finance; Ahmed Yahia Al Idrissi, the current CEO of Mubadala’s Direct Investments platform; and Peng Xiao, CEO of the G42 Group.

• Ahmed Yahia Al Idrissi, has been named as MGX’s first CEO, in addition to his role as a a board member.

ZOOM OUT - The launch of the new global technology investment company follows many years of technology investing by Abu Dhabi, and by its sovereign wealth fund Mubadala in particular. Mubadala formed Advanced Technology Investment Company (ATIC) in 2008 to invest in semiconductor company AMD and what later became Global Foundries. ATIC was absorbed by Mubadala in 2011 and the assets became part of the portfolio of its Direct Investments platform. Mubadala has also created multiple mid-sized tech-focused funds and invested heavily in SoftBank’s Vision Fund in 2017. The new alignment of investments under MGX reflects both the new scale of Abu Dhabi’s technology investment and the desire to take full control of investment outcomes and impacts.

IMO - The launch of MGX is a huge milestone for Abu Dhabi for three reasons. First, it’s a powerful demonstration to the global technology ecosystem that Abu Dhabi deserves a stake in the most significant tech investment deals. Second, the creation of MGX makes it clear that Abu Dhabi wants to be accountable for the outcomes of its tech investments, rather than just ‘going along for the ride’. And third, the new company provides a clear signal that the UAE’s influence in the global development of AI, isn’t going to be limited to MoUs, alliances or seats on international policy councils. It’s also prepared to invest.

Read more about Abu Dhabi investment strategy:

• Abu Dhabi forms AI and Advanced Technology Council (Middle East AI News)

• R&D moves up Abu Dhabi's agenda (Middle East AI News)

Updated 18-Sep-24