The UAE’s long game is paying off for global capital

In an environment of great uncertainty, the UAE continues to attract top-tier investors and capital. A recent $1 billion investment by Apollo Global Management into Mubadala Capital, a subsidiary of Mubadala Investment Company, demonstrates the country's robust fundamentals and the value of building long-term strategic partnerships.

Mubadala Capital's stake in Mubadala Capital signals confidence in the firm's international growth potential, and Apollo's global relationships are anticipated to bring in additional capital, particularly from North America.

The announcement aligns with a broader trend of strengthening commercial ties between UAE-based entities and America's most influential financial institutions. In May, L’imad Holding Company, a recently established sovereign wealth fund in Abu Dhabi, joined forces with Adnoc and a consortium comprising Global Infrastructure Partners, BlackRock, and Temasek to invest $30 billion in infrastructure projects across the Gulf and Central Asia.

Despite the ongoing military conflict, the UAE is currently experiencing a favorable investment climate. No nation is entirely immune to disruptions, but the UAE's strategy should focus on building resilience in anticipation of future crises. Geographical advantages certainly contribute to the UAE's appeal for overseas investors; however, other factors, such as internal stability, long-term planning, and ambitious goals, also play a crucial role.

Apollo CEO Marc Rowan's perspective on risk highlights the country's adaptability and stability, even amid the Iran war. In a recent interview, Rowan noted that while ongoing tensions exist, the unknowns have become less risky compared to a year ago. This assessment from a leader of a $1 trillion firm bolsters confidence in the UAE's long-term economic and financial prospects, indicating that investors are willing to separate current regional turbulence from the UAE's broader growth potential.

Recent data corroborates the UAE's ability to attract capital and talent, even amidst the war. Abu Dhabi Global Market reported a 57% increase in assets under management during the first quarter, with the count of asset and fund managers rising by 24% to 179. Global fund managers like Capital Group and State Street have also chosen the UAE as their base, underscoring the country's growing attractiveness for international investment.

By expanding its commercial relationships and focusing on long-term investments, the UAE is bolstering the foundation for future prosperity. This strategic approach signifies a sound economic strategy.