Mubadala, the Abu Dhabi investment fund with a mandate to boost the emirate's local economy, swung to a net profit in 2012, helped by improved margins at some of its core businesses and lower impairments.
Mubadala, which has stakes in General Electric and private equity firm Carlyle, made a profit of AED455m ($123.88m) for 2012, compared with a loss of AED3.2bn in 2011 when it booked heavy impairments on its financial portfolio.
Unlike other regional sovereign wealth funds like Abu Dhabi Investment Authority (ADIA) or Qatar Investment Authority (QIA), Mubadala's main goal is to engage in investments which enhance development of the local economy, a theme which has gained greater consensus since the wake of the Arab spring.
The fund has interests in semiconductors, oil and gas, aerospace and real estate among others.
Revenue for the year increased 12 percent to AED31.3bn from AED27.9bn in 2011, Mubadala said in a statement on Thursday. It attributed the rise in revenues to higher sale of semiconductors and revenue from land sales.
Losses from financial investments fell to AED1.43bn in 2012, compared with a loss of AED3.03bn in 2011, Mubadala said.
Impairment losses on the fund's property portfolio dropped to AED585.7m from AED653m for 2011.
"Our 2012 financial performance is a reflection of how we manage our portfolio, with certain key assets and projects reaching further maturity and improved market conditions positively impacting the value of many of our financial investments," said Chief Executive Khaldoon al Mubarak.
Mubadala's total assets stood at AED202.8bn ($55.22bn) at the end of the 2012, up from AED177.1bn a year ago.
Mubadala, one of few state-controlled vehicles to publish results, also owns stakes in local companies such as Tabreed and indebted developer Aldar Properties which received shareholder approval for a merger with rival Sorouh Real Estate in March.