State-owned investment fund is hit by lower commodity prices and weaker income from financial investments
Abu Dhabi investment fund Mubadala reported a first-half loss on Thursday hit by lower commodity prices and weaker financial investment income.
Mubadala is focused on development of the local economy through both local brands such as clean energy firm Masdar and stakes in international companies such as General Electric .
It is currently merging with fellow Abu Dhabi-owned fund International Petroleum Investment Co (IPIC), as the emirate aims to consolidate in response to lower oil prices.
Commodity prices were one of the main drags on Mubadala's latest earnings.
It suffered a loss attributable to equity owners of 4.43 billion dirhams ($1.21 billion) in the first six months of 2016 versus a profit of 625.5 million dirhams a year earlier, it said in a statement.
It reported a loss in total comprehensive income of 4.96 billion dirhams after a profit of 477.7 million a year earlier.
"The global economic challenges we have faced since the beginning of 2015 persist," Mubadala Group CEO Khaldoon al-Mubarak said in the statement.
As well as lower commodity prices, Mubadala was hit by an 80 percent fall in financial investment profits to 328 million dirhams, with higher depreciation costs and impairments also hurting earnings.
Total revenue rose 5.1 percent to 14.3 billion dirhams boosted by stronger performances in healthcare and semiconductors.