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UAE’s Mubadala, Bpifrance commit extra $4.5bn to co-investment partnership

Abu Dhabi sovereign investor signs agreement during French President Emmanuel Macron’s official state visit to the UAE

mubadala
Mubadala Investment Company.

Abu Dhabi-based Mubadala has agreed to expand a co-investment partnership with BpiFrance, the French public investment bank, with an extra €4 billion ($4.5 billion) to be added over the next 10 years

During French President Emmanuel Macron’s official state visit to the UAE, sovereign investor, Mubadala Investment Company , signed two agreements aimed at facilitating investments in sectors of mutual priority and interest in France.

They are part of comprehensive economic agreements valued at more than €15 billion signed between Emirati and French companies to strengthen the investment partnership between the two nations, a statement said.

The deal between Mubadala and Bpifrance will see each party committing €2 billion to the French Emirati Fund Partnership and the Innovation Partnership.

The FEF Partnership, which is aimed at supporting, directly or through investment funds, the development of French enterprises with a proven growth potential, has been allocated €3.2 billion while the Innovation Partnership, which is focused on investments in high-growth French technology companies and Tech/VC funds, has been allocated €800 million.

The second agreement between Mubadala and the French Ministry of the Economy, Finance and Recovery, provides a framework for funds associated with the Abu Dhabi government to potentially invest €1.4 billion in funds based in France or with significant exposure to the French economy.

French President Emmanuel Macron.

The agreement will cover funds with exposure to all French economic sectors, including but not limited to key strategic sectors such as energy, semiconductors, and space, the statement added.

Khaldoon Khalifa Al Mubarak, Mubadala’s managing director and group CEO, said: “The strategic economic cooperation between the United Arab Emirates and the French Republic, as well as our history of successfully deploying capital alongside our partners in France, underpin these new agreements.

“The scale of these agreements reflects the significant opportunities we see in the French economy, which is entering a new era of innovation-led growth. Following today’s announcement, we will be able to accelerate our investments in the sectors rapidly emerging as the drivers of this growth. In doing so, we will strengthen the commercial ties between the UAE and France and help support the long-term economic growth of both nations.”

Bruno Le Maire, Minister of Economy, Finance and the Recovery of France, said: “This agreement marks the excellence and quality of our relationship. More broadly, the strategic partnership with Mubadala demonstrates France’s attractiveness and the UAE’s confidence in the potential of the French economy. This is the meaning of the second agreement signed today, which provides additional investment capacity of € 1.4 billion into the French economy.”

Nicolas Dufourcq, CEO of Bpifrance, added: “The renewal of our commitments for the next ten years, demonstrates our shared willingness to establish a long-term relationship to support French companies in a value creation approach with the support of our respective ecosystems.”

Bpifrance and Mubadala have built a strong relationship since the launch of the FEF Partnership in 2014 and the Innovation Partnership in 2017. In 2020, Mubadala also made a €1 billion commitment to Bpifrance’s flagship Lac1 Fund, which is focused on investing in listed French multinational companies.

Mubadala’s $243.4 billion (AED 894 billion) portfolio spans six continents with interests in multiple sectors and asset classes.

Headquartered in Abu Dhabi, Mubadala has offices in London, Rio de Janeiro, Moscow, New York, San Francisco and Beijing.

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