Profit jump for Abu Dhabi state investor Mubadala

Mubadala’s group CEO and managing director Khaldoon Al-Mubarak.
Updated 30 April 2018
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Profit jump for Abu Dhabi state investor Mubadala

  • Mubadala unveiled a new operating structure in February 2017, following its merger with International Petroleum Investment Company 
  • The new structure is built around four main platforms — aerospace; renewables and ICT; alternative investments and infrastructure; petroleum and petrochemicals; and technology, manufacturing and mining.

DUBAI: Mubadala Investment Company’s annual operating profit rose by 11.5 percent in 2017, the first year under its new organizational structure.

Operating income rose to 10.7 billion dirhams ($2.9 billion) last year, compared with 9.6 billion dirhams in 2016, the Abu Dhabi state investor said in a statement on Sunday. 

Mubadala unveiled a new operating structure in February 2017, following its merger with fellow state investor the International Petroleum Investment Company the previous year. 

The new structure is built around four main platforms — aerospace; renewables and ICT; alternative investments and infrastructure; petroleum and petrochemicals; and technology, manufacturing and mining.

“All four global platforms contributed to our strong financial and operational results,” said Mubadala’s group CEO and managing director Khaldoon Al-Mubarak.

“The scale of our integrated portfolio enabled us to increase investments in existing companies and monetize mature assets, while entering new sectors in key international markets where we see long-term growth potential and alignment with Abu Dhabi’s strategic priorities.”

Mubadala’s total comprehensive income doubled to 10.3 billion dirhams last year, thanks to what it described as gains from “divestments of mature assets and the increase in value of financial holdings.” 

These divestments included the sale of a 40 percent stake in district-cooling business Tabreed to France’s Engie for 2.8 billion dirhams, and the offloading of shares in chipmaker AMD worth 4.18 billion dirhams. 

“In 2017, we made significant progress by reducing overall leverage while maintaining appropriate liquidity to deploy capital in new investments,” said Mubadala CFO Carlos Obeid.

“In addition, we took the opportunity to monetize some of our mature assets which provided a significant return on our original investments, in line with our mandate to deliver financial returns to our shareholder.”

Revenues rose by 13.9 percent to 165.6 billion dirhams last year, with upstream and integrated, petrochemicals and semiconductor business lines providing major contributions. 

The company did not give a breakdown of revenue growth for the four platforms. 

OMV, an Austrian oil and gas company partly owned by Mubadala, on Sunday signed a $1.5 billion deal with Abu Dhabi National Oil Company (ADNOC) for a 20 percent stake in two offshore concessions in the emirate for 40 years. 

The SARB and Umm Lulu fields produce 215,000 barrels of oil per day.


Artificial intelligence is transitioning into a ‘digital employee’

Updated 27 February 2026
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Artificial intelligence is transitioning into a ‘digital employee’

  • AI can be an effective tool, business leaders tell Arab News
  • Not about jobs, but ‘convergence of human capital and AI’

RIYADH:  Artificial intelligence is fundamentally reshaping the world of work, transitioning from a supporting tool to an active partner that is radically changing the nature of professions and productivity standards.

Amidst the current global transformations, an active regional digital environment is emerging.

This is being led by Saudi Arabia through Vision 2030 and massive investments in smart infrastructure, providing a living model for studying the implications of this partnership between humans and machines on the future of work in the region.

Arab News spoke to various business leaders about the emerging shape of the sector.

Salem Bagami, co-founder of Metatalent, said the ideal relationship between humans and machines at work should be complementary and collaborative.

Humans would bring creativity, emotional intelligence, and complex decision-making, while machines excel at processing big data and performing repetitive, precise tasks.

He believes that this type of balanced partnership would lead to unprecedented productivity and innovation.

While machines excel at processing big data and performing repetitive, precise tasks, humans would bring creativity, emotional intelligence, and complex decision-making. (Supplied)

Mohammad Al-Jallad, chief technologist and director at HPE, said AI has gone beyond being merely an executive tool to becoming a “digital employee” entrusted with automating routine tasks and providing insights based on data analysis.

He believes that the real opportunity lies not in the debate over job replacement, but in “the convergence of human capital and artificial intelligence.”

AI should augment human teams by taking on menial and routine tasks, enabling employees to focus on critical thinking, creativity, and ethical reasoning, significantly improving operational results.

Bagami also emphasized the complementary nature of this partnership. “The ideal relationship between humans and machines at work is one of collaboration, where each complements the others.”

He explained that humans bring creativity, emotional intelligence, and nuanced decision-making, while machines excel at processing big data and performing repetitive tasks efficiently, leading to increased productivity and innovation.

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Salem Alanazi, chairman of Jathwa Technology Co., notes a significant trend among Saudi Arabia companies toward using AI applications to provide faster services to customers at lower costs.

The emergence of the “virtual employee” available around the clock has eliminated the need for some traditional jobs in specific sectors.

Alanazi warns that some companies’ reluctance to adopt AI may expose them to real risks. “All those who hesitated to benefit from AI applications have a lack of understanding of these technologies.”

He said those who adopt these technologies will be able to offer lower-cost, higher-quality services, which will affect the market position of companies that lag behind.

Ali Aljumhour, CEO of VALUE Consultancy, said that the transition of AI into a partner has reshaped the list of most in-demand skills in the job market.

Skills such as “prompt engineering,” “human-machine integration,” and “digital ethics” are becoming increasingly important.

He added that AI has become an instantly available “technical knowledge base,” shifting the criteria for professional distinction toward those capable of smart interaction with these technologies.

In terms of ethics, transparency, and trust, Alanazi points to the complexities of global AI governance, where legislation overlaps and evolves rapidly to keep pace with potential risks, particularly in the areas of cybersecurity and privacy.

Ali Aljumhour, CEO of VALUE Consultancy. (Supplied)

Al-Jallad emphasizes this crucial dimension, noting that providing responsible and reliable AI solutions that meet the highest standards of transparency is a key priority, especially in regulated sectors.

Bagami believes there should be basic standards for the ethical use of Al, emphasizing the need for transparency, accountability, and fairness, along with using diverse data sets to prevent bias and protect privacy.

He believes that building trust between humans and machines requires clear explanations of how systems work, giving users the opportunity to provide feedback and conducting periodic performance reviews.

On performance evaluation, Aljumhour said: “I expect radical changes in standards, shifting from measuring individual effort to evaluating the quality of the partnership between humans and machines.”

There should be a focus on the quality of inputs provided to intelligent systems, the accuracy of review and modification, and complex decision-making based on outputs.

He warns, however, of new risks that may arise, such as over-reliance on AI or difficulty in determining responsibility for mistakes.

In the employment sector, Aljumhour expects fundamental changes in standards.

There will be questions and tests focusing on measuring skills in dealing with AI, such as asking candidates about their experiences of collaborating with these systems, or testing their ability to formulate effective requests for complex tasks.

Aljumhour identifies significant human challenges in this transition, with “fear, loss of power, and exclusivity of knowledge” being the biggest concerns for experienced employees.