2017 Annual Review
Aerospace, Renewables and Information & Communications Technology
Aerospace, Renewables & ICT

Within the first year of our operations as a combined new team, we reached significant milestones across businesses, and achieved our financial and operational goals.

Khaled Abdulla Al Qubaisi
Khaled Abdulla Al Qubaisi
Chief Executive Officer, Aerospace, Renewables & ICT
What were the highlights for the Aerospace, Renewables & ICT platform in 2017?

The launch of Mubadala Investment Company in 2017 also led to the creation of a diverse and dynamic Aerospace, Renewables and Information & Communications Technology platform with companies across the aerospace, renewables, ICT, utilities and defense industries. Within the first year of our operations as a combined new team, we reached significant milestones across businesses, and achieved our financial and operational goals.

In aerospace, we continue to foster valued partnerships with globally renowned original equipment manufacturers (OEMs). Our focus on profitable and growing segments of the industry—be they in manufacturing, maintenance, repair and overhaul (MRO) services, or leasing—ensures that this division will continue to be the source of exciting developments.

Masdar, which spearheads our renewables strategy, has grown into a global leader in commercial-scale renewable energy projects. Today, it is pioneering sustainable urban development, advancing clean-tech innovation, and delivering world-class knowledge and industry platforms.

Over the past year, Masdar invested in, and worked closely with Statoil to launch, Hywind Scotland — the world’s first commercial floating offshore wind farm. In just three months, the project had already exceeded operational expectations.

Within ICT, Mubadala operates in a highly competitive and expanding global market. In 2017, our ICT businesses worked with many UAE government authorities on projects that utilized our advanced solutions and expertise.

What have been some of your platform’s local success stories?

This year, our advanced composites aerostructures manufacturer, Strata, signed a joint venture (JV) with Solvay, an international materials and chemicals company. The JV will help Strata move into advanced materials manufacturing, and become the UAE’s first supplier of pre-impregnated carbon fibers. This durable advanced material is used to manufacture composite structures for aviation applications, including Boeing’s latest generation aircraft, the 777X. Most importantly, this partnership will enable Strata to become one of four manufacturers in the world capable of producing such material.

In June, a Masdar-led consortium completed the financing for Phase 3 of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. The 800-megawatt (MW) project is now the largest renewable energy project in the Middle East to receive Sharia-compliant financing, which is one of the fastest-growing segments of the global financial market.

In the utilities space, we successfully sold a 40 percent stake in Tabreed, our district cooling business, to ENGIE for AED 2.8 billion (approx. US $762 million). This partnership has led to closer relations, and we have subsequently begun collaborating globally with this French multinational leader to explore possible new projects in the power and renewables sector.

Injazat, part of our ICT business division, worked with Abu Dhabi’s Civil Defense authority to implement the Hassantuk project, a smart network that links fire safety systems across all buildings within the Emirate. Injazat is also working with the Ministry of Health to develop a comprehensive healthcare vertical database.

Abu Dhabi Ship Building (ADSB), our defense asset, also posted its second highest revenue in its 20-year history, an achievement that has allowed the company to expand beyond shipbuilding — into the oil and gas sector for the first time.

How has the platform’s strategy evolved since the establishment of Mubadala Investment Company, and what lies ahead?

Our new strategy involves a focus on financial returns, furthering our shareholder’s strategic objectives of a globally integrated and diversified economy. Across the Aerospace, Renewables and Information & Communications Technology platform, we engaged in transactions in the region and around the world, and we achieved positive results. Our success is testament to the strength of Mubadala Investment Company’s new strategic agenda.

Looking ahead, our strategy will reflect Mubadala’s increasing maturity as a global investor.

We are already moving in the right direction. In aerospace, we have contracts in place with Boeing and Airbus to manufacture parts in Abu Dhabi; and an expanding MRO portfolio, managing US $1billion worth of engine components. In renewables, we are developing commercially viable solar and wind plants, and advancing sustainable real estate designs. In utilities, we are investing in conventional power, transmission, water and district energy within the GCC, and other emerging markets. In ICT, we are targeting minority investments in infrastructure-related areas, and other key growth technology segments, such as data centers, satellites and fiber optics.

There are common threads that unify our plans across all these sectors. In particular, we are looking at the most efficient ways to partner with organizations that align with our strengths. Ultimately, we will do what makes the most sense from both a strategic and financial perspective.

Aerospace

We are creating a cutting-edge, internationally integrated aerospace hub for Abu Dhabi, and developing a highly skilled local workforce.

Our focus is on partnering with leading original equipment manufacturers (OEMs) to build world-class manufacturing and services businesses.

Strata

Strata is a composite aerostructures manufacturing facility based in the heart of the Nibras Al Ain Aerospace Park in the UAE. It has partnerships with the world’s leading aircraft manufacturers including Airbus, Boeing and SABCA (Societe anonyme belge de constructions aeronautiques)

AED
0 M
Delivery of 642 shipsets comprising more than 9,774 parts worth AED 500 million
700+
Employees
0%
51% Emiratization of which 86% are female
Turbine Services & Solutions

Turbine Services & Solutions (TS&S) is a leading solutions, maintenance, repair and overhaul (MRO) provider for gas turbines and driven equipment. The company, with more than 27 years of experience, supports customers across the region and internationally.

0+
Overhauled 490+ aerospace and industrial engines since 2007
Re-delivered the first 3rd party
Rolls-Royce Trent 700 engine
0
Inducted over 100 International Aero Engines (IAE) V2500 engines
Sanad

Sanad, the Arabic word for “support,” launched in 2010 as an innovative aviation leasing entity offering dynamic financial solutions, with a focus on spare engines and components.

0 M
USD
Etihad Airways sale and leaseback of 12 spare engines worth US $265 million
0 BN+
USD
Asset portfolio
0 BN
USD
Estimated value of spares market
Renewables

Through our global renewable energy company, Masdar, we are advancing, commercializing and deploying clean technologies and energy solutions, and we have more than 3-gigawatt (GW) gross of renewable power projects in operation or under development globally.

We are also pioneering the development of a “green print” for sustainable cities of the future at Masdar City.

Masdar

Established in 2006, Masdar is a commercially driven, international renewable energy and sustainability company that advances innovative solutions in energy, water, urban development and clean technologies.

Partnership with Bee’ah on the region’s first waste-to-energy plant in Sharjah, UAE
Hywind Scotland the world’s first commercial-scale floating wind farm
Masdar delivering renewable energy projects under the US $50 million Caribbean Renewable Energy Fund
Information & Communications Technology

We are playing a key role in bringing high-tech Information & Communications Technology (ICT) services, capabilities and job opportunities to the UAE. Our focus is on positioning Abu Dhabi and the UAE as a regional ICT hub realizing opportunities created by global data capacity demand.

Yahsat

Yahsat is a global satellite communications company providing connectivity solutions to end users, commercial entities and governments across land, sea and air platform

Yahsat's first class of Masters in Space Systems and Technology graduated from Masdar Institute.
Yahsat and Eutelsat signed a multi-year capacity agreement
Khazna Datacenters

Khazna is the only dedicated commercial, wholesale data center provider based in the UAE. Founded in 2012, Khazna provides organizations with robust, tailored solutions to meet the growing need for data center operations in the UAE.

0 MW
Khazna set to double its capacity by the end of 2019, delivering over
24-megawatt (MW) of IT load
0%
Khazna’s Abu Dhabi-based data center is 40 % more energy efficient than others in UAE
Cognit

A joint venture between Mubadala and IBM Watson, Cognit supports business intelligence and decision makers to bring informed thinking, transformation and disruptive innovation to their industries.

Creation of the “Service 1” center in Dubai for the Prime Minister’s office
Utilities

High-quality and environmentally efficient utilities are fundamental to sustainable economic and urban development. Demand for efficient solutions in the provision of power, water and district cooling services continues to grow locally and regionally.

Mubadala is meeting requirements for sustainable, energy-efficient and innovative district cooling, power generation and water desalination by establishing and managing a portfolio of utilities businesses in the UAE and the broader region that deliver sustainable economic returns while providing essential services to millions of end-users.

National Central Cooling Company PJSC (Tabreed)

Tabreed National Central Cooling Company PJSC (Tabreed) is a leading district cooling company based in Abu Dhabi, providing sustainable, energy-efficient, cost-effective and innovative cooling solutions to government, commercial, residential and private organizations in the GCC. As the partner of choice for major infrastructure projects in the region, Tabreed develops custom-built cooling solutions that meet the unique requirements of its customers.

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Mubadala sold a 40% stake in Tabreed to worldwide energy leader ENGIE.