Mubadala, the strategic investment company owned by Abu Dhabi, is now looking at making billions of dollars of investments in Brazil. The firm currently has no investments in BRICS markets (Brazil, Russia, India, China, South Africa), but is now looking to diversify its investment base in emerging markets. The educated Brazilian workforce and its wealth of natural resources is what makes the country an especially desirable market. In addition, emerging markets offer a more favorable risk-reward ratio, according to Waleed al Muhairi, Mubdala’s COO. The Brazilian media has reported that Mubdala has $13 billion available for investment across a number of sectors. Investments would be made over a period of years.
Brazil has attracted other investors from the UAE in recent years. Aabar Investments, owned by the International Petroleum Investment Company of Abu Dhabi, in 2009 invested $328 million in the Brazilian banking sector. The Abu Dhabi Investment Authority has invested in real estate. A Dubai based metals company has also invested in alumina refining in Brazil. Brazil’s exports to the Middle East reached $870 million in March 2011, a 35.5 percent increase compared to the same month in 2010.