Mubadala Capital, based in Abu Dhabi, is optimistic about Brazil’s future and plans to invest over $1 billion in the country each year.
Oscar Fahlgren, the CEO in Brazil, shared these plans in a recent video call with Bloomberg Linea.
So far, the company has invested $5 billion in Brazil. Fahlgren praised Brazil’s growing GDP and political stability.
He also mentioned that global sentiment is turning in favor of Brazil. Mubadala recently launched a new $710 million fund focused on Brazil.
This amount is twice as large as their first fund. Moreover, they plan to start an even larger fund by 2024.
Managing more than $270 billion in total, Mubadala keeps searching for investment opportunities. About two-thirds of their fund comes from external investors.
They are especially interested in companies facing financial difficulties. Looking ahead, the firm might help struggling retail businesses.
They are also considering starting a new stock exchange. Another option is to create a new football league in Brazil.
Fahlgren noted to Bloomberg that the UAE joining BRICS will likely increase investment among member countries.
In fact, he sees Brazil as increasingly appealing due to global uncertainties.
Mubadala owns various assets in Brazil, including a road concession and an ethanol producer.
Both were bought from the troubled company Odebrecht. The firm also operates a refinery called Acelen, which was once part of Petrobras.
A recent partnership with Petrobras focuses on sustainable fuels. If successful, this project could make Brazil a major renewable fuel producer.
While some want Petrobras to buy back the refinery, Fahlgren did not comment on this. He stated that the firm is open to discussions that benefit both their investors and the company.
Finally, Mubadala aims to increase biofuel production at their ethanol plant. They are even exploring the addition of sustainable aviation fuel to their offerings.
Background
This move follows over a decade of Mubadala’s involvement in Brazil, during which they’ve invested over $5 billion.
The firm views Brazil as South America’s most attractive investment destination, especially given its rising GDP and political stability.
This ongoing commitment signals growing confidence in the Brazilian market and could inspire other foreign investors to follow suit.
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