Happy Thursday everyone!

Abu Dhabi-based sovereign wealth fund Mubadala’s CEO was seen discussing broad investments across the AI landscape, positioning the UAE at the forefront of technological innovation in the US at the inaugural Energy and Innovation event, where US President Donald Trump also spoke. Complementing this, the UAE has unveiled an ambitious AED 900 billion budget for 2027–2029, which will prioritize artificial intelligence, along with essential sectors such as education, healthcare, and social welfare. Meanwhile, Abu Dhabi-backed Manchester City has set a new commercial benchmark by signing a reported £1 billion kit deal with Puma, the largest in Premier League history.

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Mubadala CEO Khaldoon Al Mubarak: “We Invested in Every Piece of AI”

Smashi Business Desk

Khaldoon Khalifa Al Mubarak, CEO and Managing Director of Mubadala Investment Company, used the inaugural Pennsylvania Energy and Innovation Summit to outline the UAE’s sweeping strategy to invest across the full spectrum of artificial intelligence and emerging technologies.

“We didn’t think of it as ‘we’re going to invest in AI,’” said Al Mubarak onstage at Carnegie Mellon University. “We thought of it as: we’re going to invest in every piece of AI.”

On Diversification

The senior Emirati official—who also chairs the UAE Executive Affairs Authority and sits on the country’s Executive Council—spoke to a packed room of U.S. policymakers, tech executives, and global investors, emphasizing the long game the UAE has been playing in diversifying its economy.

“My country suffered from an industrial revolution before we discovered oil,” he recalled. “Pearl diving was our main industry. Then came the Japanese artificial pearl—and that wiped us out. That was a huge lesson.”

That historic disruption, he said, shaped the UAE’s long-term mindset. “Over the last 50 years, we’ve built an economy that’s diversified, that’s resilient. And over the last ten years, we’ve focused intensely on technology.”

Investments in the US

Mubadala, the UAE’s sovereign investment arm, now has more than 40% of its portfolio invested in the United States. “We’re one of the largest foreign investors in this country,” Al Mubarak noted. “Just last week, we invested in PCI Pharma. We also have a long history with Nova Chemicals. So when people say we’re new here—we’re not.”

All in on AI

AI, however, is the latest and most transformative pillar. “We are not just investing. We are enabling,” he said. “Every board I sit on now has an AI observer. I was at a bank board meeting yesterday morning—we had an AI agent present, observing, analyzing, questioning. Not voting yet—but that might come.”

At Mubadala’s own investment committee, which Al Mubarak chairs, AI is now fully embedded. “We’ve developed our own co-pilot. Everyone on the committee can interact with it. It challenges assumptions, asks questions, tests our thinking. It doesn’t replace human decision-making—but it sharpens it.”

He also highlighted international collaboration, pointing to the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) in Abu Dhabi. “We recruited our university president from Carnegie Mellon. He’s still yours—but he’s ours now too,” he said with a smile. “That’s what partnership looks like.”

For Al Mubarak, partnerships are central to winning the AI race. “This isn’t just about tech. It’s about alliances. You win this race through partnership.”

Reflecting on the UAE’s edge in AI, he concluded: “We have energy, we have capital, and we have human capital. And when it comes to AI, those are huge strengths. We’ve identified that edge—and now we’re using it.”

The Pennsylvania summit, attended by U.S. President Donald Trump and key industry players, aims to channel more than $90 billion into AI and energy infrastructure. Al Mubarak’s presence signaled the UAE’s rising influence not just as an investor, but as a co-shaper of global tech ecosystems.

Markets

UAE Allocates AED900 Billion Federal Budget For 2027–2029 With AI, Education And Health As Key Priorities

🔹 What Is It About

The UAE has approved a federal budget allocation of AED900 billion ($245 billion) for the 2027–2029 cycle, Finance Minister Sheikh Maktoum bin Mohammed announced. The spending plan will prioritize artificial intelligence, along with essential sectors such as education, healthcare, and social welfare. Federal government assets reached AED464 billion by end-2024, underscoring the country’s growing fiscal strength.

🔹 Why It Matters

This is the largest multi-year budget ever announced by the UAE, reflecting its long-term commitment to future-proofing the economy. With a continued focus on digital transformation and human development, the budget aligns with broader national goals under Vision 2031. The announcement follows record capital expenditures and a robust 2025 federal budget, reinforcing the UAE's reputation for financial discipline and strategic planning.

🔹 What’s Next

The UAE is projected to maintain fiscal surpluses averaging 3.2% of GDP through 2028, according to S&P Global—even under conservative oil price estimates. Non-oil sector momentum and rising oil production are expected to support an average GDP growth of nearly 4% between 2025 and 2028. As the next budget cycle approaches, the emphasis will be on leveraging AI and innovation to deliver high-impact public services.

Abu Dhabi-backed Manchester City Signs Record £1 Billion Kit Deal With Puma

🔹 What Is It About

Manchester City has signed a landmark £1 billion kit sponsorship deal with Puma, marking the largest in Premier League history. The long-term agreement, reportedly spanning over ten years, reflects the club’s elevated global brand value and commercial appeal. Owned by Abu Dhabi’s City Football Group (CFG), the club continues to convert its on-field dominance into business milestones.

🔹 Why It Matters

The deal underscores the financial power and strategic vision behind Abu Dhabi’s 2008 acquisition of Manchester City. The club now contributes over 75% of CFG’s record £933 million revenue, with Manchester City posting a £73.8 million pre-tax profit in 2023–24. While CFG as a whole remains loss-making, the flagship club is a consistent commercial success — proof of how sustained investment can drive long-term gains.

🔹 What’s Next

Manchester City kicks off the 2025–26 Premier League season on August 16 with fresh financial firepower. The Puma extension signals stability and ambition, even after a trophyless season. For CFG, the challenge remains making its global portfolio of 13+ clubs profitable while Manchester City continues leading both financially and on the pitch.

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🏦Crypto Corner

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Follow Smashi Crypto to find out what’s news in the world of digital assets.

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