In a time of great uncertainty, the UAE continues to attract the world\u2019s most sophisticated capital. A recent deal involving Apollo Global Management is a testament to the strength of the country\u2019s fundamentals and the wisdom in building long-term strategic relationships.<\/p>\n
Apollo, an American asset management firm, announced on Monday<\/a> that it was investing more than $1 billion for a less than 10 per cent stake in Mubadala Capital, the alternative asset management subsidiary of Mubadala Investment Company. Other strategic investors are expected to join, bringing anticipated commitments of $5 billion to the company\u2019s overseas investment strategies.<\/p>\n The stake is, in and of itself, an endorsement of Mubadala Capital\u2019s business and international growth prospects. But the significance extends beyond the money involved, with Apollo\u2019s expertise and global relationships expected to help the Abu Dhabi firm attract a wider pool of investors, particularly in North America.<\/p>\n The announcement comes at a time of deepening commercial ties between other UAE-based entities and America\u2019s most influential financial institutions.<\/p>\n In May, L\u2019imad Holding Company, Abu Dhabi\u2019s most recently established sovereign wealth fund<\/a>, and Adnoc joined Global Infrastructure Partners, a subsidiary of BlackRock and Singaporean global investment company Temasek in a consortium<\/a> that aims to inject $30 billion of infrastructure investments in the Gulf and Central Asia.<\/p>\n The current, favourable investment climate in the UAE \u2013 even as the broader region remains locked in a nearly eight-month military conflict \u2013 is instructive.<\/p>\n No country is ever immune to disruptions, but the objective must always be to build resilience in anticipation of the next crisis<\/p>\n The country\u2019s location undoubtedly makes it an attractive destination for overseas investors. As BlackRock\u2019s senior managing director, Mike Pyle, said earlier this year, \u201cthe Gulf is really the linchpin\u201d that connects the Middle East to South Asia and South-East Asia. But geographical advantages don\u2019t adequately explain the trends. There are other factors, such as the UAE\u2019s internal stability, its ambitions, and its ability to think and plan long term \u2013 as last week\u2019s national budget showed.<\/p>\n In his interview to The National<\/a>, Apollo chief executive Marc Rowan offered a revealing assessment of risk<\/a>. Asked about potential concerns given the ongoing Iran war, he said: \u201cEveryone has adapted to the situation. We now know what the outcome is. It doesn\u2019t mean there won\u2019t be continued hostilities, but in terms of the unknown, we have less risk today than we did a year ago.\u201d<\/p>\n That assessment, from the head of a firm managing more than $1 trillion, is a powerful vote of confidence in the UAE\u2019s stability and adaptability. It also suggests that investors are willing to distinguish between the current regional turbulence and the UAE\u2019s longer-term economic and financial prospects.<\/p>\n