Annual Report 2010
Services Ventures
The year was marked by a 22 percent increase in Mubadala Services Ventures’ operating income against 2009. Shareholder agreements for the formation of two financial services joint ventures were signed: one with the Pramerica Real Estate Investors arm of Prudential Financial, to create Mubadala Pramerica Real Estate Investors, and another with Mesirow Financial.
These two ventures will provide bespoke investment management solutions to institutional investors, corporations, and family offices across the region and will help to drive Abu Dhabi’s development as a center of excellence in asset management. Mubadala Pramerica will import capital from overseas to promote real estate developments in Abu Dhabi and the region, supporting the growth of developers through offering alternative sources of financing, while Mesirow Financial will focus on commodity and currency risk management services.
The operational launch of Bayanat was formalized with the signing of a five-year contract with the UAE Armed Forces. Leveraging 37 years of experience with the UAE military, Bayanat provides surveying, mapping, and geospatial information services to a number of strategic government entities and private sector companies.
Abu Dhabi Finance more than doubled the size of its loan book during the year and underwrote the largest market share of mortgages for Aldar and Sorouh, the leading Abu Dhabi-based developers.
It also successfully introduced its new Mamlakaty private residential mortgage product for UAE nationals, offering the lowest rate available in Abu Dhabi.
LeasePlan Emirates grew its vehicle leasing fleet by more than 40 percent, securing contracts with a number of leading clients, including Gasco, du, EMAL, and Musanada. The company also achieved its first monthly break-even, ahead of plan.
In the defense services sector, Al Taif Technical Services continued to deliver on its commitments to provide state-of-the-art maintenance, repair, and overhaul services for the entire wheeled and tracked vehicle fleet of the UAE Armed Forces, and maintain the highest levels of readiness for the fleet. The company also introduced lean six sigma concepts to its structure, improving its operations and efficiency.
Transportation and logistics activities saw Agility Abu Dhabi sign contracts with Samsung for logistics services in Abu Dhabi and handle Abu Dhabi Formula One Grand Prix logistics for the second successive year.
Agility delivered on its contractual commitment to Borouge by completing the logistics hub and chemical compound manufacturing unit in Shanghai, facilities that are set to become a catalyst for chemical logistics in China.
Emirates Ship Investment Company increased its owned or controlled fleet of dry bulk and product/chemical tanker carriers from 12 vessels to 23, including the acquisition of three medium range vessels, resulting in a more than doubling of revenues. The company also took delivery of two new build LPG tankers, now employed on a 7-year charter to Total. The company continues to deliver high-quality services focusing on local/regional industrial players and international blue-chip companies, including Emirates Steel Industries, Emirates Aluminium, Total, Shell, and Louis Dreyfus.
Dunia Finance, the consumer finance JV with Waha Capital and Fullerton Financial Holdings, expanded its product offering and grew its customer base from 10,900 to 55,710 during 2010. The company entered into the first-of-its-kind agreement to provide mobile banking services in partnership with du, one of the UAE’s two mobile operators.
Abu Dhabi Terminals continued to be a key contributor to the unit’s performance, with General Cargo & Project Related Shipments increasing by 9 percent and 28 percent respectively against 2009 performance. Half of Mubadala’s stake (25 percent) was sold down to Mubadala Infrastructure Partners at the beginning of 2010.
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