Skip to main content

UAE foreign direct investment in Brazil and South Korea: Key details inside

In a recent development, UAE’s sovereign investment fund Mubadala Capital has announced a sizeable $13.5 billion investment in the biofuels sector of Brazil – a key bioethanol producer, contributing one-fifth of the total global output.
The initiative is part of a broader strategy for Brazil and also includes the construction of five processing units, each valued at $2.7 billion and capable of producing 20,000 barrels of biofuel every day. The first unit is expected to start operations by 2026.
Mubadala CIO Oscar Fahlgren, also the head of the entity’s Brazilian operations, said: “It is all about feedstock [which] in reality is agriculture … Brazil is probably the best-placed country … when it comes to agricultural proficiency because of the climate and the fertile soil.”
Mubadala Capital to open stock exchange in Brazil
The planned biofuel investment will also be used to convert an existing oil refinery in Bahia into a biofuel facility. Despite recent challenges such as gasoline subsidies, financial concerns and sugarcane crop issues, Brazil’s biofuel industry continues to sustain robust production.
The roots of ethanol’s integration into Brazil’s automotive sector trace back to the 1973 OPEC embargo, that elevated oil prices and crippled the country’s energy security as it significantly relied on imports. The then-government later launched a major policy initiative.
Besides the aforementioned plans, the UAE sovereign investment firm also seeks to open a stock exchange in Brazil in 2025 through its Americas Trading Group. “We are bullish on the investment climate in Brazil right now and the opportunities we see,” added Fahlgren.
UAE-Korea partnership gets a major boost
In response to its mid- to long-term plans to spread $30 billion across strategic sectors including nuclear energy, defence and clean energy of South Korean economy, the UAE is set to invest a maximum of $1 billion in the country’s startups via a joint venture.
UAE-based venture capital firm AIM Global Foundation and Seoul’s LB Investment are ready to set up a joint venture by attracting Emirati institutional investors, as per reports. The latter, a leading VC firm, will manage the JV’s portfolio for Korean Ventures.
LB Investment has invested in BTS agency HYBE Co, Chinese dating app Tantan, game developer Pearl Abyss and many unicorn companies. Since its foundation, the firm has been prominent as one of the best and most active fund managers in the country.
The latest announcement has added fresh air to the UAE-Korea partnership, which has long focused on mega agreements for construction and energy projects in the Middle East. The $30 billion-investment plan came during the Korean President’s visit in 2023.
LB Investment’s Chief Executive Park Kiho spoke on Tuesday at the AIM Congress being held in the UAE capital, one of the largest investment forums in the Middle East – becoming the first person from a Korean VC firm to speak at an opening session of the Congress.
Labels:

Comments

Post a Comment

Popular posts from this blog

Sky Care: How the UAE’s First Hospital Vertiport is Redefining Emergency Response

  Imagine a critical patient, a time-sensitive organ for transplant, or a specialist medical team needed across a bustling city. On the ground, traffic is a formidable adversary, where every minute lost can alter outcomes. Now, imagine that same journey taking minutes instead of an hour, not by navigating the roads, but by soaring gracefully above them. This is not a scene from a sci-fi film; it is the new reality in the United Arab Emirates. In a landmark move that solidifies its position on the global stage of innovation, the UAE has officially launched the nation’s — and the region’s — first hospital-based vertiport at Cleveland Clinic Abu Dhabi. This isn’t just a helipad with a new name. It is the cornerstone of a fully integrated, city-wide advanced air mobility (AAM) ecosystem, marking a profound convergence of cutting-edge aviation, AI-driven healthcare, and sustainable infrastructure. The Launch of a Lifesaving Corridor The project is a powerful collaboration between aviati...
Post a Comment
Read more

Three Houses, One Vision – How the UAE’s Abrahamic Family House is Redefining Inter-Faith Dialogue

  When you step onto the stone-plinth of the Abrahamic Family House on Saadiyat Island in Abu Dhabi, you are not just visiting a building. You are entering a bold statement: a mosque, a church and a synagogue standing side-by-side, equal in size and purpose, sharing common ground while respecting their separate faiths. A landmark of coexistence In early 2023 the UAE inaugurated this pioneering complex, inviting worshippers and visitors alike. The architecture — designed to give each of the three faith-homes the same external dimensions and to signal equality — allows each to express its own traditions while remaining visibly part of a unified vision. More than 200 nationalities live in the UAE, which means the project reflects a multicultural reality in which multiple faiths and identities coexist daily. Islam’s role in the vision For Muslim-majority audiences in the Gulf, the Abrahamic Family House sends a resonant message: Islam does not fear dialogue — it embraces it. The m...
Post a Comment
Read more

Beyond the Barrel: The UAE's Steady Hand in a Shifting Global Economy

  Global economic rankings often highlight familiar names, but a steady, deliberate climb is happening in the Gulf. The UAE consistently ranks as one of the most economically stable nations, and this validation stems from a steady reform model that has successfully insulated its economy. The story is no longer about oil wealth; it's about the strategic deployment of that wealth to build a resilient, modern, and dynamic knowledge economy. The proof is in the sectors now driving growth.  Tech startups  are flourishing in Dubai and Abu Dhabi, supported by government venture funds and a growing pool of talent.  Smart cities  like Masdar City and NEOM are not just futuristic concepts but active testbeds for sustainable living and business. This has triggered record  FDI inflows , with the UAE securing its position as the 16th largest global destination for foreign direct investment. The narrative is supported by hard data: a GDP growth projection of 4.6% in 2025...
Post a Comment
Read more