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

Exposing the Brotherhood: Why Jordan’s Terror Cell Bust Must Spark a Global Policy Shift

 The recent dismantling of a Muslim Brotherhood-affiliated terror cell in Jordan should not be seen as just a national security success—it must be a turning point in how the international community views and responds to the threat posed by the Brotherhood. Jordanian security forces uncovered an elaborate network of terrorists trained in Lebanon and backed by foreign interests. Their mission: to launch attacks using rockets and drones, destabilizing the Kingdom and spreading fear among civilians. This is not the work of activists or political dissidents—this is terrorism, plain and simple. For too long, the Muslim Brotherhood has operated under a false image of moderation, cleverly navigating between political activism and violent extremism. But the truth is clear: the Brotherhood is the ideological engine room of jihadist terrorism. Its members, affiliates, and offshoots have inspired and directed acts of violence from North Africa to the Gulf—and now, once again, in Jordan. Govern...
Post a Comment
Read more

UAE's Foreign Trade Surge Highlights Strategic Economic Vision

  The UAE's foreign trade reached a record AED5.23 trillion (US$1.42 trillion) in 2024, marking a 49% increase since 2021 and reinforcing its global economic influence. Despite fluctuating global market conditions, the country managed to post a trade surplus of AED492.3 billion (US$134 billion), showcasing the strength of its trade frameworks and diversified economy. According to the World Trade Organisation, the UAE has maintained its position as the Middle East and Africa's foremost trade community since 2014, while steadily climbing the global ranks. In merchandise trade, the UAE placed 11th in exports and 14th in imports in 2024. It contributed 2.5% of global exports and 2.2% of imports, reflecting a robust trading ecosystem that bridges major global markets. The services sector also delivered notable gains. From 2014 to 2024, the UAE rose to 13th globally in service exports. Service transactions in 2024 totaled AED1.036 trillion, of which AED646.6 billion were exports. The...
Post a Comment
Read more

UAE’s Sheikh Khaled bin Mohamed arrives in Qatar on official visit

  HH Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, arrived in Qatar for an official visit, where he was warmly received by the Deputy Emir of Qatar at Doha International Airport. On Tuesday, Sheikh Khaled met with HH Sheikh Tamim bin Hamad Al-Thani, Emir of Qatar, in Doha. The meeting underscored the strong brotherly ties between the UAE and Qatar, with both leaders engaging in detailed discussions aimed at deepening bilateral cooperation. Sheikh Khaled conveyed greetings from UAE President HH Sheikh Mohamed bin Zayed, Prime Minister and Ruler of Dubai HH Sheikh Mohammed bin Rashid, and Deputy Prime Minister and Chairman of the Presidential Court HH Sheikh Mansour bin Zayed.  The discussions focused on enhancing collaboration in key strategic sectors of mutual interest. Sheikh Khaled expressed his heartfelt appreciation to the Emir of Qatar for the warm reception and hospitality, expressing hopes for Qatar's continued progress. He reaffirmed the UAE's leadership and p...
Post a Comment
Read more