MUBADALA CO.

Organization Behavior

PART 1

Organization Behavior

Introduction

The Mubadala Company was established by the Government of Abu Dhabi, with a mandate to facilitate the diversification of Abu Dhabi's economy. The company is owned by the government of Abu Dhabi and is primarily an investment vehicle which focuses on the long term capital-intensive investments which have the potential to deliver strong financial returns and social benefits for the UAE. The company also generates commercial revenue. The company has 9 business units which include Aerospace, capital, energy, healthcare, industry, information & communications technology, infrastructure, real estate and services ventures. The main purpose of the company is to generate alternatives pertaining to a diverse range of strategic sectors deemed important for the Emirate's economy. The business unit that will be placed under scrutiny here is Energy. The rich heritage of the Middle East in the oil and gas sector, especially of Abu Dhabi is well known throughout the world. This region produces more oil and gas than any other region in the world. Mubadala has been focusing largely on other regions like MENA, Central and South East Asia. The focus has been subject to strict scrutiny by the government of Abu Dhabi and the process of expansion and alliance building is a very gradual one. It has been noted that several business opportunities have been lost due to slow red tape processes that the recommendations have to pass through. The recent expansion of the operation has brought Mubadala as far as the Caspian Sea. Considerable funds are being invested in the research & development as well. With all this in perspective, it is safe to say that Mubadala is a global giant in the energy sector. But this giant could have been much more enormous had some changes been brought to foster active alliances with other companies with similar interests. Founded in 2002 by the soon-to-be crown prince, Sheikh Muhammad bin Zayed Al Nahyan, the Mubadala Development Corporation is staffed by members of the same team involved in the early stages of the Dolphin Gas project. Many of them were handpicked for the purpose by Muhammad, most notably Mubadala's esteemed managing director, Khaldun bin Khalifa AI-Mubarak, and its CEO, Waleed bin Ahmad Al-Mokarrab Al-Muhairi of the Al-Bu Mahair section of the Bani Yas. Although Mubadala still serves as Dolphin's majority shareholder62 and - as indicated by the described Pearl Energy acquisition -clearly keeps an interest in hydrocarbon projects, since 2005 it has diversified considerably into a variety of other overseas investments. Most of these are overseen by its investment-management group63 and are already believed to be worth over $10 billion.64 Most conspicuously, in 2005 Mubadala purchased a 5 percent stake, worth $130 million, in Italy's celebrated Ferrari car manufacturer. In 2006, the Mubadala Development Corporation established yet another subsidiary to pioneer these developments, the Abu Dhabi Future Energy Company (AD- FEC). The plan was for $4 billion of the new company's budget to come directly from Mubadala, while the remainder of its anticipated $22 billion budget ...