Apollo Global Management and other strategic investors plan to commit a total of $5 billion across Mubadala Capital’s investment strategies through a newly announced partnership, underscoring the United Arab Emirates’ expanding influence in global private equity. As part of the agreement, Apollo will also acquire a minority stake in Mubadala Capital, the alternative investment division of Mubadala Investment Company.
This partnership represents a significant development in the UAE’s financial sector, which has shifted focus from merely attracting foreign investment managers to fostering domestic institutions with the capability to compete on an international scale. Nahda Capital Partners, a UAE-based private equity firm, highlighted the deal as evidence of increasing global recognition for the country’s investment ecosystem.
“When we first moved to the UAE, we recognized the enormous potential of its investment ecosystem. That conviction ultimately led us to establish Nahda Capital Partners here,” said Iñigo de Luna, CEO of Nahda Capital Partners. He added that the Apollo-Mubadala Capital collaboration exemplifies the UAE’s success in cultivating a financial industry holding international stature.
The expansion of the private equity sector in the UAE is also expected to generate growth opportunities for established companies across the Gulf Cooperation Council (GCC), particularly family-owned and mid-sized enterprises seeking capital for growth or acquisitions. Beyond financing, private equity firms can provide support with professionalizing management, enhancing corporate governance, and attracting experienced executives.
Manuel de Luna, Partner at Nahda Capital Partners, emphasized that private equity’s impact extends beyond capital infusion. “The real value of private equity goes far beyond providing capital,” he noted, explaining that private equity can assist family businesses in transitioning to more structured governance, securing senior leadership, and pursuing strategic acquisitions that might be otherwise challenging. These efforts, combined with operational expertise and disciplined capital allocation, aim to bolster the competitiveness of local businesses across regional markets.
The deal between Apollo and Mubadala Capital also comes amid broader efforts by the UAE to develop its alternative investment industry. Enhanced international partnerships and the growth of domestic investment firms are key factors in this trajectory. Nahda Capital Partners, which focuses on acquiring majority stakes in established GCC businesses and supporting their operational and regional expansion, typifies this approach.
As the UAE continues to attract long-term capital and strengthen local institutional capacity, it is positioning itself not only as a destination for global investment but also as a regional hub for alternative investment firms operating internationally. This evolution reflects the country’s strategic ambition to deepen its role in global finance and support the growth of businesses across the Gulf.