Apollo–Mubadala Capital deal highlights UAE’s growing private equity market
Apollo Global Management’s planned minority investment in Mubadala Capital highlights the UAE’s growing influence in the global alternative investment industry and the increasing role of private equity in supporting business expansion across the region.
Under the agreement announced on October 26, Apollo will acquire a minority stake in Mubadala Capital, the alternative investment arm of Mubadala Investment Company. Apollo and additional strategic investors are expected to commit a combined $5 billion across Mubadala Capital’s investment strategies.
The transaction comes amid the UAE’s development as an international investment hub, attracting global investment managers while strengthening domestic institutions capable of operating across international markets.
Iñigo de Luna, CEO of UAE-based private equity firm Nahda Capital Partners, said the partnership reflects the progress made in developing the country’s investment ecosystem.
He said the UAE’s potential had influenced Nahda Capital Partners’ decision to establish its operations in the country, adding that the Apollo–Mubadala Capital agreement demonstrated the international recognition of the UAE’s financial industry.
Private equity offers growth opportunities for GCC businesses
Beyond attracting international investors, the expansion of the UAE’s alternative investment sector could create opportunities for businesses across the Gulf Cooperation Council (GCC).
Private equity firms can provide companies with capital to fund expansion, pursue acquisitions and strengthen their competitive position. For established family-owned and mid-market businesses, such investments can also support improvements in management, governance and operational performance.
Manuel de Luna, Partner at Nahda Capital Partners, said private equity could offer more than financial resources by helping businesses professionalise management, establish independent governance structures, attract senior executives and align incentives.
He added that combining operational expertise with disciplined capital allocation could help local companies pursue acquisitions, expand into regional markets and strengthen their long-term competitiveness.
UAE investment ecosystem attracts global partnerships
Nahda Capital Partners is among the independent private equity firms based in the UAE that focus on established businesses across the GCC. Its investment approach centres on majority ownership, operational improvements and regional expansion.
The Apollo–Mubadala Capital partnership reflects the growing connections between international investment managers and the UAE’s financial institutions.
As the country’s alternative investment industry develops, private equity firms could play a greater role in linking long-term capital and investment expertise with the expansion plans of businesses across the region.
