- Gulf funds rescue tech bets.
- PIF backs Lucid, Magic Leap.
- Mubadala revamps European startups.
Gulf giants’ gillion-dollar rodeo
Saudi Arabia’s Public Investment Fund (PIF) and Abu Dhabi’s Mubadala are making waves in the global tech scene.
These powerhouses, managing over $1 trillion combined, have poured billions into cutting-edge sectors like electric vehicles and fintech.
However, recent developments suggest their ambitious investments face choppy seas ahead.
A costly joyride
PIF, Lucid’s majority stakeholder, recently committed $1.5 billion to the struggling EV maker. This cash injection arrives at a crucial moment, as Lucid grapples with high production costs and softening demand.
Similarly, PIF offered $750 million to augmented-reality firm Magic Leap, highlighting the fund’s determination to keep its tech dreams afloat.
Meanwhile, Mubadala is working overtime to boost returns on its European startup investments. Reports indicate the fund is actively involved in restructuring efforts and leadership changes at companies like insurtech firm WeFox.
These moves underscore the challenges faced by Gulf funds as they seek to establish themselves as savvy global investors in an increasingly volatile tech landscape.
