Abu Dhabi's Mubadala Investment Co., a United Arab Emirates sovereign-wealth fund, has invested some $100 million in venture capital firms in Israel, all in the technology sector, The Wall Street Journal reported Sunday.
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The UAE and Israel normalized ties in September under the historic Abraham Accords.
Bilateral trade between the newfound allies came to $700 million in 2021 and it is expected to reach $2 billion this year.
Mubadala Investments, which manages $250 billion in assets, has so far invested $20 million in six Israeli VC firms, including Mangrove Capital Partners, Entrée Capital, Aleph Capital, Viola Ventures, Pitango and MizMaa, the WSJ noted.
The move "reflects growing business and investment ties between the countries," the report said.
The companies in question were chosen over each venture firm's financial performance and the personal ties built between the two teams, after the Abu Dhabi fund met with some 100 investors, a source familiar with the fund told the WSJ.
Abu Dhabi's Mubadala Investment Co was set up by Crown Prince Mohammed bin Zayed, the kingdom's de facto ruler, who is a strong supporter of the Abraham Accords.
While the investment in the Israeli firms are small compared to the fund's usual scope of business, the report noted that they are "strategic for Abu Dhabi, which hopes to attract startups to diversify its oil-heavy economy."
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