DUBAI: The chief executive of Abu Dhabi state investor Mubadala said on Saturday that 2023 would be a tough year for the global economy, but that the fund would be focused on opportunities serving a longer horizon.

“If I look at the one-year horizon, yes 2023 is going to be tough… with more headwinds than tailwinds in most places around the world,” Khaldoon Al Mubarak told the World Policy Conference in Abu Dhabi.

“There’s going to be big adjustments on valuations, recessionary pressures in many places around the world… but I see it in the lens of opportunity” under a 5-10 year horizon, he added.

Mubadala, Abu Dhabi’s second-biggest sovereign wealth fund, had $284 billion in assets under management at the end of last year, according to an investor presentation.

Mubarak said as a global investor, Mubadala would continue to follow an “agnostic” investment approach looking at growth patterns and long-term sustainable returns, and would continue to focus on sectors such as renewable energy and technology.

While Europe presented a “challenging picture”, he said India — with its huge population, growing middle class and economic trajectory — was “a picture where you see growth”.

In terms of sectors, technology and the energy transition remained broad themes for Mubadala.

The United Arab Emirates, an OPEC oil producer which will host the COP28 climate conference next year, seeks a balanced portfolio in energy production including renewables and conventional sources, Mubarak said.

Abu Dhabi on Thursday announced a new structure for its flagship clean energy company Masdar in which state oil firm ADNOC, utility Taqa and Mubadala all became shareholders, with Mubadala retaining its 33% share.

Mubadala has a target to grow to at least 100 GW of renewable energy capacity, mostly wind and solar, by 2030.