Abu Dhabi’s M42 restructures to accelerate growth

M42, the Abu Dhabi-based healthcare powerhouse fueled by artificial intelligence (AI), is shaking things up. Backed by the deep pockets of sovereign wealth fund Mubadala, the company has unveiled a bold new structure to supercharge its growth, snap up acquisitions, and break into fresh markets. This move comes as Abu Dhabi doubles down on diversifying its economy, with healthcare and advanced tech leading the charge.

How does it work?

At the heart of M42's transformation are four specialized platforms, each designed to operate with sharper focus and greater accountability. Think of it like giving each part of the business its own set of keys. One platform handles global patient care, seamlessly tying together M42's domestic and international health assets. Another is all about AI-driven drug discovery and development — a moonshot effort to reinvent life sciences. The remaining two? They're tackling big-picture initiatives like national health programs, genomics, and digital health.

But the grand strategy still rolls up to the top. Group CEO Hasan Jasem Al Nowais is keeping the big decisions — think mergers, acquisitions, and financing — under the group's umbrella.

"We're actively reviewing a shortlist of deals that align with our strategic ambitions," Al Nowais said, highlighting the UK, U.S., Europe, Middle East, and Asia as priority markets.

Why does it matter?

M42's pivot isn't just about its own ambitions. It's part of a larger story — Abu Dhabi's quest to future-proof its economy. In a region historically dominated by oil, the UAE is betting big on sectors like healthcare and AI to drive non-oil GDP. By creating a healthcare juggernaut that spans 26 countries, M42 is positioning itself as both a local leader and a global contender.

"We have a strong balance sheet with a very healthy cash position, enabling us to pursue further growth opportunities," Al Nowais noted. The message is clear: M42 isn't just playing the game — it's rewriting the rules.

The context

M42's roots run deep. The company was born in 2022 from a merger of Mubadala's health assets and G42, an AI titan tied to Sheikh Tahnoon bin Zayed Al Nahyan, a royal heavyweight and the UAE's national security adviser. Mubadala, with $330 billion in assets, is no small player. This backing has allowed M42 to acquire global giants like Cleveland Clinic Abu Dhabi and dialysis provider Diaverum, which joined the fold in 2023.

Abu Dhabi's vision isn't just about business; it's about creating a legacy. By anchoring its strategy in healthcare and technology, the emirate is setting the stage for sustained growth and global impact. For M42, this means leading in the Middle East and becoming a name to reckon with worldwide. And with this new structure, the company's engine is revving up for the long haul.