Abu Dhabi’s sovereign wealth fund is set to acquire the automotive division of McLaren, the renowned British supercar manufacturer, in a move that reshapes the ownership of one of the UK’s most iconic motoring brands.

The deal follows a difficult period for the Woking-based firm, which recorded a record annual loss of £924 million in 2023, up sharply from £349 million the previous year. Under the agreement, McLaren’s longtime majority shareholder, the Bahraini state-owned investment vehicle Mumtalakat, will retain control of the racing arm, while Abu Dhabi’s CYVN Holdings – backed by the trillion-dollar Abu Dhabi Investment Authority – steps in as a minority shareholder.

The signing ceremony was reportedly witnessed by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, crown prince of Abu Dhabi and son of UAE president Sheikh Mohamed bin Zayed Al Nahyan, underscoring the strategic importance of the acquisition for the emirate. In a statement, Abu Dhabi described the move as “a defining moment” in CYVN’s plan to build a “leading, globally connected mobility platform.”

Mumtalakat first acquired a major stake in McLaren in 2007 and has repeatedly injected funds over the last few years to keep the carmaker afloat. The business suffered severely during the pandemic and faced mounting losses, which prompted Bahrain’s sovereign investor to seek a buyer. Having already enlisted Wall Street bankers from JP Morgan, Mumtalakat has now found its exit strategy through CYVN’s investment.

Tom Molnar, chief executive of McLaren, has emphasised the need for the firm to pivot towards electrification, with the company racing to develop its first fully electric supercar. The investment from Abu Dhabi could provide the capital required for extensive research and development and to secure McLaren’s position in a future driven by advanced technology and cleaner propulsion systems.

While the McLaren racing division – originally founded in 1963 – will remain separate, the new deal is expected to secure the automotive business’s financial footing. The hope is that with stable backing from Abu Dhabi and the continuing strategic involvement of Mumtalakat, McLaren can navigate the challenges of rising costs, supply chain pressures, and an evolving global market for luxury and high-performance vehicles.

Jamie Young

Jamie is a seasoned business journalist and Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting. Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops to stay at the forefront of emerging trends. When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.