UPDATE 1-Abu Dhabi's Mubadala swings to profit on smaller write-downs

* H1 profit 851.5 mln dhs vs 1.2 bln dhs loss

* Investment losses fall to 771.6 mln dhs from 929.3 mln dhs

* Impairments drop to 9.4 mln dhs from 353.8 mln dhs

* Mubadala has stakes in Carlyle, General Electric

By Stanley Carvalho

ABU DHABI, Oct 4 (Reuters) - Mubadala Development , the Abu Dhabi investment fund with a mandate to boost the emirate's local economy, swung to a profit in the first half driven by a drop in investment write-downs and higher revenues at its key businesses.

Mubadala, which has stakes in General Electric and private equity firm Carlyle , made a profit of 851.54 million dirhams ($232.02 million) for the first half compared with a loss of 1.18 billion dirhams a year ago, it said in a statement on Thursday.

Unlike other regional sovereign wealth funds like Abu Dhabi Investment Authority (ADIA) or Qatar Investment Authority (QIA), Mubadala's main goal is to engage in investments which enhance the local economy, a theme which has gained greater consensus since the wake of the Arab spring.

The fund has interests in semiconductors, oil and gas, aerospace and real estate among others.

Unlisted Mubadala, which earlier in the year bought a $2 billion stake in Brazil's EBX Group, saw its revenues rise by 18 percent to 16 billion dirhams from 13.5 billion dirhams in the year-ago period, it said in a statement on Thursday.

Results were also boosted by a drop in losses on financial investments which fell to 771.6 million dirhams from 929.3 million dirhams in the year-ago. Impairments on property, plant and equipments was negligible at 9.4 million dirhams against a figure of 353.8 million dirhams for the year-ago period.

"Against a backdrop of global economic volatility, our interim financial results demonstrate ongoing delivery against our mandate," Khaldoon al Mubarak, Mubadala's chief executive said in the statement.

"We continue to support Abu Dhabi's economic diversification through investments in priority sectors, the development of social infrastructure, and the generation of economic returns for our shareholder."

Total income was 976.83 million dirhams compared with a loss of 453.23 million dirhams a year earlier. Mubadala's total assets grew 10 percent to 194.84 billion dirhams in June 2012.

Mubadala, one of few state-controlled vehicles to publish results, also owns stakes in local companies such as Tabreed and indebted developer Aldar Properties

currently under merger plans with Sorouh Real Estate .

Abu Dhabi sits on 10 percent of global oil reserves and accounts for 90 percent of the UAE's oil output, making it one of the world's wealthiest economies.

($1=3.672 UAE Dirham)

(Writing by Dinesh Nair; Editing by Elaine Hardcastle)

(stanley.carvalho@thomsonreuters.com, Tel: + 9712 6444431; Tel: + 9712 6444431)