Abu Dhabi has merged two
of its sovereign wealth funds to form a new investment group, Mubadala
According to United Arab Emirates
news agency WAM, the new sovereign
fund combines Mubadala Development Company and International Petroleum
Investment Company (IPIC).
The joint venture will “run
operations in acquisition, development, construction, financing, operation, and
investment in various sectors,” the government said.
The Mubadala Development
Company has $63.5 billion in assets under management, its website said. While
IPIC’s size is unclear, Reuters
reported the newly merged entity will manage a total of $125 billion.
The Abu Dhabi government
also named Mubadala Development’s current group CEO Khaldoon Khalifa Al Mubarak
to run the new sovereign fund, according to WAM.
A resolution for the merger
was first announced in June 2016, when the government said “integrating the two
entities would create greater benefits and enhanced economic value to the Government
of Abu Dhabi,” according to a WAM
“The combined entity will
realize synergies and growth in multiple sectors including the energy and
utilities sector, technology, aerospace, industry, health care, real estate,
and financial investments,” the Emirates said. “It will also have the ability
to contribute more significantly to the diversification of the economy, in line
with the Abu Dhabi plan and the country’s long-term vision.”
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