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ABU DHABI / Reuters
Abu Dhabi’s government merged
two of its top investment funds on Saturday to strengthen their financial clout in an era of low oil prices, creating a company with assets totalling about $125 billion.
The new fund, Mubadala Investment Co, was formed by merging Mubadala Development Co and International Petroleum Investment Co, which own corporate stakes in the energy industry and other sectors across the world.
The new firm’s assets will total about $125 billion, based on valuations at the end of 2015, make it the world’s 14th largest sovereign fund, according to data from the Sovereign Wealth Fund Institute, which tracks the industry.
Mubadala Investment will be run by Chief Executive Khaldoon al-Mubarak. Mubarak, a prominent executive who sits on several companies’ boards, was chief executive of Mubadala Development. With oil prices at about half their levels in mid-2014, sovereign funds across the rich Gulf Arab oil exporting states are having to adjust policies to cope with lower inflows of petrodollars.
The new firm’s large size should improve its ability to raise money from international markets, a source close to the merger told Reuters when the plan was originally announced last June. As part of its drive to strengthen strategic financial firms, Abu Dhabi is in the process of merging its two biggest banks, National Bank of Abu Dhabi and First Gulf Bank . Bankers in the emirate say more mergers are likely. Mubadala Investment will have a total of 68,000 employees globally with partnerships and businesses in 30-plus countries, it said in a statement.
President Khalifa names Mubadala board members
DUBAI / WAM
In his capacity as the Ruler of Abu Dhabi, President His Highness Sheikh Khalifa bin Zayed Al Nahyan has issued an Emiri Decree forming the Board of Directors of Mubadala Investment Company under the chairmanship of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.