Abu Dhabi: Abu Dhabi Investment Council (ADIC) and Mubadala Investment Company are joining hands to create the value of the portfolio that will be more than $200 billion.
In a tweet on Wednesday, His Highness Shaikh Mohammad bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces said “I applaud the restructuring of the Abu Dhabi Investment Council to become part of Mubadala Investment Company group. An investment vehicle of such scale will enhance the country’s competitive position.”
“We look forward to sustaining growth through a unified and integrated vision that builds on gains, spurs efforts and boosts our global competitiveness.”
Mubadala Investment Company was created last year with the merger of Mubadala Development Company and International Petroleum Investment Company (IPIC). Mubadala has total assets of more than $125 billion.
ADIC’s investments include First Abu Dhabi Bank; the largest bank in the UAE in which ADIC has a 33.4 per cent stake, and Abu Dhabi Commercial Bank, in which it has a 62.5 per cent and Union National Bank in which it has a 50 per cent stake. ADIC also founded Al Hilal Bank, a Sharia-compliant lender.
Additionally, ADIC has stakes in Abu Dhabi National Insurance Company, Abu Dhabi Aviation Company, and Invest AD, an Abu Dhabi-based asset manager.
ADIC has assets valued at $123 billion according to the Sovereign Wealth Fund Institute while Mubadala has assets that are valued at $127 billion.
Shares on the Abu Dhabi Stock Exchange rallied on the announcement on Wednesday, rising 0.9 per cent.
Mubadala merged with International Petroleum Investment Company in 2016, a move that is estimated to have saved 20 per cent in costs.
Less than 20 per cent of Mubadala’s assets were energy-related, whereas most of Ipic’s investments were in that sector. And while Mubadala’s focus was on the Abu Dhabi economy, Ipic mainly invested abroad.
Post-merger Mubadala Investment company has stakes in Emirates Global Aluminium, the green-energy firm Masdar, the property developer Aldar and a host of other companies. It also has stakes in GE and the private equity firm Carlyle Group, the Spanish refiner Compañia Española de Petróleos (Cepsa) and the Abu Dhabi diversified investment firm Aabar.
The merger of Mubadala and Ipic followed a similar tie-up between National Bank of Abu Dhabi and FGB.