Abu
Dhabi: Mubadala Development Company, Abu Dhabi
government's investment arm,on Tuesday said it
has entered into a partnership with US
conglomerate General Electric (GE), that will
lead to the establishment of a commercial
finance business worth $8 billion. Mubadala will
also buy a stake in GE.
The new financial arm will be established within
the next 12 months, and will be headquartered in
Abu Dhabi, capitalising on GE's asset growing
capabilities, and Mubadala's regional strength.
"Incorporating the new company in Abu Dhabi is
intended to benefit from the robust growth in
the UAE and the region, as well as the many
privileges offered, especially in taxes,"
Khaldoon Al Mubarak, Mubadala's chief executive
and managing director told Gulf News.
The two companies will each allocate $4 billion
in equity for the venture over a three-year
period.
"We will be targeting high return asset classes
from infrastructure, to commercial lending and
leasing, as we seek to achieve a value of $40
billion within 12 to 18 months," Jeff Immelt,
GE's chairman and chief executive officer told
reporters at a teleconference yesterday.
Geographically, assets in the Middle East and
Africa will take priority given the robust
economic growth in these regions.
Other ventures in the framework include the
establishment of a clean energy technology
centre located in Masdar City that will house up
to 100 technologists developing new sustainable
energy.
GE also intends to commit up to $50 million to
Masdar's second Clean-Tech Fund, focused on
multi-geography investments in the clean
technology sector. In addition, Mubadala intends
to invest up to $200 million to GE Industrial
Investment Partners, a new partnership of select
global investors that will focus on providing
growth capital to companies in the healthcare,
energy, and transportation industries.
GE and Abu Dhabi Aircraft Technologies (ADAT)
will explore expansion of their maintenance,
repair and overhaul (MRO) capabilities to
support the large and growing number of GE
aircraft engines in service.
Mubadala will also build its shareholding
position in GE through the open market to become
one of GE's top ten shareholders.
"It makes a lot of sense for us to invest in GE
given the attractive valuation, and the
excellent performance, and over the time we will
be building our position," Al Mubarak said.
Sovereign investor
- Mubadala, fully owned by the Abu Dhabi
Government, was established in October 2002 as a
public joint stock company.
- Chaired by General Shaikh Mohammad Bin Zayed
Al Nahyan, Crown Prince of Abu Dhabi and Deputy
Supreme Commander of the UAE Armed Forces, the
firm employs 500 professionals.
- Its focus is on developing and managing an
extensive and economically diverse portfolio of
commercial initiatives.
Abu
Dhabi: Mubadala Development Company, Abu Dhabi
government's investment arm,on Tuesday said it
has entered into a partnership with US
conglomerate General Electric (GE), that will
lead to the establishment of a commercial
finance business worth $8 billion. Mubadala will
also buy a stake in GE.
