Mubadala forges ahead with GE on commercial finance venture

I had a short chat today with Jeff Immelt, the chairman and chief executive of General Electric, and Khaldoon al Mubarak, the chief executive of Mubadala, Abu Dhabi's venture capital and investment arm. They announced today that they have assembled management teams for a $8bn commercial finance venture and an executive training centre. You can read about it here.

The commercial finance venture will be based on the GE Capital model, according to Mr al Mubarak. It'll also aim to drum up business in leasing, project finance and other areas worldwide - not just in the UAE or the Middle East. Both Mr Immelt and Mr al Mubarak said the venture was launching at an opportune time, when many other financial services companies are struggling. And both men said the agreement remains as it was last year, despite the financial crisis.

Here are a couple of quotes you won't see (at least not in full) in the web version.

Immelt: We outlined the general understanding last July, so we've been working since then to formalise the agreement. For the [commercial finance arm] we have a business plan, a team, we're developing a pipeline and we're going through a formal regulatory process, and by end of summer we should be moving forward.

Al Mubarak: We're very excited about this partnership. We're big fans of the GE Capital model ... We don't want to box in this joint venture as a UAE joint venture or a Middle East joint venture, and we're going to look at all the opportunities out there ... We've always been committed to this partnership with GE. It has always been a long term commitment based on sound fundamentals.

Also, for your enjoyment, the press release is after the jump.

Sunday, May 31, 2009, 14:30 UAE

GE & Mubadala Sign Commercial Finance Joint Venture (JV) Agreement Announce JV CEO; Establish Abu Dhabi Learning Center and Chief Learning Officer

GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, medical imaging, and television programming, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.

About Mubadala

Mubadala Development Company (Mubadala) is a catalyst for the economic diversification of the Emirate of Abu Dhabi.  The company's commercial strategy is built on the management of long-term, capital-intensive, investments that deliver not only strong financial returns but tangible social benefits for the people of Abu Dhabi.  In doing so Mubadala is expanding the economic base of the Emirate and in turn significantly contributing to the growth and diversification of the Abu Dhabi economy.

Mubadala brings together and manages a multi-billion dollar portfolio of local, regional, and international investments, projects and initiatives.  The company works independently and as an active and diligent partner with leading global organizations to deliver projects across a wide range of industry sectors including energy and industry, healthcare, infrastructure, real estate and information communications and technology. Unbound by convention, Mubadala's dynamism and innovation are complemented by a focused and diligent approach to realizing value.

Mubadala sole shareholder is the Government of the Emirate of Abu Dhabi.  For more information about Mubadala, its partnerships and activities please visit www.mubadala.ae.