Mubadala to invest billions in Malaysia

Mubadala Development says it is planning to invest billions of dollars in property and energy projects in Malaysia.

Mubadala Development, a strategic investment company owned by the Abu Dhabi Government, says it is planning to invest billions of dollars in property and energy projects in Malaysia.

The company signed two "collaboration agreements" with 1Malaysia Development Berhad, a company owned by the Malaysian government. Mubadala Industry, a division of Mubadala Development, was assessing an investment of up to US$7 billion (Dh25.71bn) in an aluminium project in the Sarawak Corridor of Renewable Energy in eastern Malaysia.

Mubadala Real Estate and Hospitality was also looking at jointly developing projects in the Kuala Lumpur International Financial District. Construction on a 34-hectare site is expected to begin by the middle of next year, after the completion of a master plan. The district aims to draw in top financial institutions and investment companies. Najib Razak, the Malaysian prime minister, said the project would cost about $8.4bn.

Khaldoon al Mubarak, the chief executive of Mubadala, said the "investment is a long-term endorsement of that view, and the Abu Dhabi Government shares our confidence in 1Malaysia Development Berhad as an ideal partner for our projects in Malaysia".

Mubadala has signed agreements in the past to invest in a Malaysian city project called Nusajaya. That development is 45 minutes from Singapore's Central Business District. The new city will spread over 642 hectares and include nine zones dedicated to such uses as trade and commerce, leisure, health care, luxury living, shopping and education.