x Abu Dhabi, UAE Thursday 20 July 2017

Mubadala in Malaysian talks

Possible cooperation in the oil and gas industries, and property, are the at the centre of talks.

Mubadala Development, a government-run investment vehicle, and Malaysia's Terengganu Investment Authority held "exploratory talks" on possible areas of collaboration, it was announced today. The two discussed possible cooperation in the oil and gas industries, with Mubadala interested in "real estate opportunities," according to a joint statement. Yesterday, a Malaysian-based newspaper reported that Mubadala would invest about $1.8 billion in a property development project in the country.

The project involves the construction of hotels and villas on a 1,200-hectare site in Terengganu state on the east coast of the Southeast Asian country, the Edge Weekly reported, citing Shahrol Azral Ibrahim Halmi, chief executive of the Terengganu Investment Authority (TIA). According to Mr Shahrol, Mubadala will invest the amount over seven years while TIA will buy the land from the state government and inject it into the joint venture. TIA has been set up as Malaysia's first sovereign wealth fund, with the aim of investing oil revenues for the long term.

* with agencies rwright@thenational.ae