An Abu Dhabi sovereign wealth fund seems on the verge of investing US$1 billion into Malaysia.
Sovereign fund close to $1bn deal in Malaysia
An Abu Dhabi sovereign wealth fund seems on the verge of investing US$1 billion (Dh3.67bn) into Malaysia, according to Bernama, the Malaysian national news service. The funds would go into 1Malaysia Development Berhad (1MDB), a new Malaysian sovereign wealth fund, and be invested in energy, property and hospitality projects, Bernama reported yesterday. The decision coincided with the Malaysian prime minister's visit with Sheikh Mohammed bin Zayed, the Crown Prince of Abu Dhabi, at the Emirates Palace hotel. Sheikh Mohammed is also the chairman of Mubadala Development, an investment arm of the Abu Dhabi Government.
"I had a very productive meeting with the Crown Prince," Datuk Seri Najib Tun Razak, the Malaysian prime minister and minister of finance, told the news service. "He has agreed that Abu Dhabi, through its sovereign wealth fund, increase its investments in Malaysia starting with a fund of $1bn. Malaysia recently announced it was planning to "liberalise conditions for foreign investors and woo investments to help the economy recover faster from the global and regional slowdown", Bernama said.
1MDB would be part of the Terengganu Investment Authority, which is in the process of being expanded to a federal level to promote foreign direct investment into the country. Mubadala has already invested in a project in Nusajaya, in Malyasia's Iskandar Development Region, to develop 642 hectares of land into a "modern residential and business community, characterising the eastern culture's heritage and architecture, coupled with the latest technology, security systems and world-class logistics", Mubadala says on its website.
The Nusajaya investment will "secure long-term financial and strategic returns for Abu Dhabi". Mubadala officials declined to comment yesterday. @Email:firstname.lastname@example.org