Sovereign Wealth Fund Institute

Sowwah Square

Abu Dhabi-based Mubadala Development recently sold a commercial property joint venture called John Buck International (JBI) for an undisclosed price. JBI was mainly tasked for the development of Sowwah Square in Abu Dhabi.  The commercial development project is located in Abu Dhabi’s latest business district on Sowwah Island.  In addition, JBI specializes in integrated facilities management.  It manages a number of Abu Dhabi properties such as Sowwah Square, Paris Sorbonne University (Abu Dhabi Campus), and New York University (Abu Dhabi Campus).

The buyer of JBI is Serco, a UK property management and outsourcing business. Serco maintains a strong presence in the United Arab Emirates. Less than 9 months ago, Mubadala paid 83.6 AED million to take control of the full joint venture.

Originally the joint venture was created in 2008 with The John Buck Company, a Chicago property developer. The joint venture called JBI was at first 51% owned by Mubadala Development and the rest by The John Buck Company.

According to the press release, “Boeing and Mubadala Aerospace, a business unit of the Abu Dhabi-based Mubadala Development Company, a business development and investment vehicle of the Abu Dhabi government, today announced agreements to advance the commercial and military aviation industry in the United Arab Emirates (UAE). These milestones further Abu Dhabi’s plans to become a global aerospace hub, a key part of the Emirate’s economic diversification plans, and grow the strong relationship between the two companies.

The commercial and defense agreements announced today build on a framework agreement Boeing and Mubadala Aerospace signed in November 2009 to show their commitment to develop mutually beneficial initiatives in areas where there is strategic alignment between the two companies. Future partnership initiatives could include additional manufacturing, military maintenance and sustainment activities, as well as people development and training.

“These strategic agreements represent the natural evolution of the longstanding military and commercial aerospace collaboration between Boeing and the UAE,” said Mubadala Aerospace Executive Director Homaid Al Shemmari. “Mubadala Aerospace is proud to expand this partnership with Boeing and feel that this agreement shows confidence in the outstanding results that Strata Manufacturing and AMMROC offer for its customers and partners.”

Jim McNerney, Chairman, President, and CEO of The Boeing Company, said: “These important agreements will strengthen the businesses of both Mubadala and Boeing. Building on the strategic framework we and Mubadala announced at the last Dubai Airshow, we are now demonstrating our solid commitment to our partner, the UAE and the Middle East region. These agreements are a reflection of Mubadala’s outstanding capabilities and pave the way for an ever stronger relationship in the years to come.”"

Read more: Boeing Press Release

According to the press release, “An investor group comprised of Sony Corporation of America (“SCA”), in conjunction with the Estate of Michael Jackson; Mubadala Development Company PJSC; Jynwel Capital Limited; the Blackstone Group’s GSO Capital Partners LP; and David Geffen (the “Group”) announced today the execution of a definitive agreement, whereby the Group will acquire EMI Music Publishing from a wholly-owned subsidiary of Citigroup, Inc. (“Citi”) for total consideration of $2.2 billion.

The transaction is subject to certain closing conditions, including regulatory approvals. Following the acquisition, Sony/ATV Music Publishing and its strong and experienced management team will help oversee EMI Music Publishing on behalf of the Group. Sony/ATV Music Publishing is co-owned by subsidiaries of SCA and trusts formed by the Estate of Michael Jackson.

EMI Music Publishing is a world-leading popular music publisher with a vast collection of musical compositions and a roster of highly talented songwriters. The business represents and administers one of the world’s most comprehensive and diverse catalogs of over 1.3 million music copyrights covering all genres, periods and territories of the world.

EMI Music Publishing represents some of the most successful writers working in the music industry today including Beyoné, Drake, Jay-Z, Norah Jones, Alicia Keys, P!nk, Scissor Sisters, Rihanna, Stargate, Usher, Kanye West, Pharrell Williams, Tinie Tempah, Duffy, Arcade Fire, Dallas Davidson, Don Omar, Alan Jackson and Hillary Scott. Its remarkable catalog spans the decades with some of the greatest hits dating from the early 20th century right up to today. EMI Music Publishing holds rights to some of the greatest Motown hits from the 1960s including Baby Love, Heard It Through The Grapevine, and My Girl, as well as other timeless standards, such as Bohemian Rhapsody, Every Breath You Take and You’ve Got A Friend. Its catalog is home to a wide range of film and TV scores, including some of the most recognizable songs of all time such as New York, New York, Over the Rainbow and Have Yourself A Merry Little Christmas.”

Read more: Sony Press Release

According to the press release, “Hamilton Sundstrand Corporation and Mubadala Aerospace have finalized a wide-ranging strategic agreement under which Mubadala Aerospace will be a key part of the support network for servicing Hamilton Sundstrand products and systems on the Boeing 787. The deal, a first for Hamilton Sundstrand, includes a licensing agreement for Mubadala Aerospace to provide maintenance, repair and overhaul (MRO), through Mubadala-owned companies Abu Dhabi Aircraft Technologies (ADAT), SR Technics and Sanad Aero Solutions (Sanad), based on Hamilton Sundstrand’s technical expertise. The agreement gives 787 operators an additional choice for their maintenance needs for Hamilton Sundstrand products and systems, which make up a majority of the systems on Boeing’s new 787 Dreamliner.

Mubadala Aerospace is a business unit of Mubadala Development Company, the strategic investment arm of the Abu Dhabi government. Hamilton Sundstrand is a subsidiary of United Technologies Corp. (NYSE: UTX).

Under the license agreement, ADAT and SR Technics will provide integrated component solutions (ICS) to Boeing 787 airline customers, while Sanad will provide financing of rotable components, all with the technical support of Hamilton Sundstrand. Mubadala Aerospace is developing a global network covering the entire MRO value chain, including engine, component and airframe capabilities, in addition to spare engine and rotable leasing through Sanad.

“Hamilton Sundstrand is pleased to establish this key relationship with Mubadala Aerospace to equip Mubadala MRO companies with the required resources to service Hamilton Sundstrand systems and particularly components for the Boeing 787,” said Matthew Bromberg, vice president and general manager, Hamilton Sundstrand Customer Service. “This arrangement will allow Hamilton Sundstrand to extend its reach of OEM world-class service by building on Mubadala Aerospace’s capabilities in both the Europe and the Middle East. The Boeing 787 has a diverse customer base and demands diverse maintenance solutions.”

Homaid Al Shemmari, executive director of Mubadala Aerospace, said, “We are delighted to sign this strategic agreement with Hamilton Sundstrand, which brings essential component capability to ADAT and SR Technics for the Boeing 787 and financing opportunities for Sanad. Hamilton Sundstrand is one of the largest players in the aerospace components industry, and shares our global ambitions. Importantly, this expands our relationship with UTC and complements our existing partnership with Sikorsky in AMMROC. We are excited about the overall opportunities this relationship brings to both parties.”"

Read more: Hamilton Sunstrand Press Release

Brazil seems to be the Latin American darling of the Middle East. Over the past few years, Brazil has been improving its macroeconomic stability and building up significant foreign reserves. Brazil was one of the first emerging market economies to recover from the financial crisis. The Government of Brazil even created a sovereign fund. In early May 2011, the Mubadala Development Company expressed interest in possibly investing in Brazilian industries such as mining, energy, aluminum, agribusiness, and logistics.

Mubadala believes that emerging markets like Brazil, India, and China will yield the best risk-rewards in growth over time.

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According to the press release, “Financial highlights of the results are:

• Revenue increased 22% year-on-year from AED 13.1bn to AED 16bn, as a result of a number of assets reaching operational milestones
• Net profit for the year was AED 1.1bn and total comprehensive income for the year was a negative AED 315m, resulting from mark-to-market on investments
• Total assets increased by 14% to AED 101.5bn
• Total equity increased by 26% to AED 62.1bn in line with the approved contributions from the Government of Abu Dhabi
• Total interest bearing liabilities remained flat while total debt to capitalization decreased from 37% to 30%
• Strong liquidity position of AED 6.3bn
• Credit ratings remain among the top corporate ratings in the region at Aa3/AA/AA by Moody’s, Fitch and S&P”

Read more: Mubadala Press Release

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Another United States defense contractor, Raytheon Co is in developmental discussions with Mubadala Development Co about constructing a missile maintenance facility in the United Arab Emirates. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to the press release, “Abu Dhabi –Mubadala Development Company (Mubadala) today announced that the Advanced Technology Investment Company (ATIC) has become a wholly owned business of Mubadala. “With common executive leadership and the Government of Abu Dhabi as shareholder of both organizations, ATIC’s integration into Mubadala will further drive the creation of innovative industries for the benefit of Abu Dhabi and the UAE,” said Waleed al Muhairi, COO of Mubadala.

“The development of an advanced technology ecosystem in Abu Dhabi, anchored by the semiconductor sector, is a critical aspect of the Abu Dhabi Economic Vision 2030 framework that guides the Emirate’s development.”

Mubadala played a key role in launching ATIC in 2008 as an element of Abu Dhabi’s long-term strategy to diversify its economy through investments in high-technology sectors. In less than three years, ATIC has transformed the competitive landscape of the semiconductor manufacturing industry through the creation of GLOBALFOUNDRIES, which has emerged as one of the top three semiconductor manufacturers in the world.”

Read more: Mubadala Press Release

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According to the Carlyle Group’s press release, “Mubadala Development Company, the Abu Dhabi-based strategic development and investment company, and The Carlyle Group, a global alternative asset manager, today announced an agreement for Mubadala to make an additional investment in the Carlyle general partnership. In exchange for the $500 million investment, Mubadala will receive from Carlyle a combination of convertible subordinated notes and additional equity in the Carlyle general partnership. Among other things, the investment proceeds will be used to expand product lines and offerings to Carlyle’s investors. Additional financial details were not disclosed.

In September 2007, Carlyle sold a 7.5 percent stake in its general partnership to Mubadala.

Mubadala Chief Executive Officer Khaldoon Al Mubarak said, “This additional investment in Carlyle underscores the importance of the strategic partnership to Mubadala. Since the initial investment in 2007, our two firms have collaborated across a number of industry sectors. We are confident in Carlyle’s ongoing success as a global alternative asset manager and are pleased to support their strategic initiatives, including product and geographic expansion.”

Carlyle Co-Founder and Managing Director David M. Rubenstein said, “Our partnership with Mubadala continues to strengthen as we collaborate on investment opportunities and share sector and regional economic insights. We are proud to deepen our relationship with Mubadala.”

The partnership has also included growing cooperation on identifying investment opportunities in the Middle East and North Africa as well as increasing collaboration in industry verticals such as healthcare, aerospace and technology.

Goldman Sachs served as exclusive financial advisor to Mubadala on this transaction. Citi and J.P. Morgan Securities LLC served as financial advisors to The Carlyle Group.”

Source: The Carlyle Group’s Press Release

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According to the press release, “Abu Dhabi and Sana’a– Mubadala Oil & Gas and Yemen Company for Investments in Oil and Minerals (YICOM) announced today that they have signed a Memorandum of Understanding (MOU) on cooperation in the exploration and production sector of the oil and gas industry in the Republic of Yemen.

The MOU provides for an exchange of technical information between the two companies and co-operation to assess opportunities to work together on new investments, field redevelopment and expansion projects and other oil and gas operations in Yemen.

The MOU was signed by Ali Saleh Al- Kadi, Executive General Manager, Yemen Company for Investments in Oil and Minerals and Suhail Al Mazrouei, Deputy Chief Executive Officer, Mubadala Oil & Gas. It was witnessed by His Excellency Amir al-Aydarus, Minister of Oil and Minerals of the Republic of Yemen and His Excellency Abdullah Matar Al-Mazroui, United Arab Emirates Ambassador to Yemen.”

Read more: Mubadala Press Release

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Sovereign wealth funds and other institutional investors are lukewarm when it comes to Asian real estate investment. Asian sovereign investors are becoming more risk averse to non-core real estate and dumping portfolios of non-core and opportunistic real estate.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Abu Dhabi’s Mubadala Development Company (“Mubadala”) has today signed two collaboration agreements on a strategic partnership with 1Malaysia Development Berhad (“1MDB”) that could lead to significant increases in FDI in Malaysia.

The agreements have been signed with Mubadala Real Estate & Hospitality (MREH) and Mubadala Industry (MI). MI has agreed to assess the viability of an investment of up to seven billion United States dollars (USD 7,000,000,000) for the development of a major initiative in the aluminium sector based on hydro power in the Sarawak Corridor of Renewable Energy (SCORE).

The two state-owned companies are starting preliminary assessment work on the project, which will create more than 10,000 jobs during construction and another 2,000 specialist jobs.

MREH has agreed to collaborate with 1MDB to explore the potential joint development of key strategic projects within the Kuala Lumpur International Financial District (“KLIFD”), the 34.4 hectare development in Kuala Lumpur that is being led by 1MDB. The full scope of MREH’s participation in projects to be located within the KLIFD will be finalized in 2011 following completion by 1MDB of the KLIFD master plan.

Read more: 1MDB Press Release

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Near the bottom of the press release it states, “Mubadala’s Total Comprehensive Income (TCI) for the period was a negative AED 4.5 billion. This result reflects an unrealized loss of AED 4.4 billion from Mubadala’s public markets investments due to the decline in the local and global markets during the first half of this year. These investments are important components of Mubadala’s long term strategy, and the company recognizes that share price fluctuations will have a positive or negative effect on its periodical reporting of financial performance.

Mubadala’s total assets under management stood at AED 86.1 billion at the end of the first half of 2010. Total equity decreased 4.7% to AED 46.6 billion in the first half of 2010 from AED 48.9 billion in December 2009. Recently, Mubadala’s Board of Directors approved increasing Mubadala’s share capital from AED 5.5 billion to AED 15 billion through the conversion of certain shareholder rights.  The share capital increase is currently in the process of being formalized.”

Read more: Mubadala

We have all witnessed the trend of some sovereign wealth funds raising private capital or creating sovereign wealth enterprises to act as an investment manager for private funds.  This article is to bring some clarity on why a number of funds are doing this.  With Mubadala raising $1.85 billion in medium term notes, Temasek Holdings multiple debt raises in denominated in multiple currencies, and Mumtalakat Holdings bond offering, it shows that SWFs are using their assets, not just their cash as an investment.

First off, most SWFs that are raising capital are the types of sovereign wealth funds that take large stakes in companies.  In addition, SWFs that hold large portions of their domestic industry would be the type of funds to engage in this behavior.  We most likely would not see the Abu Dhabi Investment Authority or the Norwegian GPFG raise capital or take on bank loans.  In some instances, SWFs experience shrinkage of money flows from their respective government; money in the private markets backed by SWF assets can increase their stability and investment performance.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to the press release, “Goodrich Corporation (NYSE: GR) and Mubadala Aerospace, a business unit of Mubadala Development Company, today signed a heads of agreement (HOA) to establish a joint venture company in the United Arab Emirates (UAE) to perform maintenance, repair and overhaul (MRO) work on landing gear. The joint venture company would be the Middle East’s first dedicated landing gear service provider once fully operational in 2012. The joint venture is subject to negotiation and execution of the definitive joint venture agreement.

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According to the press release, “Abu Dhabi Aircraft Technologies (ADAT) and Sikorsky Aerospace Services today announced the launch of a joint venture to provide world class military aviation Maintenance, Repair and Overhaul (MRO) services to the United Arab Emirates (UAE) Armed Forces and other military operators internationally, including in the wider Middle East and North Africa region.

ADAT is wholly owned by Mubadala Development Company, the strategic investment arm of the Abu Dhabi Government, in the United Arab Emirates. Sikorsky Aerospace Services is the aftermarket business of Sikorsky Aircraft Corp., a subsidiary of United Technologies Corp. (NYSE: UTX).

The joint venture, known as AMMROC (Advanced Military Maintenance, Repair and Overhaul Center), brings together ADAT’s military track record of high quality and reliable maintenance services, and Sikorsky Aerospace Services’ Original Equipment Manufacturer (OEM) expertise.

With the combined strength of the joint venture parties and an aggregate investment that exceeds US$800 million, AMMROC will draw on decades of experience and expertise in aerospace engineering, material support, logistics, maintenance, component repair, overhaul and training to deliver a fully integrated MRO support program by a single provider. This will enable AMMROC to provide innovative platform solutions for all fixed and rotary wing aircraft, to ensure guaranteed aircraft readiness, deployability, improved safety and self reliance.

Read more: Press Release

According to Emirates Business 24/7, “Mubadala Development Company and Pramerica Real Estate Investors, a unit of US-based Prudential Financial, have agreed to set up a company that will raise capital to fund and invest in real estate projects in Abu Dhabi and other international markets.

Mubadala Pramerica Real Estate Investors (Mubadala Pramerica REI), the joint venture, will be owned equally by the two companies and will be headquartered in Abu Dhabi.

“The joint venture will become operational soon, but we are not in a position to specify a date,” a Mubadala spokesperson told Emirates Business.

In a press statement, Waleed Al Muhairi, Chief Operating Officer for Mubadala, said: “By partnering with Pramerica, we’re bringing together one of the world’s leading real estate investment companies with our regional market expertise and knowledge. This is a compelling prospect for investors that want to participate in the current and future growth of the region.”

The joint venture, according to the spokesperson, will only raise capital to fund and invest in real estate projects and will not develop, or act as a developer of real estate projects.

“The JV will be contracting with real estate developers to build and develop the real estate projects it will invest into.”

Mubadala has already set up two other joint ventures for development purposes.”

Emirates Business 24/7

According to Gulf News, “Mubadala has retained its position among the world’s top eight most transparent sovereign wealth funds. Mubadala has retained its position among the world’s top eight most transparent sovereign wealth funds

Dubai: The UAE’s Mubadala Development Company has retained its position among the world’s top eight most transparent sovereign wealth funds according to the Linaburg-Maduell Index, the only one of its kind. Ranked from zero to 10, Mubadala has retained its score of 10 in the first quarter of this year on the index, which was developed at the US-based Sovereign Wealth Fund Institute by Carl Linaburg and Michael Maduell.

Mubadala, owned by the Government of Abu Dhabi, does not consider itself a sovereign wealth fund. It manages long-term capital-intensive investments. It has a multi-billion-dollar regional and international portfolio ranging from services to infrastructure to aerospace.

It helps to deliver some of Abu Dhabi’s most high profile and strategically important projects.

“Mubadala has adapted well to our expanding size and profile, introducing a range of policies to ensure our operations maintain their efficiency and transparency,” CEO and Managing Director Khaldoon Khalifa Al Mubarak said in a foreword to the annual report for 2009.”

Read more: Gulf News

According to the press release, “HRH Prince Alwaleed bin Talal bin Abdulaziz Al Saud, Chairman of Kingdom Holding Company (KHC) received, and held a meeting with HE Khaldoon Al Mubarak, CEO of Mubadala Development Company (MDC) at HRH’s office in Riyadh. The meeting was attended by a delegation from KHC, Rotana and Mubadala Development Company.

On the agenda of discussions during the meeting between HRH and Mr. Al Mubarak, were His Highness’s solid regional presence in the various sectors, including real estate, hotels and media. Moreover, the meeting touched upon local, regional and international economic and investment issues, and future potential business collaboration. After the meeting the Prince hosted a dinner in honor of his guest and the accompanying delegation at Kingdom Resort.

Prince Alwaleed’s investments in the UAE through Kingdom Holding Company consist of Citigroup in the financial and in the hotel sector through the management of two Fairmont hotels, and four Movenpick hotels.”

Read more: Press Release

The National reports, “Air Berlin and Etihad Airways have signed up for US$130 million (Dh477.4m) worth of financing provided by a new company controlled by Mubadala Development, the Abu Dhabi Government investment arm.

The new entity, called Sanad Aero Solutions, will provide financing and logistical support with a focus on aircraft engines and components.

Sanad – Arabic for “support” – adds another layer to Mubadala’s aerospace strategy, which includes plans to manufacture composite aircraft parts for Boeing and Airbus in Al Ain, and to build an aircraft in Abu Dhabi by 2018.

The company will provide financial support to airlines outsourcing their maintenance and repair work to two Mubadala affiliates, SR Technics in Switzerland and Abu Dhabi Aircraft Technologies (ADAT). Sanad’s first contracts involve a 10-year, $100m deal with Air Berlin for 12 spare engines and a 10-year, $30m contract with Etihad for components.”

read more: The National

According to the National, “Mubadala Development, the investment arm of the Abu Dhabi government, will grow its assets threefold over the next five years, the company’s chief operating officer said today. The firm lost Dh11.8bn (US$3.21bn) last year due to write-downs on investments triggered by falling oil prices and the global financial crisis. Mubadala, which released its first annual report last week, has said it would continue to make acquisitions, borrow from banks and draw as much as Dh21bn from the Abu Dhabi Government this year.

‘Over the next five years, given the existing portfolio of projects that we have, you will see that the asset base of Mubadala is likely to to grow from the Dh54bn that you see today to a number at least three times that,’ said Waleed al Muhairi at the UAE Global Investment Forum in Abu Dhabi.

Mubadala is planning to issue a bond and has recently engaged in a roadshow with potential investors in Europe and the US. The bond will be part of a larger medium-term programme.”

read more: The National

AFP reports that, “French state-controlled nuclear giant Areva said Tuesday it was opening its capital to new investors and would sell a subsidiary to raise money for massive investments in new nuclear technology.

The company also said it was considering the sale of its stakes in French metal mining group Eramet and Geneva-based computer chip maker STMicroelectronics. The Financial Times reported earlier that the French government was preparing a capital increase and could sell a 15-percent stake to Asian and Middle Eastern investors for two billion euros (2.8 billion dollars).

The FT reported Mitsubishi Heavy Industries (MHI), Areva’s Japanese partner, was set to take a stake in the French company. MHI told AFP it had not received an offer to buy a stake but would study such a proposal. The French government is also in talks with sovereign wealth funds such as Mubadala of Abu Dhabi over their participation in a capital increase, which will be launched later this year, the FT said. France produces most of its electricity from nuclear power and French energy groups like EDF, Total and GDF Suez have previously been touted as possible investors in Areva. The report comes amid growing interest in nuclear power around the world, sparked by fears of climate change, worries about the reliability of supplies from the Middle East and Russia and record high oil prices in 2008.”

read more: AFP

Khaleej Times reports that, “Mubadala Development Company, an investment arm of the Abu Dhabi government, on Tuesday signed a deal to explore joint investment opportunities in French companies. The memorandum of understanding between Mubadala and France’s Fonds Strategique d’Investissement, or FSI, aims to set up a framework for investing in sectors that are of mutual interest to both the companies. Potential areas for investment in listed or private French companies include technology, health sciences, bio-technology and renewable energy. The MoU was signed during a visit by French President Nicolas Sarkozy to the UAE capital.

‘This partnership fits into our strategy to work with leading international organisations across a range of industries to develop and operate businesses that not only generate outstanding financial returns but also contribute to the economic diversification of Abu Dhabi and bring real and lasting benefits to its people,’ said Mubadala CEO and Managing Director Khaldoon Khalifa Al Mubarak.”

read more: Khaleej Times

The press release states, “Occidental Petroleum Corporation and Mubadala Development Company (Mubadala), through its business unit Mubadala Oil & Gas, announced today that they have signed a Development and Production Sharing Agreement (DPSA) with the National Oil and Gas Authority of Bahrain (NOGA) for the further development of the Bahrain Field. Under this agreement, a Joint Operating Company will be formed to serve as operator for the project under the DPSA.

Oxy will hold a 48-percent interest in the DPSA, with Mubadala holding a 32-percent interest and a subsidiary of NOGA holding the remaining 20 percent.

‘We are pleased to expand upon our existing relationship with Abu Dhabi and look forward to working with Bahrain on this exciting project,’ said Dr. Ray R. Irani, Chairman and Chief Executive Officer of Occidental. ‘Signing this DPSA is another important step in the implementation of our growth strategy in the Middle East, and the further development of the Bahrain Field will create significant value for the people of Bahrain and for our shareholders.’”

read more: Press Release

Some highlights of the report state, “Also included in the Annual Report is detailed information about Mubadala’s financial performance for the calendar year 2008 – a period of rapid business development. Mubadala’s total assets grew from AED39 billion in 2007 to more than AED54 billion by the end of 2008, representing an increase of 40 percent over the previous year. The company also saw sharp increases in revenues, up by more than 370 percent to AED6.7 billion compared to AED1.8 billion for 2007.

The strong performance was offset by the company’s cautious approach to the valuation of some investments as a result of the decline in Global stock-markets (the S&P 500 Index of leading stocks fell by more than 38% in 2008) and oil prices (which halved between January and December 2008, and ended the year more than two thirds down from their peak in July). This resulted in impairment charges for 2008 of AED8.8 billion spread across a wide variety of publicly and privately held investments in the USA and other markets and contributed to a loss of AED11.8 billion in 2008 against a profit of AED1.3 billion the year before.”

read more: Mubadala

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According to the Khaleej Times, “Four Memoranda of understanding (MoUs) were signed yesterday between Abu Dhabi’s investment arm Mubadala Development Company, its associated firms and top South Korean companies which will open new vistas of economic cooperation.

The MoUs focus on development of oil and gas resources, automobile manufacturing, iron and steel,  science and technology and cooperation in the district cooling sectors.

The MoUs were signed on the sidelines of the one day UAE-Korea Business Forum, which was attended by Abu Dhabi’s leading companies and a visiting delegation of top Korean companies.

Speaking to Khaleej Times Waleed Al  Mokkarab Al Muhairy, Chief Operating Officer of Mubadala Development  Company, said that MOUs would pave the way for the development of joint ventures and formation of business alliances, not only in the UAE  and Korea, but  also in third countries.

“There are no concrete projects at hand, but after the signing of these four MoU’s  we have identified the key areas of cooperation on which our technical experts would further work on,” Al Muhairy said.

The MoUs were signed between Mubadala Development Company and Korean National Oil Company (KNOC) to develop hydrocarbon resources;  Kia Motor Corporation signed an MoU with Mubadala to develop hybrid vehicles and technical cooperation; Posco, a Korean giant will cooperate in the establishment of a mini steel mill project in Abu Dhabi and an MOU was signed between Posco and Science and Development Company of Abu Dhabi.”

Read more: Khaleej Times