Aabar has helped to raise $3 billion in partnership with a Malaysian company to invest in projects such as energy and property. Reuters
Aabar has helped to raise $3 billion in partnership with a Malaysian company to invest in projects such as energy and property. Reuters

Abu Dhabi link-up with Malaysia on investing



Aabar Investments, the Abu Dhabi Government investment vehicle, has helped to raise US$3 billion (Dh11.01bn) in funds in partnership with a Malaysian company to invest jointly in projects such as energy and property.

The cash will be used to kick-start 18 billion ringgit (Dh21.74bn) of economic projects, said 1Malaysia Development Bhd (1MDB), a strategic development company owned by the Malaysian government, yesterday.

"This success underlines investor appetite and confidence in the Malaysia-Abu Dhabi partnership as well as in Malaysia as a sustainable growth centre, enjoying peace, stability and good governance," said Mohd Hazem Abd Rahman, the chief executive of 1MDB.

Nobody was available to comment from Aabar.

The cash was raised from private placements through Abu Dhabi Malaysia Investment Company, a 50:50 joint venture firm set up by Aabar and 1MDB.

The initiative is the latest deal to emerge following a high-profile visit to Malaysia by Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, last month. Sheikh Mohammed used the visit to seal a $7bn investment by Abu Dhabi in an oil storage facility in the Asian country.

At the time, Aabar and 1MDB also announced an investment agreement but details of the deal only emerged yesterday.

Abu Dhabi Malaysia's first investment could be 1MDB's Tun Razak Exchange, a planned financial centre in Malaysia's capital, Kuala Lumpur, 1MDB said. The centre is expected to generate returns of 26bn ringgit for Malaysia's economy when completed, plus 40,000 jobs.

Investments would be focused on "strategic and important high-impact projects such as energy and strategic property, which are vital to the long term-economic growth of both countries", 1MDB said.

Aabar is already invested in Malaysia through a 25 per cent stake in RHB Capital.

Reuters reported in February last year that Aabar was looking to sell the stake after it declined in value since it was bought from Abu Dhabi Commercial Bank in 2011.

Aabar has been on a strong acquisition spree in recent years, snapping up stakes in Tesla, the American maker of electric cars, the British aerospace firm Virgin Galactic and taking a $1bn stake in Glencore's initial public offering. It also has a 21 per cent stake in Arabtec, the UAE construction company.

"Aabar Investments have done this type of joint deal before elsewhere," said Victoria Barbary, director of Institutional Investor's Sovereign Wealth Centre. "This deal may be attractive because of the Islamic financing opportunities that Malaysia has through its status as the Islamic finance capital."

Ms Barbary said Aabar's strong credit rating would have helped it to raise funds for the deal.

1MDB's bonds have received an A minus rating from Standard & Poor's, which also assigned an "axAAA" Asean regional scale rating.

Malaysia is a growing Islamic banking centre, and has targeted a 40 per cent share of Islamic domestic financing by 2020. In a bid to further promote the growth, the Malaysian government is also set to release a new legal framework for Islamic finance this year.

Abu Dhabi is seeking to cement its own foothold in the financial sector by developing Sowwah Square, a Dh4bn centre for financial services.

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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DMZ facts
  • The DMZ was created as a buffer after the 1950-53 Korean War.
  • It runs 248 kilometers across the Korean Peninsula and is 4km wide.
  • The zone is jointly overseen by the US-led United Nations Command and North Korea.
  • It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
  • Donald Trump and Kim Jong-Un met at a building in Panmunjom, where an armistice was signed to stop the Korean War.
  • Panmunjom is 52km north of the Korean capital Seoul and 147km south of Pyongyang, North Korea’s capital.
  • Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012. 
  • Mr Trump planned to visit in November 2017, but heavy fog that prevented his helicopter from landing.
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The specs

  Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now

'Nightmare Alley'

Director:Guillermo del Toro

Stars:Bradley Cooper, Cate Blanchett, Rooney Mara

Rating: 3/5

Getting there

The flights

Flydubai operates up to seven flights a week to Helsinki. Return fares to Helsinki from Dubai start from Dh1,545 in Economy and Dh7,560 in Business Class.

The stay

Golden Crown Igloos in Levi offer stays from Dh1,215 per person per night for a superior igloo; www.leviniglut.net 

Panorama Hotel in Levi is conveniently located at the top of Levi fell, a short walk from the gondola. Stays start from Dh292 per night based on two people sharing; www. golevi.fi/en/accommodation/hotel-levi-panorama

Arctic Treehouse Hotel in Rovaniemi offers stays from Dh1,379 per night based on two people sharing; www.arctictreehousehotel.com

Three tips from La Perle's performers

1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.

2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.

3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

Simran

Director Hansal Mehta

Stars: Kangana Ranaut, Soham Shah, Esha Tiwari Pandey

Three stars

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Israel Palestine on Swedish TV 1958-1989

Director: Goran Hugo Olsson

Rating: 5/5

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The specs

Engine: 1.5-litre 4-cylinder petrol

Power: 154bhp

Torque: 250Nm

Transmission: 7-speed automatic with 8-speed sports option 

Price: From Dh79,600

On sale: Now

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