Photographer: Dan Kitwood/Getty Images

Abu Dhabi’s $125 Billion Empire From Pipelines to Spaceships

Two of Abu Dhabi's largest sovereign investment funds will form an asset pool twice the size of Russia's Reserve Fund.

Abu Dhabi, home to 6 percent of the world’s oil reserves, plans to merge two of its largest sovereign investment funds to form an asset pool more than twice the size of Russia’s Reserve Fund and with stakes ranging from pipelines and chemicals to microchips and music.

The combination of International Petroleum Investment Co. and Mubadala Development Company PJSC would have assets of about $125 billion and debt of about $42 billion. The merger is part of a strategy by Abu Dhabi, the biggest sheikhdom in the United Arab Emirates, to cut costs and consolidate holdings after the drop in crude prices. It would create a global energy business that pumps more oil than OPEC member Libya and with more assets than ConocoPhillips. IPIC has focused on energy refining and distribution, while Mubadala’s more eclectic holdings include energy production to aircraft parts.

Here are some of the companies owned by Mubadala and IPIC:

Mubadala Investments

Strata Manufacturing

Manufacturer of aircraft composite parts is based in Al Ain and counts among its customers Airbus and Boeing.

Mubadala Petroleum

The company explores and produces oil and gas in the Middle East, Africa and Central and Southeast Asia, including Thailand.

Globalfoundries Inc.

Engineers at a GlobalFoundries plant in Germany.
Engineers at a GlobalFoundries plant in Germany.
Photographer: Matthias Rietschel/Getty Images

Mubadala fully owns the California-based maker of semiconductors such as microprocessors.

Emirates Global Aluminium

Emirates Global Aluminium is owned equally by Abu Dhabi’s Mubadala Development Company PJSC and Investment Corporation of Dubai, and is among the world’s five largest primary aluminum producers, according to its website. 

Emirates Defence Industries Company

Formed by joining Mubadala’s defense assets with Tawazun Holding and Emirates Advanced Investments Group, the group is involved in making military products ranging from pistols to armored vehicles and pilotless planes.

Masdar

Wind turbines in the North Sea at the London Array offshore wind farm, a partnership between Dong Energy A/S, E.ON AG and Abu Dhabi-based Masdar.
Wind turbines in the North Sea at the London Array offshore wind farm, a partnership between Dong Energy A/S, E.ON AG and Abu Dhabi-based Masdar.
Photographer: Simon Dawson/Bloomberg

Masdar serves as Abu Dhabi government’s arm for developing and building renewable capabilities. The company also invests abroad, including a wind farm in the UK.

Dolphin Energy

Mubadala controls 51 percent of this pipeline project that brings gas from Qatar to U.A.E.

Paris-Sorbonne University, Abu Dhabi

The campus of the Paris-Sorbonne University Abu Dhabi.
The campus of the Paris-Sorbonne University Abu Dhabi.
KARIM SAHIB/AFP/Getty Images

The French university opened its first branch outside France in Abu Dhabi in 2006. It was part of Abu Dhabi's drive to bring globally renowned names in the areas of culture and education.

EMI Music Publishing

Mubadala owns a stake in the music publishing company through a consortium that also includes Sony/ATV Music Publishing.

Cleveland Clinic Abu Dhabi

The 364-bed hospital was opened in 2015 as part of an effort to bring high-end healthcare services to Abu Dhabi to reduce the number of patients who seek treatment abroad. It's operated by the Cleveland, Ohio-based Cleveland Clinic.

The Carlyle Group LP

Mubadala says it's a long-term shareholder in the Washington, DC-based alternative asset management firm. 

IPIC Investments:

Aabar Investments PJS

Virgin Galactic founder Richard Branson.
Virgin Galactic founder Richard Branson.
Photo by In Pictures Ltd./Corbis via Getty Images

In addition to its stake in Virgin Galactic, the Abu Dhabi-based company has investments in real estate, energy and banking.

Borealis

IPIC owns a 64-percent stake in the Vienna-based petrochemical company, which makes polyols used to produce plastics for car bumpers and packaging . The rest of the company held by Austrian oil company OMV AG.

Compañia Española de Petróleos (CEPSA)

Since 2011, IPIC has fully owned the Spanish energy company, which is active in oil exploration and production, refining, transport and sale of crude oil derivatives and petrochemicals.

Cosmo Oil

IPIC has a 20.8-percent stake in the Japanese refining and marketing company.

OMV

Photographer: Akos Stiller

IPIC owns a 24.9 percent stake in the Vienna-based oil and gas company, which is central Europe’s biggest oil company.

SUMED

IPIC has 14.8 stake in the The Arab Petroleum Pipelines Company, known as SUMED.

 —With assistance from Leila Taha

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