Abu Dhabi – Mubasher: Abu Dhabi on Wednesday announced the combination of Abu Dhabi Investment Council with Mubadala Investment Company to create a wealth fund with assets of about $250 billion.

The move is part of the UAE’s biggest sheikhdom's efforts to reinforce state-owned firms, Bloomberg reported. 

Under the deal, Abu Dhabi Investment Council, an investment arm of the oil-rich emirate, will become part of Mubadala Investment company, state-run WAM news agency said.

The council’s incorporation highlighted Abu Dhabi's endeavour to boost the diversification of the UAE's economy, Abu Dhabi’s crown prince and chairman of Mubadala Mohammed bin Zayed Al Nahyan commented.

"An investment vehicle of such scale will enhance the country’s competitive position," Sheikh Mohammed bin Zayed said in a tweet.

The combination of the “funds make sense,” said Menacorp financial analyst Issam Kassabieh.

“They could be looking to create, among the companies they own or control, bigger players that can compete on a larger scale and become global companies,” he added.

Moreover, Mubadala Development Fund, the UAE’s sovereign wealth fund, is on the verge of completing a $1.2 billion deal to acquire Brazil’s Queiroz Galvao Energia SA.