By: Mahmoud Gamal
Abu Dhabi – Mubasher: The merger between Abu Dhabi Investment Council (ADIC) and Mubadala Investment Company (MIC) is a milestone that will bolster the UAE’s economy and strengthen its financial foothold globally, analysts told Mubasher.
Earlier in March, Abu Dhabi announced the merger between ADIC and MIC to create a wealth fund with assets of about $250 billion.
The main goal of such move is to unite efforts, competences, and human resources on both sides, which will enhance their performance, capital market analyst Basel Abu Teima commented.
The consolidation between two state-owned entities will support the UAE's resilience when facing global economic challenges and will have a positive effect on the Emirati companies’ operations worldwide, Abu Teima added.
This combination decision is a manifestation of the Emirate of Abu Dhabi’s strategy to offset the negative consequences of the decline in oil prices, Mubasher’s economic advisor Ali Alhamoudi said.
Abu Dhabi has seen other successful mergers including the combination of International Petroleum Investment Company (IPIC) and Mubadala Development Company (Mubadala) and the amalgamation of National Bank of Abu Dhabi (NBAD) and First Gulf Bank, the analyst remarked.
Moody’s stressed that ADIC-MIC transaction is another step toward the growth of Abu Dhabi’s state-run entities, and the returns and operations thereof.
Translated by: Muhammad Khalid.
