Abu Dhabi is set to continue further government related industry (GRE) consolidation this year as the Emirate strives to diversify its economy. This news follows the merger between strategically important sovereign wealth fund (the International Petroleum Investment Company (IPIC) and Mubadala Development Company) in January last year, and state-owned banks, National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) in 2016. The former merger is known as Mubadala Investment Co., with the latter better referred to as FAB. The Abu Dhabi Investment Council, the largest shareholder of FAB, Abu Dhabi Commercial Bank (ADCB) and United National Bank (UNB) is reportedly set to merge with Mubadala, which would take the sovereign wealth fund close to one of the top ten largest globally: with combined assets estimated at USD 248bn according to the Sovereign Wealth Fund Institute (as at Feb 2018).
Abu Dhabi Crown Prince Mohamed bin Zayed Al Nahyan tweeted, “I applaud the restructuring of the Abu Dhabi Investment Council to become part of Mubadala Investment Company group. An investment vehicle of such scale will enhance the country’s competitive position.” Adding, “We look forward to sustaining growth through a unified and integrated vision that builds on gains, spurs efforts and boosts our global competitiveness.”