Kuala Lumpur: Abu Dhabi has signed multiple pacts with Malaysia to invest in several projects that range from property development to constructing a petroleum storage facility in the southeast Asian country, a joint statement said on Tuesday.
The two countries’ cooperation reflects Malaysia’s growing appeal among Gulf governments as the Southeast Asian country capitalises on its Islamic credentials to attract investment. Government-linked agencies, such as Qatar Investment Authority, had earlier pledged investment in Malaysia.
Abu Dhabi agreed to develop a 21 billion ringgit (Dh24.8 billion, $6.7 billion) strategic petroleum reserve facility in Malaysia’s southern state of Johor, which will have a storage capacity of 60 million barrels of crude oil and petroleum for the sole use of the Gulf country, the statement said.
Separately, Aabar Investments PJS, Abu Dhabi’s strategic investment arm, plans to partner Malaysia’s state-run 1Malaysia Development Bhd to develop a financial centre in Kuala Lumpur-becoming the first major anchor investor in the Malaysian government’s proposed financial hub.
The project, expected to generate a gross development value of more than 26 billion ringgit ($8.25 billion), is part of Malaysia’s $444 billion Economic Transformation Programme, an initiative started in 2010 that aims to transform the country into a developed economy by 2020.
Gross development value refers to the potential retail or sale value of the properties after construction.
The financial centre will house a cluster of office towers, shopping malls, hotels, serviced residences and a convention centre.
“These strategic partnerships firmly underscore global investor confidence in Malaysia as a long-term investment destination,” 1MDB Chairman Lodin Wok Kamaruddin said in the statement.
