DUBAI, Sept 6 The chief executive of Abu Dhabi
state fund Mubadala said he did not rule out more
mergers and acquisitions in the emirate after the planned merger
of his institution with another of Abu Dhabi's sovereign funds.
"From a personal point of view, there is no doubt," Khaldoon
Khalifa al-Mubarak told Abu Dhabi-based Sky News Arabia in an
interview broadcast on Tuesday, when asked about the possibility
of more merger activity in the emirate.
"When the benefits of a merger are clear, it is in the
interests of owners. We are in a competitive world and size
matters, and the more competitive capability we form would be
in the interest of concerned companies," he added, according to
a transcript of the interview provided by Sky News Arabia.
Abu Dhabi said in June that it would merge Mubadala and
International Petroleum Investment Co (IPIC), responding to the
impact of lower oil prices by pooling their investment power and
The emirate is also in the process of merging two big
state-linked banks, National Bank of Abu Dhabi and
First Gulf Bank.
Mubarak told Sky News Arabia that he expected the Mubadala
merger to be completed between the fourth quarter of this year
and the first quarter of 2017, creating an institution with
combined assets of 460 billion dirhams ($125 billion).
He said it was too early to discuss the strategy of the new
fund but that the merger was being carried out "within well-
He said 2015 had been a tough year because of low oil prices
and 2016 had also been expected to be tough.
"With what is going on in China, the oil prices and
elections in more than one country that have an impact on
economies, we expected a difficult year and big challenges, and
all companies around the world are affected by these
There may be some improvement next year, "but the situation
may require caution and wisdom and a long-term, future-oriented
outlook in managing investments."
(Reporting by Sami Aboudi; Editing by Andrew Torchia)