Adia To Help Fund $1Bn Malaysian Oil And Gas Firm

Abu Dhabi Investment Company (Adia) is to invest in an oil and gas equipment-making unit in Malaysia.

Adia is participating in the $1 billion funding round for Yinson Holdings’ equipment-maker alongside Asian investment firm RRJ Capital and British Columbia Investment Management.

The funding, expected to close in the first quarter of 2025, will primarily support the equipment-making unit’s expansion, with $200 million for distribution to the energy infrastructure parent, according to Reuters.

The three investors are expected to subscribe for an additional $500 million within two years of the round.

News of Adia’s investment comes just months after the UAE and Malaysia signed a comprehensive economic partnership agreement (Cepa) trade deal. The Cepa will reduce or eliminate tariffs, streamline trade procedures and improve market access for service exports for the UAE and Malaysia.

The UAE is Malaysia’s second-largest trade partner in the Arab world, representing a third of Malaysia’s trade with Arab countries.

Bilateral trade between the UAE and Malaysia reached $4.9 billion in 2023, and $4 billion in the first nine months of 2024.

The UAE’s Cepa programme, launched in September 2021, aims to increase its non-oil trade to $1.1 trillion in value by 2031 and double the size of its economy to over $800 billion by 2030. A total of 17 Cepas have been signed – eight are in force and nine are awaiting implementation.

As part of a consortium alongside Blackrock and Malaysia’s Employees Provident Fund, Adia is also participating in a bid to take over Malaysia Airports Holdings.