Abu Dhabi’s state-owned investment fund firm Mubadala Development Company will collaborate with a Malaysian state-owned firm in investing $7 billion in the Malaysian aluminium sector.

Mubadala signed two collaboration agreements with 1Malaysia Development Berhad (1MDB), one of which related to the development of  a major initiative in the aluminium sector based on hydro power in the Sarawak Corridor of Renewable Energy (Score), said the Malaysian firm.

 The agreements were signed by 1MDB chief executive officer Shahrol Halmi and Mubadala chief operating officer Waleed Al Mokarrab Al Muhairi in the presence of Prime Minister Mohammed Najib Tun Haji Abdul Razak and chief executive officer and managing director of Mubadala Khaldoon Khalifa Al Mubarak.

The deals were signed with Mubadala Industry (MI) and Mubadala Real Estate & Hospitality (MREH), said a statement from 1MDB.

MI has agreed to assess the viability of investing up to $7 billion on the aluminium initiative.

Assessment work beginning
The two state-owned companies are starting preliminary assessment work on the project, which will create more than 10,000 jobs during construction and another 2,000 specialist jobs.

MREH has agreed to collaborate with 1MDB to explore the potential joint development of key strategic projects within the Kuala Lumpur International Financial District (KLIFD), the 34.4-hectare development in Kuala Lumpur that is being led by 1MDB, said the company in a statement.

The full scope of MREH’s participation in projects to be located within the KLIFD will be finalised in 2011 following completion by 1MDB of the KLIFD master plan.