Definition of the International Petroleum Investment Company (IPIC)
The International Petroleum Investment Company (IPIC) is a government-owned investment organization that manages the sovereign wealth fund for Abu Dhabi, United Arab Emirates (UAE). The purpose of the IPIC is to invest internationally within the hydrocarbons industries. In 2016, the IPIC merged with Mubadala Development Company to create the Mubadala Investment Company.
Understanding the International Petroleum Investment Company (IPIC)
The IPIC was established on May 29, 1984, by the Abu Dhabi government. Abu Dhabi is the capital of the United Arab Emirates (UAE). It has a population of nearly three million and holds 9% of the world’s oil reserves and 5% of the world’s gas reserves. The IPIC was created with the goal to use Abu Dhabi’s natural petroleum wealth—from oil resources discovered in the 1950s—to build up the economy and build critical infrastructure for the future of Abu Dhabi’s citizens.
One of the IPIC’s first investments was in 1988 when it acquired a large minority stake in Cespa, the Spanish refiner. The IPIC specializes in global energy-related industries related to hydrocarbons: exploration and production, shipping and pipelines, retail and marketing, and industrial services, among others. Its investments are long-term-focused.
Merger With Mubadala Development Company
Mubadala Development Company was established in 2002 to further diversify Abu Dhabi’s economy. The IPIC merged with Mubadala Development Company on June 29, 2016. A strategic decision was then made by the President of the United Arab Emirates and Ruler of Abu Dhabi, Khalifa bin Zayed bin Sultan Al Nahyan, in 2017 to create a new company, Mubadala Investment Company, which would comprise of both the IPIC and Mubadala Development Company.
Mubadala Investment Company is known as a global investment powerhouse for Abu Dhabi. It has a diverse investment portfolio that spans more than 50 countries and 13 sectors, such as aerospace, semiconductors, renewable energy and utilities, healthcare, and real estate. When the merger was complete, the company’s assets totaled approximately $125 billion, making it the 14th largest sovereign wealth fund in the world. It is now known as Abu Dhabi’s leading strategic investment company.