DEFINITION of '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 Mubadala Investment Company.

BREAKING DOWN '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 approximately 2 million and 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 CEPSA, 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 30 countries internationally and 13 sectors, such as aerospace, semiconductors, renewable energy and utilities, finance, 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.

RELATED TERMS
  1. Abu Dhabi Investment Council - ...

    A sovereign wealth fund owned by Abu Dhabi, the capital of the ...
  2. Emirates Investment Authority - ...

    The Emirates Investment Authority (EIA) is a state-owned investment ...
  3. SAFE Investment Company (China)

    The SAFE Investment Company is the Hong Kong branch of the Chinese ...
  4. Arab Monetary Fund

    The Arab Monetary Fund was founded by the Arab League to stabilize ...
  5. AED (United Arab Emirates Dirham)

    The currency abbreviation for the United Arab Emirates dirham ...
  6. Oman Investment Fund

    A state-owned investment fund established in 2006 by the Sultan ...
Related Articles
  1. Tech

    National Bank of Abu Dhabi Adopts Ripple Cryptocurrency Software

    Could this be a sign that the cryptocurrency Ripple is about to break into the wider financial world in a big way?
  2. Investing

    An Introduction To Sovereign Wealth Funds

    Countries use sovereign wealth funds to stabilize their economies, but these investments can lack transparency.
  3. Insights

    Moody's Sovereign Debt Outlook Worst Since 2012

    More sovereign debt issuers have negative outlooks than at any time since the European sovereign debt crisis.
  4. Investing

    The UAE: An Emerging Economy for Investors

    The learning from UAE on how it succeeded with timely diversification when the BRICS nations and the neighboring oil-rich economies faced challenges.
  5. Investing

    OPEC Hints at Further Production Cuts in May (USO, UCO)

    After freezing oil production in November, OPEC is again considering a further cut in May.
  6. Insights

    Emirates Profits Nosedive Due To Brexit & U.S. Travel Policy

    The state-owned airline has decided not to award dividends for the first time in 21 years.
  7. Investing

    AMD Short Interest Hits Record High

    Short sellers flock to AMD as its share price lags competitors.
  8. Managing Wealth

    Best Airline for First Class: Emirates vs. Etihad vs. Qatar

    These airlines are known for their luxurious first-class offerings. Here are the luscious details.
  9. Tech

    Ripple Finishes Second Quarter Up 4,000% YTD

    Ripple has quickly ascended the ranks of cryptocurrencies to become a legitimate rival to Bitcoin's throne.
  10. Investing

    The 3 Best Stocks to Buy and Hold and Never Let Go

    Learn about the characteristics, qualities and reasoning behind stocks suitable for an investor interested in a buy-and-hold forever portfolio.
RELATED FAQS
  1. Globalization and International Investment

    Learn how globalization impacts international investment and transforms economies around the world. Understand the implications ... Read Answer >>
  2. What percentage of the global economy is comprised of the oil & gas drilling sector?

    Read about a rising industry that already composes as much as one-twentieth of total global economic output: the oil & gas ... Read Answer >>
  3. What economic indicators do oil and gas investors need to watch?

    Leading indicators for oil and gas investments are centered around the levels of production, consumer demand and inventory ... Read Answer >>
  4. All-stock vs All-cash M&A deal

    Mergers and acquisitions are becoming increasingly popular forms of corporate restructuring. Learn how it can affect the ... Read Answer >>
  5. What is private wealth management?

    Understand what private wealth management is from the perspective of both the private client as well as the private wealth ... Read Answer >>
  6. What are some of the challenges in real estate development?

    Learn what real estate development is, what developers do, and how real estate development is hindered by both risks and ... Read Answer >>
Hot Definitions
  1. Risk Tolerance

    Risk tolerance is the degree of variability in investment returns that an individual is willing to withstand.
  2. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
  3. Federal Funds Rate

    The federal funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve ...
  4. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  5. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  6. Restricted Stock Unit - RSU

    A restricted stock unit is a compensation issued by an employer to an employee in the form of company stock.
Trading Center