International Petroleum Investment Company (IPIC)

Definition of the International Petroleum Investment Company (IPIC)

The International Petroleum Investment Company (IPIC) is a government-owned investment organization that deals with the sovereign wealth fund for Abu Dhabi, United Arab Emirates (UAE). The purpose of the IPIC is to invest internationally inside the hydrocarbons industries. In 2016, the IPIC merged with Mubadala Development Company to make the Mubadala Investment Company.

Understanding the International Petroleum Investment Company (IPIC)

The IPIC was laid out 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 almost 3,000,000 and holds 9% of the world's oil reserves and 5% of the world's gas reserves. The IPIC was made with the goal to utilize Abu Dhabi's natural petroleum wealth — from oil resources found during the 1950s — to build up the economy and build critical infrastructure for the fate of Abu Dhabi's residents.

One of the IPIC's most memorable investments was in 1988 when it acquired a large minority stake in Cespa, the Spanish purifier. The IPIC specializes in global energy-related industries connected with hydrocarbons: exploration and production, transportation and pipelines, retail and marketing, and industrial services, among others. Its investments are long haul centered.

Merger With Mubadala Development Company

Mubadala Development Company was laid out in 2002 to additionally differentiate 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 make another company, Mubadala Investment Company, which would contain both the IPIC and Mubadala Development Company.

Mubadala Investment Company is known as a global investment force to be reckoned with for Abu Dhabi. It has a different investment portfolio that traverses in excess of 50 countries and 13 sectors, like aviation, semiconductors, renewable energy and utilities, healthcare, and real estate. At the point when the merger was complete, the company's assets totaled roughly $125 billion, making it the fourteenth largest sovereign wealth fund in the world. It is presently known as Abu Dhabi's leading strategic investment company.