Abu Dhabi’s Mubadala Development Company has announced plans to invest $7 billion in Malaysia's aluminium sector as part of its strategic partnership deal with 1Malaysia Development Berhad (1MDB).

The UAE investment fund company signed two collaboration agreements on the strategic partnership with 1MDB that could lead to significant increases in FDI in the country.

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 Mohd Najib Tun Haji Abdul Razak and chief executive officer and managing director of Mubadala Khaldoon Khalifa Al Mubarak.

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

MI has agreed to assess the viability of an investment of up to $7 billion for the development of a major initiative in the aluminium sector based on hydro power in the Sarawak Corridor of Renewable Energy (Score), it added.

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 finalized in 2011 following completion by 1MDB of the KLIFD master plan.

KLIFD will provide a home for world-class institutions operating in Malaysia’s financial system, including major international banking and financial institutions, financial services, investment houses and regulators, the statement added.-TradeArabia News Service