Mubadala Investment Co., Abu Dhabi, and the French public investment bank Bpifrance will co-invest an additional total of €4 billion ($4.5 billion) targeting French growth companies, according to a joint news release Friday.
The $243.4 billion sovereign wealth fund and Bpifrance will each invest €2 billion over the next 10 years in growth and high-growth technology companies in France, building on their existing partnerships.
The French Emirati Fund Partnership, which first launched in 2014 between the two organizations, to date has allocated a combined €3.2 billion to the French companies directly or through investment funds, while the Innovation Partnership, launched in 2017, invested €800 million.
Separately, in a second agreement announced Friday, Mubadala and the French Ministry of the Economy, Finance and Recovery will jointly invest up to €1.4 billion in investment funds based in France or with significant exposure to the French economy in sectors such as energy and semiconductors.
"The strategic economic cooperation between the United Arab Emirates and the French Republic, as well as our history of successfully deploying capital alongside our partners in France, underpin these new agreements, " Khaldoon Khalifa Al Mubarak, managing director and group CEO at Mubadala, said in the release.
"Following today's announcement, we will be able to accelerate our investments in the sectors rapidly emerging as the drivers of this growth, including renewable energy and advanced technologies," he added.
Bruno Le Maire, French minister of economy and finance, added in the release that the partnership with Mubadala demonstrates France's attractiveness and the UAE's confidence in the potential of the French economy.
Nicolas Dufourcq, CEO of Bpifrance, also added in the release: "The renewal of our commitments for the next 10 years, demonstrates our shared willingness to establish a long-term relationship to support French companies in a value-creation approach with the support of our respective ecosystems."