Mubadala Investment Company (MIC), newly formed $125bn investment vehicle, will formally launch operations this May, focusing on four core areas of investments including petrochemicals, infrastructure.

The Abu Dhabi government-owned investment arm is formed after the 2016 announcement of merging the Mubadala Development Company and International Petroleum Investment Company. The board has approved the new organisational structure and has appointed senior managers, the company said in a statement.

The four investment platforms include petroleum and petrochemicals; technology, manufacturing and mining; aerospace, renewables, information and communications technology; and alternative investments and infrastructure, which will help accelerate diversification of the Abu Dhabi’s economy, through investments within the country and abroad.

Abu Dhabi, which accounts for about 6 per cent of the global oil reserves, is merging its investment vehicles and the financial institutions to cut costs and improve efficiencies. Like the rest of the regional oil producers, Abu Dhabi has also cut back on spending and is running its own austerity campaign after the prices of oil slumped from their mid-2014 peak of $115 per barrel to current $55 a barrel level.

The petroleum and petrochemicals and infrastructure investment platforms will be the biggest business divisions for the new company.

The oil and petrochemicals platform will account for about 31.1 per cent of the total assets of the firm, including significant investments in companies such as Cepsa, Nova Chemicals, Borealis and Mubadala Petroleum, the company said in the statement, adding that its alternative investments and infrastructure division will have 31 per cent weight, with equity investments worldwide in sectors including health care and real estate.

Investments in technology, manufacturing and mining accounts for 21.6 per cent of the total assets with stakes in firms such as Global Foundries, Emirates Global Aluminium, AMD, and Matsa.

The aerospace, and renewables division will have more than 10.6 per cent of the total assets with investments including Yahsat and Masdar, according to the statement, which added that corporate assets, including cash, will account for remaining 5.7 per cent of $125bn portfolio.