Mubadala Development Co, the investment subsidiary of Abu Dhabi government, has announced that it has decided to pump about $1.8 billion (Dh6.6 billion) in a property development project in Malaysia.

The sources said that the project entails the construction of hotels and villas on a 1,200-hectare site in Terengganu state on the east coast of the Southeast Asian country.

The sources further added that Mubadala will invest the amount over seven years while TIA will purchase the land from the state government and inject it into the joint venture.

TIA has been established and labelled as Malaysia’s first sovereign wealth fund and is modelled on similar concepts in the Gulf with the aim of pumping oil revenues for the long term.

As per media reports, Mubadala, which manages over $10 billion in assets, is also building $600 million city in a planned economic zone in Malaysia’s southern Johor state, near Singapore.