ABU Dhabi’s state-owned International Petroleum Investment Company (IPIC) and Aabar Investments PJS (Aabar) will pay US$1.8 billion (RM8.06 billion) to 1Malaysia Development Bhd (1MDB) and Ministry of Finance Inc to settle a legal dispute, the Finance Ministry announced today.

This is in pursuant to a settlement of a legal proceedings in the London Court of International Arbitration and the London High Court.

“With this settlement, Malaysia and Abu Dhabi look forward to continue cooperating for the prosperity and economic benefit of both countries in the future,” Finance Minister Anwar Ibrahim said in a statement.

The parties were embroiled in the legal fight with claims that IPIC and Aabar were complicit in the 1MDB scandal.

Putrajaya challenged the 2017 arbitration settlement between the two sides in the United Kingdom, arguing that IPIC and Aabar were aware of fraud allegations against former prime minister Najib Razak at the time the deal was struck.

IPIC guaranteed two separate dollar-denominated bonds for 1MDB in 2012 in deals arranged by Goldman Sachs Group Inc, which raised US$3.5 billion. – February 27, 2023.