Mubadala, a Abu Dhabi-based business development and investment company, and Veolia Water have signed an agreement to create a joint-venture company that will focus on water production and waste water collection and treatment in the Mena region.

Under the agreement, Veolia Water, the water and wastewater services subsidiary of Veolia Environment, will own 51 per cent of the stakes in the new company, while Mubadala will hold 49 per cent.

The announcement for the joint venture follows a decision taken by the duo to work together on municipal concessions and public private partnerships.

This partnership brings together the expertise of a world leader in environmental services with the experience of one of the leading investment and development companies in the region, said the two companies.

It marks the first step for long-term collaboration between the two companies on future projects, they added.  

Mubadala chief operating officer Waleed Al Mokarrab Al Muhairi, said: "As the region's economy continues to expand and diversify, high quality infrastructure will underpin its development."

"As part of this process, Mubadala is creating a diverse and sustainable range of businesses in the utilities sector by bringing new technologies, efficiencies and best practices to the region," he noted.

"Establishing partnerships with best-in-class international companies such as Veolia, which has over a century of experience in this field, will allow us to do just that," Al Muhairi explained.

Outlining the significance of the partnership, Antoine Frerot, Veolia Water chief executive officer,  said the joint venture was strategically important for the company.

The tremendous growth in the Mena reqion, in terms of the economy, industry and tourism, will require world-leading expertise in quality water services, solutions and technologies, he observed.

"Working with a leading investment and business development company like Mubadala will further enable us to expand and offer vital infrastructure solutions to suit local needs," Frerot added.-TradeArabia News Service