Mubadala Development and International Petroleum Investment (IPIC), two sovereign wealth funds of Abu Dhabi, are set to be merged into a single vehicle named Mubadala Investment Co, LiveMint reported yesterday.

The new fund will have approximately $125bn under management, making it the fourteenth largest fund in the world, with $37bn of debt. The plans of a merger were first disclosed in June 2016.

Many details about the functioning of Mubadala Investment are yet to emerge, but the fund will be led by Khaldoon Al Mubarak, current chief executive of Mubadala Development.

Mohamed bin Zayed Al Nahyan, chairman of Mubadala Development, will take the same position in the new fund. Mansour bin Zayed Al Nahyan, chairman of IPIC, will be vice chairman. Energy minister Suhail Al Mazrouei will join the new fund’s board.

The emirate, which operates a range of other sovereign wealth funds including Abu Dhabi Investment Authority, may consolidate some of these as well over the next 12 months, so details have not yet been disclosed.