Abu Dhabi, UBS plan new $1 bln infrastructure fund

ABU DHABI Nov 10 (Reuters) - A joint venture between Abu Dhabi Investment Company (ADIC) and UBS Global Asset Management plans new funds of up to $1 billion and will invest over $200 million in two Gulf infrastructure projects.

The venture's CEO Mark Thompson said on Monday the ADIC-UBS venture will continue to invest in equity in the Middle East-North Africa (Mena) region despite the slowdown in projects due to the liquidity crunch.

"We plan to launch new funds over a three-year period. There will be another infrastructure fund, bigger than our current fund, at least between $750 to $1 billion," he told reporters on the sidelines of a conference organized by London-based MEED magazine.

ADIC-UBS (UBSN.VX) launched a $600 million infrastructure fund in February after setting up the joint venture. "We also plan to take equity in an Abu Dhabi roads project and a power project in Saudi Arabia sometime early next year," said.

"Our investments our typically not more than 20 percent of our Infrastructure Fund. It will not exceed $120 million in the Abu Dhabi Roads Project and $100 million in the Saudi project," Thompson said.

The estimated $2.5 billion Abu Dhabi Roads Project, a 325 km road linking Abu Dhabi to Saudi Arabia's border, has been tendered by the emirate's Department of Transport. The winning contractor will be announced in early 2009.

Power in another area of interest. "We are in talks with the Abu Dhabi contractors and the project developer of Saudi's Ras Al Zor power project," he said.

ADIC-UBS has invested $70 million in projects in Jordan and the UAE so far from its infrastructure fund which will close in late 2009.

The fund is also looking at investing in a 100-bed hospital in Abu Dhabi estimated to cost up to $200 million, he said, declining to go into details.

However Thompson said a slowdown in certain projects is visible.

"The terms are not attractive now but we will continue investing in equity despite the slowdown," he said. (Reporting by Stanley Carvalho; Editing by David Holmes)