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News 373 views last update:6 Aug 2012

Dubai Group invests in Malaysian biodiesel

Dubai Group, owned by the Emirate, said it had paid US$49.5 million for a 30% stake in Malaysian biodiesel firm GBD Investment, as it seeks to tap booming global demand for alternative fuels.

GBD's plant in Sabah state on Borneo island has a capacity of 200,000 metric tonnes a year, which will increase to 500,000 tonnes when the second phase of its construction is completed, Dubai Group said in a statement.

The plant can use palm oil and jatropha as feedstock and would produce biodiesel and pharma-grade glycerine for global markets, it said. South Korea's ECO Solutions Co holds the remaining stake in GBD.

Dubai Group is the latest in a string of Gulf investors who have piled into Malaysian assets, lured by the Southeast Asian country's healthy economy, booming commodities sector and fast-growing Islamic finance industry. In March, Qatar-based Gulf Petroleum, whose shareholders include members of the Qatar royal family and the Qatar General Insurance and Reinsurance Company, said it would set up a US$5 billion oil and gas complex in Malaysia.

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