Abu Dhabi Firm Invests in Virgin Galactic

Aabar Investments has entered an agreement to take a 32% stake in Virgin Galactic for $280 million.

The Abu Dhabi investment company claims to have have committed an additional $100 million toward developing the capability to launch a satellite. The firm also intends to to build a spaceport in Abu Dhabi.

The arrangement gives Aabar Investments regional rights to host Virgin Galactic tourism and space flights for scientific research.

Virgin Galactic, the space tourism subsidiary of Richard Branson's Virgin Group, was formed in 2004.

Virgin has already invested over $100 million in Virgin Galactic, The deal, which is still subject to regulatory clearance, values Virgin Galactic at $900 million. It will provide Virgin Galactic with enough capital to sustain itself until it begins commercial operations.

So far, Virgin Galactic has received deposits from about 300 prospective space tourists.

Khadem Al Qubaisi, Aabar Investment's chairman, says that the arrangement will help Abu Dhabi achieve its goal of being the region's leader in international tourism.

Aabar Investments is an investment vehicle for Sheikh Mansour bin Zayed al-Nahyan, who also owns Manchester City Football Club.

It is believed that the business partnership was aided by a growing personal relationship between Branson and the Sheikh.