GE forms partnership with Abu Dhabi investment firm

General Electric Co. has agreed to a joint venture with an Abu Dhabi government investment company that will pump $4 billion of outside capital into its weakened commercial finance business, part of a new global partnership to expand on GE’s fast-growing sales in the Middle East.

The deal with Mubadala Development Co. will also launch or broaden several other ventures with the Persian Gulf investment vehicle, which expects to become one of the top 10 institutional investors in GE.

In a joint statement Tuesday, Fairfield, Conn.-based GE and Mubadala said they were aiming to capitalize on strong growth opportunities in the Middle East and around the globe. The agreement provides for shared capital commitments to new joint ventures and investment funds.

“I think there’s no shortage for opportunities that the joint venture can focus on,” said Jeffrey Immelt, GE’s chief executive.

Mubadala, based in Abu Dhabi, capital of the United Arab Emirates, could eventually own about 120 million GE shares valued at close to $3.4 billion at current market prices, said analyst Nicholas Heymann of Sterne Agee.

GE and Mubadala plan to each allocate $4 billion in equity for the jointly owned commercial finance venture over a three-year period. The $8-billion venture will be established in the next 12 months and headquartered in Abu Dhabi.

Shares of GE rose 81 cents, or 2.9%, to $28.50.