Ferrari has announced it has established a sponsorship agreement with Mubadala Development Company, an investment company owned by the Government of the Emirate of Abu Dhabi. In July 2005, Mubadala Development purchased a five percent stake in Ferrari from Mediobanca of Italy. The Mubadala logo will feature on the Ferrari cars that will compete in the Formula 1 World Championship this year, as well as on the drivers' caps.

"We are pleased to have reached a sponsorship agreement with such a dynamic company as Mubadala, with whom we share important values such as the research into innovation and a passion for our work," said Ferrari C.E.O. Jean Todt. Furthermore, this agreement strengthens our ties with the Emirate of Abu Dhabi, where a Ferrari theme park is being created in a State located in a region in which interest in Formula 1 is growing ever stronger." The accord came into effect on 1st January and is for three years.

The Mubadala Development Company is a principal investment company wholly owned by the Government of Abu Dhabi, with a mandate to establish new businesses and acquire (wholly or partly) existing businesses either in the UAE or abroad. Mubadala invests in a wide range of strategic sectors including energy, utilities, health, real estate, public-private partnerships, basic industries and services. The company's goal is to diversify and further develop the rapidly growing economy of Abu Dhabi, while achieving solid returns on commercially viable investments. Mubadala Development Company is chaired by His Highness, Sheikh Mohammed Bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi. In July 2005 Ferrari and the Mubadala Development Company announced the purchase of a five percent stake in Ferrari by Mubadala from Mediobanca. The deal saw Mubadala paying 114 million euros to purchase five percent of Ferrari from Mediobanca, at the time valuing Ferrari at a total of 2.28 billion euros.
 

"This is the first time that we, Fiat, have welcomed a non-financial institution to become a Ferrari shareholder. The key benefit of extending our shareholder base beyond traditional financial institutions will be a new opportunity for our development," said Luca di Montezemolo, Chairman of Ferrari and of Fiat on the announcement of the purchase.

"We know Mubadala is committed to being an extremely reliable, stable shareholder and partner to existing shareholders," he continued, adding: "Moreover, the strategic alliance with Mubadala, and therefore the Government of Abu Dhabi, is set to bring us compelling and dynamic new strategies especially in the Middle East and North African markets. Our initial areas for consideration will range from the creation and development of road and racing car testing initiatives, along with professional driving schools through to the leveraging of opportunities around brand experiences and merchandising."

Meanwhile his Highness Sheikh Hamed bin Zayed Al Nahyan, Chairman of the Abu Dhabi Department of Planning & Economy said at the time, "This is a sound financial and strategic investment on numerous levels. It continues our track record of being involved with premier global companies and brands who are the leaders in their fields. Importantly, it also meets our own investment objectives that include the creation of blue chip commercial partnerships that will directly and indirectly benefit the Abu Dhabi economy," he added.