Mubadala Development Company, an investment company wholly owned by Abu Dhabi government, has announced the purchase of a 5% stake in Ferrari from Mediobanca.

The deal sees Mubadala pay €114m (£79m) for 5% of the Fiat-owned Ferrari from Mediobanca, valuing Ferrari at a total of €2.28bn (£1.58bn).

"This is the first time Fiat has 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," says Luca di Montezemolo, chairman of Ferrari and of Fiat (56% majority shareholder in the Italian luxury brand).

“The strategic alliance with Mubadala, and the government of Abu Dhabi, is set to bring 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."