Abu Dhabi's Crown Prince Sheikh Mohamed bin Zayed has issued a resolution to merge the emirate's International Petroleum Investment Company and Mubadala Development Company, according to WAM .

The merger would bring the combined assets of the two funds to a massive $135 billion with a combined debt of $42 billion, according to calculations by Bloomberg .

"Integrating the two entities would create greater benefits and enhanced economic value to the Government of Abu Dhabi. The combined entity will realize synergies and growth in multiple sectors including the energy and utilities sector, technology, aerospace, industry, health care, real estate and financial investments," the WAM statement said.

The crown prince tweeted his comments about the merger, highlighting that it would make the economy more competitive and sustainable.

IPIC was established in 1984 by Sheikh Zayed Bin Sultan Al-Nahyan, the founder of the UAE, to "advance his vision of using Abu Dhabi’s natural petroleum wealth to build a modern, diversified economy for the benefit of future generations," according the fund's website .

In 2002, Mubadala was founded by the Abu Dhabi government "as a principal agent in the diversification of Abu Dhabi’s economy" and to "strengthen Abu Dhabi’s growth potential, and to help the government meet its socioeconomic targets," according to the company's website .

The crown prince currently serves as chairman of the board of directors for Mubadala, while another member of Abu Dhabi's ruling family, Sheikh Mansour bin Zayed, currently serves as chairman of IPIC's board.

"The development is positive for the Emirate of Abu Dhabi, especially in light of the challenging environment both globally and in the region," Chavan Bhogaita, head of market insight and strategy at National Bank of Abu Dhabi, told Bloomberg. "Bringing IPIC and Mubadala under common control will allow Abu Dhabi to undertake and manage investment activities in a more sustainable manner and better aligned with the emirate’s longer-term ambition."