The joint venture, called Suyadi, will help supply aluminium smelters in the UAE, Mubadala said.
"This joint venture is an important component of our globally integrated portfolio of businesses that support the growth of the UAE's aluminum industry," said Waleed Al-Muhairi, chief operating officer of Mubadala.
Construction is expected to start towards the end of 2011, with first production set for export by the end of 2012, he said.
The UAE produces around 1.8Mt/y of aluminium through Dubai Aluminium Company Limited (Dubal) and Emirates Aluminum Company Limited (Emal).
