Abu Dhabi-based Mubadala Investment Co. said it will team up with Japan's SoftBank Group Corp. to launch a $400 million investment fund targeting European technology enterprises.

The fund will be managed by the company's venture capital arm, Mubadala Ventures, which also oversees Mubadala's $15 billion commitment to the Softbank Vision Fund.

Mubadala Ventures will help European tech companies establish operations in Abu Dhabi, allowing them to expand operations to the Gulf and the Middle East.

Ibrahim Ajami, head of Mubadala Ventures, cited the "strong potential" of the European tech ecosystem with its "array of dynamic, founder-led companies seeking funding and support from a committed partner."

Ron Fisher, director and vice chairman of SoftBank Group, added: "The UK and Europe has some of the world's most exciting startups and we would like to see more companies accelerate through the startup stage to achieve sustained growth at a global level."

Last month, Mubadala Investment announced a plan to diversify its portfolio and monetize existing investments.