Ending years of efforts to find a new owner, Ssangyong Engineering & Construction signed an investment contract with the Investment Corporation of Dubai on Thursday.

“The company’s credibility is expected to increase significantly as one of the world’s sovereign wealth funds will become the largest shareholder of the construction firm,” said Ssangyong, Korea’s 19th-largest building firm by construction capacity.

Under the deal, the Dubai-based state-run sovereign wealth fund will acquire newly issued Ssangyong shares, worth 200 billion won ($183 million).

The ICD boasts the second-most assets under management in the United Arab Emirates, controlling assets of $160 billion.

The deal came a day after Seoul Central District Court approved the ICD’s investment contract with Ssangyong on Wednesday.

“The court’s expectations and the ICD’s acceptance of Ssangyong’s abrupt management normalization allowed the deal to be finalized earlier than expected,” a Ssangyong official said.

Industry insiders expected that the contract would help Ssangyong E&C to increase its sales from overseas construction projects as the ICD participates in multibillion-dollar construction projects including the upcoming World Expo to be held in Dubai in 2020.

The acquisition is part of the ICD’s efforts to expand its investment in Asia. Until now, the UAE sovereign wealth fund has mainly focused on the United States and European markets.

“The ICD expects Ssangyong to help the Dubai fund make a foray into Southeast Asian countries such as Singapore and Korea,” the Ssangyong official said,

From Jan. 5, the Dubai fund officials carried out a three-week inspection of Ssangyong E&C after it was named the preferred bidder for the local builder in December.

Ssangyong E&C, which has been under court protection since early 2014 due to a credit crunch, received formal approval for its comprehensive rehabilitation program from its creditors in July last year.

The program outlined cash repayment and debt-to-equity swap arrangements on the company’s debt that totaled 850 billion won.

By Park Han-na (hnpark@heraldcorp.com)