Abu Dhabi, July 29 - Aabar Investments, the biggest investment fund of the United Arab Emirates (UAE), has entered a strategic partnership deal with British billionaire Richard Branson's Virgin Group, WAM news agency reported.

The Abu Dhabi firm, which recently bought a stake in Mercedes-Benz, said Tuesday that it would pay about $280 million to buy 32 percent of shares in the world's first commercial spaceline - Virgin Galactic.

The deal signed Tuesday at the EAA AirVenture air show in Oshkosh in the US state of Wisconsin. Branson and Mohamed Badawy Al-Husseiny, CEO of Aabar, attended the signing ceremony which took place alongside the debut of Virgin Galactic's new carrier space launch vehicle, WhiteKnightTwo (VMS Eve).

Commenting on the acquisition, Aabar chairman Al Qubaisi said, 'Aabar's stake in Virgin Galactic will open a new avenue of opportunity for Abu Dhabi in this unique and dynamic business.'

'The significant partnership not only falls in line with Abu Dhabi's larger plans to inculcate technology research and science at a grassroots level but also complements its aim to be the international tourism capital of the region,' he said.

Branson said, 'We are delighted to partner with Aabar in a strategic deal that is a first for Virgin Galactic.