In this file photo dated Sept 22, 2015, trucks drive past a billboard with the 1 Malaysia Development Berhad (1MDB) logo at the funds flagship Tun Razak Exchange construction site in Kuala Lumpur. (PHOTO / AFP)

KUALA LUMPUR — Malaysia's finance ministry said on Monday Abu Dhabi's International Petroleum Investment Co (IPIC) and Aabar Investments PJS have agreed to pay $1.8 billion to settle a legal dispute over the multi-billion dollar 1MDB scandal.

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The ministry said in a statement the Abu Dhabi companies, 1MDB and Malaysia's Minister of Finance (Incorporated) had reached a settlement in respect of the legal proceedings in the London Court of International Arbitration and the London High Court.