Abu Dhabi’s Mubadala Investment Company has provided a rare insight into its global capital allocation plans, revealing an infrastructure strategy that prioritises expansion in the US and Asia while adopting a more selective stance in Europe, according to a senior executive.
As one of the emirate’s three main state investment funds, alongside the Abu Dhabi Investment Authority (ADIA) and ADQ, Mubadala plays a central role in deploying Gulf capital internationally. Its refreshed strategy highlights the areas where the fund sees the strongest long-term potential in infrastructure investments.
Mubadala oversees assets exceeding AED1 trillion ($330 billion) across sectors including semiconductors, technology, life sciences, and infrastructure. Its 2024 financial report indicates that the fund has achieved a 10 percent annualised return over the past five years.
The fund has backed investments such as US-based Aligned Data Centers, Japan’s PAG REN I renewables platform, and Germany’s energy-efficiency firm Techem. Yet, it generally shares limited detail on how it evaluates risk, geography, and expected returns across different infrastructure sub-sectors.
Saed Arar, Mubadala’s Executive Director and Head of Infrastructure, told Abu Dhabi Finance Week that the fund’s infrastructure strategy focuses on six key sectors: energy transition, digital infrastructure, transport, power and utilities, and a growing category of industrial assets with infrastructure-like characteristics. A notable example is its $4.2 billion investment in Perdaman’s urea plant in Western Australia.
“Some may ask how a urea plant qualifies as infrastructure,” Arar said. “However, considering its 20-year offtake agreement and secured access to gas, it plays a vital role in national food security and overall economic stability.”
Urea, a critical nitrogen fertiliser for agriculture, is produced at the Perdaman plant by converting ammonia derived from natural gas into urea. This makes the facility an essential part of the global food supply chain.
