Mubadala ready for major transport push but global opportunities scarce

Fund stands ready to invest once long-term regulatory frameworks are in place, executive says

Khaled Al Marri, chief executive of real assets at Mubadala, right, and Dr Sadek Wahba of I Squared Capital. Antonie Robertson / The National

Abu Dhabi’s sovereign investor Mubadala is keen to make a strategic shift towards global transport infrastructure, but regulatory bottlenecks and limited availability of high-quality opportunities remain constraints, a senior executive said.

Khaled Al Marri, chief executive of real assets at Mubadala, said the fund was “ready to deploy a large amount of capital” into transport assets once clear, long-term traffic and predictable regulatory frameworks are in place.

“We are short of opportunities today, not capital,” he told The National at Abu Dhabi Finance Week.

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“We're looking at a lot of airports, but finding that airport opportunity where there is stability in the traffic volume [is difficult]. Looking at the past 10, 20 years – you don't see a lot of swings.”

Khaled Al Marri, chief executive of real assets at Mubadala, at Abu Dhabi Finance Week. Antonie Robertson / The National

His comments reflect the broader global contrast between rising infrastructure needs and investment constraints.

Private participation in infrastructure (PPI) investment grew 16 per cent annually to $100.7 billion last year, the World Bank found in its latest report.

For Mubadala, the size of its broader investment portfolio has been climbing. The firm reported assets under management of about $326 billion in 2025, reflecting a steady expansion in sectors such as technology, manufacturing and digital infrastructure.

Mubadala’s growing real assets platform has invested in transport, energy and digital infrastructure in multiple countries.

Slower transport deals

Mubadala’s pursuit of airport assets reflects a wider market dynamic that infrastructure investment is increasingly constrained by policy uncertainty and regulatory complexity across major economies.

In much of Europe, where a significant portion of major airports are privately owned, institutional capital has historically been stronger, supported by concession and ownership frameworks that attract long-term capital, according to Airports Council International Europe’s 2024 industry manifesto. This is driven in part by supportive government frameworks.

Dr Sadek Wahba, founder and managing partner of independent global infrastructure investment manager I Squared Capital, said Europe’s model had been “relatively successful”, but when you look at other emerging markets or the US, the criteria are different.

“You need to be able to have an opportunity set with a regulation that makes sense, that you can invest in. You may have an amazing history of traffic, but then regulation doesn't work for you,” he said.

Sadek Wahba of I Squared Capital said Europe’s model has been “relatively successful”. Antonie Robertson/The National

About 75 per cent of passengers use privately owned airports in Europe, 66 per cent in Latin America and 47 per cent in Asia Pacific, according to a September report by ACI.

Regulatory change can open doors, said Dr Wahba, who suggested that there might be future shifts in the US. But policy evolution will require the rewriting of long-standing regulatory frameworks that will not happen soon, he said.

“Deregulation is on its way but it's going to be a journey,” he said. “It's going to take time.”

Digital infrastructure focus

Against this backdrop of constrained transport opportunities, both Mubadala and I Squared are finding more success in digital and energy transition infrastructure.

Mr Al Marri said digital assets, including data centres, fibre networks and connectivity platforms account for more than 20 per cent of Mubadala’s infrastructure capital investments this year and represent one of its fastest-growing sectors.

The growth has been propelled by global trends such as artificial intelligence, cloud computing and the expansion of internet-connected services.

Dr Wahba also confirmed that the firm is active across digital infrastructure and energy transition assets. Infrastructure investors are increasingly looking at debt and equity opportunities where digitisation and renewable energy overlap as demand for both power and connectivity rises.

On the energy front, Dr Wahba emphasised that renewables and related technologies such as battery storage, carbon capture and onshore manufacturing linked to battery materials remain central pillars of infrastructure portfolios, especially in the US, where energy transition policy supports domestic manufacturing.

Public-private partnerships

Both executives stressed that public-private partnerships (PPPs) are becoming indispensable to fund, build and operate infrastructure assets. These models, while not universal, have increasingly been used to bridge funding gaps and embed private capital into public sector priorities.

Mubadala is exploring PPP frameworks for major programmes such as the Stargate Project, a proposed trans-regional digital infrastructure initiative that would require substantial capital and co-ordination among governments, local operators and global investors.

Dr Wahba noted that PPPs are also being used to monetise existing public assets and freeing capital for reinvestment in high-priority sectors. He cited the example of Saudi Arabia’s active use of asset recycling through PPP mechanisms.

Yet some disagree with his view on PPPs. Private firms will only invest in infrastructure when host states shoulder the lion’s share of the risk, according to Lee Jones, professor of political economy and international relations at Queen Mary University of London, who was responding to an opinion piece on the topic by Mr Wahba.

Disciplined investment in a noisy market

Both executives acknowledged that the biggest challenge for infrastructure investing is not identifying long-term trends, such as decarbonisation and digitisation, but maintaining discipline amid market noise.

“The most difficult thing is to stay focused in a time of noise, hype and short-term reactions,” Mr Al Marri said. “Investing is simple – staying calm is not.”

Their remarks address a mounting global concern that persistent regulatory uncertainty, strained public budgets and surging infrastructure demand are driving what the G20-affiliated Global Infrastructure Hub projects say could become a global infrastructure financing gap of about $15 trillion by 2040.