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GCC investors are funneling investments into airports worldwide in a bid to secure safe returns and foster ties in Europe, Africa, and Southeast Asia, Arabian Gulf Business Insight (AGBI) reported earlier this week.
What’s the draw? Wealth funds are drawn to investing in airports due to the longevity of the investment, the opening of multiple revenue streams, and the ability to capitalize on the use of the investments in various ways, AGBI writes.
UAE’s Adia has been making moves: A consortium comprising Abu Dhabi Investment Authority (Adia), Global Infrastructure Partners (GIP), Khazanah Nasional Berhad, Malaysia’s Employees Provident Fund (EPF), and BlackRock secured an 84.1% stake in a USD 4 bn takeover of Malaysia Airports Holdings last week. Last October, Adia revealed its intention to invest approximately USD 750 mn in the debt of India’s airports infrastructure company GMR Group, establishing a presence in one of the world’s fastest-growing markets.
Saudi’s Public Investment Fund (PIF) snapped up a 15% stake in Heathrow last month from Spanish infrastructure player Ferrovial and other shareholders. Heathrow Airport plans to invest GDP 2.3 bn into upgrading its airport facilities over the next two years.
In numbers: Investments in airports worldwide are expected to reach USD 2.4 bn by 2040, and estimates indicate the global airport industry reached a value of USD 194 bn in 2024, AGBI writes. The International Civil Aviation Organization predicts that the air transport industry will contribute USD 1.5 tn to the global GDP by 2036.
What other areas of the world are appealing? The Philippines, Indonesia, Nairobi, and Lagos “might attract attention as key hubs on a fast-growing continent,” BAA & Partners managing director Linus Bauer tells AGBI. Birmingham, Glasgow, Budapest or Zagreb may also hold interest, he added. Over in Latin America, Lima or São Paulo are growing attractive due to a spike in tourism and limited capital among local governments to boost airport capacity and expand infrastructure.
