Mubadala Investment Company, an Abu Dhabi sovereign investor, has made a significant investment alongside Global Infrastructure Partners in Perdaman’s A$6.4 billion Western Australia Urea project. This project is the largest urea fertiliser facility in Australia and one of the largest in the world, with the capacity to produce over two million tons of urea annually. The investment aligns with Mubadala’s goal of increasing its exposure in Asia and supports the country’s food security goals by reducing reliance on imports and meeting the rising demand for high-quality fertilisers.
The new facility will contribute to food security for up to 90 million people and reduce the carbon footprint of urea production. Saed Arar, executive director of Traditional Infrastructure at Mubadala, highlighted the importance of diversifying the investment portfolio with this project and supporting sustainable growth that benefits local communities. The plant will incorporate advanced technologies to enhance energy efficiency and lower emissions, with a focus on clean energy sources like solar and green hydrogen. Perdaman aims to make the plant net zero by 2050, demonstrating its commitment to sustainable practices.
Currently, Mubadala has around 12% of its assets allocated to Asia, and it aims to increase this to 25% by 2030. The investment in the Western Australia Urea project is part of this strategy to expand its presence in the region. In addition to this project, Mubadala has been actively investing in various sectors, such as the recent funding round for Avanse Financial Services in India. The sovereign investor’s efforts align with the broader trend of UAE sovereign wealth funds increasing their investments globally, as highlighted in the Global SWF’s annual report.
Global SWF reports that UAE sovereign wealth funds collectively invested $36.5 billion in 2023, with Mubadala being ranked third in the top 10 list of SWFs with investments of $17.5 billion. Mubadala has been an active player in divestments as well, with significant amounts being divested between 2018 and 2022. The overall trend points towards the continued growth of state-owned investors’ assets, including sovereign wealth funds, public pension funds, and central banks, with projections estimating assets to reach $54.9 trillion by 2025 and $71.0 trillion by 2030.
In conclusion, Mubadala’s investment in the Western Australia Urea project not only demonstrates its commitment to sustainable and responsible investing but also contributes to regional food security and environmental goals. The partnership with Perdaman and Global Infrastructure Partners highlights the collaborative effort to create world-class facilities that benefit communities and align with global sustainability initiatives. As Mubadala continues to expand its presence in Asia and other regions, its investments play a crucial role in driving economic growth and addressing key challenges like food security and climate change.
