The Gulf region is experiencing a rapid boom in private infrastructure investment, increasingly attracting global attention due to attractive returns, economic stability, and clear governance structures. This trend comes at a time when interest is shifting towards long-term investments, especially amid global market volatility triggered, among other factors, by U.S. tariffs, according to a report by the platform “Zawya.”
According to British infrastructure fund manager Ancala, the share of private infrastructure investments in portfolios has risen from 1.4% in 2004 to 10.1% in 2024. This increase is attributed to more high-net-worth individuals and families turning to this asset class to hedge against market fluctuations – an area once reserved almost exclusively for institutional investors.
Sami Al-Nafati, Managing Partner for Infrastructure at Bahrain-based investment firm Investcorp, stated that investment opportunities in the region could amount to trillions of dollars. Efforts to diversify income sources beyond oil are helping attract global expertise and enhance transparency.
He noted that infrastructure investments are no longer limited to traditional utilities and transport facilities but now also include sectors such as education, healthcare, digitalization, the transition to clean energy, and future “green” projects.
Al-Nafati explained that returns vary depending on project type: existing (brownfield) projects offer returns of around 9%, while new (greenfield) projects, which require planning, financing, and construction, can yield returns between 11% and 12%. This trend is particularly evident in the growing involvement of the private sector in major projects in Saudi Arabia.
Bilal Belhad, Private Markets Advisor at Union Bancaire Privée (UBP), added that returns in the GCC countries range between 9% and 13% – significantly higher than in Europe or the U.S., where they only reach 6% to 7%. Additionally, the pegging of local currencies to the U.S. dollar reduces risks in emerging market investments.
Belhad emphasized that the Gulf states have developed into a global safe haven due to their economic, political, and structural stability – making them preferred destinations for capital flows from the United States.
Ankur Ajemra, Partner at Ancala, concluded by noting that investor interest from the Gulf region in the mid-sized infrastructure project market is growing. This sector offers great opportunities for value creation while providing risk protection. Some sovereign wealth funds have already begun developing strategies to tap into this sector.
