Gulf firms set sights on Western airports with Investcorp, dnata deals
The Emirati sovereign fund Mubadala is also reportedly considering an event in London’s Heathrow Airport — another sign of Gulf interest in the West’s airports.
A subsidiary of the Bahrain-based Investcorp announced on Thursday a major investment in New York City’s main airport — another example of Gulf entities seeking to invest in Western airports.
Investcorp Capital said in a statement that it agreed to invest in the redevelopment of JFK airport’s Terminal 6. The firm did not provide the amount it is investing but noted the total redevelopment of the terminal is worth $4.2 billion.
Investcorp Capital was founded by Investcorp to focus on investments in real estate, corporate, credit products and strategic capital in the Middle East, the United States, Europe and Asia. It is listed on the Abu Dhabi Securities Exchange.
The investment follows Investcorp announcing a partnership with the New York-based Corsair Capital in February with the purpose in investing in JFK’s Terminal 6.
The redevelopment of Terminal 6 constitutes building a new terminal to replace JFK’s former Terminal 6 and current Terminal 7 areas. The first gates will open in 2026, according to the project’s website. Terminal 6 currently does not host any airlines, while Terminal 7 is home to Kuwait Airways, Ethiopian Airlines and others, per JFK’s website.
In another development involving a Gulf firm and an American airport, the Dubai-based airport logistics company dnata said on Tuesday that it received a multiyear contract from Abu Dhabi’s Etihad Airways to provide in-flight catering services to the airline via Boston’s Logan Airport. Per the deal, dnata will provide more than 125,000 meals annually to Etihad for its four weekly flights from Boston to Abu Dhabi. The agreement came into effect on March 31, dnata said in a statement.
Why it matters: The Investcorp Capital and dnata developments are part of increasing Gulf interest in Western airports. In February, Bloomberg reported that the Mubadala Investment Company, a sovereign wealth fund owned by the Abu Dhabi government, is considering buying a stake in London’s Heathrow Airport.
Gulf investment in Heathrow has precedent. The Qatar Investment Authority bought a 20% stake back in 2012. More recently, Saudi Arabia’s Public Investment Fund purchased a 10% stake last November.
Investcorp’s investment in JFK is part of its increasing focus on infrastructure. Co-CEO Hazem Ben-Gacem told Bloomberg in January that the company wants to double its infrastructure assets to $10 billion in the next five years, with a particular focus on transportation and logistics.
Know more: Gulf airlines experienced massive financial losses due to the flight restrictions during the COVID-19 pandemic but are now on the rebound. In November, Dubai’s Emirates reported a record $2.7 billion in profit during the first half of the 2023-2024 fiscal year.
