Gulf sovereign funds pour into AI and infrastructure while trimming non-core assets abroad - MENA+ Edition

Gulf sovereign wealth vehicles are sharply reallocating capital toward AI infrastructure and domestic strategic assets while pruning non-core stakes abroad, highlighted by a flurry of large-scale transactions this week. UAE sovereign AI investor MGX and BlackRock closed a USD 40 billion buyout of Aligned Data Centers — the first investment under the AI Infrastructure Partnership that MGX launched with BlackRock, GIP, Microsoft, and Nvidia. Separately, PIF-backed tower company Tawal is in talks to acquire more than 10,000 mobile tower sites from Mobily, a deal that would make Tawal one of the Middle East’s largest tower owners.

"A new set of investors raised by Elevate steps into Misr Capital’s exact position, and the company itself never changes hands," Elevate Group CEO Tarek Moharram said, describing the Nile Scan LP swap that will see Banque Misr’s investment arm Misr Capital exit the company for just under EGP 1 billion (c. USD 20 million).

The MGX–BlackRock transaction represents a major capital commitment to data centers and AI-related compute capacity. The AI Infrastructure Partnership was designed to mobilise USD 30 billion of equity and as much as USD 100 billion including debt into AI infrastructure; MGX has raised more than USD 50 billion from sovereign and institutional investors and plans to deploy up to USD 10 billion a year. The USD 40 billion purchase of Aligned Data Centers from Macquarie Asset Management and partners is described by the participants as one of the largest data center buyouts on record.

Infrastructure activity extends beyond data centers. GFH Partners exited a USD 130 million portfolio of US logistics and industrial assets, with investor returns expected to top 10%. GFH Financial Group’s asset management arm has been building a sizeable US book since 2023, including a USD 300 million logistics and industrial fund and a student housing portfolio now at USD 900 million, with group AUM targeted at USD 7.5 billion by year-end.

• Egypt and the World Bank are advancing a USD 520 million guarantee facility for private infrastructure financing, with the World Bank contributing USD 150 million. The vehicle will initially target renewables, transmission, desalination, wastewater, and waste-to-energy projects.
• DP World secured a EUR 25 million senior loan from the EBRD and a EUR 19.8 million EU grant toward a EUR 100 million green overhaul of Romania’s Constanța South Container Terminal.
• Red Sea Gateway Terminal is evaluating up to USD 1 billion in fresh investment across Bangladesh’s ports and logistics sector after completing expansion of its Chittagong terminal; the company inaugurated the Patenga Container Terminal following a USD 170 million buildout.

Gulf sovereign funds are also actively trimming smaller, less-strategic positions overseas. ADIA is selling down its 5%+ stake in Jersey Mike’s as the US sandwich chain prepares a USD 1.1 billion IPO that could value the company north of USD 10 billion. Mubadala Capital has secured commitments from 80.13% of Pierre & Vacances-Center Parcs shareholders for a takeover valuing the French leisure group at EUR 900 million.

In Saudi healthcare consolidation, Fakeeh Care completed a SAR 1.6 billion (c. USD 427 million) acquisition of Al Fagih, backed by SAR 2.2 billion in financing from SNB and SAB, increasing its capacity in Riyadh to 535 beds across two facilities.

Outlook: expect continued deployment of Gulf capital into data centers, logistics, and domestic strategic assets while sovereign wealth funds selectively reduce passive foreign holdings. Watch for Tawal’s potential tower acquisition to reshape regional tower ownership ahead of a planned IPO in 2027–2028, and for further large-scale AI infrastructure deals under the MGX-led partnership to follow.