Mubadala acquires 49% stake in Spanish industrial firm Tubacex's unit for $200m

The move aims to boost the UAE's manufacturing capabilities

Abu Dhabi-headquartered Mubadala said the deal will support the UAE's Make it in the Emirates initiative. Victor Besa / The National

Mubadala Investment Company, Abu Dhabi’s strategic investment arm, has acquired a 49 per cent stake in the oil country tubular goods (OCTG) business of Spanish industrial solutions firm Tubacex for $200 million.

Mubadala's involvement will boost Tubacex's production of corrosion-resistant alloy (CRA) tubular solutions for gas exploration and production, a critical resource in the transition of energy, the companies said in a statement on Friday.

Tubacex's OCTG business involves the manufacturing and supply of specialised steel pipes and tubes used in oil and gas exploration and production, including drilling, casing, and tubing for wells.

Mubadala's investment also aligns with the UAE's Make it in the Emirates initiative, to support local manufacturing and industrial development as part of its Operation 300bn strategy. Launched in 2021, it aims to position the country as an industrial centre by 2031 and focuses on increasing the industrial sector’s contribution to GDP to Dh300 billion by 2031, from Dh133 billion in 2021.

“This collaboration aligns … with our efforts to support the UAE’s industrial vision which aims to accelerate the nation’s development of non-oil based growth,” said Alyazia Al Kuwaiti, executive director of UAE industries at Mubadala's investment platform.

The global OCTG market is booming and is projected to reach around $45.8 billion by 2032, from $25.3 billion last year, growing at a compound annual growth rate of 6.8 per cent, according to US-based business consulting firm Expert Market Research.

Mubadala’s partnership also supports Tubacex’s contract with Abu Dhabi state-owned energy company Adnoc, signed in 2022. The deal involved the supply of corrosion-resistant alloy OCTG solutions for gas extraction in the Middle East over 10 years.

In June last year, Tubacex signed a land lease agreement with Khalifa Economic Zones Abu Dhabi for the construction of a $100 million pipe finishing and threading plant in the UAE’s capital.

The latest deal with Mubadala also includes plans for a new corrosion-resistant alloy OCTG finishing and threading plant in the UAE capital, the statement said.

It will bolster local manufacturing capabilities and help Mubadala play a key role in securing the supply of CRA OCTG solutions for gas exploration and production, a key transitional fuel in the global energy transition, the Abu Dhabi company said.

Mubadala, which invests on behalf of the Abu Dhabi government, continues to expand its portfolio in various sectors. It has assets worth $302 billion spanning six continents.