Abu Dhabi Ports Group: A New Engine for China-UAE Trade Cooperation
The Abu Dhabi Ports Group (AD Ports Group) is a conglomerate of world-leading ports, economic development zones, maritime, logistics, and digital businesses, aimed at advancing the international trade of the United Arab Emirates (UAE). As the exclusive developer and regulator of Abu Dhabi ports and associated infrastructures, AD Ports Group is playing an instrumental role in UAE’s economic development. This article, the first of the China-UAE Industry Research Institute’s “UAE Observations” series, delves deeply into the industry policies, regulations, trends, market demands, competitive landscapes, and potential transaction opportunities in the investment, trade, and engineering construction sectors between China and the UAE.
Founded in 2006, AD Ports Group has grown to become one of the largest port operators in the Middle East, currently managing 16 ports and terminals in Abu Dhabi, the UAE, and Pakistan. The company’s vision is to be a global leader in driving trade and logistics, with a mission of providing world-class trade, logistics, and maritime solutions that create value for its partners and customers.
AD Ports Group is committed to sustainable development and has taken a range of measures to reduce its environmental impact. These measures include the use of renewable energy, energy efficiency measures, and a focus on reducing waste. The company plays a major role in Abu Dhabi’s economy, generating revenues of 3.91 billion dirhams and creating 2,533 jobs in 2021 alone.
In 2021, AD Ports Group handled a record 20.1 million TEUs (twenty-foot equivalent units) of container transportation, becoming the largest container port operator in the Middle East. In the same year, the company also processed a record 13.4 million tons of bulk cargo and 1.2 million vehicles.
Recent years have seen significant investment in new infrastructure by AD Ports Group, including the expansion of Khalifa Port, the largest port development project in the Middle East. This has elevated Khalifa Port’s infrastructure to world-class levels.
Under its umbrella, AD Ports Group owns and operates ports and terminals in the UAE and Pakistan, including Khalifa Port, Zayed Port, Musaffah Port, Sila Port, Fujairah Terminals, and Gwadar Port. It also owns and operates various maritime assets like SAFEEN (a maritime services company), OFCO (an offshore services company), and SAFEEN Feeders, a feeder cargo company that connects AD Ports Group’s ports with other ports in the region.
Khalifa Economic Zone Abu Dhabi (KEZAD), a subsidiary of AD Ports Group, is the trade, logistics, and industrial hub of Abu Dhabi. Most of the large-scale industrial enterprises established in the UAE in recent years are based in KEZAD. This massive free zone, one of the largest in the UAE with a total area of 550 square kilometers, is home to over 1,500 companies, including global brands like Emirates Global Aluminium, Hyundai Heavy Industries, and Siemens.
KEZAD offers a range of benefits to businesses, including 100% foreign ownership, zero corporate income tax, complete profit repatriation, flexible land leasing terms, world-class infrastructure, and a skilled workforce. For companies looking to enter the global market, KEZAD is a strategic location. It is near Khalifa Port, one of the largest and most modern ports in the Middle East, and is connected to major road and rail networks, facilitating the easy movement of goods in and out of the area for global distribution.
In summary, AD Ports Group is a critical player in the global trade and logistics industry, striving to provide world-class services and solutions to support the growth of its partners and customers. It represents a new engine for China-UAE trade cooperation, unlocking untold potentials for investments, trade, and infrastructure development in the region.