UAE to develop Iraq’s port and economic zone

Wam

Iraq’s Al-Faw Grand Port and its economic zone will receive an investment boost with the backing of a UAE state-backed entity.

Abu Dhabi Ports Group has signed a preliminary agreement with the General Company for Ports of Iraq, state-run Wam news agency said.

The entities will establish a joint venture to develop the Al-Faw Grand Port, its economic zone and any future expansion. 

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The agreement includes potential investment, management and operation of ports, economic zones and related infrastructure in other Iraqi cities.

The two companies signed a memorandum of understanding in September 2021 followed by a subsequent addendum in August 2023 to intensify cooperation. 

The joint venture will target global terminal operators, boost international trade relations and develop commercial sea corridors, which will contribute to Iraq’s economic growth.

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The project will strengthen maritime transport and freight shipping between Asia and Europe, said Iraq’s transport minister Razzaq Muhaibas Al-Saadawi.

He added that it will significantly contribute to local and regional economies.

The commercial details of the pact were not disclosed.

Last month AD Ports said it was buying a 60 percent stake in the Tbilisi Dry Port, a new logistics centre in Georgia.

The project, which is scheduled to be operational by the end of this year, will be developed in phases on two parcels of land, while an additional 88,000 sq m of land is available if required.

The ADQ-owned ports operator signed an agreement in February for bulk and general cargo operations with the Karachi Port Trust, allocating $150 million for the port expansion.