AD Ports to break ground on Egypt logistics park this year

State-controlled AD Ports Group and Egypt government-backed Suez Canal Economic Zone have signed a 50-year renewable deal to develop and operate a 20 sq km logistics and industrial park near the coastal city of Port Said on the Mediterranean Sea.

The Abu Dhabi-based ports operator will develop, construct, finance, operate and manage the industrial and logistics zone in phases, the company said in a statement.

The company has allocated $120 million for market and technical studies, as well as for the development of the first phase over the next three years.

Construction on the initial 2.8 sq km phase is expected to start by year-end.

In addition, AD Ports Group and Hassan Allam Holding signed a memorandum of understanding to develop and invest in the industrial zone and explore other projects.

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In December 2024 the UAE company appointed Hassan Allam Construction, the construction arm of Hassan Allam Holding, to build its new multipurpose cargo terminal in Safaga on the Red Sea coast.

Since 2022 AD Ports Group has invested significantly in Egypt, acquiring Transmar, a shipping company, TCI, a port operator and Safina, a maritime agency.

Moreover, the port operator has secured long-term concessions to develop and operate three cruise terminals at the Red Sea ports of Safaga, Hurghada, and Sharm El Sheikh. It has also acquired the right to develop and operate a cruise terminal and a Ro-Ro terminal in Ain Sokhna.

Since December 2024, Abu Dhabi investment and holding company ADQ has owned a three-quarters majority of the group.

AD Ports Group listed on the Abu Dhabi Securities Exchange in February 2022. Its share price on Monday morning was AED3.92, down by 22 percent since the start of the year.