UAE’s AD Ports plans to buy stake in Turkish port

Creative Commons/Ayratayrat

The UAE’s state-owned AD Ports Group intends to invest in a new company proposed by Turkey’s sovereign wealth fund to run the Aegean coast port of Izmir.

Although the stake size is unclear, the deal could be worth $500 million, Reuters reported, citing an unnamed source.

Turkey Wealth Fund is seeking new investment in the port, as part of the country’s privatisation drive.

• Turkey sets bold targets for trade with the Gulf
• Turkey’s trade with GCC soars 11-fold in two decades
• Turkey’s GDP grows 5.9% on strong household spending

In August, DP World Yarimca Port and Turkey’s Evyap Group signed an agreement to secure supply chain services in the critical Marmara gateway market.

Ankara has secured some $28 billion in foreign currency swap deals in recent years, including from the UAE.

Earlier this month, Turkey’s President Tayyip Erdogan met with UAE President Sheikh Mohamed bin Zayed Al Nahyan on the sidelines of the Cop28 climate summit held in Dubai. 

In March, the Turkish government signed a comprehensive economic partnership agreement (Cepa) with the UAE and bilateral trade, which was $10 billion in 2022, is now forecast to quadruple to $40 billion by 2028.

Standard Chartered predicts that UAE exports to Turkey will grow at an average annual rate of 10 percent to 2030, while imports will increase by 8.4 percent.

Last month Anadolu, a state-run news agency, quoted Turkey’s trade minister, Omer Bolat, saying trade with the UAE would reach $15 billion this year.

The minister added that Emirati investments in Turkey totalled $3.4 billion, while Turkish companies had made investments in the UAE worth $350 million.