The logistics and supply chain industry in the UAE is becoming increasingly important. This entails optimizing modes of transportation, such as air and sea freight, and utilizing the latest innovations for effective warehousing and inventory management. Considering this, major firms are taking steps to transform the logistics industry, and AD Ports Group is one such prominent player.

On the Fast Track of Success

Since its founding in 2006, AD Ports Group has grown to become a leading international industry, commerce, and logistics provider, acting as a link between Abu Dhabi and the rest of the globe. Oxford Economics estimates that AD Ports Group made about 24% of Abu Dhabi’s non-oil GDP in 2021. The portfolio of AD Ports Group includes 550 square kilometres of economic zones within KEZAD Group, the most integrated trade, logistics, and industrial company grouping in the Middle East, as well as 11 ports and terminals in the United Arab Emirates.

The Group’s long-term growth strategy, which accounts for over 75% of its sales, combines a de-risked approach with a variety of operating models and complementary development drivers to guarantee robust performance across industry and economic cycles. Its A+ investment-grade credit ratings further demonstrate its sound financial standing and well-balanced capital structure.

In Q2 2024, AD Ports Group produced a remarkable 42% increase in total net profit and a 56% YoY increase in EBITDA. Some of its unique accomplishments include a 50-year land lease agreement signed with UAE-based Astha Biotech for a 38,000 sqm facility in KEZAD Al Ain for the production of microalgae used in the health, cosmetic, food, and aquaculture industries. They also partnered with National Marine Dredging Company (NMDC) to build a new 224,000-square-metre facility in KEZAD that would be used for modular fabrication, mainly for the local oil and gas sector.

Additionally, to enter Tanzania, AD Ports Group teamed up with Adani Ports to purchase a 30% share in TICTS, the company that runs Container Terminal 2 at Dar es Salaam Port. AD Ports Group purchased a 90% share in a second joint venture that will serve the Luanda multipurpose port terminal and the larger Angolan logistics market, as well as an 81% share in a joint venture that obtained a 20-year concession deal to modernise and run the current Luanda multipurpose port terminal in Angola.

The recent accretive acquisitions and favourable organic growth of the five-pillar company portfolio—which was driven at this time by their ports, logistics, and digital clusters—are evident in the strong Q2 2024 financial results. AD Ports Group remains committed to navigating macroeconomic volatility profitably while seizing future growth opportunities to expand globally. The acquisitions of Noatum and GFS, coupled with robust organic growth from most key businesses, have enabled AD Ports Group to achieve another quarter of record revenue and earnings growth.

At the 2024 International Business Magazine Awards, Abu Dhabi Ports Group (ADPG) was honoured with three notable awards for their advancements in logistics and supply chain management. They received recognition as the Best Non-Oil Stocks in the Middle East 2024, Best Overall Investment Relations (Large Cap) in the UAE 2024, and Most Successful Long-term Fund Development Strategy in the UAE 2024.

The size of the United Arab Emirates freight and logistics market is projected to be $20.11 billion in 2024 and rise at a CAGR of 7.01% to reach $30.19 billion by 2030. This substantial percentage has been ascribed to the UAE government’s considerable efforts to promote the growth of its logistics sector through free trade zones, competitive incentives, and foreign investment opportunities.

The growing e-commerce industry is a major force behind market expansion. Increased Internet usage and broad smartphone accessibility are driving the UAE’s e-commerce industry’s explosive growth. The logistics industry is significantly impacted by the rise in internet commerce. Customers frequently contact brands for the first time through the goods that are sent to their homes as they use online platforms progressively. A key component of supply chain management is logistics, which includes services like goods forwarding and multimodal transportation by rail, road, air, and sea.

The market is undergoing significant changes due to increased investment in food security, tax reforms, and the growth of e-commerce. As the private sector’s role becomes more crucial, logistics companies are focusing on enhancing services across the entire supply chain.

Planting Seeds for the Future

AD Ports Group aims to diversify the UAE’s economy by reducing its reliance on the oil industry and expanding its global presence. Through strategic infrastructure investments, the adoption of cutting-edge technologies, and supportive government policies, the UAE is transforming into a global logistics powerhouse. AD Ports Group is committed to maintaining these high standards and providing its customers with unparalleled opportunities. The numerous awards they have received underscore their significant contributions and leadership in the logistics and supply chain sectors. These accolades will continue to motivate them to achieve even greater results and maintain their competitive edge.

Article by Tamanna Shaikh