In the global logistics and supply chain industry, the United Arab Emirates has become a growing regional power and major transit points along key East-West trade routes. One of the reasons for this Gulf country’s rapid rise is AD Ports Group, the Abu Dhabi-based integrated trade, transport and logistics powerhouse.

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 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 top-investment-grade credit ratings further demonstrate its sound financial standing and well-balanced capital structure.

In Q3 2024, AD Ports Group achieved record financial performance, showcasing remarkable growth across key financial metrics. The Group reported a revenue surge of 60% year-over-year (YoY), reaching AED 4.65 billion, an increase of 28%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) saw an impressive 124% YoY rise, amounting to AED 1.21 billion. Additionally, ADPG’s total net profit climbed by 11% YoY, totalling AED 445 million. These figures underscore ADPG’s robust financial health and its strategic initiatives driving substantial growth and profitability.

Additionally, 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. In Angola, AD Ports Group agreed with local partners to manage and develop a major multipurpose terminal in Luanda for general cargo, containers and Ro-Ro, and to launch a logistics business to serve the broader Angolan market.

The accretive acquisitions and organic growth generated by AD Ports Group’s five-cluster business of Ports, Maritime & Shipping, Logistics, Economic Cities & Free Zones and Digital helped drive the Group’s strong Q3 2024 financial results.

AD Ports has strategically expanded its operations through several key acquisitions and concessions. They acquired 100% of APM Terminals Castellón via Noatum and secured three 15-year cruise concessions in Egypt for terminals at Safaga, Hurghada, and Sharm El Sheikh, expected to finalize by Q2 2025. The Group also obtained a 25-year bulk and general cargo concession at Karachi Port in Pakistan and a 60% stake in Dubai Technologies. Additionally, AD Ports Group acquired 60% ownership in Tbilisi Dry Port, expected to be operational by Q1 2025, and 10 offshore vessels from E-NAV to bolster operations in the Middle East and Southeast Asia. The Group secured an 81% ownership to upgrade the Luanda multipurpose port terminal in Angola, with redevelopment expected by 2026, and a 30% stake in a joint venture to establish East Africa Gateway Limited, acquiring 95% of Tanzania International Container Terminal Services.

At the 2024 International Business Magazine Awards, AD Ports Group was recognized with three notable awards for its advancements in logistics and supply chain management. The Group 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 UAE 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.

But in less than two decades since its founding in 2006, AD Ports Group has grown into a global company offering integrated trade, transport, logistics, and industrial development solutions in more than 50 countries on five continents. With GFS, the Group now has the third-largest feeder shipping service in the world. Its flagship Khalifa Port in Abu Dhabi, AD Ports Group belongs to an elite group of port operators that host three of the world’s top five container shipping lines — COSCO Shipping, Mediterranean Shipping Company, and CMA CGM Group.

With strategic holdings in Europe, Africa, Asia, the Middle East and in Central Asia, AD Ports Group is pioneering the new low-impact trade corridors of the 21st century, while helping transport the logistics industry to a sustainable future by introducing innovations such as electric vessels, photovoltaic electricity generation, alternative fuels, and robotics across its footprint.

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