AD Ports Group Achieved Global Expansion and Record Results in First Year as Publicly Listed Entity
Abu Dhabi, UAE: AD Ports Group delivered on its commitment to produce remarkable results and extend its international reach in its first year as a publicly traded company, with 2022 becoming one of the most important years in the company’s storied history so far.
The year started with the listing of AD Ports Group’s shares for the first time on Abu Dhabi Securities Market (ADX) and continued with remarkable achievements through to December 2022, when it was honoured to welcome His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, to inaugurate the expansion of Khalifa Port. The expansion works position Khalifa Port among the global elite of deep-water ports, with an estimated value of AED 20.4 billion.
Throughout 2022, AD Ports Group has continued to demonstrate its drive to position Abu Dhabi at the frontier of world trade, adding value to stakeholders through the expansion and improvement of services.
The Group has built new strategic relationships within the region and beyond, which has enabled the group to open new trade corridors. Through new partnerships and shipping routes, AD Ports Group is developing the highest levels of connectivity between the Arabian Gulf, the Indian Ocean, the Red Sea, East Africa, and Central Asia – vital trading partners that will help drive economic growth in the region and internationally.
Major acquisitions have played a key role in AD Ports Group’s growth story in 2022. The company completed its first international acquisition in September, acquiring a 70% stake in Egypt’s Transmar and TCI, and followed that with agreements to acquire an 80% stake in Global Feeder Shipping (GFS), which will see the group significantly expand its fleet and container capacity, and a 100% stake in Spain’s Noatum, a global logistics giant.
Upon completion, these transformational investments will consolidate AD Ports Group’s position as a market leader across multiple industries, operating ports and terminals around the world, with a fleet of 175 vessels, a feeder container capacity of around 100,000 TEUs, and a global logistics brand providing specialist services across multiple territories.
H.E. Falah Mohammad Al Ahbabi, Chairman, AD Ports Group, said: “Throughout 2022, AD Ports Group has demonstrated its consistent efforts to evolve the services we offer to customers, while supporting Abu Dhabi’s aims to be a leading global hub for trade and logistics. AD Ports Group is proud to have delivered a remarkable growth story in 2022, expanding our global connectivity through new trade corridors, and becoming a truly global company through organic growth and international acquisitions.
“As we work to further develop infrastructure across assets in the UAE and beyond, our objective is to position the company as a global enabler that supports industrial growth and contributes to our leaders’ strategic aims to diversify the UAE economy.”
Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “2022 has been a strong and historic year for AD Ports Group and we are proud to have shown a consistent drive to advance our business model and operations. AD Ports Group has evolved from a key contributor to Abu Dhabi’s economy into a publicly listed entity with an expanding global reach that is actively transforming key industries worldwide.
We believe that there are major opportunities ahead for AD Ports Group in international markets, and we have used our time in 2022 to restructure our company into empowered business clusters that work together to achieve our strategic goals. As always, we thank the leadership of the UAE for their guidance and support, which has enabled us to move so far and so fast as a business.”
To further support its growth aspirations, the company announced several key acquisitions, such as Divetech and ASCL and joint ventures within the UAE including the launch of SAFEEN Invictus and SAFEEN Surveys and Subsea Services. These strategic initiatives opened new business segments and service offerings for its Maritime Cluster, which has emerged as one of the most dynamic in the sector.
Throughout 2022, AD Ports Group continued to build its global presence, signing agreements with port authorities and partners around the world, including contracts with the Red Sea Ports Authority for major port projects along Egypt’s coastline and with SEG, one of the largest oil and gas companies in Uzbekistan, to open new logistics and freight businesses in the Central Asian nation.
Work continued on the development of the Marsa Zayed mega-project in Aqaba, in the Hashemite Kingdom of Jordan, and the company closed the year with a number of key agreements in Africa, including one with the Africa Finance Corporation to address infrastructure gaps across the continent, and a Heads of Terms agreement with the Government of the Republic of Sudan providing a consortium led by AD Ports Group and Invictus Investment with rights to develop, manage, and operate port and economic zone assets in Sudan.
Most recently, AD Ports Group began strategic expansion of its services in the Caspian Sea and Black Sea regions, as it entered a shareholder agreement with KMTF (Kazmortransflot), a fully- owned offshore logistics and services subsidiary of the Kazakh National Oil Company (KazMunayGas). The agreement will lead to the development of a new joint venture, under which the two companies will provide broad range of services including offshore support vessels, integrated offshore logistics and subsea solutions and container feedering, ro-ro and crude oil transportation in the Caspian Sea and the Black Sea regions.
AD Ports Group also transformed its offering in the Economic Cities and Free Zones (EC&FZ) space, launching ‘KEZAD Group’ to integrate its existing trade, logistics, and industrial business grouping into one consolidated entity comprising 12 economic zones with a total area of 550 square kilometres.
The Group’s digital subsidiary, Maqta Gateway, played a key role in supporting AD Ports Group’s international expansion in multiple areas. The Advanced Trade and Logistics Platform “ATLP”, the official single window for trade in Abu Dhabi, surpassed the milestone of facilitating more than 100 million digital transactions, and Maqta Gateway also collaborated with Emirates Post Group and SkyGo to launch aerial drone trials for a flying postal delivery service.
Demonstrating the fruitfulness of AD Ports Group’s bold growth strategy, the group surpassed several key financial records in 2022. By 9M 2022, the Group’s revenue had grown 53% year-on-year to AED 1,466 million; EBITDA increased 52% to AED 594 million; and Net Profit soared 77% to reach AED 334 million.
AD Ports Group in 2022 – a Year of Achievements
- On 8 February 2022, AD Ports Group celebrated the successful listing of its shares on the Abu Dhabi Securities Exchange (ADX), under the ticker symbol “ADPORTS”. In the run up to the public listing, AD Ports Group secured a primary issuance of AED 4 billion (approximately USD 1.1 billion), the proceeds of which are funding plans for local and international expansion.
- AD Ports Group acquired Divetech Marine Engineering Services, a UAE-based topside-subsea solutions provider that offers a range of services including installation, inspection, repair and maintenance.
- ‘Abu Dhabi Food Hub – KEZAD’ was launched in partnership with Ghassan Aboud Group, and in collaboration with Rungis. The hub will cover a total land area of 3.3 square kilometres and feature market areas, complementary activity zones, industrial cold storage, logistics, waste management and water treatment amenities.
- AD Ports Group partnered with Ghassan Aboud Group to launch the ‘Global Auto Hub Abu Dhabi’, one of the region’s largest export and distribution hubs for the automotive industry, covering 3.3 square kilometres.
- AD Ports Group signs agreements with the Red Sea Ports Authority to develop major port projects along Egypt’s coastline, including a multi-purpose terminal in Safaga Port in a consortium, as well as cruise ship berths and terminals at Sharm El Sheikh, Hurghada and Safaga ports.
- AD Ports Group hosted the launch of the Abu Dhabi Industrial Strategy at KEZAD. Under the strategy, Abu Dhabi Government will invest AED 10 billion across six transformational programmes to more than double the size of Abu Dhabi’s manufacturing sector to AED 172 billion by 2031.
- AD Ports Group signed a series of agreements with SEG, one of the largest oil and gas companies in Uzbekistan, to open new logistics and freight businesses and develop a food trading hub in the Central Asian nation.
- AD Ports Group unveiled KLP21, a new advanced warehousing and logistics hub located in KEZAD, to serve food and healthcare sectors requiring significant cold and ambient storage capacity. As one of the largest and most advanced temperature-controlled logistics hubs in the region, KLP21 comprises four warehouses totalling 80,000 square metres of space, and is capable of serving a combined market of 4.5 billion consumers.
- Following an initial agreement in July 2022, in September AD Ports Group completed its first international acquisition, acquiring a 70% equity stake in Egypt-based Transmar International Shipping Company (Transmar) and Transcargo International S.A.E. (TCI).
- AD Ports Group launched ‘KEZAD Group’ as part of its plan to consolidate and grow its Economic Cities & Free Zones offering. The move followed the integration of Khalifa Industrial Zone Abu Dhabi (KIZAD) and Specialised Economic Zones (ZonesCorp) into the newly formed KEZAD Group, which comprises 12 economic zones with a total area of 550 square kilometres.
- SAFEEN Feeders launched a new Southeast Asia service in collaboration with CMA CGM Group, linking Singapore, Colombo and Chennai, in addition to a new monthly service connecting the Chinese ports of Shanghai, Qingdao and Ningbo directly with Khalifa Port in Abu Dhabi. In the same month, SAFEEN Feeders also signed a major agreement with Invictus Investment to launch a new international dry bulk shipping service – SAFEEN Invictus
- The Economic Cities & Free Zones Cluster entered into an agreement with NWTN to launch Abu Dhabi’s first assembly facility for electric vehicles, at KEZAD. The initial annual assembly capacity of the facility is expected to be 5,000-10,000 units, with ambitions to increase this capacity to 50,000 units a year in phase two of the agreement.
- AD Ports Group hosted the first Middle East edition of the World Union of Wholesale Markets (WUWM) Conference, bringing together senior public and private sector practitioners and experts from around the world to explore solutions to global food security.
- AD Ports Group’s digital arm Maqta Gateway teamed up with Emirates Post Group and SkyGo to launch trials for the emirates’ first ever postal delivery service conducted via aerial drones.
- AD Ports Group acquired an 80% stake in Global Feeder Shipping (GFS). The acquisition will also make AD Ports Group the third largest independent feeder company by volumes carried, as total container capacity rises to 100,000 TEUs.
- AD Ports Group acquired 100% ownership of Noatum, a leading global logistics platform with a presence in 26 countries, with an AED 2.5 billion investment. Noatum’s footprint in countries across Europe, Asia, North & South America, and Africa will significantly expand AD Ports Group’s global reach.
- SAFEEN Feeders launched a new Red Sea service, linking Khalifa Port and Fujairah Terminals in the UAE with Port Sudan and Jeddah Port in KSA.
- In collaboration with AD Ports Group, Transmar launched a new container shipping service to link Karachi, Pakistan’s busiest port, with the major ports in the UAE, KSA, Egypt, Jordan, Sudan and Djibouti.
- KEZAD Group and noon.com broke ground on the UAE’s largest fulfilment centre in Abu Dhabi. The 252,000 square metre fulfilment centre facility is being designed and developed by KEZAD Group under a ‘Build-to-Suit’ agreement.
- On 12 December AD Ports Group was honoured by a visit from His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, to inaugurate Khalifa Port’s expansion. The event marked ten years since the port’s inauguration, recognising a landmark year in the history of AD Ports Group, and highlighting its bright future ahead.
- AD Ports Group signed a collaboration agreement with the Africa Finance Corporation (“AFC”), the leading infrastructure solutions provider in Africa, to address infrastructure gaps across the continent.
- Finally, AD Ports Group brought 2022 to a close with the signing of a landmark shareholder agreement with KMTF (Kazmortransflot), a fully- owned offshore logistics and services subsidiary of the Kazakh National Oil Company (KazMunayGas). The agreement will lead to the development of a joint venture to provide broad range of services in the Caspian Sea and Black Sea regions.
About AD Ports Group:
Established in 2006, AD Ports Group today serves as the region’s premier facilitator of logistics, industry, and trade, as well as a bridge linking Abu Dhabi to the world. Listed on the Abu Dhabi Securities Exchange (ADX: ADPORTS), AD Ports Group’s vertically integrated business approach has proven instrumental in driving the emirate’s economic development over the past decade.
Operating several clusters covering Ports, Economic Cities & Free Zones, Maritime, Logistics, and Digital, AD Ports Group’s portfolio comprises 10 ports and terminals, and more than 550 square kilometres of economic zones within KEZAD, the largest integrated trade, logistics, and industrial business grouping in the Middle East.