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Tuesday, 9 November 2021

Abu Dhabi Ports could invest USD 500 mn in Egypt

Abu Dhabi Ports (ADP) plans to invest USD 500 mn in Egypt, should it be successful in winning the contracts for two upcoming port development projects, Saif Al Mazrouei, the head of the company’s ports division, told Al Arabiya. The company will come forward with offers for the Tenth of Ramadan dry port and the Safaga port, he said, without disclosing further information.

Competition for the Tenth of Ramadan port contract is high: As of mid-October, the government had received technical bids from six consortia competing for the PPP contract to construct the 250-feddan dry dock. The closing deadline for bids is unknown.

ADP isn’t the only UAE-based company that has its sights set on the contract: A consortium led by Dubai’s DP World has been eyeing the tender since February. Other potential bidders include a consortium led by China International Marine Containers (CIMC) Group, and another comprising Elsewedy Electric and DB Schenker, among others.

The Safaga port: Its new cargo terminal was one of nine proposed PPP infrastructure projects that were given preliminary approval by the cabinet in June but we’re still waiting for the ministers to give the final go-ahead.

This would be the company’s first venture into Egypt: ADP’s port and logistics operations remain largely focused on the UAE and the company hasn’t acquired a large global footprint like its country rival DP World, which operates terminals in 40 countries around the world.

One of those countries is Egypt: DP World has invested USD 1.6 bn in Egypt, most recently committing more than USD 500 mn to expanding the Ain Sokhna seaport. The port operator is also collaborating with the British government’s development finance arm CDC to channel more funding to the port via their joint USD 1.7 bn investment platform announced last month.

IN OTHER INVESTMENT NEWS-

Three Arab investors are eyeing acquisitions of Egyptian pharma players via SPAC mergers, according to Al Borsa. The unnamed investors are reportedly waiting for the Financial Regulatory Authority to release the regulations governing SPACs, which could be ready before the end of November. Some pharma companies are also considering registering blank-check firms that could allow them to list on the bourse, the newspaper says, citing unnamed sources. The interest comes on the back of the FRA greenlighting a plan spearheaded by EGX boss Mohamed Farid to allow SPACs in Egypt, which invited plenty of interest from investors (Egyptian and foreign alike) days after it was announced.

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