Egypt and UAE’s AD Ports sign 50-year deal to develop major logistics hub

Egypt has entered into a 50-year concession agreement with Abu Dhabi Ports Group (AD Ports) of the United Arab Emirates to establish a 20-square-kilometer logistics and industrial hub east of Port Said along the Mediterranean coast, according to Reuters.

The deal was announced on Sunday in a televised address by AD Ports’ managing director.

The initial phase of the project will involve an investment of $120 million for the development of 2.8 square kilometers over the next three years. This phase will feature the construction of a 1.5-kilometer quay and plans for a potential multipurpose cargo terminal, according to a statement from Egypt’s cabinet.

This long-term agreement is the latest in a series of strategic moves by AD Ports to expand its footprint in Egypt’s maritime and logistics infrastructure. Over the past three years, AD Ports has acquired several Egyptian shipping and logistics companies, including Transmar, TCI, and Safina B.V.

In addition, the company has secured long-term concessions to operate cruise terminals at key Red Sea ports—Safaga, Hurghada, Al Sokhna, and Sharm El-Sheikh. It also plans to construct and operate a multipurpose port in Safaga and a roll-on/roll-off terminal in Al Sokhna.

This development comes as part of broader UAE investments in Egypt, including a $35 billion contribution to the Ras El-Hekmaproject—a coastal tourism and industrial zone—which marks the largest foreign direct investment in Egypt’s history.