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HOW GLOBAL LEADERS CREATE VALUE
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CAPTAIN MOHAMED JUMA AL SHAMISI, Managing Director and Group CEO, AD Ports Group
HOW GLOBAL LEADERS CREATE VALUE According to a study by Harvard Business Review, truly global leaders act as bridge builders and connectors of resources and talent. They differentiate themselves by finding new ways of creating value across their organisation. In recent years, AD Ports Group has been highly successful in extending operations beyond the UAE and establishing international presence in the global maritime, logistics and trade sectors. Our challenge now is to develop the necessary knowledge and expertise across our business to consolidate our global position, while maintaining our positive commercial momentum. To that end, we are already making great strides. We exceeded all financial targets
in 2021, reporting revenue growth of 14% year-on-year to AED 3.904 billion (USD 1.062 billion) and EBITDA growth of 3% year-on-year to AED 1.590 billion (USD 432 million).
$1.062 Billion Revenue Growth
$432 Million EBITDA Growth
We continue to expand our international reach, recently commencing work on the new Aqaba Cruise Terminal
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in Jordan and signing a long-term trade facilitation and shipping agreement with Saif Powertec to collaborate with SAFEEN Feeders on cargo services from Fujairah to Bangladesh. There have also been significant investments into complementary businesses to support our plans for growth. AD Ports Group now holds stakes in logistics firm Aramex and National Marine Dredging Company PJSC, which specialises in engineering, procurement, construction, and marine dredging. In February, we acquired Divetech Marine Engineering Services, a UAE-based topsidesubsea solutions provider that offers installation, inspection, repair, and maintenance services. Each of these investments supports the growth of our customer base and extends the range of
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services we can offer our customers across all five clusters, which in turn work together seamlessly to facilitate trade and industry. These investments are helping to create new commercial and operational synergies that will make our business more efficient, effective and faster to respond to the needs of the market. We are also continuing to invest in the next generation of talent. Abu Dhabi Maritime Academy (ADMA) is now encouraging international candidates to enrol, in parallel with our work to develop UAE nationals. Whenever I engage with these young leaders, I am excited by their ambition, their innovation and their passion for this industry. With their commitment, our long-term perspective continues to shine.
“Truly global leaders act as bridge builders and connectors of resources and talent. They differentiate themselves by finding new ways of creating value across their organisation”
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LEAD STORIES
CELEBRATING A SUCCESSFUL LISTING In February 2022, AD Ports Group was listed on the primary market of the Abu Dhabi Securities Exchange (ADX). We spoke to senior leaders at AD Ports Group about what this means for the company and for the new stakeholders in this exciting business. Continuing its strong growth trajectory from 2021, AD Ports Group marked a historic milestone with the listing of its shares on the primary market of the Abu Dhabi Securities Exchange (ADX) in February. Ahead of the listing, AD Ports Group raised new capital through a primary issuance. The AED 4 billion of cash proceeds from this primary
issuance will be used to fund the Company’s organic and inorganic growth plans locally and internationally. The listing builds upon the Group’s successful bond issuance in 2021, which reflected investor trust and confidence in its position. ADQ remains a majority shareholder with a 75.44 percent stake and transferred ownership of stakes in two listed companies to AD Ports
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Group prior to the listing. This comprised a 22.32 percent stake in logistics firm Aramex PJSC (“Aramex”) and a 10 percent stake in UAE-based contractor National Marine Dredging Company PJSC (“NDMC”), which specialises in engineering, procurement, construction, and marine dredging. H.E. Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, said: “We welcome our new shareholders, and we are confident that we are well-positioned to take the next step on our journey of sustained growth and global expansion.” Following the announcement of the listing of its shares, AD Ports Group commemorated its landmark achievement with an official bell ringing ceremony at the Abu Dhabi Securities Exchange (ADX). The ceremony was conducted by H.E. Falah Mohammed Al Ahbabi, Chairman of AD Ports Group; H.E. Hisham Khalid Tawfiq Abdulkhaliq Malak, Chairman, ADX; Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group; and Saeed Al Dhaheri, Managing Director and Chief Executive Officer of ADX. From 8th February, the shares began trading on
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ADX under the ticker symbol “ADPORTS” allowing investors on ADX to own shares of a highly diversified global trade enabler with solid growth potential and investment-grade credit ratings. Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “Rising to meet the challenges faced by global markets in recent years, AD Ports Group has emerged as a resilient entity that not only continues to expand in terms of size and capabilities, but which has also influenced transformation and the adoption of innovation. “And now, as a publicly listed company, we welcome new shareholders in joining us on our remarkable journey to develop the maritime and logistics industries across the region and globally.” The listing reflects investor trust and confidence in the Group’s position as a highgrowth, integrated port and logistics champion acting as a catalyst for Abu Dhabi’s non-oil economy. The Group achieved strong operational and financial performance during 2021, and its integrated business model built upon clusters continues to deliver strong results.
“As a publicly listed company, we welcome new shareholders in joining us on our remarkable journey to develop the maritime and logistics industries across the region and globally”
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PARTNER DIALOGUE
A GLOBAL FOOD LEADER COMES TO ABU DHABI We sit with Stéphane Layani, Chairman and CEO of SEMMARIS – International Market of Rungis, strategic consultant for the Regional Food Hub – Abu Dhabi, to discuss reasons to expand into the Middle East, the role of wholesale food markets in the post-pandemic era, and the benefits of building strategic partnerships to tackle world hunger.
STÉPHANE LAYANI Chairman and CEO of SEMMARIS
Can you shed light on the latest consumer trends in the food and beverage sector? Food consumers are now much more aware of all the practices in the agro-food industry. They want to know more about the traceability of what they eat, eat local production, consume organic products, use digital platforms. We plan to work on these issues, in collaboration with Abu Dhabi Port Authorities and Ghassan Aboud Group, a major economic actor of the region. How can wholesale markets help societies evolve following COVID-19? A major part of the response
to future epidemics lies in better health regulation in the agri-food chain, from production through to distribution. In the emerging post-COVID-19 world, wholesale markets are set to become key infrastructure regarding the control and organisation of the agri-food chain. A global network of modern wholesale markets would facilitate oversight, the introduction of international hygiene standards and heightened cooperation based on the improved sharing of information. By consolidating and centralising agricultural production for a region or country, they are a vital means of ensuring quality control for food products and compliance with hygiene standards By demanding detailed information on the origin of the products, the wholesale markets encourage upstream actors to apply health, traceability and hygiene standards more effectively. Why is the Middle East a promising region for Rungis to develop a new wholesale marketplace? The Middle East is a very important region; adding to
its cultural richness, it features tremendously promising economic opportunities. With ongoing presence across various continents including Europe, Africa, Southeast Asia via projects in Vietnam, Philippines, Egypt, Kazakhstan, Nigeria, and others, the Middle East is a missing link. We want to develop our consulting activities via Abu Dhabi Ports Authorities especially, as it represents a key strategic zone. What makes AD Ports Group’s KIZAD a suitable base for the project, and how do you expect the location to benefit your operations and business development? KIZAD enjoys an excellent location, ideally situated at the crossroads of Abu Dhabi and Dubai; well-settled logistic hubs and the two largest economic platforms of the country. KIZAD can collect a large amount of production in the catchment area and centralize imports and exports as international trade transits through Abu Dhabi Port. From here, this project can supply neighbouring countries with fresh food and help achieve food security via a new, modern and sustainable economic
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model that Rungis International Market proposes and promotes on a global scale. Other than its perfect location, KIZAD also enjoys connection with surrounding infrastructure: Dubai & Abu Dhabi airports, highways and the two ports. The digital interconnection will also enable the building of an effective marketplace. How do you expect ‘Regional Food Hub – Abu Dhabi’ to benefit the local economy? Supplying the local population with top-quality food is our consistent objective, the agro-logistic platform will catch the production of neighbouring countries and redistribute it. The food hub will be able to supply all neighbouring countries with the development of importers and exporters that can act as the perfect agent, meeting offer and demand in the Middle East. Centralisation of imports and exports, and regroupment of production in bulk are key to the success of Rungis International Market. Adapted to local standards, trade practices and existing infrastructure, these elements are ready to be duplicated in this region. The project will spur job opportunities, what specific roles are we talking about? A whole ecosystem will be created to centralise the existent production and sell it, so that it can reach all countries of the region, after reaching the remaining 6 emirates of the Emirati federation. Employment opportunities will include a wide range of activities related to food and logistics. There will be food wholesalers, delivered by efficient logistical operators, as well as food processors,
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restaurants, start-ups, etc. Thinking long-term, what is the wider vision for the ‘Food Hub – Abu Dhabi’? Rungis will become a longterm strategy consultant on this project, advising local authorities on the most suitable practices for a food hub to function best as possible. The project will integrate within the global network of existing wholesale markets in the world as it can be linked to the World Union of Wholesale Markets, that is in constant link with wholesale food markets mediating key discussions related to food safety, sustainability and the feeding of the world’s population. How have you found the journey so far with AD Ports Group? When it comes to the agrofood industry and logistics in the UAE, we immediately thought of GAG and KIZAD as they are well-established actors in the field. We have been engaged in negotiations and exchanges for some time, and we are truly proud to participate in this ambitious public-privatepartnership as it is the first in this region when it comes to agro-food and logistics. We want this infrastructural hub to become a reference in the area as it possesses game-changing factors. The project is in partnership with AD Ports Group and Ghassan Aboud Group, in what ways does this arrangement elevate the project? Semmaris - International Market of Rungis is honoured to benefit from the expertise of our two partners of the project. We will be able to combine forces into a synergy, using KIZAD’s ideal location, best maritime and trade practices, and GAG’s broad
experience in various industries including 3PL logistics, retail, digital marketplace etc. This project will enable all parties to mutually gain from the experience of working together for the building of such necessary infrastructure, at a time where supply chains have been strongly impacted by the COVID-19 pandemic.
“The food hub will be able to supply all neighbouring countries with the development of importers and exporters that can act as the perfect agent, meeting offer and demand in the Middle East.”
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PROJECT UPDATES
AD PORTS GROUP ACQUIRES DIVETECH MARINE ENGINEERING SERVICES Major Investment will Enable AD Ports Group to Generate Significant Commercial, Operational, and Financial Synergies. In February 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 for ports and other maritime organisations. The acquisition and integration of the company into AD Ports Group will extend the range of services offered by the Group’s Maritime Cluster, placing it in a strong position to generate significant commercial, operational, and financial synergies. The 100% acquisition will be fully funded from AD Ports Group’s existing cash reserves. Divetech delivered revenue of AED 87 million and EBITDA of AED 20 million in 2021. Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “Our acquisition of Divetech represents an
important strategic opportunity for growth, enabling us to integrate a dynamic company with a significant pipeline of potential new business into our operations. This acquisition also enables our Maritime Cluster to provide a fully holistic service offering that includes undersea inspection, maintenance and repair.
“Our acquisition enables our Maritime Cluster to provide a fully holistic service offering that includes undersea inspection, maintenance and repair.”
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AD PORTS GROUP BEATS ALL TARGETS WITH FULL-YEAR FINANCIALS Cargo and Container Volumes Handled Reached Record Highs of 45 Million Metric Tonnes and 3.4 million TEU’s in 2021 AD Ports Group announced its 2021 financial results in February, reporting revenue growth of 14% yearon-year to AED 3.9 billion (USD 1.1 billion) compared with AED 3.4 billion (USD 933 million) in 2020, driven by volume growth, business diversification and new partnerships. EBITDA, on a reported basis, rose to AED 1.6 billion (USD 434 million) during 2021, up from AED 1.5 billion (USD 422 million) in 2020. Net Profit reached AED 845 million (USD 230 million) in 2021 from AED 397 million (USD 108 million) in 2020. Operational highlights from 2021 included signing of a 35-year concession with CMA terminals to build a new container terminal in Khalifa Port with a total JV investment of AED 565 million (USD 154 million); strategic collaboration agreement with Turkey’s sovereign wealth fund, Turkiye Varlik Fonu, to explore major investment opportunities
within Turkey; and a series of agreements with the Aqaba Development Corporation to support the development of tourism, logistics, transport, and digital infrastructure within Aqaba in the Hashemite Kingdom of Jordan. H.E. Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, said: “These excellent results demonstrate that AD Ports Group has consolidated our leadership position during a period where global trade and supply chains have experienced many challenges. Buoyed by our culture of innovation and our key strategic partnerships with global companies, we continue to deliver robust results and maintain our positive momentum. These results were possible thanks to the direction of our wise leadership and for their unwavering support for our endeavours to drive the economic growth, diversification, and industrialisation of the UAE.”
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PROJECT UPDATES
AD PORTS GROUP ANNOUNCED WINNER IN ARABIAN BUSINESS FIRST-EVER INDUSTRY OSCARS Named as the key Trade and Logistics Company in ‘Five Decades of Success’ Category On Monday, 24 January 2022, the Arabian Business Awards honoured industry leaders judged to have contributed to the UAE’s success story and championed the innovators who will help write its next chapter. AD Ports Group was named the global ports, trade and logistics winner in the ‘Five Decades of Success’
category, recognising the role the company has played in reshaping trade and driving innovation in a crucial economic sector. Specifically, the judging committee highlighted the company’s increasingly global profile and its work during the COVID-19 pandemic, when AD Ports Group became a
founding member of the HOPE Consortium initiative. Together with the HOPE Consortium partners, AD Ports Group and has helped successfully deliver over 250 million vaccine doses to over 60 countries around the globe, including those in the MENA Region, Asia, Africa, Europe, and South America.
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HOPE CONSORTIUM
HOPE CONSORTIUM WELCOMES UNICEF DELEGATION Senior Figures from Leading UN Body Review Vaccine Storage Facilities As a testament to its close partnership with UNICEF, the HOPE Consortium welcomed a delegation that included H.E. Andres Franco – Director for Multilateral Partnerships and Mr. Eltayeb Adam, UNICEF Gulf Area Representative, to AD Ports Group’s advanced cold and ultra-cold medical warehouse in KIZAD. During the visit, the delegation had the opportunity to tour the facility, which is one of the largest of its type in the region and beyond, and experience first-hand how the
HOPE Consortium facilitates and manages vaccine storage, handling, and delivery. The visit was also a great opportunity to highlight the HOPE Consortium’s mission to expand its efforts of overcoming COVID-19 challenges and facilitate the movement of vaccines worldwide. H.E. Andres Franco, Director for Multilateral Partnerships, expressed gratitude to the UAE and its support as a partner, saying “HOPE Consortium is one of our partners that helps us
distribute vaccines around the world, with great support from the government and the Ministry of Health of the UAE. Thanks to the HOPE Consortium and to the UAE government for the support in reaching every single child.” Through these visits and expanded partnerships, the HOPE Consortium along with its founding partners reaffirm their commitment to playing a vital role in helping implement an effective global response to COVID-19, where it is needed most.
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AD PORTS GROUP CELEBRATES UAE INNOVATION MONTH The 3D Virtual World “Metaverse,” an Innovation Café and Major Speakers featured as part of Innovation Initiative AD Ports Group held a series of activities as part of UAE Innovation Month in February. Under the theme of “The Future”, the Group’s festivities included a range of events focused on leadingedge innovations driving the Industrial Revolution 4.0 vision, such as Artificial Intelligence, IoT, Big Data, and beyond. AD Ports Group’s innovation team held workshops, seminars, professional development programmes, and speaker sessions featuring some of the industry’s leading trends. As part of the initiative, the Group hosted a range of activities that centre around the Metaverse, an online immersive and customdesigned 3D world that blends elements of business networks, gamification in E-learning, ludic and social activities, among many others. This year’s edition included the Innovation café, an open platform dedicated to the exchange of knowledge on all things related to innovation. Discussion topics include a review of the key sustainable sources of energy for the future. Welcoming employees as well as local and global partners, AD Ports Group’s Innovation Month celebrations examined smart and green logistics, maritime solutions, and many more vibrant technologies.
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DR. NOURA AL DHAHERI Chief Executive Officer - Digital Cluster Chief Executive Officer - Maqta Gateway
One of the key discussions for our industry at the moment is 5G technology and how it can best be deployed across ports and free zones to deliver the strongest results. Private 5G networks offer an opportunity to make faster decisions and optimise supply chain logistics, if deployed correctly. For the team in the Digital Cluster, keeping one step ahead of the innovation curve is a key responsibility. We continuously analyse new technologies to better understand how they can be integrated into our state-of-the-art maritime infrastructure and have been involved in discussions around 5G from the beginning. For example, we’ve long recognised that the speed and low latency of 5G make it a natural partner
technology for artificial intelligence and automation solutions. By combining AI with computer vision, we can monitor traffic and cargo flows across the ports and use that technology to make smarter, faster decisions about berth availability and resource allocation. We are also reviewing a range of Smart Port Solutions that support functionalities including video security monitoring and real-time data collection through mobile terminals. One recent example of our continued efforts lies with the establishment of “Maqta Ayla”, a new joint venture formed as part an agreement between Maqta Gateway and Aqaba Development Corporation. Tasked with developing and operating an advanced Ports Community System
(PCS) that will enhance operations at the Port of Aqaba, the platform is expected to facilitate an estimated two million digital transactions per year, while simultaneously streamlining services, generating cost and time savings for port users, and reducing Co2 emissions. In all, the port of the future is already with us. Technology is advancing all the time, and AD Ports Group has the experience and ambition to deploy these solutions to have the greatest impact on customers and our community.
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MAQTA GATEWAY LAUNCHES INSPECTION AND CLEARANCE SERVICES ON ATLP New Services leverage Abu Dhabi Customs’ “Invisible Customs” initiative to Streamline Transactions via a Single Optimised Interface Maqta Gateway, the digital arm of AD Ports Group, has unveiled a new inspection and clearance module as part of its Advanced Trade and Logistics Platform (ATLP). Integrating directly with Abu Dhabi Customs’ online services, the new inspection and clearance module enables traders to oversee their endto-end cargo clearance via ATLP and also enhances related processes in line with the initiatives facilitating trade in the UAE as per global requirements and standards. ATLP’s new module will dramatically improve information sharing through the implementation of a centralised registration process. It also helps streamline customs procedures by adopting an advanced electronic declaration mechanism, where goods can be pre-notified by submitting an electronic customs declaration document. In addition to streamlining administrative processes through a single optimised interface that allows all involved parties to share, review, and process trade data. The integration of the platform with other regulatory authorities such as border control agencies will ensure smoother
cross-border operations. Simplifying and enhancing the flow of information exchanged will dramatically
shorten import, transit, and export lead-times of goods, lessen instances of overlapping controls and
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duplication of work, as well as significantly lower operational and administrative costs. To date, ATLP’s Inspection and Clearance Module and related services have recorded over 500,000 transactions and now facilitate more than 80 percent of Abu Dhabi’s customs clearances. In addition, over 50 million transactions were completed via ATLP an innovative singlewindow solution designed to unify trade and logistics services across Abu Dhabi, including sea, land, air,
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industrial and free zones. Dr Noura Al Dhaheri, Chief Executive Officer - Digital Cluster and Chief Executive Officer - Maqta Gateway, said: “As the latest step in our continuing efforts to digitalise trade across the region, ATLP’s new inspection and clearance module marks a key juncture in the country’s ongoing efforts to modernise the movement of goods in and out of the country. “The latest addition of our ATLP solution falls in line with the leadership’s vision to realise a fully integrated
logistics ecosystem that will elevate Abu Dhabi’s ranking as a global trade hub powered by global best practices and innovation.” Another new module introduced Free Zone and Bonded Warehouse processes as part of ATLP. The new module’s features include improved services across the cargo journey, reduced congestion at all border points, lessened security risks, cost-effective operational costs, as well as compliance with best global regulatory and industry practices
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KIZAD COMMUNITIES OFFER INTEGRATED EMPLOYEE ACCOMMODATION SOLUTIONS Innovative Staff Residential Communities include New Services and Property Management Solutions. At the start of 2022, AD Ports Group launched KIZAD Communities Development & Services Company, a project that aims to champion the staff wellbeing across the full value chain. KIZAD Communities will provide integrated solutions for staff residential communities, including new developments, new services, and property management solutions. Through KIZAD Communities, AD Ports Group will offer integrated services to companies from different sectors to accommodate their workers. The Group is collaborating with key partners to introduce smart applications and sustainable solutions, as well as to enhance the overall operations of the employee housing facilities. By leveraging its technical expertise and understanding of the market and business needs, KIZAD Communities will also facilitate and develop new investment opportunities in staff accommodation by evaluating the viability of assets, strategic planning, project management, and consultancy to further offer opportunities for start-ups and SMEs, especially in facility management, subcontractors, ancillary services, laundry services, and catering, amongst many more.
Abdullah Al Hameli, Chief Executive Officer of Economic Cities & Free Zones Cluster - AD Ports Group, said: “By providing integrated services utilising the latest technologies at an attractive location and competitive prices, KIZAD Communities is set to introduce a new reimagined
concept for employee residential communities. In addition, the project further elevates the UAE’s attractiveness for foreign direct investment, optimizing trade across Abu Dhabi’s entire value chain, and better connecting the Middle East to the rest of the world.”
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ABDULLAH AL HAMELI
Chief Executive Officer – Economic Cities & Free Zones Cluster
Many industries are dealing with turbulence today, as consumer demand stabilises in the wake of the COVID-19 pandemic, but with global tensions causing new disruptions to supply chains. For companies looking to manage this volatility, the presence of operations in a well-designed economic city can provide vital support. Not only do the facilities offered enable businesses to scale up production and forge new partnerships with suppliers as required, but access to multi-modal transport options also ensure supplies arrive in a timely manner irrespective of international issues. For AD Ports Group, partnering with global industry leaders and decision-makers has been
instrumental to creating a collaborative industrial ecosystem for our customers. Through our strategic partnerships, sector-specific hubs have evolved to align with industry best practices, enabling businesses located there to adapt to the trends and demands of their sectors. Our partnership with Ghassan Aboud Group, and the collaboration with the French wholesale market giant Rungis, for example, for the Regional Food Hub and with the Colombian Arab Chamber of Commerce for the development of a Latin American business incubator, demonstrate how international leaders are increasingly looking to work with AD Ports Group because of our expertise in the economic cities and free zones space. In turn, their
presence attracts more international businesses who recognise that the market leaders of their industries are finding security by working with us. As we settle into 2022, we are here to help our customers adapt to a changing world. Our international perspective and our ongoing global outreach are playing a key role in ensuring this international success.
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ECONOMIC CITIES RESHAPING INDUSTRY OPPORTUNITIES IN ABU DHABI Abu Dhabi continues to set the benchmark for market innovation and standard in 2022, as AD Ports Group adds new sector- specific hubs for food, metals and auto industries under its Economic Cities and Free Zones Cluster. Key industries in the UAE are witnessing a significant boost in investment as the economy continues to develop under the wise policies of our nation’s leadership. As the UAE pursues its economic diversification agenda and looks to raise the industrial sector’s contribution to GDP from AED 133 billion to AED 300 billion by 2031, AD Ports Group is working to expand the foundations that will make such dramatic growth possible. The Group’s Economic Cities & Free Zones Cluster is working to establish sector-specific hubs that cater to the needs of each serviced industry and that offer unmatched business setup solution. As a result, leading organisations are looking to Abu Dhabi as a potential base where they can gain a competitive edge, enhance operations and reach new customers. Zero-waste wholesale food trading hub By drawing attention to selfsufficiency and emphasising the need for efficient food supply chains, the COVID-19 pandemic has underlined the importance of the UAE’s goal of securing the top spot on the Global Food Security Index by 2051. As a result, food production and trade remain at the core of the government’s vision.
In line with government ambition, AD Ports Group has entered a strategic partnership with UAE-based, multi-business conglomerate Ghassan Aboud Group to establish one of the region’s largest multi-category wholesale food trading and logistics hub in collaboration with Rungis. Adding 3.3 km2 to KIZAD’s existing food cluster, the ‘Regional Food Hub – Abu Dhabi’ will bring together wholesale buyers, sellers, logistics players, consolidators, and distributors from across the world, enhancing the diversity and quality of all food categories available for consumers in the UAE and wider region. Speaking on the project, Ghassan Aboud, Founder and Chairman of the Ghassan Aboud Group, foresees that the readily available infrastructure and value-added services at the new Hub will be a critical driver for food-related innovation in the sector. “Hygienic storage, handling, and transport of food are major focus areas in the postpandemic environment and are initiating a new approach to food production across global markets,” he said, adding that the latest development at KIZAD’s Food Hub “is a pioneering step in the UAE’s
food processing and distribution sector, positioning Abu Dhabi as a vital link connecting global food supply chains across East and West.” Integrated Metal Park Providing crucial commodities for the development of buildings, automobiles, appliances, and toolmaking, the metals industry is an important sector for the UAE’s continued growth and prosperity, and a key contributor to neighbouring manufacturers in Economic Cities & Free Zones Cluster. To enable growth and expansion plans of industrial companies and contribute to the UAE’s ‘Operation 300bn’ Industrial strategy”, AD Ports Group welcomes to the family Metal Park Investment ME LTD, set to establish an integrated metal hub that will bring metal vendors, processors, and fabricators to a central location in KIZAD. Covering a total land area of 500,000 m2, the future Metal Park will be equipped with state-of-the-art facilities supporting storage and handling, processing, and fabrication activities, whilst offering access to research and development amenities, rental office space, and associated financial services.
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According to Saleh Shahrestani, Chairman, Metal Park Investment ME, being restricted to one physical space makes it hard for metal service providers to respond to market demands and scale up or down accordingly, while associated red tape slows down processes and productivity. He says, “membership at Metal Park allows our clients to expand their businesses at times of growth with little capital and at times of economic downturn,” adding that Metal Park will “revolutionise the steel fabrication industry and transform it into a win-win economy by providing a platform for metal services to be more efficient financially, economically and
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environmentally.” The strategic location of Metal Park in KIZAD will create an ecosystem that helps metal service providers grow their business and adapt to market trends and conditions quickly and effectively, so they can plan for the future without constraint. A new landmark for all things automotive Under AD Ports Group and ZonesCorp, development works are moving at pace in Rahayel, Abu Dhabi’s Premier Automotive Community. With the construction of Auto Workshops passing 50 percent completion at the site, the contract has now been awarded for the Rahayel Showroom masterplan. Set to be completed by 2023, Phase 1 of the project
will see 86 auto showrooms established within AD Ports Group’s ZonesCorp, with plots starting 100 m2. The strategic location offers auto dealers access to over 1 million consumers within a 10km radius, in addition to the range of facilities that make up the complete Rahayel ecosystem. Rahayel City is the first integrated hub for the automotive industry in the region to accommodate a full range of auto-related businesses and supporting services. Apart from showrooms, service centres and workshops, auction houses, and sector-based regulatory and governing bodies, the new development is also home to a vehicle test track, an inspection facility, and an auto training centre.
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AL RAWABI TO SET UP AED 650 MILLION DAIRY PRODUCTION FACILITY IN KIZAD Two sq. km facility will provide end-toend dairy production facilities In March, KIZAD signed a lease agreement with Al Rawabi, one of the leading dairy and juice companies in the UAE, for the establishment of a dairy production facility in Abu Dhabi. Under this agreement, Al Rawabi will initially develop two square kilometres in KIZAD with an additional three-square kilometre slated for the future. The dairy production facility, with an investment of AED 650 million, will be home to 10,000 Al Rawabi cows and will increase their export efforts across the wider GCC region. Abdullah Al Hameli, Chief Executive Officer of Economic Cities & Free Zones Cluster - AD Ports Group, said: “Al Rawabi’s confidence in KIZAD is a testament to AD Ports Group’s commitment to driving the UAE’s National Food Security Strategy through the supply of high-quality dairy and food products, while also contributing to the growth of the nation’s industrial sector.” Employing more than 200 skilled people, Al Rawabi’s dairy production facility will include milk parlours, a dairy plant, a mechanic and maintenance workshop, a feed factory, staff accommodation,
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and a biogas plant, along with fertilizer manufacturing amenities that will also support the wider agriculture ecosystem in Abu Dhabi.
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Al Rawabi will apply the latest technologies in processing waste resulting from the project that will include the production of green energy. Additionally, 10 megawatts
of clean power will be generated by equipping a large portion of site assets with solar panels, reducing the operational costs and CO2 emissions at the site.
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MICCO SIGNS TWO MILESTONE AGREEMENTS WITH KEY CUSTOMERS Agreements with Etihad Airport Services and Abu Dhabi Terminals will see MICCO Respectively Provide Customs Services and Stevedoring Solutions Building on its success and reputation as one of the leading providers of logistics services in the UAE and the region, MICCO has signed two milestone agreements with key Abu Dhabi-based customers. The first is a three-year service agreement with Abu Dhabi Airport Customs - Etihad Airport Services (EAS), which will see MICCO provide customs services, freight forwarding, and other related solutions to EAS and its clients. As part of the agreement, customers will be able to access MICCO’s services via its counters, located at the Abu Dhabi International Airport, which will facilitate as one-stop service platforms. The counters, which will operate on 24/7 basis, will be able to handle both import and export service requests and have the capability to handle 120 transaction per day.
The second of the two milestone developments represents an agreement between MICCO and Abu Dhabi Terminals (ADT), which will see MICCO assuming responsibility for all stevedoring services related to loading and unloading of vessels at ADT. Stevedoring services, which include terminal, vessel, crane and vehicle operations, have long been mainstays of MICCO’s service portfolio and are a reflection of its exceptional experience in the area of port operations. Securing these important agreements reinforces MICCO’s long term commitment to serving the local and international clients through such UAE corporate champions as EAS and ADT, and also allows its customers to access a broad portfolio of integrated end-to-end services offered by the AD Ports Group’s Logistics Cluster.
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ROBERT SUTTON
Chief Executive Officer - Logistics Cluster
The start to 2022 has brought a host of challenges and opportunities for the logistics industry as the world continues to adjust to prolonged disruptions to global supply chains, caused by the effects of the pandemic and the current geo-political dynamics. Our team at the Logistics Cluster is working hard to stay ahead of the shifting global landscapes and pivot towards the opportunities that they offer. Our focus has been to enhance our complete endto-end logistics capacities as our customers shift towards securing their supply chains by engaging with providers of integrated logistics solutions. On the technological front, we are in the early stages of pursuing a pilot project that would evaluate the feasibility of delivering medical supplies using drones. Expanding our capabilities to this sphere would greatly enhance our final mile capacities in terms of
speed, efficiency and cost savings. With respect to warehousing, we have developed an advanced polymers storage hub in KIZAD for one of our long-term industry partners. The hub, which at 180,000 sqm is one of the largest of its type in the world, will serve the global polymers export markets thanks to its close proximity to the Khalifa Port. Furthermore, the recent incorporation of Aramex into our suite of integrated logistics services will pay significant dividends to our customers, particularly as we leverage Aramex’s word-class final mile capabilities. Our healthcare business has seen significant growth, particularly in the areas of integrated healthcare, vaccine, hospital, and pharma logistics. With this in mind, we are working closely with our partners in the pharmaceutical manufacturing space to support them as they expand their production
capacities domestically and internationally, while leveraging our global logistics networks to help them serve their target markets. Considering that we operate one of the most integrated healthcare supply chains on the market today and, along with our subsidiary MICCO, are the only healthcare logistics provider in the UAE to hold the Good Distribution Practice (GDP) compliance for both EU & WHO standards, we are well positioned for growth looking ahead into 2022.
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ADDITION OF ARAMEX TO EXPAND THE GROUP’S INTEGRATED END-TO-END SUPPLY CHAIN SOLUTIONS The Group’s Customers to Benefit from Aramex’s Wold-Class Final Mile Capabilities and Robust Global Networks The recent acquisition of shares in Aramex, a wellrespected regional and global logistics player, has been a welcome development for AD Ports Group’s Logistics Cluster. The company boasts robust and multifaceted logistics services which are very complementary to those of the Cluster, particularly as it seeks to expand its endto-end value offering to the marketplace. While the Cluster has to this point excelled at first mile and middle mile integrated supply chain solutions, boosted by the acquisition of MICCO in late 2019, the addition of Aramex will greatly strengthen its ability to respond to the final mile and express service needs of its customers. These capabilities are particularly important as the Cluster seeks to serve the e-fulfilment and e-commerce business verticals, sectors where the Cluster sees significant growth potential in the medium to long term. Furthermore, the addition of Aramex will also allow the Cluster to leverage Aramex’s extensive international logistics assets and networks which combine multimodal supply-chain capabilities, including air, sea, land, and
combinations of the three. In addition, its connectivity to global partners, including the Global Distribution Alliance (GPA) and World Freight
Alliance (WFA), will help boost the Cluster’s capability to serve its target markets, including those in the MENA, Africa, and Asia regions.
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MICCO SECURES COVETED PHARMA HANDLING ACCREDITATION FOR TWIN GLOBAL STANDARDS MICCO’s GDP Accreditation against EU & WHO Standards Boosts the Cluster’s Fully Compliant End-to-End Pharma Supply Chain Solutions MICCO Logistics has successfully secured the coveted Good Distribution Practice (GDP) accreditation by one of the world’s leading testing, inspection, and certification bodies. The award was issued by Bureau Veritas, which certified MICCO’s freight forwarding and transport capabilities for pharma and healthcare products against both European Union (EU) and World Health Organisation (WHO) guidelines.
The issuance of the award builds on AD Ports Logistics’ success in securing the identical GDP accreditation for its advanced pharmaceutical cold and ultra-cold storage facility located in the KIZAD in October of 2021. The announcement marked the first time a UAE organisation secured accreditation for both standards. The GDP accreditations secured by both AD Ports Logistics and MICCO certify
that all required measures designed to safeguard product quality and reduce risk have been implemented and are being followed along the Cluster’s entire cold and noncold healthcare supply chain. Ultimately, adherence to such high standards ensures customers that pharmaceutical products they receive through the Cluster’s fully integrated logistics services are handled according to the highest global quality and regulatory protocols and standards.
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NEW TUGS ADDED TO SAFEEN FLEET Group Announces New Med Marine and SEMAIH Tug Acquisitions SAFEEN the maritime services arm of AD Ports Group, announced the acquisition of SEMAIH, a RAmparts 2200 – Sanmar ‘SIRAPINAR’ Series ASD Harbour Tug, to expand and bolster its towage service capabilities. Powered by a Caterpillar 3512C / Tier II “C” Rating engine achieving a bollard pull of 50 tons ahead and 45 tons astern, the new vessel is the latest addition to SAFEEN’s 20-strong tugboat fleet. On the new contract, Captain Maktoum Al Houqani, Chief Executive Officer of Maritime Cluster - AD Ports Group, said: “We are pleased to announce the addition of SEMAIH, a Ramparts 2200 ASD Harbour Tug, to SAFEEN’s marine service fleet, which has greatly enhanced our ability to meet the evolving trade demand and requests for chartering services, as well as address the increasing complexity of logistical operations across the region.” The newest addition to SAFEEN’s service fleet
will join similar tugs built and delivered by Sanmar Shipyards including three RAscal 1800 Class 32 tons bollard pull ASD Tugs, which were produced back in 2016, 2017, and 2018, namely AL SHAHEED, AL HILI 1, and JIMI 1. Earlier in the year, SAFEEN also added Med Marine’s MED-A2360 tugboat series into its fleet of advanced tugs. The tier III E type tug Er104 will be deployed to meet the growing marine service requirements of the Group. The delivery of the tug will be facilitated in October 2022. The MED-A2360 series, designed by Robert Allan Ltd. exclusively for Med Marine, was chosen for the third time by SAFEEN for its versatile, multi-purpose, compact and modern design which features efficient ship-handling, coastal towing, and general-purpose towing capabilities. The addition of the new Tier III tug complies with future emissions restrictions and reflects AD Ports Group commitment to reduce sea borne emissions.
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Capt. MAKTOUM AL HOUQANI Chief Executive Officer - Maritime Cluster
Since the establishment of its Marine Services Company, AD Ports Group has recognised the strong demand that exists in the region for an organisation that can provide a comprehensive portfolio of maritime services. Whilst our port operations and seaborne service offering varies to serve a wealth of sectors, they are underpinned by our customer’s fundamental need for an experienced and trusted partner that can provide vital support, that is not only tailored to their specific field but also executed to the highest possible standard. That demand has driven our operational expansion in recent years, with the launch of SAFEEN Feeders in 2020 and our offshore arm, OFCO, in 2021. It has seen us specialise in the
provision of port services, transshipment, and feeder shipping, among other areas, as well as expansion of our offering at Abu Dhabi Maritime Academy (ADMA). We have also continued to invest in the assets required to excel in these areas, such as the bulk carriers, service vessels and tugs that have recently joined our fleet. Now, at the start of 2022, we have taken another key step with the acquisition of Divetech Marine Engineering Services, a topside-subsea solutions provider of installation, inspection, and maintenance services. Integrating the Divetech team into our maritime cluster will enhance our strength in the offshore logistics sector, a key growth area and one with significant strategic importance for several of Abu Dhabi’s key industries. These are evolving and
promising times for the Maritime Cluster, as we continue to develop a full service offering that covers portside, sea, and underwater capabilities. With a growing track record in the industry, we are primed to address major projects throughout the UAE and beyond.
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ABU DHABI MARITIME TO MANAGE OPERATIONS AND FUTURE GROWTH OF ALL UAE FERRY SERVICES Custodian of Abu Dhabi’s Waterways Assumes Management of Water Transport Services Connecting Dalma Island and Al Aliah Island Abu Dhabi Maritime officially assumed responsibility for all ferry services operating within Abu Dhabi’s waterways at the start of 2022. Operating under the AD Ports Group, with guidance
from the Department of Municipalities and Transport (DMT), the organisation integrated the Ferry Operations Branch of the Integrated Transport Centre (ITC) under the scope of its services. The
move sees Abu Dhabi Maritime manage and oversee the daily operation of the Emirate’s two major ferry lines — the Dalma Island Water Transport Service, which connects Dalma Island and Jebel Dhanna Port, and the
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Al Aliah Island Water Transport Service, which connects Al Aliah Island and Al Saadiyat Island. As part of its new responsibilities, the organisation is also driving the development of several key business areas associated with ferry operations. This includes the creation of new infrastructure such as ferry stations, acquisition of vessels, enhancement of staff capabilities, fostering third-party contractor relationships, as well as leading the digitalisation of Abu Dhabi’s ferry services. Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports
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Group, said: “Consolidating ferry operations under a single entity that is focused solely on growing Abu Dhabi’s maritime sector will help achieve our government’s vision of positioning our Emirate as a global maritime hub.” In addition to optimising operations and realising new levels of efficiency across all ferry-related activities, Abu Dhabi Maritime aims to further enrich the user experience through innovation and digitalisation. Part of this will include the adoption of an online digital ticketing solution, along with the integration with other related water services.
“Consolidating ferry operations under a single entity that is focused solely on growing Abu Dhabi’s maritime sector will help achieve our government’s vision of positioning our Emirate as a global maritime hub.”
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NEW OIL & GAS LOGISTICS BASE AT MUGHARRAQ PORT Agreement with Eni Abu Dhabi B.V Establishes Marine Logistics Facility In January, AD Ports Group signed a new agreement with Eni Abu Dhabi B.V., the Abu Dhabi-based branch of the world-renowned Italian Integrated Energy Company, to establish a marine logistics base at Mugharraq Port supporting offshore drilling operations in the heart of Al Dhafra region. In addition to being provided a dedicated quay wall, marshalling yard, as well as manpower and logistical equipment, the company will also have access to liquid mud and bulk plant facilities onsite. Saif Al Mazrouei, Chief Executive Officer of Ports Cluster - AD Ports Group, said: “It gives us great pleasure to welcome Eni Abu Dhabi, a major player in the world’s energy industry and Oil &
Gas sector, who lead several offshore operations around the world, to join our flourishing industrial maritime community within the Al Dhafra region. Utilising the industry-leading infrastructure and service capability that we have on offer at Mugharraq Port, Eni will be able to operate at the epicentre of the offshore oil & gas sector and drive significant benefits both from operational efficiencies, connectivity and the total supply chain cost? Boasting over 480m of heavy-lift berths, six dedicated Ro-Ro ramps, and over 85,000 sqm of yard, Mugharraq Port provides a wide range of general cargo handling, bulk, break-bulk, and logistics support services.
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SAIF AL MAZROUEI
Chief Executive Officer - Ports Cluster
The accelerated rebound of the cruise industry in the UAE is a testament to the nation’s ability to adapt and overcome global challenges. We understand the crucial role that the tourism sector, and particularly cruise tourism, plays in driving economic diversification and sustainable development. As such, AD Ports Group remains committed to developing best-in-class infrastructure to support the growth of the industry. The recent launch of our AED 125 million jetty at Sir Bani Yas Cruise Beach marks an important step in our strategy to establish Abu Dhabi as one of the leading hubs in the world for cruise tourism. The new jetty will enable us to offer something different and service an increased number of visitors at Abu Dhabi’s
popular destination, reducing the time it takes for passengers to move to and from their vessel, as well as enhancing the overall cruise experience. AD Ports Group is also further solidifying its regional footprint with the signing of an agreement to develop, manage and operate a new cruise terminal in Aqaba, Jordan, which will serve as a gateway for passengers visiting the Red Sea. It is the first time AD Ports group will operate a cruise terminal outside the UAE. The new cruise terminal will boost the wider efforts to drive trade and tourism in the region. By developing and managing this significant expansion, AD Ports Group aims to create new avenues of trade and tourism, investment and cooperation between the UAE and the Hashemite Kingdom of Jordan.
Through these significant milestones, we aim to bolster the cruise industry and its contribution to the regional economy and sustainable growth.
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ARABIAN GULF’S CRUISE RESUMPTION BRINGS OPPORTUNITY A New Report Outlines Growing Confidence in a Global Industry Despite the unprecedented impact of COVID-19, which affected nations and industries across the world, the global cruise industry is beginning to rebound and set itself on the path to growth once again. In fact, in the 2022 edition of the Cruise Industry Outlook, released annually by the Cruise Lines International Association (CLIA), the report noted that CLIA ocean-going cruise lines have welcomed more than six million guests onboard since resuming operations in July 2020, with more than 75 percent of ocean-going capacity returning to service. The report also states that all member operations are projected to be fully operational by August 2022. Another finding is of an emerging trend within the industry towards sustainability. In addition to continued investment in developing best practices surrounding health and safety, the global cruise industry is also allocating significant resources to waste reduction. Adopting innovations that include water treatment solutions, vessels powered by liquified natural gas, exhaust gas cleaning, as well as increased reliance on shoreside power solutions, the global cruise industry continues to pursue its goal for net carbon neutrality by 2050.
As with many other cruise markets, the Middle East’s cruise industry continues to recover apace in the wake of COVID-19. A market-wide survey conducted in the region in 2021, which included insights garnered from more than 1,000 professionals active within the Middle East’s tourism industry, found that 28 percent of respondents expected their operations to be back to prepandemic levels within the next 12 months. With another 52 percent citing that their organisations were either in a growth phase or operating as ‘business as usual’, the survey’s findings noted that 80 percent of organisations will likely be operating nominally or growing by 2022. But thanks to robust national health and safety measures adopted by many nations across the Arabian Gulf, as well as the continued commitment by worldleading cruise line operators such as MSC Cruises and AIDA Cruises to serve the region, confidence in the industry amongst would-be cruise travellers continues to build. As part of its own efforts to bolster the recovery of the Gulf’s cruise tourism sector, AD Ports Group has resumed cruise activities to Abu Dhabi since September 2021, enlivening the Emirate’s general tourism and maritime tourism sectors, while also
presiding over the efficient, smooth, and safe return to regular cruise operations. Prior to the start of the pandemic, Abu Dhabi had witnessed impressive growth within its cruise tourism industry. In 2019, an estimated 500,000 cruise visitors had arrived at the Emirate’s ports, which marked a 46 percent increase over the previous year. Similarly, the number of cruise calls rose by 43 percent in 2019 to reach a total of 192. In line with Abu Dhabi’s health protocols for international arrivals, the Group has implemented several health and safety measures to safeguard the wellbeing of travellers. These vary from daily sterilisation activities to the implementation of comprehensive emergency response plans within the terminal. Additionally, the group has continued to develop modernised cruise infrastructure that is bolstering cruise activities within Abu Dhabi. One such example lies with the recent launch of a new cruise jetty at Sir Bani Yas Cruise Beach, which was inaugurated by H.H. Sheikh Hamdan Bin Zayed Al Nahyan, the Ruler’s Representative in the Al Dhafra Region. Featuring eight mooring dolphins and the capability for up to two vessels to dock at the same time, the new
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“The Group has committed itself to extending its influence beyond the confines of the UAE, bringing its expertise as a cruise facilitator to other highperforming tourist hotspots across the Gulf.”
jetty allows for up to 5,000 passengers to embark and disembark at a much faster rate when compared to the previous approach of using tender craft to ferry visitors. Over the past year, the Group has committed itself to extending its influence beyond the confines of the UAE, bringing its expertise as
a cruise facilitator to other high-performing tourist hotspots across the Gulf. In November 2021, as part of an effort to realise Bahrain’s potential to become the fourth high-performing cruise destination in the Arabian Gulf, AD Ports Group joined forces with Diyar Al Muharraq and Eagle Hills Diyar company
to develop and oversee the management of cruise infrastructure and services within the country. So, while the road towards recovery remains an ongoing challenge for the Gulf’s cruise industry, for its leading champions, the outlook is both optimistic and full of opportunity.
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NEW JETTY INAUGURATED AT SIR BANI YAS CRUISE BEACH H.H. Sheikh Hamdan Bin Zayed Al Nahyan, the Ruler’s Representative in the Al Dhafra Region, inaugurated AD Ports Group’s cruise jetty at Sir Bani Yas Cruise Beach, the first and only dedicated cruise beach of its kind in the region.
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In February, H.H. Sheikh Hamdan bin Zayed Al Nahyan, the Ruler’s Representative in Al Dhafra Region, inaugurated AD Ports Group’s cruise jetty at Sir Bani Yas Cruise Beach. The new jetty is contributing to the Abu Dhabi Economic Vision and Plan Al Dhafra 2030, as Al Dhafra region continues to work towards enhancing its position in the tourism sector. As tourism plays a key role in enhancing economic diversification, it will deliver significant economic benefits by boosting the number of cruise visitors, in addition to positioning Abu Dhabi as a premier global tourism destination. On the new jetty, H.E. Falah Mohammed Al
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Ahbabi, Chairman of AD Ports Group, said: “With the creation of these enhanced facilities, we will be able to welcome more visitors to Sir Bani Yas Cruise Beach than ever before and offer a superior disembarkation experience for passengers, raising the profile of Abu Dhabi and the Al Dhafra region in particular for global travellers.” The jetty is equipped with eight mooring dolphins, firefighting equipment, solar lighting, and the ability to accommodate two vessels simultaneously. This enables more than 5,000 passengers to embark and disembark at an accelerated rate at Sir Bani Yas Cruise Beach, enhancing the overall visitor experience.
“With the creation of these enhanced facilities, we will be able to welcome more visitors to Sir Bani Yas Cruise Beach than ever before and offer a superior disembarkation experience for passengers.”
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FACTS & FIGURES In February 2022, AD Ports Group partnered with UAE-based, multibusiness conglomerate Ghassan Aboud Group to establish one of the region’s largest multi-category wholesale food trading and logistics hubs in KIZAD. Market Landscape Steadfast economic recovery in the UAE is set to boost food spending by USD 2.5 billion between 2021 and 2025, at an average annual growth rate of 4.2 percent. According to the latest from Fitch Research, post-pandemic buyers will call for more health-conscious, safe, and convenient-to-source food products. Food Cluster Expansion The Regional Food Hub Abu Dhabi builds upon AD Ports Group strong ecosystem for the industry, already backed by prominent companies and brands that include the likes of Sadia, Pinar, Spinneys, and more. Project Specifications Covering a land area of 3.3. km2 in KIZAD, the Regional Food Hub – Abu Dhabi will feature trading pavilions, logistics services, refrigerated and ambient warehouses, critical government services, waste recycling facilities and various other support amenities and services. Government Alignment The Regional Food Hub – Abu Dhabi is designed to accelerate the government’s National Food Security Strategy and enhance food trade flow through Abu Dhabi. By lowering the overall supply chain costs of food products, the food hub will provide a competitive ecosystem for both local and global players. Strategic Partnerships As a major initiative in Abu Dhabi, the project will be supported by multiple Private and Government stakeholders including Ghassan Aboud Group, a UAE-based, multi-business conglomerate, to steer the project’s design, planning, and operations, and will capitalise on the expertise of French wholesale market giant, Rungis.
Abu Dhabi is attracting top local and global food players looking to enhance their products and expand operations. Bolstered by KIZAD’s purpose-built ecosystem, buyers from around the region can prepare to enjoy easier access to a greater variety of top-of-the-range food products from leading brands and tailored to their taste.
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