AD Ports Group, a leading facilitator of global trade, logistics, and industry, has signed a definitive concession agreement with the Red Sea Ports Authority (“RSPA”) for the development and operation of a multi-purpose terminal at Safaga Sea Port. Following the Government of Egypt’s approval, this significant milestone reaffirms the strong trade ties between the United Arab Emirates and the Arab Republic of Egypt.
The Safaga Port definitive agreement, sanctioned under the Law on the Granting of Commitment Contract issued on 1st November 2023, marks a significant advancement in the strategic partnership between AD Ports Group and RSPA. This collaboration will see an investment of $200 million over 3 years, aimed at developing a state-of-the-art facility within the strategic location of the Red Sea and will be the first internationally operated port serving the Upper Egypt region.
The total investment will cover superstructure, equipment, buildings, and utilities within the concession area to create advanced facilities and leading-edge infrastructure. The terminal, spanning approximately 810,000 square meters, will feature a 1,000-meter quay wall and will handle diverse cargo types, including dry bulk, liquid bulk, containerised cargo, and Ro-Ro. This project is expected to bring substantial economic impact, with cost savings and efficiency improvements to traders and businesses in the region. The terminal is on track to become operational by 2025.
This project is a significant step in the longstanding friendship and cooperation between the UAE and Egypt. The UAE stands as Egypt’s second leading trade partner in the region, with Egypt ranking as the fifth leading trade partner of the UAE in non-oil trade with Arab countries.