In a significant development, Abu Dhabi Ports has secured a 30-year concession agreement with the Aqaba Development Company for the management and operation of the Aqaba Multimodal Port. This port, the only one in Jordan dedicated to handling general cargo, represents a strategic investment aimed at enhancing the logistical infrastructure of the coastal city of Aqaba. The partnership symbolizes a commitment to bolstering trade and economic ties within the region.
Formation of a Joint Venture
This concession agreement will see the establishment of a joint venture wherein Abu Dhabi Ports will hold a 70% stake while the Aqaba Development Company will own the remaining 30%. As part of this collaboration, Abu Dhabi Ports plans to invest a total of 141 million dirhams into the joint venture, leveraging its extensive operational expertise to develop and operate the port effectively. It is anticipated that operational activities at the port will officially commence in August of this year.
A Historic Signing Ceremony
The agreement was signed at the headquarters of the Aqaba Economic Special Zone Authority, with significant attendees including Hamad Al-Matrooshi, the acting UAE ambassador to Jordan; Shadi Al-Majali, head of the Aqaba Economic Special Zone Authority; and Captain Mohamed Juma Al Shamisi, the managing director and CEO of Abu Dhabi Ports. The signing was completed by Hossam Al-Safadi, CEO of the Aqaba Development Company, alongside Ahmad Al-Mutawa, regional CEO of Abu Dhabi Ports.
Statements from Key Leaders
Captain Mohamed Juma Al Shamisi stated, “Today’s signing is a continuation of the robust economic cooperation between our two nations and is part of the development projects that the group is executing in Aqaba. This aligns with our wise leadership’s directives to enhance collaboration with our brothers in the Hashemite Kingdom of Jordan and supports the Kingdom’s vision to transform Aqaba Port into a premier commercial hub in the Red Sea region.”
He added, “This agreement allows Abu Dhabi Ports to initiate a long-term economic transformation in the area, opening new horizons for business growth that meet the aspirations of our Jordanian counterparts.”
Shadi Al-Majali remarked, “This strategic partnership marks a pivotal point in enhancing Aqaba’s role as a competitive and integrated economic zone. The development of the multimodal port, in collaboration with Abu Dhabi Ports, supports the authority’s mission in providing a regulatory and investment environment conducive to efficient trade and high-value logistics services, achieving sustainable economic growth.”
The Strategic Importance of Aqaba Port
Hossam Al-Safadi expressed enthusiasm about working alongside Abu Dhabi Ports, the strategic partner of the Aqaba Development Company, to further develop and enhance Aqaba Port’s standing as a key commercial and transportation hub in the northern Red Sea region. Known for its strategic location at the crossroads of three continents, Aqaba Port handles approximately 80% of Jordan’s exports and 65% of its imports. The port also serves as a primary gateway for trade operations with neighboring countries, including Saudi Arabia and Iraq.
Through this comprehensive partnership, the future of Aqaba Port is set to flourish, fostering economic growth and elevating the region’s commercial capabilities.