Sudan has signed a preliminary agreement with a consortium led by the UAE’s AD Ports Group and Invictus Investment to develop, manage and operate the Abu Amama port and economic zone on the Red Sea in a $6 billion investment deal.
AD Ports said in a statement Tuesday that the pact gives the consortium the sole right to develop, manage and operate specified port and economic zones assets and to create joint ventures, partnerships or other business agreements to support the financing, development, construction, management and operation of the projects.
Sudan’s finance minister Jibril Ibrahim told Reuters that the North African country would be entitled to 35% of the net profits from the $6 billion Abu Amama venture.
“AD Ports Group continues to extend its international reach under the guidance and direction of our wise leadership, supporting the development of port and trade assets in key markets around the world,” Mohamed Juma Al Shamisi, the Managing Director and Group CEO of AD Ports Group said in a statement.
Invictus Investment is headed by Osama Daoud Abdellatif, the chairman of the Sudanese conglomerate DAL Group. Abdellatif expects the port to be able to handle all kinds of commodities and compete with Sudan’s main national port, Port Sudan.
DAL partnered with Sharjah-based Air Arabia in September to launch a new low-cost airline based in Sudan’s main Khartoum airport. Sudan is a major trading partner of the UAE. Exports from the Gulf state to Sudan have surged at an annualised rate of 14.6% from $37.8 million in 1995 to $1.14 billion in 2020.
