UAE, Sudan To Build US$6 Billion Abu Amama Red Sea Port & SEZ


A consortium led by the UAE’s AD Ports Group and Invictus Investment of Dubai have signed a preliminary agreement with Sudan to build and operate the Abu Amama Port and Economic Zone on the Red Sea with a US$6 billion investment.

The project, located about 200 km north of Port Sudan, would include an economic zone, an airport and an agricultural zone of 415,000 acres. Russia maintains a Naval base at Port Sudan providing support for BRI shipping along the Red Sea to the Indian Ocean.

A 450-km-long road will connect Abu Amama port with the agricultural area of Abu Hamad in Sudan’s River Nile state, the two sides said at the signing ceremony held in the Sudanese capital, Khartoum.

Under the terms of the agreement, Sudan will be granted the right to develop, manage and operate port and economic zone assets in Sudan.

Meanwhile, the consortium will have the exclusive right to develop, manage and operate specific port and economic zone assets, as well as form joint ventures, partnerships or other business agreements to support other projects.

“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,” AD Ports Group CEO Mohammed Juma Al-Shamisi said.

“We are grateful and honored by the trust that the government of Sudan has placed in our consortium by signing this agreement, and we look forward to working with them on the development and management of key facilities,” Al-Shamisi added.

AD Ports Group and Invictus Investment previously agreed to establish a new international shipping service to operate as the carrier for Invictus’ dry-bulk trading business, which is a major commodity transporter to and from the Sudanese market.

Invictus Investment Co. PLC Chairman Osama Daoud Abdellatif said the port would be able to handle all kinds of commodities and would compete with the country’s main national port, Port Sudan, which has suffered recently from stoppages linked to the country’s political turmoil.

“Drawing on our deep experience of working with customers in Sudan and working alongside AD Ports Group, which is the premier global trade, logistics and transport enabler, we will strive to meet their high expectations and deliver for the people of Sudan,” Abdellatif said.

Sudan is a major trading partner of the UAE, with key Emirati exports including raw sugar, jewelry and broadcasting equipment.  Sudan’s Finance Minister Jibril Ibrahim said the country would be entitled to 35% of the net profits from the US$6 billion Abu Amama venture.

Sudan is a member of the African Continental Free Trade Agreement (AfCFTA) a deal that has removed 98% of intra-African trade tariffs, meaning regionally interested sourcing companies can now source from across Africa, combine products into a SEZ, mix them with imported components duty free from elsewhere, then re-sell onto the African market (when import duty of the imported component part kicks in) or export worldwide. Ports such as Abu Amama will help feed African components and products into Middle eastern and Asian supply chains.

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