Abu Dhabi – Mubasher: AD Ports Group penned a 15-year concession agreement with the Red Sea Port Authority (RSPA) to operate and manage three cruise terminals at Safaga, Hurghada, and Sharm El-Sheikh ports.
The deal also covers the renovation of the Sharm El-Sheikh terminal to enhance the cruise tourism experience across the Arab Republic, according to a press release.
Subject to regulatory approvals, the definitive concession agreement is expected to be concluded in the first quarter (Q1) of 2024.
Under the partnership, AD Ports will invest $3 million over 15 years in the management and operation of the three cruise terminals to provide new services.
The UAE group will boost access for cruise operators and add new itineraries through its cruise terminal network in the Red Sea. Hence, it will foster the ADX-listed entity’s cruise business in the Red Sea region, back volumes of cruise passengers, and enhance passenger as well as cruise experiences.
Ahmed Al Mutawa, Regional CEO of AD Ports, said: “With an investment of $3 million, AD Ports Group is poised to boost cruise tourism in the Red Sea, bringing world-class services and facilities to these ports, whilst supporting economic growth for Egypt."
This latest collaboration follows the signing of a definitive concession agreement between AD Ports and RSPA for the development and operation of a multi-purpose terminal at Safaga Sea Port at a $200 million investment.
In the first nine months (9M) of 2023, AD Ports recorded net profits attributable to the shareholders valued at AED 997.72 million, an annual rise from AED 917.05 million.
