DP World, CDPQ announce US$5 billion investment in strategic assets in UAE
DP World and CDPQ, a global investment group, announced today an investment of US$5 billion (CA$6.3 billion) in three of DP World’s flagship UAE assets.
CDPQ will invest US$2.5 billion in the Jebel Ali Port, the Jebel Ali Free Zone and the National Industries Park through a new joint venture in which it will hold a stake of approximately 22 percent, with the remainder of the transaction being financed by debt.
Other long-term investors will have the opportunity to acquire an additional stake of up to US$3 billion. The transaction implies a total enterprise value of approximately US$23 billion for the three assets.
The Jebel Ali Port, Free Zone and National Industries Park together comprise a best-in-class group of infrastructure with a solid long-term track record of growth.
Combined, they form a world-class integrated ecosystem for the supply and logistics chains of over 8,700 companies from around the world, serving more than 3.5 billion people globally. The three assets generated pro-forma 2021 revenue of US$1.9 billion.
– Jebel Ali Port (JAP) A leading international gateway port and the second largest outside of Asia, ideally located to serve the East-West trade corridor through its connectivity to 150 cities globally via 180+ shipping lanes.
– Jebel Ali Free Zone (JAFZ) The largest free zone in the Middle East and one of the largest in the world. It is home to companies from 140 countries, including approximately 150 Fortune 500 enterprises.
– National Industries Park (NIP) A 21 sq. km area designated for manufacturing and processing companies.
The three assets will remain fully consolidated businesses within the DP World Group, and day-to-day operations, customers, service providers and employees will not be affected.
Tranche 1 (US$5 billion) of the transaction is expected to close in the second or third quarter of 2022, and tranche 2 (up to US$3 billion) is expected to close during the fourth quarter of 2022.