UAE: CDPQ and DP World announce $5 Billion Investment in Strategic Assets

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In today’s announcement, DP World and CDPQ, a global investment group, announced a partnership to invest US$5 billion (CA$6.3 billion) in three of DP World’s flagship UAE properties.

By creating a new joint venture, CDPQ will invest US$2.5 billion in the Jebel Ali Port, the Jebel Ali Free Zone, and the National Industries Park in which it will hold a stake of approximately 22%. Additional long-term investors will be able to purchase shares for up to $3 billion. According to the deal, the three assets have a combined enterprise value of approximately $23 billion.

In total, the Port of Jebel Ali, the Free Zone, and the National Industries Park form a best-in-class infrastructure group with a track record of continuous growth. Over 8700 companies serve over 3.5 billion people through their combined supply and logistics chains, making it a world-class integrated ecosystem. US$1.9 billion in revenue is projected for the three assets in 2021.

  • 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.

As part of the DP World Group, all three assets will stay fully integrated, and day-to-day operations, customers, service providers, and employees will not be affected in any way.

Chairman and CEO of DP World Group, Sultan Ahmed Bin Sulayem, said: “We are thrilled to announce the expansion of our partnership with CDPQ. Due to our complementary expertise and long-term investment horizon, our co-investments with DP World and CDPQ have been very successful.

In addition to enhancing our assets, we expect that this new partnership will enable us to capture the significant growth potential of the broader region. Despite the challenges of the global pandemic and recent economic conditions, the transaction reduces DP World’s net leverage to below 4x Net Debt to EBITDA.

We will achieve a strong investment-grade rating for our Group as a result of our strong balance sheet, the continued resilience of our business, the diversification of our portfolio, and our focus on supply chains.

In sum, we believe these transactions will provide the UAE assets with a strong foundation for long-term growth, while the stronger balance sheet will help DP World’s supply chain strategy to deliver sustainable value to all its stakeholders.”

Executive Vice-President and Head of Infrastructure at CDPQ, Emmanuel Jaclot, said: “Our investment in Jebel Ali reinforces our partnership with DP World, which spans four continents and eighteen terminals.

As part of this strategic trade infrastructure investment, we are pleased to enhance our long-standing partnership with a leading logistics and supply chain operator, which will play a fundamental role in the growth and development of the global economy.

DP The upcoming CDPQ investment in a best-in-class group of infrastructure will give CDPQ access to fast-growing markets and trade routes in Africa and the South Asia region.”