AD Ports Group and Hong Kong-based Hutchison Ports will explore joint investment opportunities in the maritime and logistics sector and work together to improve port operations in Tanzania.
The two companies plan to identify business opportunities in feedering, logistics and port activities across the GCC, Africa and Asia, AD Ports said in a statement on Tuesday.
They will also work together in Tanzania, where they will seek opportunities to improve the capabilities and competitiveness of the port operations across the East African country. The focus will be on improving servicing to Tanzania’s landlocked remote areas and neighbouring countries, cultivating more cargo sources and developing existing supporting logistics and cargo processing facilities, according to the statement.
“As a starting point, we will work together to enhance and elevate Tanzania port's standing as a world-leading trade hub,” said Mohamed Al Shamisi, managing director and group chief executive of AD Ports Group.
“AD Ports Group will advance plans to develop and implement an innovative logistics, transportation and digital port management system, as well as investing in the development of new infrastructure, such as logistics centres and new inland container depots around Dar es Salaam Port.”
Hutchison Ports has been operating in Tanzania since 2001.
“We are very committed to this market and its great potential. With strong support from local partners and the addition of AD Ports Group, this new partnership will certainly be greater than the sum of its parts,” Eric Ip, group managing director of Hutchison Ports, said.
“Together, we look forward to working closely with the Tanzania Port Authority to further develop Tanzania International Container Terminal Services as we strive to ensure Dar es Salaam Port remains the premier gateway to the east African region.”
The port of Dar es Salaam handles more than 75 per cent of Tanzania’s trade and is a vital gateway to Tanzania, as well as eastern, central and southern Africa.
AD Ports Group, which made its debut on the ADX in February after raising Dh4 billion ($1.08bn) from its share sale, is planning to expand globally. Last month, the company said it had signed two deals to develop logistics and food trading projects in Uzbekistan.
It will also acquire a 70 per cent stake in Egypt's International Associated Cargo Carrier for Dh514 million to expand its footprint in the Arab world’s most populous country and the wider region.
The company also signed a partnership agreement with the Aqaba Development Corporation to develop tourism, logistics, transport and digital infrastructure in the Jordanian coastal city. It signed a deal with the Egyptian Group for Multipurpose Terminals in November last year to develop and operate a multipurpose terminal at Safaga Port on the Red Sea.
The ports operator is also exploring investment opportunities in Iraq after signing an agreement with the General Company for Ports of Iraq in September.
Established in 2006, AD Ports Group owns and operates 10 ports in the UAE, including Khalifa Port, Zayed Port, Mussaffah Port, Fujairah Terminals, Community Ports, Kamsar Port and the Abu Dhabi Cruise Terminal, as well as a terminal in Guinea.
It also manages more than 550 square kilometres of industrial zones and an end-to-end logistics business, besides offering a range of maritime services.
Hutchison Ports, which employs more than 30,000 people, operates ports and terminals in 26 countries in Asia, the Middle East, Africa, Europe, the Americas and Australasia, according to its website.
In Africa and the Middle East, the company has operations in Egypt, Tanzania, Iraq, Oman, Saudi Arabia and the UAE.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
