AD Ports Group has signed a preliminary agreement with Iraq’s International Development Bank to review opportunities for the development of ports and logistics projects in Opec’s second-largest oil producing nation.
As part of the agreement, IDB aims to provide its services to corporate clients and support a range of landmark infrastructure projects in both the countries, AD Ports Group said on Wednesday.
IDB is the only financial institution from Iraq to be licensed by the UAE Central Bank to provide wholesale corporate banking services.
“There are significant opportunities for enhancement and modernisation across Iraq’s ports, logistics and economic zones, and, working with IDB, we will review a number of key projects that help drive UAE-Iraq trade,” said Capt Mohamed Juma Al Shamisi, managing director and group chief executive of AD Ports Group.
The move comes as AD Ports Group, which owns and operates 10 ports in the UAE, continues to focus on expanding its international operations and boosting growth.
As part of the strategy, it signed a number of new deals including an initial agreement with India's Adani Ports to explore joint investment opportunities in Tanzania.
It is also collaborating with Hong Kong-based Hutchison Ports to identify business opportunities in logistics and port activities across the GCC, Africa and Asia.
AD Ports Group also plans to expand its presence in Egypt and is developing and operating a multipurpose terminal at Safaga Port, in partnership with the Egyptian Group for Multipurpose Terminals, on the Red Sea.
Last year, the group also signed a deal with the General Company for Ports of Iraq to explore opportunities for the development of ports and logistics assets.
“The ports and logistics sector plays a vital role in supplying communities across Iraq, and we are optimistic that we can collaborate on projects that make a real and lasting impact,” Ziad Khalaf, chairman of IDB, said.
Iraq’s economy is recovering from the coronavirus pandemic and is forecast to grow 9.3 per cent this year after expanding by 7.7 per cent last year amid higher oil prices, said to the latest projections by the International Monetary Fund. The country’s economy is expected to grow by 4 per cent in 2023.