AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, and SPG Yantai Port, which operates major ports in Shandong province, in eastern China, have signed a preliminary agreement to develop green automotive business parks and promote vehicle trade between Asia, Middle East and North Africa.
The companies will also combine their infrastructure, market positions and expertise to deliver an “efficient” supply chain for both new and second-hand vehicles, AD Ports said in a statement on Friday.
They also aim to create an automotive logistics corridor between China and the Middle East and Africa.
“This strategic agreement reflects our shared vision for strengthening trade and logistics links between China, the UAE and wider global markets,” Capt Ammar Al Shaiba, chief executive of maritime and shipping cluster at AD Ports Group, said.
“The development of integrated green automotive industrial parks will elevate Abu Dhabi’s role as a key hub for the automotive market, contributing to economic diversification and supporting a circular economy.”
AD Ports launched its first office in Beijing in July to help advance its presence within the country and within the Belt and Road network − which spans maritime routes linking Asia, Africa and Europe as well as multimodal overland corridors between China, Central Asia, the Middle East and Europe.
Meanwhile, AD Ports and China’s Jiangsu Overseas Co-operation Investment also operate economic zones in Abu Dhabi, while Cosco Shipping Ports operates a major container terminal via a joint venture at Khalifa Port.
A number of Chinese companies have also invested in manufacturing and trading entities within Khalifa Economic Zones Abu Dhabi Group, the largest operator of integrated economic zones in the UAE.
The new agreement will bank on China's position as the world’s largest automotive market with significant export potential and Abu Dhabi’s role as a rapidly growing trade and logistics hub, AD Ports said.
Under the terms of the agreement, the parties will explore the development and operation of an integrated bilateral terminal and auto hub network, connecting the Asia-Pacific Green Automotive Circular Economy Industrial Park in Yantai, Shandong, with AD Ports Group’s automotive terminals and hubs in the UAE and other key countries.
This will create an “efficient” vehicle supply chain, according to the statement. The agreement will also explore sustainable energy initiatives.
As the largest overseas market for China's second-hand car exports, the UAE’s strategic position is “particularly significant”, AD Ports said.
The co-operation between government-owned SPG Yantai Port and AD Ports Group contains “significant synergy value” and will deepen bilateral economic and trade exchanges, the company added.
AD Ports has a network of more than 140 offices worldwide and its portfolio includes 34 terminals and economic zones spanning more than 550 square kilometres.
The Abu Dhabi-based company is boosting partnerships with Chinese companies amid growing ties between the two nations.
As of 2024, China was the UAE's largest trading partner, with more than $100 billion in total bilateral trade spanning sectors including crude oil, petrochemicals and artificial intelligence.
