Abu Dhabi Ports Group has announced the successful conclusion of an initial concession agreement with the General Authority of Red Sea Ports. The agreement spans a 15-year period and involves the operation and management of three cruise ship terminals in Safaga, Hurghada, and Sharm El-Sheikh ports in Egypt. Additionally, the Sharm El-Sheikh terminal is set to undergo renovation. The final concession agreement is anticipated to be finalized in the first quarter of 2024, subject to regulatory approvals.
The signing ceremony took place at the Ministry of Transport headquarters in the New Administrative Capital – Cairo, with the Egyptian Minister of Transport, Lieutenant General Engineer Kamel Al-Wazir, in attendance. Major General Engineer Mohamed Abdel Rahim, Chairman of the Board of Directors of the General Authority of Red Sea Ports, and Ahmed Al-Mutawa, Regional CEO of Abu Dhabi Ports, signed the agreement.
Abu Dhabi Ports Group is set to make investments totaling $3 million over the 15-year period. The collaboration aims to revitalize marine tourism in Egypt by managing and operating the cruise ship terminals, introducing new services, facilitating the arrival of cruise ship companies, and creating new routes. This strategic move leverages Abu Dhabi Ports Group’s network of terminals in the Red Sea, contributing to the growth of the cruise business, increasing tourist demand, and enhancing the overall experience for travelers and cruise operators.
Ahmed Al Mutawa, Regional CEO of Abu Dhabi Ports Group, emphasized the commitment to boosting tourism in the Red Sea region. He highlighted the strong relations between the UAE and Egypt and expressed optimism about the positive impact of the $3 million investment on the growth of the Egyptian economy.
This announcement follows a previous partnership between Abu Dhabi Ports Group and the General Red Sea Ports Authority, culminating in a final concession agreement to develop and operate a multi-purpose terminal at Safaga Port. This venture involves a $200 million investment over three years, aiming to create a state-of-the-art facility strategically located in the Red Sea. It will be the first internationally operated port serving the Upper Egypt region.
Abu Dhabi Ports Group’s portfolio includes the Aqaba cruise ship terminal in Jordan, and this latest agreement aligns with its global strategy to enhance the cruise ship passenger experience.
