DP World plans major investments worth $3 billion

DP World, the Dubai-based ports operator, unveiled plans to allocate $3 billion in investments this year across the United Arab Emirates, Asia, and Africa. In its first-half results, the company announced these significant expenditures would target the Democratic Republic of Congo, India, and Saudi Arabia. Chairman Essa Kazim highlighted that the investments would bolster their gateway network in the UAE through the construction of two new terminals in Fujairah and the expansion of the Jebel Ali ecosystem via an integrated supply chain.

This strategy aims to offer cargo owners more flexibility, choices, and supply chain resilience, solidifying DP World's conviction in the UAE's potential as a premier global trade and logistics hub.

Furthermore, DP World intends to develop two deepwater terminals in the UAE, establishing a direct pathway for global trade devoid of vessels navigating the Strait of Hormuz. In July, the company signed a preliminary agreement with the Fujairah Ports Authority under a 50-year concession to build two sites on the UAE's eastern coast - the Al Rugaylat container and multipurpose terminal and the Dibba General Cargo terminal, with a phased construction timeline spanning 30 months.

Despite a 39 percent decrease in first-half profit, DP World reported a 13 percent increase in revenue, reaching $12.7 billion, attributable to the disruption caused by the Iran war. Net profit for the six months ending June 30th dropped to $585 million. Nonetheless, DP World confirmed that Jebel Ali's infrastructure remains fully operational, untouched by the turmoil.

The company, however, noted a temporary reduction in vessel traffic due to the conflict, which it has addressed through mitigation measures, including enhanced inland connectivity, to maintain the flow of essential cargo. The group disclosed a 5.4 percent year-on-year increase in gross container volumes, excluding Jebel Ali Port, totaling 39,681 twenty-foot equivalent units (TEUs).