L’Imad maps port expansion beyond Strait of Hormuz

Abu Dhabi sovereign investment firm L’Imad Holding is planning to expand its port operations beyond the Strait of Hormuz, according to recent reports. The expansion plans are aimed at increasing state control over AD Ports Group, the emirate's ports operator. L’Imad Holding's wholly-owned subsidiary, ADQ, has taken a 23% stake in AD Ports, bringing its ownership to over 98.5%.

The transaction, conducted at a valuation of Dh31.8 billion, saw L’Imad Holding offer Dh6.25 per share, a 23% premium to the company's August 14 closing price. After closing on September 15, settlement is expected by October 9. L’Imad Holding's acquisition of a larger stake in AD Ports follows the emirate's efforts to lessen its reliance on the Strait of Hormuz, where shipping disruptions due to the Iran conflict have prompted Gulf governments and companies to reassess their supply chains.

In response, AD Ports has already diversified its cargo routes through ports such as Fujairah Terminals and Khor Fakkan Port on the Gulf of Oman, and has established bonded land corridors linking these gateways with Abu Dhabi. The company has also expanded its feeder shipping, trucking, rail, air cargo, and warehousing capacities to facilitate goods movement.

L’Imad Holding's strategic plans for the expansion of port infrastructure outside Hormuz are still under consideration and have not been publicly confirmed. However, the firm is evaluating infrastructure that could provide Abu Dhabi with more resilient access to international markets. Abu Dhabi's government has emphasized its commitment to developing alternative logistics routes in response to the Hormuz disruption, with Foreign Trade Minister Thani Al Zeyoudi stating that these measures will become permanent.

L’Imad Holding's investment in ports and logistics, along with other transport assets like Etihad Rail and Aramex, positions the firm as a key player in Abu Dhabi's infrastructure portfolio.