Abu Dhabi is expanding its investment in ports, logistics and infrastructure as it develops new trade routes connecting the Gulf with Africa and other global markets.
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan chairs L’imad Holding. The investment vehicle oversees assets estimated at around $300 billion.
Its growing infrastructure strategy includes ports, transport, energy, logistics and water projects.
Business Insider Africa reported that Africa is becoming an increasingly important part of this wider trade strategy.
Abu Dhabi investment strategy targets infrastructure
L’imad Holding took control of assets previously managed by ADQ, including a portfolio valued at about $263 billion.
Global sovereign wealth specialists estimate that the combined entity now oversees around $300 billion in assets.
The infrastructure push accelerated after regional conflict disrupted important trade routes.
According to the report, Abu Dhabi has sought to strengthen critical infrastructure and reduce vulnerabilities affecting regional trade.
Bloomberg reported that Sheikh Khaled and other senior Abu Dhabi officials discussed the strategy with Wall Street executives, including BlackRock CEO Larry Fink.
$30bn infrastructure investment push
L’imad reached an agreement in May with BlackRock’s Global Infrastructure Partners, Singapore’s Temasek Holdings and Abu Dhabi National Oil Co.
The partners plan to target up to $30 billion in infrastructure investment.
Projects could cover energy, transportation, logistics and water.
L’imad is also seeking to take Abu Dhabi Ports Group private. The proposed deal values the company at almost $9 billion.
The move could provide greater flexibility for acquisitions and long-term infrastructure projects.
Africa trade routes gain importance
Africa is becoming part of the wider Abu Dhabi Africa investment strategy.
AD Ports operates across nearly 50 markets globally. UAE-based logistics groups also have operations across several African countries.
These include Egypt, Algeria, Tanzania, Senegal, Guinea, Mozambique, South Africa and the Democratic Republic of Congo.
In Nigeria, Dubai-based DP World recently signed agreements with Ogun State for a major port and economic zone project.
The Gateway Deep Sea Port and a 10,000-hectare special economic zone are expected to attract more than $7 billion in initial investment, according to the report.
UAE develops wider Africa trade corridors
The UAE has also expanded investment in African ports, logistics networks, infrastructure and supply chains.
In April, DP World launched a Brazil-Africa logistics corridor. It connects Brazil’s Port of Santos with operations in Angola and Mozambique, supported by its South African network.
The wider strategy seeks to develop alternative ports, rail connections and economic corridors.
For African countries, the expansion could bring additional investment into ports and logistics. It could also increase the role of Gulf-based companies in trade links connecting Africa with Asia, the Middle East and Latin America.