In a strategic move, Abu Dhabi positions itself to acquire a stake in a key Turkish port, signalling a significant development in international trade partnerships.
In this potential arrangement, the state-controlled ADPorts Group would invest in an entity to be formed by the Turkey Wealth Fund to manage the Izmir port on the Aegean coast, according to two sources. The specifics of the deal are yet to be finalized.
While the exact size of the stake remains unclear, one source suggests the deal could be valued at around $500M. The port, under Turkey’s sovereign wealth fund, is a significant gateway requiring fresh investment.
The Turkey Wealth Fund official and Abu Dhabi Ports did not provide comments immediately, and ADQ, the emirate’s sovereign wealth fund and majority owner of the ports group, was not available for comment, according to Gulf Business.
Against the backdrop of weaknesses in supply chains revealed by the COVID-19 pandemic and heightened geopolitical tensions, ports are playing a crucial role in the global manufacturing strategic shift. Companies are reassessing production locations, aiming to bring them closer to the point of sale.
