In a significant move highlighting the ongoing thaw in geopolitical tensions, Abu Dhabi’s state-controlled AD Ports Group is poised to acquire a stake in Turkey’s key port, Izmir, according to confidential sources close to the deal. The investment, estimated at around $500 million, will be facilitated through an entity formed by the Turkey Wealth Fund, which currently owns the strategic Aegean coast port.
While the size of the stake remains undisclosed, the deal underscores the warming relations between the UAE and Turkey. The Izmir port, owned by Turkey’s sovereign wealth fund, is in dire need of fresh investment to enhance its capabilities as an essential gateway.
The potential transaction aligns with Turkey’s push for foreign investment to bolster its recent shift away from unconventional economic policies. The global restructuring of manufacturing strategies, driven by pandemic-related supply chain vulnerabilities and geopolitical tensions, has underscored the critical role of ports in the new landscape.
This move follows a meeting between Turkish President Tayyip Erdogan and UAE President Sheikh Mohamed bin Zayed Al Nahyan at the COP28 U.N. climate summit in Dubai.
The investment by AD Ports Group is in line with broader UAE initiatives to explore economic opportunities in Turkey, including energy and logistics, as both nations work to mend ties and foster greater collaboration. The planned investment also reflects a broader trend of foreign investors cautiously returning to Turkish markets, buoyed by recent economic policy adjustments and attractive opportunities.
