Latest news with #industrialcities
The National
6 days ago
- Business
- The National
AD Ports first-half profit up despite trade tariffs and global uncertainty
AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, reported growth in net profit for the first half of 2025 despite increasing international trade tariffs and geopolitical uncertainty, on the back of rising revenue. Net profit attributable to owners of the company for the January to June period rose more than 3 per cent annually to Dh668 million ($182 million), the company said on Wednesday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. Revenue for the six months ending in June rose nearly 17 per cent to Dh9.4 billion, driven by growth in its ports, economic cities and free zones, maritime and shipping clusters. "As global cargo flows continued to shift against a backdrop of regional conflicts and tariff volatility, the strategic flexibility of AD Ports Group's synergistic business structure kept our ... international expansion on course, allowing us to mitigate adverse external factors, while capitalising on opportunities in dynamic regions such as the Red Sea, and along emerging alternative trade corridors we are developing such as in Central Asia," said Capt Mohamed Al Shamsi, managing director and group chief executive of AD Ports. For the second quarter of 2025, AD Ports group reported a 15 per cent increase in revenue to Dh4.82 billion, driven by the five main clusters in its business. Net profit attributable to owners of the company for the three-month period dropped 3.5 per cent year-on-year to Dh321 million. The global shipping industry has been buffeted by headwinds arising from economic uncertainties, supply chain bottlenecks, Houthi attacks on vessels in the Red Sea and shifts in global trade flows due to the on-again, off-again US tariffs imposed by President Donald Trump on the country's key trading partners. Global trade expanded by an estimated $300 billion in the first half of 2025, despite a slower pace of growth, said the latest Global Trade Update by the UN Trade and Development (Unctad) last month. Trade rose about 1.5 per cent in the first quarter and projections are for 2 per cent growth in the second quarter, it said. Trade in services remained the main driver of annual growth, rising 9 per cent over the last four quarters, while developed economies outpaced developing countries in the first quarter of 2025, reversing recent trends that had favoured the Global South, the report found. AD Ports Group said that as supply chains "continue to recalibrate", the company's five-cluster business "continues to demonstrate both resilience and adaptability in volatile and disruptive times". This has allowed the group to respond swiftly to shifting cargo flows and to capitalise on new trade opportunities in its key focus regions including the Middle East, Red Sea, Europe, Africa, Indian subcontinent, Central Asia and South-east Asia, it said. Red Sea attacks and US tariffs While the Red Sea attacks continue to pose a risk to global trade, AD Ports has been able to mitigate its negative impact and has capitalised on increased demand for both reliable passage through the Red Sea and alternative trade routes, the company said. "Recent commercial progress in markets like Egypt and Central Asia shows the group's commitment to investing along existing and emerging trade routes," it said. Last December, the company awarded a contract to Egypt's Hassan Allam Construction to build the infrastructure for Noatum Ports-Safaga Terminal on the country's Red Sea coast. The first internationally operated port terminal in the Upper Egypt region, it will span 810,000 square metres, with capacity to handle 450,000 20-foot equivalent units (TEUs) of container cargo. AD Ports also said policy shifts such as the new US tariffs have added further complexity to global trade flows. "The potential impact of US tariffs remains under close watch, though current announcements have not resulted in material effects as disclosed in the strong set of operational performance delivered year-to-date," it said. Earnings before interest, taxes, depreciation and amortisation increased 9 per cent on an annual basis in the second quarter to Dh1.17 billion, while operating cash flowreached Dh1.14 billion, almost doubling from the same period a year earlier. Capital expenditure in the three-month period reached Dh928 million, with most of the outlay going into maritime and shipping, economic cities and free zones and port assets. Looking ahead, the company acknowledged the clouded outlook arising from geopolitical tension and economic uncertainty, but remained confident in the long-term potential of the industry. "While reduced geopolitical and macroeconomic visibility is expected to continue in the second half of the year, so too is the long-term profitable nature of our value-enhancing internationalisation," Mr Al Shamsi said. Profit performance is expected to improve in the second half of the year, the company said without elaborating.
Zawya
20-06-2025
- Business
- Zawya
Saudi: Industrial cities in Qassim operate at 77% capacity
BURAIDAH — Deputy Minister of Industry and Mineral Resources for Industry Affairs Eng. Khalil bin Salamah has revealed that industrial cities in Qassim operate at 77% capacity, which is a healthy rate and evidence of the existence of a stimulating environment. There are a total of 158 factories in Qassim's industrial cities. The value of industrial investments in the region during the first quarter of 2025 amounts to SR700 million, with Buraidah owning the largest share. Bin Salamah made the remarks during a meeting organized by Qassim Chamber of Commerce, which brought together investors in the region's industrial sector to highlight key ministerial services and programs and discuss the sector's aspirations for continued development and investment growth. The meeting was held at the chamber's headquarters in Buraidah. The meeting addressed a number of topics related to the industrial sector, including standard incentives for the sector, which enhance the competitiveness and sustainability of the industrial sector in Saudi Arabia. The meeting also discussed the environment of industrial facilities and presented solutions to help raise efficiency and quality. It also included a review of the Future Factories Program, an introduction to it, and the process of converting these factories to adopt modern manufacturing practices, automation, and digitalization, which directly contributes to the development of the industrial sector in Saudi Arabia in general. The meeting also included a review of the "Industry Links" program of the General Administration of Localization and Local Content, which connects manufacturers with major projects to achieve the goals of the national strategy for increasing local content. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
12-05-2025
- Business
- Zawya
Saudi Modon reports surge in 2024 investment
The Saudi Authority for Industrial Cities and Technology zones (Modon) has reported one of its best years in 2024, with incoming investments surging by nearly 38 percent. The Authority said in its annual report released last week that total investments received by its industrial cities in 2024 reached around 24 billion Saudi riyals ($6.5 billion). The new capital boosted the total investments in Modon's 39 industrial and technology zones in the Gulf Kingdom to around SAR440 billion ($117 billion), the report said. Companies and factories in these zones peaked at around 8,616 at the end of 2024 while jobs provided by the cities exceeded 593,000. 'The combined developed areas in these cities also increased by around 7 percent last year to reach nearly 219 million square metres,' the report said, adding that the Authority finalised 875 new industrial, logistics and investment contracts last year. (Writing by Nadim Kawach; Editing by Anoop Menon) (
