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L’imad Ports Deal Signals Abu Dhabi’s Infrastructure Push
Abu Dhabi wealth fund L’imad Holding has offered to acquire the remaining minority shares in AD Ports Group, valuing the port and logistics operator at AED 31.8 billion ($8.66 billion). The proposed transaction could strengthen government control over a strategic infrastructure group as the UAE accelerates investment in ports and alternative trade routes that reduce reliance on the Strait of Hormuz.
L’imad plans to offer AED 6.25 per share for the AD Ports shares it does not already control. The price represents a 23% premium to the company’s previous closing price. Following the announcement, AD Ports shares climbed by the daily limit of 15% to AED 5.86.
The wealth fund already controls more than 75% of AD Ports through its subsidiary ADQ.
L’imad Seeks Greater Control of AD Ports
The proposed transaction remains subject to regulatory and other approvals.
Taking greater control of AD Ports could give the company more flexibility to pursue long-term investments and acquisitions without the funding constraints and short-term return expectations associated with public markets.
The transaction would also increase government influence over a major logistics group with operations spanning ports, terminals, maritime services, logistics and economic zones.
L’imad was established last year and subsequently absorbed ADQ, expanding its portfolio and placing the sovereign investor at the centre of Abu Dhabi's infrastructure and strategic investment plans.
The AD Ports transaction follows another major move involving TAQA, highlighting L’imad's growing influence over strategically important Abu Dhabi assets.
AD Ports Expands as a Global Logistics Operator
AD Ports has expanded rapidly in recent years as Abu Dhabi strengthens its position as an international trade and logistics hub.
The company operates ports and terminals while also expanding into shipping, logistics and maritime services through acquisitions and investments in the UAE and overseas.
AD Ports was listed in 2022 as part of Abu Dhabi's drive to develop its capital markets. The offering raised approximately $1.1 billion, while the company's shares have since gained close to 60%.
The latest offer therefore represents a shift from the previous strategy of listing strategic government-controlled assets.
Strait of Hormuz Disruption Raises Infrastructure Priorities
The proposed acquisition also comes as disruption in the Strait of Hormuz increases the strategic importance of alternative logistics infrastructure.
Attacks on vessels and reduced shipping activity through the strait have encouraged Gulf countries to examine alternative routes for exports of crude oil, natural gas, chemicals and other commodities.
For the UAE, infrastructure outside the Strait of Hormuz is becoming particularly important.
The country already has some ability to bypass the chokepoint by moving crude through an existing pipeline to its eastern coastline.
Further investment in ports and supporting infrastructure could expand that capability beyond energy exports and provide additional options for international trade.
UAE Targets Lower Dependence on Strait of Hormuz
UAE Minister of Foreign Trade Thani Al Zeyoudi said in June that the country was moving towards “zero Hormuz dependency.”
A central part of that strategy involves expanding ports on the UAE's eastern coastline, which provides direct access to the Gulf of Oman without requiring vessels to transit the Strait of Hormuz.
Plans include major expansion at Dibba, Fujairah and Khor Fakkan, alongside the construction of at least one additional harbour on the same coastline.
These investments could strengthen alternative gateways for commodities and essential imports if shipping through Hormuz remains disrupted.
AD Ports Plans Major Infrastructure Investment
AD Ports expects capital expenditure of up to AED 5 billion during 2026 and 2027.
More than 75% of planned expenditure through 2030 is expected to be allocated to infrastructure assets, primarily ports and free zones.
The investment programme includes projects in Fujairah, making AD Ports increasingly relevant to the UAE's efforts to expand logistics capacity outside the Persian Gulf.
For shareholders considering L’imad's offer, however, the investment programme also creates a potential trade-off.
Analysts have noted that future equity funding for major capital expenditure could create dilution risks for investors who retain their shares.
L’imad Expands Role in UAE Infrastructure Investment
The AD Ports proposal forms part of a wider expansion of L’imad's role in infrastructure investment.
In May, the wealth fund announced plans to participate alongside Global Infrastructure Partners, Temasek and ADNOC in an investment venture targeting $30 billion in infrastructure projects.
The latest AD Ports transaction further demonstrates the importance of ports and logistics infrastructure within Abu Dhabi's longer-term investment strategy.
If completed, the deal would provide L’imad with greater control over one of the UAE's major port and logistics groups at a time when regional maritime disruption is increasing the strategic value of alternative trade gateways.
For the UAE, investment in Fujairah, Dibba, Khor Fakkan and other infrastructure outside the Strait of Hormuz could become increasingly important as the country seeks to strengthen the resilience of its international trade routes.
