Revenues of AD Ports surge amid trade sanctions and worldwide unrest
In the face of increasing international trade tariffs and geopolitical uncertainty, AD Ports Group, a leading integrated logistics provider, has managed to sustain its growth in 2025. The company's strategic diversification, regional focus, and adaptive integrated services have proven to be key factors in navigating these challenging circumstances.
AD Ports Group reported a 15% increase in revenue to Dh4.82 billion for the second quarter of 2025. This growth was underpinned by a 9% increase in EBITDA to Dh1.17 billion, demonstrating robust financial performance. Operating cash flow reached Dh1.14 billion, almost doubling from the same period a year earlier.
The company's integrated five-cluster ecosystem, which includes Ports, Economic Cities & Free Zones (EC&FZ), Maritime & Shipping, Logistics, and Digital clusters, has provided resilience and adaptability. This ecosystem enables AD Ports Group to respond swiftly to shifting cargo flows and capitalise on new trade opportunities across key strategic regions such as the Middle East, Red Sea, Europe, Africa, the Indian Subcontinent, Central Asia, and Southeast Asia.
Diversified revenue streams from multiple clusters (Ports, EC&FZ, Maritime & Shipping) have offset specific market risks, while strategic long-term investments in infrastructure assets in ports and economic cities have strengthened their operational base. Improving connectivity and network effect through the Maritime, Logistics, and Digital clusters have allowed AD Ports Group to adapt to evolving market dynamics.
AD Ports Group's commitment to sustainable trade, transport, logistics, and economic development, in line with the vision of UAE leadership, has also been instrumental in navigating temporary obstacles effectively. The company's high cash conversion (97%) has enabled positive free cash flow, supporting continued investments while maintaining financial health.
Despite the potential impact of US tariffs and the clouded outlook arising from geopolitical tension and economic uncertainty, AD Ports Group remains confident in the long-term potential of the industry. The global shipping industry has been affected by economic uncertainties, supply chain bottlenecks, Houthi attacks on vessels in the Red Sea, and shifts in global trade flows due to US tariffs. However, trade in services remains the main driver of annual growth, rising 9% over the last four quarters. Global trade expanded by an estimated $300 billion in the first half of 2025, despite a slower pace of growth.
AD Ports Group's strategic moves are evident in its recent announcement of awarding a contract to Egypt's Hassan Allam Construction to build the Noatum Ports-Safaga Terminal on the Red Sea coast. Located in Upper Egypt, the terminal will span 810,000 square metres and have a capacity to handle 450,000 TEUs of container cargo. This marks AD Ports' commitment to investing along existing and emerging trade routes.
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. The first internationally operated port terminal in the Upper Egypt region, Noatum Ports-Safaga Terminal, is expected to show AD Ports' commitment to investing along these routes.
In conclusion, AD Ports Group's strategic diversification, regional focus, infrastructure investment, and adaptive integrated services enable it to sustain growth despite external trade and geopolitical headwinds in 2025. The company continues to navigate these challenges with confidence, investing in strategic projects that demonstrate both resilience and adaptability in volatile and disruptive times.
- The company's growth in 2025, despite increasing international trade tariffs and geopolitical uncertainty, is a testament to AD Ports Group's strategic diversification and regional focus.
- The second quarter of 2025 saw a 15% increase in revenue for AD Ports Group, with a 9% rise in EBITDA, indicating strong financial performance.
- Operating cash flow for AD Ports Group nearly doubled in the second quarter of 2025, reaching Dh1.14 billion.
- AD Ports Group's integrated five-cluster ecosystem, which includes Ports, Economic Cities & Free Zones, Maritime & Shipping, Logistics, and Digital clusters, has provided resilience and adaptability, enabling the company to capitalize on new trade opportunities across key strategic regions.
- AD Ports Group's commitment to sustainable trade, transport, logistics, and economic development aligns with the vision of UAE leadership, aiding in the effective navigation of temporary obstacles.
- Despite challenges such as US tariffs, geopolitical tension, economic uncertainty, supply chain bottlenecks, and Houthi attacks, the global shipping industry continues to see growth, with trade in services being the main driver.
- AD Ports Group's recent award of a contract to Egypt's Hassan Allam Construction to build the Noatum Ports-Safaga Terminal demonstrates the company's commitment to investing along existing and emerging trade routes.