AD Ports Group sees revenue surge in H1

AD Ports Group, the Abu Dhabi-based operator of industrial cities and free zones, posted a more than 3% rise in net profit to AED 668 million (US$182 million) for the first half of 2025, supported by robust revenue growth across its five business clusters despite geopolitical tensions and shifting trade patterns.

Revenue for the January–June period climbed nearly 17% year-on-year to AED 9.4 billion, driven by gains in ports, economic cities and free zones, and maritime and shipping services. Second-quarter revenue rose 15% to AED 4.82 billion, although quarterly net profit eased 3.5% to AED 321 million.

Group CEO Capt Mohamed Al Shamsi credited the company’s “synergistic business structure” for maintaining international expansion momentum, even amid Red Sea disruptions, US tariff volatility, and changing cargo flows. The company capitalised on opportunities in high-growth regions, including the Red Sea corridor and emerging trade routes in Central Asia.

Adapting to Global Trade Shifts

The company has responded to supply chain recalibration by expanding operations in key regions such as the Middle East, Europe, Africa, the Indian subcontinent, and Southeast Asia. Recent milestones include awarding a contract to Egypt’s Hassan Allam Construction to build the Noatum Ports–Safaga Terminal — the first internationally operated port in Upper Egypt — with capacity for 450,000 TEUs.

While global shipping faces headwinds from Houthi attacks in the Red Sea and on-again, off-again US tariffs, AD Ports said these have not had a material impact on operations so far. The company reported second-quarter EBITDA up 9% to AED 1.17 billion, with operating cash flow nearly doubling to AED 1.14 billion. Capital expenditure reached AED 928 million, focused on maritime, shipping, economic zones, and port assets.

Looking ahead, AD Ports warned that geopolitical and macroeconomic uncertainties will persist into the second half of 2025 but expressed confidence in the sector’s long-term profitability. The company expects profit performance to improve in the second half, driven by continued internationalisation and strategic investments along established and emerging trade routes.