CDPQ to invest in DP World assets

DP World, one of the largest port operators in the world, has announced that Caisse de Depot et Placement du Quebec (CDPQ), a global investment group, will invest USD 5 billion in three of DP World’s UAE assets.

The Canadian fund will invest USD 2.5 billion in the Jebel Ali Port, the Jebel Ali Free Zone, and the National Industries Park through a new joint venture in which it will hold a stake of around 22%, with the remainder of the transaction being financed by debt.

Other long-term investors will have the opportunity to acquire an additional stake of up to USD 3 billion. The transaction implies a total enterprise value of around USD 23 billion for the three assets, according to DP World.

DP World expects the new partnership with CDPQ to enhance its assets and allow both parties to capture the significant growth potential of the wider region.

The first tranche of the transaction, the USD 5 billion investment, is expected to close in the second or third quarter of 2022. The second tranche, which entails investments of up to USD 3 billion, is expected to close during the fourth quarter of 2022.

The Jebel Ali Port, Free Zone, and National Industries Park have a long-term track record of growth. Combined, they form an integrated ecosystem for the supply and logistics chains of more than 8,700 companies from around the world, serving more than 3.5 billion people globally. The three assets generated a revenue of USD 1.9 billion in 2021.

Dubai attracted 618 foreign direct investment (FDI) projects in 2021, including greenfield and reinvestment projects, with the value of FDI capital flows into the city estimated at more than AED 26 billion (USD 7 billion), up 5.5% from the previous year.