The United Arab Emirates (UAE) has further solidified its presence in Egypt with a significant $120 million port and logistics deal. The UAE's Abu Dhabi Ports Group (AD Ports) has signed a 50-year concession agreement with Egypt's Suez Canal Economic Zone to establish a 20-square-kilometer logistics and industrial hub east of Port Said.

As part of the deal, AD Ports will invest $120 million in initial development and feasibility studies for the first phase, which spans 2.8 square kilometers and is set to be developed over the next three years. The project will include a 1.5-kilometer quay, with plans for a potential multipurpose cargo terminal.

This agreement marks the latest in a series of strategic investments by AD Ports to expand its presence in Egypt's maritime and logistics sectors. Over the past three years, the company has acquired several Egyptian maritime firms, including Transmar, TCI, and Safina B.V. Additionally, AD Ports has secured long-term concessions to develop and operate cruise terminals at key Red Sea ports, Safaga, Hurghada, Al Sokhna, and Sharm El-Sheikh, and to construct and manage a multipurpose port in Safaga and a Ro-Ro terminal in Al Sokhna.

The deal is part of a broader trend of Gulf states deepening their ties with Africa through investments. Just last week, it was reported that nations from the region have either expressed interest in or closed deals totaling at least $6 billion in African energy assets in recent weeks. This heightened engagement aligns with a broader push by Gulf states to expand their energy footprint in Africa.

According to an African Export-Import Bank report, bilateral trade between Africa and the UAE alone surged 38% over two years, reaching $86 billion by the end of 2023. This growing interest in Africa is driven by the continent's vast natural resources, rapidly growing population, and increasing economic potential.

The implications of this deal are far-reaching, with the potential to significantly boost trade and economic growth in both Egypt and the UAE. The logistics and industrial hub will provide a strategic gateway for trade between Europe, Asia, and Africa, further solidifying the UAE's position as a key player in global trade.

As the UAE continues to expand its footprint in Africa, it will be interesting to see how this deal shapes the region's economic landscape. With the African Continental Free Trade Area (AfCFTA) set to come into effect, the UAE's investments in Africa's logistics and infrastructure could play a critical role in unlocking the continent's economic potential.

In conclusion, the UAE's $120 million port and logistics deal with Egypt marks a significant milestone in the country's efforts to expand its presence in Africa. As the region continues to grow in importance, it will be essential to monitor the developments and implications of this deal, as well as the broader trend of Gulf states deepening their ties with Africa.