AD Ports completes merger of KEZAD Communities and Al Eskan Al Jamae

Abu Dhabi’s AD Ports Group has completed the merger of KEZAD Communities and Al Eskan Al Jamae (EAJ) into a $1.9bn (Dhs7bn) integrated staff accommodation company.

The merger has created one of Abu Dhabi’s largest integrated staff accommodation companies in which AD Ports has retained a 52 per cent controlling stake.

KEZAD Communities, which was founded in 2005 and previously operated under ZonesCorp, is an integral part of the Khalifa Economic Zones Abu Dhabi (KEZAD Group) – under AD Ports’ Economic Cities & Free Zones Cluster. EAJ, on the other end, is a real estate development and management company that owns and operates ICAD Residential City in Mussafah.

It also operates several fully owned subsidiaries offering support services, including Khadamat, a facilities management company, EJRC, a property management company and Your Laundry.

AD Ports Group is a vertically integrated trade enabler, providing strategic access to the UAE, one of the Middle East’s fastest-growing economies, and turning Abu Dhabi into a trade hub to serve the world. Discover our key milestones achieved in March.#ADPortsGroup pic.twitter.com/rw7vUCSQyE

— AD Ports Group (@ADPortsGroup) April 1, 2023

The merged entity makes KEZAD Communities one of the largest staff accommodation firms in Abu Dhabi with owned and managed capacity of about 135,000 beds. It provides customers with integrated staff accommodation solutions comprising amenities and facilities (medical centres, sports areas, dining halls and mosques) and associated services (catering, supermarket and laundry).

The merger, which was first announced in December 2022, will be fully consolidated in the group’s financials for the full quarter in Q1 2023.

“This merger with EAJ significantly expands the number of staff accommodation assets under our control and extends the range of support services we can offer to our customers. The merger enhances KEZAD Communities’ staff accommodation business and provides an opportunity to enhance the quality and sustainability of staff communities across the UAE,” said Abdullah Al Hameli, CEO of Economic Cities & Free Zones, AD Ports Group.

For the 9 months that ended September 30, revenue was Dhs 275m for KEZAD Communities and Dhs 205m for EAJ. KEZAD registered earnings before interest, taxes, depreciation and amortisation (EBITDA) of Dhs168m during the first nine months of the year, while EAJ reported an EBITDA of Dhs120m.

Regional expansion

The UAE has risen into the upper echelons of the global maritime industry over the past half-decade as the Gulf state has evolved into a key logistics hub. AD Ports, which is controlled by state investor ADQ, operates the deepwater Khalifa Port in Abu Dhabi along with other ports and logistics parks in the city and the Indian Ocean Fujairah port.

Last month, the logistics firm closed several deals including the partnership with Egypt’s Suez Canal Economic Zone (SCZone) to develop several projects in ports within the economic zone.

Read: AD Ports, Suez Canal Economic Zone partner to develop projects in Egypt

The ports operator signed a 30-year concession agreement with the government in Cairo in March to develop, manage and operate the Egyptian multi-purpose terminal in the Red Sea port of Safaga in a deal worth $200m.

AD Ports also signed two additional 15-year agreements, an MoU and three head of terms (HoT) concerning ports located in the Egyptian Red Sea and the Mediterranean Sea region. The deals allow for expanded access to multipurpose terminals, cruise routes and logistics capabilities in Safaga, Ain Sokhna, Port Said, Hurghada, Sharm El Sheikh and Al Arish.

The company’s full-year revenues rose 41 per cent to $1.5bn in 2022, driven by the solid performance of its maritime and port facilities along with new acquisitions and partnerships.

AD Ports debuted on the Abu Dhabi bourse last year to raise $1.1bn through an initial public offering.

Read: AD Ports Group reports strong growth, global expansion in first year as publicly listed entity