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ADQ Says Plans to List Abu Dhabi Ports on Stock Exchange

Abu Dhabi Ports assets include ports, industrial cities, free zones, marine and logistics services in the UAE capital (Asharq Al-Awsat)
Abu Dhabi Ports assets include ports, industrial cities, free zones, marine and logistics services in the UAE capital (Asharq Al-Awsat)
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ADQ Says Plans to List Abu Dhabi Ports on Stock Exchange

Abu Dhabi Ports assets include ports, industrial cities, free zones, marine and logistics services in the UAE capital (Asharq Al-Awsat)
Abu Dhabi Ports assets include ports, industrial cities, free zones, marine and logistics services in the UAE capital (Asharq Al-Awsat)

State-backed holding company ADQ said on Tuesday it plans to list Abu Dhabi Ports Co on Abu Dhabi Securities Exchange (ADX) before the end of the year.

The listing on ADX is expected to comprise a sale of a portion of existing shares to investors in the UAE.

Chairman of Abu Dhabi Ports Falah Mohammed Al Ahbabi said, "Today’s announcement marks another important step in Abu Dhabi Ports’ ongoing journey as we consolidate our leading role in the maritime and logistics sectors.

“Thanks to our leadership’s wisdom and foresight, Abu Dhabi enjoys the stable economic environment that has driven our ongoing growth, encouraged us to embrace innovation, and ensured we have been able to build world-class partnerships with international champions."

Chief Executive Officer, ADQ Mohamed Hassan Alsuwaidi said, “As part of ADQ’s portfolio since its inception in 2018, Abu Dhabi Ports has successfully consolidated and integrated ports, industrial cities, and free zones, logistics, maritime and digital entities while increasing volumes and revenues.

“With a strong leadership team in place, we are confident Abu Dhabi Ports is well-positioned to continue progressing on its strategy towards becoming a global trade and commercial hub.”

"With 14 listings already in 2021, ADX is an ideal choice to give investors access to a high quality, high growth potential maritime and logistics leader due to its growing liquidity and resiliency," Alsuwaidi added.

Abu Dhabi Ports CEO Captain Mohamed Juma Al Shamisi said, “We are committed to driving innovation and development across the global maritime and logistics industries to support the growth of Abu Dhabi and the UAE. Over the past year, we have delivered on our long-term strategy focused on driving global trade through an integrated portfolio of world-class ports, industrial zones, and logistics supply chains.”

For the year ended December 31, 2020, Abu Dhabi Ports reported revenue of 3.4 billion dirhams ($925 million), a growth of 700 million dirhams ($190.5 million) from 2019 despite the COVID-19 pandemic.

EBITDA of Abu Dhabi Ports grew by 37 percent to reach AED1.5 billion in 2020 and EBITDA margins improved from 40.7 percent in 2019 to 45.2 percent in 2020.

Abu Dhabi Ports’ asset base expanded by AED3.1 billion ($843.7 million), reaching a total of AED 24.8 billion ($6.7 billion) as of 31 December 2020.

The proposed listing of a portion of existing shares is expected before the end of 2021, it said in a statement, subject to market conditions and obtaining regulatory approval.

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Israel’s ‘Economic War’ Chokes Occupied West Bank

Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.
Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.
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Israel’s ‘Economic War’ Chokes Occupied West Bank

Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.
Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.

Palestinian teenagers bounced on trampolines and jumped through hoops inside a towering tent on the outskirts of Ramallah, the financial hub of the occupied West Bank.

But the circus students weren't the only ones bending over backwards in the pavilion: the school's director faced financial hurdles to buy the tent from Europe and trampolines from Asia.

"We are suffering with international payments," said Mohamad Rabah, head of the Palestinian Circus School, describing a bureaucratic process that could delay equipment delivery by up to a month.

Banking in the Palestinian territories is challenging, with the Palestinian Authority (PA) under scrutiny for potential terror financing, hindering transactions.

Israel has occupied the West Bank since 1967, with strong economic ties allowing two Israeli lenders to serve as correspondent banks in the Palestinian territory.

But this may change if Israel's far-right Finance Minister Bezalel Smotrich carries out threats to sever a vital banking route next month.

Since Hamas's October 7 attack triggered the Gaza war, Israel has imposed economic curbs on the PA, withholding tax revenues it collects on its behalf.

Smotrich said this week he had redirected $35 million in PA tax revenues to families of "terrorism" victims, a move condemned by the United States.

After three European countries recognized Palestinian statehood in May, Smotrich told Prime Minister Benjamin Netanyahu he would not extend indemnity to banks that transfer the funds from the end of June.

Israel's Bank Hapoalim and Israel Discount Bank need protection, expiring on July 1, to avoid sanctions for dealing with Palestinian lenders.

Israel's central bank and finance ministry declined to comment when contacted by AFP.

A Palestinian fruit vendor arranges his street cart in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024. (AFP)

- 'Humanitarian crisis' -

The banking channel used to pay for West Bank imports -- including essential goods like water, fuel and food -- handles $8 billion yearly.

Palestinian businesses receive nearly $1.7 billion annually for exports, according to the Palestine Monetary Authority.

"For us, because our economy is dependent on the Israeli economy, because Israel is controlling the border, the impact will be high," said PMA governor Feras Milhem.

The Palestinian economy is largely governed by the 1994 Paris Protocol, which granted sole control over the territories' borders to Israel, including the right to collect import duties and value-added tax for the PA.

Palestinian livelihoods have also been hurt by bans on laborers crossing into Israel and by a sharp downturn in tourism in the territory, including a quiet Christmas season in Bethlehem.

The United States has urged Israel to improve conditions, warning that severing the banking route would have a dire impact on the West Bank economy.

"I believe it would create a humanitarian crisis in due course if Palestinian banks are cut off from Israeli correspondence," US Treasury Secretary Janet Yellen said last month.

Western governments fear Israel's economic policies could destabilize the West Bank.

"The banking system may collapse and therefore the PA may collapse as well," a European diplomatic source in Jerusalem told AFP on condition of anonymity.

"The PA is in a financial crisis and it could collapse before August."

A Palestinian vendor unloads his stock in front of a shop in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024. (AFP)

- Digital currency -

Palestinian businessmen say their bottom lines have been hit since October 7.

Imad Rabah, who owns a plastics company, said his net income had fallen 50 percent in one year.

Musa Shamieh, who owns a womenswear company said the Israeli policies were designed to push Palestinians to leave the West Bank.

"They want us to leave our land and they know it will be hard for us to stay if we can't do business," Shamieh said.

Israel's harsh economic policies could eventually drive Palestinian policymakers to pursue sweeping changes to the monetary system.

"We need to work on a plan B when it comes to the trade relations," said Milhem, governor of the PMA, which uses an image of the former Palestinian pound as its logo.

Yousef Daoud, professor at the West Bank's Birzeit University, said the territory could scrap the shekel as its de facto currency in favor of a digital alternative.

"We can make our e-currency, just collect all the shekels, issue an equivalent amount of Palestinian pounds, one-to-one fixed exchange rate, and have the Palestinians deal with e-currency," he said.

"Somehow, eventually, we'll get rid of the shekel."