Dubai’s DP World sells stake in Jebel Ali Port to Canadian fund

Dubai’s DP World sells stake in Jebel Ali Port to Canadian fund

International port operator DP World said on Monday it sold a stake in its home base, the Jebel Ali Port, and other flagship assets to one of Canada’s largest pension funds for $5 billion, expanding the Canadian group’s reach into the crown jewel of the Dubai-based company’s operation.

The transaction comes nearly two years after Dubai’s DP World struck a deal with Canadian infrastructure investor Caisse de Dépôt et Placement du Québec, or CDPQ, to pour $4.5 billion of new capital into their joint venture already spanning four continents and 18 terminals.

DP World CEO Sultan Ahmed Bin Sulayem said the sale helps lighten the company’s debt burden as it faces “the challenges of the pandemic and recent global economic conditions,” an apparent reference to global supply chain snarls that have sent production and labor costs soaring.

Through a new joint venture, CDPQ will invest $2.5 billion in the Jebel Ali Port, as well as the Jebel Ali Free Zone and the National Industries Park, taking 22 percent of DP World’s three major assets in the United Arab Emirates with the remainder financed through debt.

Other investors can acquire an additional stake of up to $3 billion, the companies said, with deals expected to