As the emirate strives to reduce its debt burden, Dubai is selling holdings in some of its most cherished assets, including the port that helped convert the city into a global commerce hub.
According to a statement released Monday, the Caisse de Depot et Placement du Quebec has agreed to invest $5 billion in the Middle East’s largest port and two industrial zones. By the end of the year, other long-term investors will be able to buy additional shares for as much as $3 billion.
The Montreal-based pension plan will spend $2.5 billion on the Jebel Ali Port, Jebel Ali Free Zone, and National Industries Park under the terms of the deal. It’s executing the sale through a new joint venture in which it’ll have approximately a 22 percent interest, with the rest of the money coming from loans.
The assets, which are managed by state-owned DP World, are valued at around $23 billion, including debt. It expands on a joint venture founded in 2016 between DP World and CDPQ to invest in ports throughout the world.
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