Canada Fund acquires stake in Dubai Assets

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.