Clyde & Co advises on major port expansion in Yemen

The joint venture to operate, manage and develop the container terminal facilities at the Port of Aden includes the lease of both Aden Container Terminal and of nearby Ma'alla Container Terminal, and a commitment by the joint venture to make an initial investment of $200m in further developing the port.

The Yemen Gulf of Aden Port Corporation is an entity owned by the Government of Yemen, while Dubai headquartered DP World is one of the largest marine terminal operators in the world, with 45 terminals and 13 new developments across 29 countries.

The Gulf of Aden itself is a deepwater basin running between Yemen and Somalia and is a part of the important commercial shipping route from the Indian Ocean to the Mediterranean Sea by the Suez Canal.

Yemen's Deputy Prime Minister for Economic Affairs and Minister of Planning and International Co-operation, H.E. Abdul-Karim Ismail al-Arhabi said:

"We welcome this important agreement and are pleased that the Port of Aden has established a long term relationship with DP World. We are committed to the expansion and development of Yemen and believe DP World will be an excellent partner in helping us realise that ambition."

David Bennet and Andrew Watson were the Clyde & Co partners advising on the transaction. David Bennet commented: "It is exciting to see the potential of Aden as a natural transhipment hub being developed and further realised."

Andrew Watson agreed, "This deal is clear evidence of the willingness of major companies to invest in the Republic of Yemen. It is also a further indicator not only of the robust economic conditions across the region, but also of the ongoing pan-regional investment in significant infrastructure."

Clyde & Co's Middle East and London offices advised on the transaction, including negotiating the joint venture agreement, the lease, port services agreement and management services agreements.

The core advisory team consisted of partners David Bennet and Andrew Watson, based in London and Abu Dhabi respectively, assisted by Dubai based associate Mansi Kochhar.