UAE ports group abandons talks over key Turkish maritime hub

Türkiye’s efforts to secure Gulf investment faced another setback as negotiations with Abu Dhabi’s AD Ports Group over the operation of a strategic western port collapsed, Turkish officials announced Wednesday.

Turkish Transportation Minister Abdulkadir Uraloglu confirmed the end of talks regarding the Alsancak port in Izmir, which had been ongoing since 2023. “We have pursued long negotiations with an investor from the Gulf, but no agreement has been achieved,” Uraloglu told Bloomberg in Ankara.

The failed deal represents a significant blow to Türkiye’s broader campaign to attract investment from the United Arab Emirates, following President Recep Tayyip Erdogan’s diplomatic push in the Gulf region. Despite securing UAE commitments of $51 billion in various sectors, the country has struggled to finalize major deals.

Current state of Türkiye’s Alsancak Port

The Alsancak port, controlled by Türkiye’s sovereign wealth fund TWF since 2017, has a complicated history with privatization attempts. A previous 2007 deal worth $1.28 billion with Hutchison Port Holdings and Global Yatirim Holding was derailed by court intervention.

This latest setback follows a pattern of challenged UAE-Turkish investment initiatives. While some progress has been made—such as ADQ’s recent agreement to acquire 96% of Odeabank—other significant negotiations have faltered, including Abu Dhabi’s Masdar’s attempted stake purchase in Fiba Yenilenebilir Enerji and First Abu Dhabi Bank’s discussions with Yapi ve Kredi Bankasi AS.

The port, currently operated by the national railway company TCDD, was intended for expansion under the proposed partnership. “The aim there was to get a partner for the Alsancak port and add capital to expand it,” Uraloglu explained, adding that there are currently no discussions with alternative investors.