In a significant development within global logistics, Dubai-based DP World has divested a 37.5% minority stake in the southern container terminal at Saudi Arabia’s Jeddah Islamic Port to Danish shipping conglomerate AP Moller-Maersk. The transaction, announced Wednesday, establishes a new strategic partnership between the maritime giants, with DP World retaining a 62.5% controlling interest and continuing to lead terminal operations.
This commercial arrangement emerges against a backdrop of escalating geopolitical friction between the United Arab Emirates and Saudi Arabia. The two Gulf powers currently find themselves at odds across multiple Red Sea theaters, including opposing positions in Yemen’s conflict and Sudan’s civil war. The rivalry has extended into digital arenas through social media campaigns and diplomatic maneuvering, with Saudi influencers criticizing UAE-Israel relations while Emirati entities allegedly encouraged pro-Israel groups to accuse Saudi Arabia of antisemitism.
Despite these tensions, the Jeddah terminal partnership underscores profound economic interdependence between the nations. The UAE remains Saudi Arabia’s primary source of foreign direct investment and a crucial export market, while DP World serves as a key instrument of Emirati commercial influence across Middle Eastern and African ports—including facilities in Somaliland, where conflicting positions on recognition have further highlighted regional divisions.
The agreement also follows leadership changes at DP World after former chairman Sultan Ahmed bin Sulayem faced scrutiny over his documented associations with convicted sex offender Jeffrey Epstein. Current port operations contend with Red Sea overcapacity issues and disrupted shipping patterns due to Houthi attacks, which have marginally reduced traffic at Jeddah during Israel’s conflict in Gaza.