Sudan has pulled out of a $6 billion port development deal with AD Ports Group because of the United Arab Emirates’ supposed support for Rapid Support Forces (RSF), a paramilitary group involved in ongoing conflicts within Sudan.
The construction of a new port at Abu Amama, about 200 kilometres north of Port Sudan, included the development of a new economic zone consisting of an airport and a 168 000-hectare agricultural area.
Signed in December 2022, the deal between AD Ports Group, UAE holding company Invictus Investment, and Sudanese businessman Osama Daoud Abdellatif, was widely hailed as a major multi-modal agri-development hub for Sudan’s Red Sea coast.
The plan included construction of a 450 km road linking the port to agricultural areas in Sudan’s River Nile state.
Sudan was promised a 35% share of net profits from the venture, which was expected to enhance trade and logistics capabilities in the region.
But on Sunday, Sudanese Finance Minister Jibril Ibrahim announced the cancellation, citing allegations that the UAE had been providing support to the RSF.
Announcing the withdrawal of Khartoum from the Abu Dhabi-brokered deal, he said Sudan would not part with “one centimetre” of its soil with the UAE.
The Sudanese government emphasized its intention to maintain sovereignty over its coastline and protect national interests.
But the cancellation of this deal represents a loss of potential investment and development for Sudan, which is currently grappling with severe economic challenges, including high inflation and currency devaluation. The project was expected to significantly boost local infrastructure and create jobs.
This move may also reflect a shift in Sudan’s foreign policy as it seeks to assert greater autonomy amid ongoing conflicts and regional tensions. The decision could be seen as an attempt to recalibrate relationships with foreign powers while addressing domestic political pressures.
However, there appears to be support for the cancellation among residents of eastern Sudan. Many hope that resources will now be directed toward projects that prioritize local benefits rather than large-scale foreign investments that could undermine local economies.
With ongoing conflict leading to severe humanitarian issues – over 18 000 deaths and millions displaced – the cancellation may complicate efforts to secure the international aid and support needed to address these crises effectively.
