Drydocks World now an affiliate of Dubai Ports Authority

The emirate is looking to boost its maritime trade

The Dubai Ports Authority will now come up with strategic plans and policies to oversee ports and terminals in the emirate. EPA

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has issued a law that makes Drydocks World, a DP World company, an affiliate of the Dubai Ports Authority.

“The law stipulates that, as of its effective date, all responsibilities and duties of Drydocks World-Dubai … will be transferred to the Dubai Ports Authority,” the emirate's media office said on Thursday.

“This transfer will include all employees of Drydocks World-Dubai, without affecting their acquired rights, as well as all assets and funds.

“Subsequently, the Dubai Ports Authority will assume all duties and liabilities of Drydocks World-Dubai.”

The law specifies the responsibilities of the Dubai Ports Authority, which include creating strategic plans and policies to oversee ports and terminals in the emirate, regulating their operations and developing and managing port infrastructure.

Under the law, the regulator will also have the task of identifying and regulating businesses, activities and professions authorised to operate in ports and terminals, among other duties.

The law also defines the organisational structure of the Dubai Ports Authority, including the roles and responsibilities of the chairman, the executive team and the mechanism for appointing the chief executive.

“The law seeks to advance the Dubai Ports Authority’s position as a leading global model in port operation, management and terminal handling,” the Dubai Media Office said.

“It aims to offer efficient operational services while regulating and developing the port sector in Dubai in accordance with strategic plans and policies.

“Additionally, the law strives to strengthen Dubai’s status as an international hub for maritime trade, facilitating the import, export and re-export of goods through the emirate’s ports.”

The law will come into effect on the date of its publication in the Official Gazette.

The maritime sector is a key pillar of Dubai's economy, which relies heavily on tourism and global trade.

Dubai Chambers recorded 20 per cent growth in its membership last year, while exports and re-exports by member companies rose to Dh272.7 billion ($74.25 billion).

The emirate's economy, which made a strong rebound from the coronavirus-driven slowdown in 2021, maintained its growth momentum last year on the back of Expo 2020 Dubai and government measures to minimise the impact of Covid-19 on businesses.

Dubai’s economy expanded by 4.6 per cent on an annual basis in the first nine months of last year to about Dh307.5 billion, driven by efforts to solidify its position as a business, financial and tourism centre, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, said in December.

DP World, which operates Dubai's Jebel Ali port, reported a 2.4 per cent increase in gross container volumes for the fourth quarter of last year, positioning the company for “improved” full-year financial results, it said last month.

The company handled 19.5 million twenty-foot equivalent units across its global portfolio of terminals in the three-month period to the end of December.

DP World's fourth-quarter gross volume growth was mainly driven by Asia Pacific and India, though overall growth rates for the period moderated as expected due to “challenging” global economic conditions, it said.