The purchase of Haifa Port in northern Israel by a consortium led by India's Adani Group for 4 billion shekels ($1.15 billion) was completed on Tuesday.

According to Israel's Finance Ministry, the sale of one of Israel's key seaports took five years and represents the completion of a nearly two-decade overhaul of an underperforming sector plagued by labour strikes for years.

In an effort to reduce expenses and reduce above-average waiting times for vessels to unload, the country has started selling state-owned ports and creating new private docks.

Approximately 99% of all commodities enter and exit Israel by sea, and port enhancements are required to sustain economic growth.

In July, Israel announced that it will sell the port of Haifa, a major Mediterranean trade hub, to winning bidders Adani Ports (APSE.NS) and local chemicals and logistics business Gadot.

Last year, China's Shanghai International Port Group (SIPG) established a new port in Haifa across the water.

The presence of SIPG and the Adani-led consortium promises to strengthen Israel's position as a regional trading hub.