Good morning, friends. We close out the week with a light and brisk issue, with a few updates on Adnoc Logistics’ IPO and another strong PMI report from the UAE.

THE BIG LOGISTICS STORY-The UAE’s non-oil private sector saw its fastest monthly rise in 18 months in March, with new orders, output, employment, suppliers’ delivery times, and stocks of purchases all seeing positive growth on a monthly basis The latest PMI score places the index at a five-month high.

THE BIG LOGISTICS STORY ABROAD-

FedEx will merge its delivery divisions as part of USD 4 bn cost-cutting push: Multinational conglomerateFedEx is merging its ground, air, and other operations into a single entity to reduce expenses and enhance competition against rivals such as United Parcel Service and Amazon. The consolidation is set to be complete by June 2024 and comes as part of a wider plan to cut some USD 4 bn in costs by 2025. FedEx Freight, which consolidates small shipments into trailer loads, will remain a stand-alone company under FedEx.

FedEx’s shares were up 1.5% at market close yesterday following news of the restructuring and a 10% dividend boost. (Reuters | CNBC| AP | WSJ)

HAPPENING TODAY-

The World Bank will release its latest MENA Economic Update today:Ominously titled “Altered Destinies,” the multilateral lender’s upcoming regional growth report will look “in depth at how even temporary increases in the price of food can have lasting impacts across generations in terms of education, health and future income prospects.” The lender’s chief economist in MENA will discuss the region’s economic prospects in a livestream following the launch, at 3pm CLT / 4pm KSA / 5pm UAE.

Direct flights between Iraq’s Kurdish region + Jeddah resume: The return of flights between Jeddah and Erbil in the Kurdish area of Iraq with a Flynas flight for the first time since they suspended flights due to covid-19 lockdowns, Saudi state-owned news agency SPAreports. Flights will operate twice a week, while other carriers are expected to follow suit with their own flights between the two cities at the beginning of May.

DATA POINT #1- KSA boosts exports in March: Saudi Arabia’s Industry Ministry issued some 37k certificates of origin (COs) in March, up from approximately 33k in February, the Saudi Press Agencyreports. COs — international trade documents declaring where a commodity or good was manufactured — are widely used for customs clearance, payment management, and import tariff concessions.

DATA POINT #2- MENA air cargo volumes dip in February: Air cargo volumes in the Middle East dipped 8% y-o-y in February, marking a slower pace of y-o-y decline than the 11.8% drop recorded in January, the latest International Air Transport Association (IATA) report (pdf) shows. Globally, air cargo traffic fell 7.5% y-o-y during the second month of the year, also an improvement over the 14.9% y-o-y decline in January. It was also the first time in eight months that demand for air cargo traffic surpassed pre-pandemic levels

DATA POINT #3- Reliability of global container shipping sees big improvements: Schedule reliability among container liners in February reached 60.2%, improving 26 percentage points y-o-y and seven percentage points m-o-om, according to a summary of the latest Global Liner Performance Report (pdf) published by research outfit Sea Intelligence. Average delays in February settled at 5.29 days, down 2.3 days y-o-y. Among the top 14 carriers, Maersk was the most reliable at 64.9%, followed closely by MSC at 64.4%. Hamburg Süd was the only other carrier to exceed the 60% threshold, falling just north of that number. All remaining top 14 carriers had reliability figures in the 50-60% range.

DATA POINT #3- Suez Canal posts record monthly revenues in March: Suez Canal revenues jumped 39% y-o-y in March to an all-time monthly high of USD 832.2 mn, Al Mal reports, citing official data. Some 2.19k vessels transited the canal last month, up nearly 21% y-o-y. March also saw the canal set a new daily record for vessels transiting the canal, with 107 vessels crossing on 13 March.

DMA launches partnership program to improve the sector: Dubai shipping and maritime regulator the Dubai Maritime Authority (DMA)has introduced a partnership program to allow maritime companies to meet regularly and discuss ways the sector can become more efficient, Wam reports. Companies are encouraged to voice their concerns and become more involved in the decision making process. This is part of continued efforts by the government to strengthen Dubai’s position in the global maritime industry, Wam cites DMA Executive Director Sheikh Saeed bin Ahmed Al Maktoum as saying.

WATCH THIS SPACE- Iran and Saudi Arabia to set up joint chamber of commerce soon: Iran and Saudi Arabia will exchange business delegations “in the very near future,” after the two nations reopen their respective embassies and reinstate their ambassadors, an Iranian Chamber of Commerce board member said. The two countries in March agreed to resume diplomatic relations and reopen embassies within two months, following a seven-year rift.

COME TO OUR NEXT ENTERPRISE FORUM-

We are delighted to share with you that the Enterprise Exports & FDI Forum will be taking place on 15 May at the Four Seasons Hotel at Nile Plaza in Cairo.

DO YOU WANT TO ATTEND? If you’re a C-suite exec, exporter, investor, official, banker, or someone who should be part of the conversation, please click here to request a spot at this exclusive event. Attendance is by invitation only.

WANT TO SHARE YOUR STORY ON STAGE? Drop a note to Patrick here and let’s talk.

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

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