TODAY: SAL’s IPO bookbuilding process kicks off today + new maritime port in Egypt?

Good morning, friends. We have a packed issue for you to start the week, with a lot of positive business news from across the region — especially from Saudi Arabia.

THE BIG LOGISTICS STORY- Saudi-based logistics company Sadr plans to build a USD 40 mn logistics center in the Industrial Gate City in Riyadh. Over in Jordan, we have news that the government plans to issue tenders for the development of a border crossing with Saudi Arabia in early 2024.

^^ We have everything on this story and more in the news well, below.

HAPPENING TODAY-

SAL Saudi Logistics Services’ IPO subscription period kicks off: The book building process for institutional investors to subscribe to 90% of the 30% stake of SAL that Saudia Arabian Airlines and Tarabot Air Cargo services plan to list on the Saudi Tadawul Exchange begins today and runs until 1 October, according to its prospectus (pdf). Retail investors’ book building process will kick off on 11 October to 13 October.

REMEMBER- The two shareholders will offer 24 mn shares in their subsidiary. SAL has been planning an IPO since at least 2021 where it had appointed HSBC Holdings as financial advisor at the time. The company got the greenlight to list a 30% stake in Tadawul from Saudi Arabia’s Capital Market Authority back in June.

Oman’s SalamAir halts flights to India: Omani budget carrier SalamAir is halting all its flight operations to and from India effective 1 October, the Times of Oman reports. The move includes the airline’s recently unveiled connections from the UAE’s Fujairah Airport to Jaipur, Lucknow, and Thiruvananthapuram in India. The airline reportedly cited a “limitation of flight rights allocation to India” as the reason behind the stoppage of Indian routes, according to an email sent by the airline to trade partners and picked up by the Omani outlet. Travelers holding bookings will be refunded, agents told Zawya.

Grain ship sets sail from Ukraine to Egypt: The Aroyat, a large ship loaded with 17.6k tonnes of Ukrainian wheat, has departed Chornomorsk port on the Black Sea and is bound for Egypt despite a de facto trade blockade by Russia, Reuters reported. This is the second of two big cargo vessels leaving the port this week via a humanitarian trade corridor. The first vessel was the much smaller Resilient Africa, which set sail on Tuesday carrying 3k tons of cargo. Five ships have already used the corridor, sailing along the coasts of Romania and Bulgaria.

WATCH THIS SPACE- Egypt is lining up a new port in Taba: Egypt has completed feasibility studies for a new maritime port in Taba, Sinai, Egypt’s Transport Minister Kamel El Wazir said during a phone-in on a late night talk show (watch, runtime: 5:41). Construction will begin on the new port soon, El Wazir said. The port is slated to become an important station in the Arab Trade Line logistics scheme, which will see cargoes hauled by ferries from Jordan’s Aqaba Port to Taba before being unloaded onto trains bound for El Arish and East Port Said, where they will be loaded onto container ships. The transit export initiative was developed upon calls from Jordan, El Wazir explained.

Also happening: A new passenger and freight railway line hugging Sinai and transiting Port Said, Bir El Abd, El Ferdan, El Arish, and Port Said, is slated to begin operations in early October, El Wazir added.

Dubai retains fifth spot in this year’s ISCD Index ranking: Dubai has maintained its ranking at number five in the International Shipping Centre Development (ISCD) Index Report for 2023 (pdf). The report, which is a collaboration between The Baltic Exchange for Trade and Shipping and Xinhua, placed Dubai as the only MENA port in the ranking’s top 10. Singapore, London, Shanghai, and Hong Kong took spots one through four in overall rankings.

Concerns grow over potential carbon leakage following the implementation of the EU’s emissions trading system: The European Sea Ports Organisation (ESPO) has raised concerns about the limited scope of the EU Emission Trading System (ETS), specifically the “transhipment clause,” which relates to emissions from ships calling at non-EU transhipment ports that are not directly subject to ETS charges, ESPO said in a press release. The port alliance also raised concerns that ships will find it cheaper to go to non-EU transhipment ports trying to evade high ETS charges. “One must realize that once evasion is established, and trading routes have changed, it will be very difficult to reverse the negative developments,” said ESPO Secretary General Isabelle Ryckbost.

The solution? Monitoring European ports should happen more frequently before ETS application dates to catch rerouting and evasion, which is already happening, according to ESPO.

Oman’s Duqm refinery completes start-up process: Oman’s Duqm refinery — a JV between the OQ Group and Kuwait Petroleum International — has wrapped up its inaugural procedures, and OQ aims to kick off full-scale operations by the end of the year, Reuters reports. “Significant progress has been made in the project's execution, with the start-up phase of the refinery now completed, marked by the production of high sulphur fuel oil (HSFO) – the first shipment of which has already been exported to the US,” OQ told Reuters. About 95k tonnes of HSFO from Duqm are en route to Corpus Christi, Texas. The refinery’s construction is more than 98% complete, with 65% of the commissioning process already accomplished.

DATA POINT - Alex Port sees uptick in ship traffic: Alexandria Port saw a 16% y-o-y increase in ship traffic in August, with 400 ships docking at the port, according to a statement by the Alexandria Port Authority. General cargo ships led the charge with a 33% y-o-y increase, while container ships rose 32% y-o-y.

MARKET WATCH-

Ru ssian oil producers send first CPC crude shipment to UAE: Two Russian firms — oil giant Lukoil and independent producer CenGeo — successfully supplied their first cargo shipments of CPC Blend crude to the UAE in August and September, according to traders who spoke with Reuters. Both companies are involved in the supply of CBC Blend, a grade predominantly produced in Kazakhstan and shipped to global markets through Russia’s Black Sea Port. The new export route comes as Moscow looks to find alternative markets for its oil amid sanctions from G7 countries since the start of war in Ukraine.

CIRCLE YOUR CALENDAR-

The Engineering Export Council of Egypt (EEC) will lead a trade mission consisting of 22 Egyptian companies to Iraq from 23 to 29 September. The delegation will tour Erbil and Baghdad. The participating companies, which operate across various sectors of the engineering industry, will be looking to secure export agreements with the Iraqi market.

Airline Economics Growth Frontiers Middle East & Africa kicked off yesterday and will run until tomorrow at the Ritz Carlton Dubai Beach Hotel in Dubai.The event will bring together lessors, manufacturers, banks, investors and law firms to discuss aviation finance and investment, according to Morgan Lewis.

The TMS Transportation and Climate Change Conference (TACCC) will kick off tomorrow in Abu Dhabi. The one-day event will gather industry leaders, experts, policymakers, and innovators together to discuss the climate-related challenges and actionable solutions that can guide us towards a sustainable future in the transport sector.

The Gulf-Iraq Business Forum is set to take pla ce in the UAE on 26 and 27 September. The forum will bring together key stakeholders, opinion leaders, and economic drivers to discuss bilateral cooperation and investment plans in the private and public sectors, as well as ways to enhance economic relations across several fields. The forum will also discuss economic obstacles and potential areas for development in Iraq and GCC countries, including potential areas for trade and investment.

A Saudi-Turkish Summit is scheduled to take place in Istanbul, Turkey on 8-12 October. Organized by the Türkiye Exporters Assembly in coordination with the Turkish Commerce Ministry, the summit will be attended by Turkish exporters and 70 members of Saudi Arabia’s Riyadh Chamber of Commerce. The participants will also include representatives from an array of sectors including food, non-ferrous metals, textiles, ready-made garments, chemicals, and furniture.

Shaping the Future of Shipping Summit , organized by the International Chamber of Shipping, will take place on 9 December in the UAE. The event will bring together government officials and leaders in energy, maritime, and all parts of the supply chain to discuss plans to address climate change and help transition the industry towards sustainability.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.