Good morning, nice people. The newscycle is holding steady, leaving us with an issue full of IPO, aviation, and trade updates from across the region. We also have the latest on possible Saudi investments in South Africa. Shall we?

HAPPENING TODAY-

#1- The Airport Show, taking place alongside the Global Airport Leaders Forum, will start today and run until Thursday, 8 May at Dubai World Trade Center (DWTC). The events will bring together airport and aviation industry professionals to discuss the latest trends in airport infrastructure, emerging technologies, and solutions to industry challenges.

#2- Seatrade Maritime Logistics Middle East is also starting today and will run until Thursday, 8 May at DWTC. The event will bring together professionals in shipping, logistics, and supply chain management to discuss and debate industry challenges and the latest innovations.

WATCH THIS SPACE-

#1- Saudi’s Red Sea Gateway Terminal International (RSGTI) is eying a potential bid to develop and operate a fresh produce terminal at South Africa’s Durban port, according to Bloomberg. The terminal tender — launched by South Africa’s state-owned logistics company Transnet on Monday — covers a 25-year concession and the development of 15 berths with a handling capacity of over 7 mn tonnes of cargo annually.

The development will capitalize on South Africa’s booming agricultural exports, which hit an all-time high of USD 13.2 bn in 2023. The country is also the world’s second-biggest exporter of citrus, with the Middle East and South Korea being some of its major markets.

There’s more for RSGTI in Africa’s biggest economy: The Saudi port operator was reported late last month to be eying several investments in South Africa, including a possible USD 600 mn bid at Durban port and another for Cape Town port. The focus comes as the company advances a continental push, with a special focus on multipurpose terminals shipping mining and food products, the firm’s director of Global Investments Gagan Seksaria told Bloomberg.

Meanwhile, South Africa is hoping that attracting private industry players could help revamp its ailing ports, which have been dragged down by allegations of corruption and poor performance. Transnet ports rank among the least efficient in the world, undermining the country’s coal and iron-ore exports, Bloomberg reports, citing World Bank and S&P Global Market Intelligence data.

#2- US-based Vernbro Global Investment is planning to double its investments in Egypt’s logistics zones projects to EGP 100 bn over the next five years, Chairman Ashraf Dous told Hapi Journal. The company currently has around EGP 50 bn invested in the Egyptian market, including in two under-development logistics zone projects in Gharbia and Kafr El Sheikh.

Vernbro is also eyeing an expansion into Upper Egypt, with plans to build a logistics zone in New Assiut City that would be twice the size of its Tanta project. The new hub would carry an initial investment cost of around EGP 50 bn, with work expected to begin within a year after Kafr El Sheikh wraps up.

#3- Qatari royal backs Maldivian freezone plans: The Maldivian gov’t — backed by Qatar’i royal Sheikh Nayef Bin Eid Al Thani’s private investment arm MBS Global Investments — is planning to build a USD 8.8 bn financial hub designed to serve as a freezone for blockchain and digital assets, Bloomberg reports. The center — dubbed The Maldives International Financial Center — is slated to be built in Malé over the next five years.

The case for it: The move comes as cash-strapped Maldives work on addressing its looming debt repayments within the next two years, as well as diversify it from tourism and fisheries, Maldivian Finance Minister Moosa Zameer told the Financial Times. MBS has already secured USD 4-5 bn for the project from the company’s equity and debts with more banknotes coming from a consortium of their investors.

About MBS Global Investments: The Dubai-based Qatari firm leverages its network of business in business-to-government (B2G) and B2B across several sectors and countries to provide their partners access to global investment windows through partnerships with banks, financial institutions, and governmental bodies, according to the company’s website.

MARKET WATCH-

#1- Oil prices surged this morning amid a temporary hike in demand by purchasers who wanted to capitalize on yesterday’s big price dip, Reuters reports. Brent crude futures went up by USD 0.92 to USD 61.15 a barrel, while the US West Texas Intermediate (WTI) increased by USD 0.89 to reach USD 58.02 a barrel by 03.09 GMT.

Wall Street analysts slashed their oil price forecasts in response to Opec+’s decision to accelerate production in June, with the group raising increments for the second month in a row to add 411k barrels per day (bbl / d) for June.

First up, Goldman Sachs lowered Brent crude forecasts by USD 2 to USD 3 a barrel to average USD 60 a barrel for this year and USD 56 a barrel in 2026, while pegging West Texas Intermediate at USD 56 a barrel in 2025 and USD 52 a barrel next year, Reuters reports. “Our key conviction remains that high spare capacity and high recession risk skew the risks to oil prices to the downside, despite relatively tight spot fundamentals,” Goldman Sachs analysts said in a note seen by Bloomberg.

More financial institutions agree: Morgan Stanley pegged Brent prices to average USD 62.50 a barrel in 3Q and 4Q, with the surplus expected to rise by 400k bbl / d and hit 1.1 mn barrels in 2H of this year. Barclays also dropped its Brent oil rate forecast by USD 4 a barrel to USD 66 for 2025 and by USD 2 to USD 60 for 2026, Reuters reports.

Background: Under Opec’s revamped policy, three months’ worth of supply increments will be delivered all at once next month. The oil group once again cited healthy market fundamentals as the driver behind the decision.

All eyes on Saudi: “The key to knowing how far the Saudis will take what is starting to look like a price war is the nation’s tolerance for low oil prices over time,” head of Morgan Stanley’s commodities strategy department Warren Patterson. The price drop threatens to pressure Opec+ economies, including Saudi Arabia, which needs prices above USD 90 to balance its budget.

DATA POINT-

#1- Dubai is planning to expand its data center capacity fivefold by 2028, Dubai Data and Statistics CEO Younus Al Nasser told Albayan. Data centers in the Emirates are expected to contribute AED 14.3 bn by 2028 to its economy. Sixteen of the country’s total 30 data centers are in Dubai, whilst the UAE data centers account for 42% of the GCC total.

#2- Dubai is set to complete 57 major road projects by 2027, boosting its transportation infrastructure with 115 bridges and tunnels, and 226 km of road, according to the Dubai Media Office. The projects are part of a wider plan to develop 11 primary road corridors to meet the needs of its growing population, which is predicted to hit 8 mn by 2040.

The upgrades are set to reduce congestion and travel times by as much as 35 minutes on key routes, including the Umm Suqeim-Al Qadra corridor, Hessa Street, and Sheikh Zayed Road. The Al Fay Road Corridor’s capacity is set to increase to accommodate an extra 64.4k vehicles per hour.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Smart Logistics trade fair on Monday, 12 May to Thursday, 15 May in Riyadh. The event will provide insights into the latest international and local technology, solutions, equipment providers, and sustainable workflow practices within the logistics industry in the country.

The UAE will host the Global Ports Forum on Tuesday, 13 May to Wednesday, 14 May in Dubai. The forum will cover topics such as port strategy and development, port automation, finance, and efficiency.

The UAE will host the Seamless Middle East from Tuesday, 20 May to Thursday, 22 May in Dubai. The event will cover topics including digital marketing, e-commerce, and retail and merchant payments.

Saudi Arabia will host the Saudi Warehousing & Logistics Expo from Tuesday, 27 May to Thursday, 29 May in Riyadh. The expo will host over 18k supply chain industry professionals and more than 400 exhibitors. It will also explore over 3.5k solutions.

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

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