Good morning, friends. The news cycle has picked up some vigor as we inch closer to September, leaving us with an issue full of debt, M&A, projects, and data centers updates from across the region. But first, a big update on the South Korea-US moves in aviation, shipbuilding cooperation…

THE BIG LOGISTICS STORY- US + South Korea go big on shipbuilding, aviation collab: South Korea has inked several agreements with US firms worth bns of greenbacks — namely in aviation, shipbuilding, and LNG trade. The agreements, worth USD 150 bn, include 11 non-binding contracts in other commodities such as AI, nuclear energy, and critical minerals.

On the aviation front, South Korean carrier Korean Air has placed a mega Boeing order worth USD 36.2 bn for 103 jets in a bid to modernize its fleet. The order includes 20 of the 777-9 jets, 25 of the 787-19 model, 50 of the 737-10 carriers, and eight of its 777-8 freighters. The airline also entered into a USD 14 bn agreement with General Electric for new engines and maintenance services.

Turning to shipbuilding, South Korean shipbuilder HD Hyundai inked an MoU with US firm Cerberus Capital and Korea Development Bank for a multi-mn USD joint fund to improve US-based shipbuilding.

As for LNG and commodity trade, Korea Gas Corp inked a 10-year agreement with Trafigura to import 3.3 mn tons of US LNG per year, supplied by Cheniere, starting in 2028.

All’s well that ends well: This comes after the two countries agreed to lower tariffs to 15% on South Korean exports to the US, something that US President Donald Trump refused to alter further.

This story received a lot of attention from the int’l press: Reuters | Bloomberg | CNN | CNBC | BBC

HAPPENING TODAY-

The Africa Procurement and Supply Chain Leaders’ Conference is on its third day and will run until Friday, 29 August in Dubai. The conference will bring together global industry leaders, policymakers, and stakeholders to explore AI innovation in procurement and supply chain efficiency, sustainability, and risk management.

WATCH THIS SPACE-

#1- PIF-owned AI company Humain began developing its first data centers in Saudi Arabia with an expected launch in early 2026, Bloomberg reports, citing CEO Tareq Amin. Facilities in Riyadh and Dammam are slated to go live in 2Q 2026, each with an initial capacity of 100 MW.

Humain plans to source semiconductors for its data centers from US manufacturers and has already secured regulatory clearance to acquire 18k of Nvidia’s newest chips, Amin said. The company will begin seeking US government approval for delivery soon, he added.

REMEMBER- Humain is working with multiple US tech firms to build AI infrastructure, including a planned USD 10 bn JV with AMD, early talks with Elon Musk’s xAI on a Saudi data center project and plans to jointly develop 500 MW of AI data centers over five years with Nvidia. The firm aims to add 1.9 GW of data center capacity by 2030.

#2- The US officially ended its direct sanctions on Syria yesterday, after its Office of Foreign Assets Control (Ofac) finalized the last regulatory step to remove the sanctions from the Code of Federal Regulations. The announcement ends sanctions first imposed by the US on Syria through Ofac in 2005.

What they said: The move is predicted to “reinvigorate the economy through the return of remittances and the opening of space for new investments,” Syrian economic analyst Amer Ghazawi told Shafaq. The EU and the US both initially agreed to lift sanctions on Syria back in May.

Still, some secondary sanctions — courtesy of the Caesar Act — are still in place, and would require a US Congress vote to officially repeal them, The National reports. This could happen as soon as next month, when Congress members return to Washington after the summer recess. The Caesar Act sanctions were first introduced in 2019 to target entities and individuals providing material support to the Assad government.

ON A RELATED NOTE- The Saudi-Syrian Business Council is gearing up to launch an online platform by the end of the year, to link Saudi and Syrian investors with projects, government agencies, and trade, helping ease the flow of goods and services between both markets, Vice Chairman Abdullah Al Ghobain told Al Arabiya (watch, runtime: 8:05). The Saudi-Syrian Business Council will also establish an office in Syria next month to support investors, the council’s Chairman Mohammad Abunayyan was quoted as saying by Aleqtisadiah during the Saudi-Syrian private sector investment forum in Riyadh.

#3- Iraq advances plans to end its Iran energy dependency: Iraq is moving forward with its decision to start developing power plants that depend on locally produced gas to generate over 10 GW of electricity, as part of its bid to reduce its reliance on Iranian energy imports, AGBI reports. The power plants, which aim to meet local demand, will be placed in Baghdad, Basra Port, and Najaf province — complementing other power plants in the works in Iraq’s Kirkuk and Al Faw.

ICYMI- The US abrogated a waiver allowing Iraq to import Iranian electricity in March, worsening Iraq’s power output. Iraq produces 27 GW — which sometimes drops to 17 GW — whereas they need 40 GW to keep the lights on throughout the day. This forced Iraq to ship natural gas to Iran for electricity generation and re-exporting it back to meet local energy needs.

MARKET WATCH-

#1- Oil prices were little changed this morning as anticipation lingers for developments on the Russia-Ukraine front, as well as the US’ tariffs on India, Reuters reports. Brent crude futures increased by USD 0.01 to reach USD 67.32 / bbl by 03.54 GMT, while US West Texas Intermediate (WTI) inched up by USD 0.08 to trade at USD 63.33 / bbl.

Meanwhile, Saudi Arabia received some 1.1 mn tons of fuel oil and vacuum gas oil (VGO) from Russian ports in July, a marginal change from June, Reuters reports, citing traders and LSEG data. Meanwhile, India’s imports of the same products from Russia jumped 65% m-o-m in July to 600k tons.

Saudi Arabia’s power plants ramped up their use of high-sulphur fuel oil and crude during the summer months to cover peak demand, which is driven by high AC loads.

REFRESHER- Russian shipments of fuel oil and VGO to Saudi ports rose 9% m-o-m to reach 800k metric tons in June. The Middle East and Asia have been a main market for Russia’s fuel oil and VGO exports since the EU’s full embargo on Russian oil products in 2023.

#2- Baltic index snaps losing streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 5% to 2,041 points on Tuesday, buoyed by increases across all segments. The capesize gained 8.5% to 3,031 points, while the panamax index increased between 2% to 7% to 1,818 points, its highest since 25 July. The smaller supramax index went up by 0.9% to 1,437 points.

PSA-

Maersk to roll out PSS: Shipping giant Maersk has revised its peak season surcharge (PSS) to USD 700 for cargo travel from the Asia Pacific region to the Middle East, according to a statement. The PSS will apply for all types of 20 ft and 40 ft containers — starting 10 September until further notice. The hike affects cargo headed to the UAE, Bahrain, Iraq, Jordan, Kuwait, Oman, Qatar, and Saudi Arabia.

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CIRCLE YOUR CALENDAR-

Bahrain will host the Syria Recovery and Investment Forum on Sunday, 1 September and Monday, 2 September in Manama. The forum will host global industry leaders, policymakers, and stakeholders to discuss Syria’s most urgent rebuilding needs — and attract investments — across key sectors including education, energy, housing, smart cities, ports, and metro systems.

Oman will host Transport Middle East on Monday, 1 September until Wednesday, 3 September in Salalah. The conference will host 35 international speakers and over 50 exhibitors from the maritime sector to discuss global transportation and logistics.

Saudi Arabia will host the Sustainable Maritime Industry Conference on Wednesday, 3 and Thursday, 4 September in Jeddah. The event is set to gather over 60 speakers and more than 3k participants to discuss maritime decarbonization, digital transformation, regulatory frameworks, capacity building, and sustainable practices.

Algeria will host the Intra-African Trade Fair on Thursday, 4 September until Wednesday, 10 September in Algiers. The fair will host over 75 countries and 2k exhibitors across several sectors to explore investment prospects and exchange information on trade between B2B and B2G.

Oman will host the Comex Global Technology Show on Sunday, 7 September and run till Wednesday, 10 September in Muscat. The event will host over 360 participants and 133 tech startups to show achievements in eGovernment, fintech, smart cities, health tech, agritech, and cybersecurity.

Saudi Arabia will host the Smart Ports and Logistics Transformation Summit on Monday, 15 September and Tuesday, 16 September in Jeddah. The summit will host over 40 global and local speakers, industry experts, and policymakers to explore smart port solutions, port operations, and logistics within Saudi Arabia.

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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