Good morning, folks. We’re kicking off the week with a packed issue, full of investment, projects, and M&A updates from across the region. Let’s get the ball rolling.

HAPPENING TODAY-

#1- The Smart Ports and Logistics Transformation Summit is opening its doors today until tomorrow 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.

#2- London International Shipping Week will kick off today and run through until Friday, 19 September in London. The cluster event brings together hundreds of maritime industry decision-makers and government officials to network and discuss key issues facing the industry. The week-long event will host over 350 functions — including its flagship conference hosted by the International Maritime Organization on Wednesday, 17 September.

Regional players are hosting some of the week’s events:

  • Oman’s Sohar Port and Freezone will showcase Oman’s strengths as a globally integrated maritime hotspot tomorrow;
  • KSA’s Mawani will also host Set Sail to Saudi Arabia tomorrow.

WATCH THIS SPACE-

#1- Egypt is looking to launch a new Ro-Ro shipping line with Germany in 1Q 2026 — spearheaded by the Egyptian-German Joint Navigation Committee, according to documents seen by Asharq Business. The new line is poised to transport trucks loaded with goods — primarily agricultural products, heavy vehicles, and machinery — via dedicated Ro-Ro vessels. The committee is currently in discussions to lay out the logistics details related to the new route.

REMEMBER- Egypt’s been doubling down on its Ro-Ro lines: Egypt is working on launching Ro-Ro services with Saudi Arabia and Turkey before the end of 2025. This comes after the Ro-Ro line connecting Damietta Port with Italy’s Port of Trieste started operating in late 2024, reducing the time to send goods between the two ports to two and a half days, down from six.

#2- Are cargo UAV deliveries coming to UAE next year? Abu Dhabi-based drone manufacturer Lodd Autonomous is set to launch unmanned aerial vehicle (UAV) parcel and cargo deliveries by 2H 2026 — with the first test flight scheduled in November, CEO Rashid Matar Al Manai told Khaleej Times on Friday. The firm — which wrapped its first pilot delivery in June — said then it was working with regulators and industry partners to hone in on procedures, consolidate regulatory compliance, and collect operational insights

On the cards: The firm’s flagship product — named the Hili — has a carrying capacity of up to 250 kg over a 300-km range, at a speed of 180 km/h. The firm will operate similar to the typical airline business model and is open to selling UAVs or leasing them “depending on the buyer demand,” Manai said. Lodd aims to offer the delivery services at a “fraction of the cost” of the current market and is currently in talks with customers both locally and internationally, Manai added.

The region’s latest drone craze: Dubai kicked off drone deliveries late last year in Dubai Silicon Oasis with the first order from the Rochester Institute of Technology-Dubai. Omani AI and drone services company Esbaar is set to launch cargo delivery using drones by the end of the year, with a payload of up to 700 kg. The Saudi General Authority for Civil Aviation also gave the green light in January for US delivery drone firm Matternet to launch its M2 drone in Saudi Arabia.

#3- Canadian, Chinese firms eye food logistics hub in Egypt: Canadian logistics service company IMGS Group and Chinese agriculture and food solutions provider Famsun are mulling opening a global food logistics center in Egypt, according to a Suez Canal Authority statement. The project — to be in partnership with the authority — would be situated in Port Fouad and support the country’s food security. A cooperation protocol to begin developing the project will soon be signed, according to the statement.

#4- Adnoc consolidates listed assets under XRG: Abu Dhabi National Oil Company (Adnoc) transferred its equity stakes in Adnoc Distribution, Adnoc Gas, and Adnoc Logistics and Services to its wholly owned subsidiary XRG, according to an ADX disclosure (pdf) released on Thursday. The share transfer of Adnoc Drilling will follow pending regulatory approvals, the company said, adding that the move will not affect the operations, dividend policies, or strategies of the companies involved.

IN CONTEXT- The transfers are part of Adnoc’s strategy to consolidate its listed holdings under XRG, the international energy investment arm it launched in 2024. XRG manages some USD 80 bn in assets and is looking to double that figure over the next decade under a five-year plan — including planned acquisitions of Germany’s Covestro and Australia’s Santos.

More transfers ahead: InJuly, Adnoc said it would shift its 24.9% stake in Austria’s OMV to XRG. The unit is also set to hold a 46.9% stake in Borouge Group International once the planned merger of Borouge, Borealis, and Nova Chemicals is completed.

#5- US slams Emirati shipping player with sanctions: Washington’s latest anti-Houthi sanctions wave has struck Dubai-based shipping outfit Tyba Ship Management, according to a US Treasury Department statement published on Thursday. The US government alleges that the company sponsors and materially aids Yemen’s Houthis, claiming that its owner Muhammad Al Sunaydar is a Houthi-linked businessman.

Latest on Houthi sanctions: The US Treasury Department sanctioned two individuals and five firms from the UAE and Yemen for allegedly smuggling imported petroleum into Houthi-controlled areas earlier this year.

#6- EU to consider partial trade halt with Israel: The European Commission is set to consider a proposal for a partial halt of its trade agreement with Israel amid growing frustration over Israel’s unabated conduct in Gaza, Reuters reported on Wednesday, citing an announcement by European Commission chief Ursula von der Leyen. It remains unclear how far the partial trade halt would go. The package will also propose sanctions on “extremist ministers and on violent settlers,” von der Leyen said.

European Union (EU) member states have been divided over Israel’s war in Gaza, with some countries pressuring the bloc to take action and suspend dealings with Israel, but not all members agree. A majority vote is needed for the sanctions to pass. EU goods accounted for 32% of Israel’s total trade in 2024, while total bilateral trade reached EUR 43 bn the same year.

Other members did it first: Both Spain and Belgium announced sweeping measures against Israel, including an arms embargo and entry bans for Israeli citizens linked to human rights violations and genocidal conduct. The pair has also suspended imports of all goods hailing from Israeli settlements.

MARKET WATCH-

#1- Oil prices went up this morning amid concerns of tightened Russian supply after Ukraine attacks on Russian refineries, Reuters reports. Brent crude futures increased by USD 0.36 to reach USD 67.35 / bbl by 06.32 GMT, while US West Texas Intermediate (WTI) gained USD 0.36 to trade at USD 63.05 / bbl.

Forecast updates from IEA: The International Energy Agency (IEA) has raised its forecast for global oil demand growth for this year to 740k bbl / d, up from 680k previously, according to the agency’s latest monthly oil market report. The agency left its 2026 outlook unchanged at 700k bbl / d.

The agency now expects global crude supply to rise by 2.7 mn bbl / d to 105.8 mn bbl / d this year — compared with a prior forecast of 2.5 mn bbl/d rise — and by 2.1 mn bbl /d to 107.9 mn bbl / d next year. Net Opec+ output growth from October will come in at just 40k bbl / d — well below the group’s official 137k bbl / d quota hike — due to capacity constraints among some members.

Meanwhile, Opec kept its forecast unchanged in its September oil market report (pdf). The cartel still expects global oil demand to grow by 1.3 mn bbl / d in 2025 and 1.4 mn bbl / d in 2026, with non-Opec supply expected to add 0.8 mn bbl / d in 2025 and 0.6 mn bbl / d next year. Demand for Opec+ crude is forecast at 42.5 mn bbl / d in 2025 and to 43.1 mn bbl / d in 2026.

REMEMBER- Opec+ approved a production hike for an additional 137k bbl / d from October through September 2026, fast-tracking the return of 1.65 mn bbl / d that was previously set to stay offline until end-2026. But most members are already pumping at or near capacity, leaving Saudi Arabia and the UAE as the only producers able to meaningfully increase supply.

#2- Baltic index maintains upwards trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — increased 0.7% to 2,126 points on Friday, its highest since 28 July. The capesize gained 1% to 3,070 points, while the panamax index climbed 0.4 % to 2,006 points. The smaller supramax index rose by 0.5% to 1,492 points. The benchmark index for the week rose by 7.4%, the highest weekly performance since 21 July.

#3- The Drewry World Container Index fell by 3% to USD 2,044 per 40-ft container on Thursday, according to the latest index readings. The drop comes on the back of market turbulence driven by the ongoing US tariffs’ bonanza since April. The container forecaster projects the supply-demand balance to fall in 2H 2025, causing spot rates to fall further.

PSA-

Hapag-Lloyd rolls out new GRI: Shipping giant Hapag-Lloyd is set to implement a general rate increase (GRI) of USD 250 per 20-ft container and of USD 500 per 40-ft container from Turkey to the US East Coast, according to a statement released on Friday. The GRI is applicable starting 15 October, and is valid until further notice.

It’s also adding a new PSS…: The firm will add a peak season surcharge (PSS) of USD 600 (EUR 500) per TEU for ships going to Conakry in Guinea, according to a statement released on Friday. The PSS is applicable starting 25 September from Africa, Asia, Oceania, Europe, and the Middle East, and starting 12 October from the Indian Subcontinent and the Americas.

… and postponing an LWS: Hapag-Lloyd is postponing its USD 1k per TEU low water surcharge (LWS) on cargo to and from Asia, Africa, the Middle East, and Europe on the back of Amazon River water levels receding lower than expected, according to a statement released on Friday. The LWS will take effect starting 15 October

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CIRCLE YOUR CALENDAR-

The UAE will host the Syria Recovery and Investment Forum on Wednesday, 24 September in Abu Dhabi. The forum will host leaders in business, regional investors, policymakers, and advisory experts to develop practical solutions for Syria’s road to recovery and economic revival.

Turkey will host the Global Freight Summit on Sunday, 28 September until Wednesday, 1 October in Istanbul. The summit will host over 330 attendees and over 250 firms for policy and knowledge and strategies exchange between forwarding partners.

The UAE will host the African, Middle East, and Islamic Finance Aviation 100 Awards on Monday, 29 September until Wednesday, 1 October in Dubai. The event aims to highlight and reward the most remarkable transactions closed by airlines and aviation manufacturing and leasing firms.

The UAE will host the Global Rail Transport Infrastructure Exhibition and Conference on Tuesday, 30 September until Thursday, 2 October in Abu Dhabi. The event will be hosted by Etihad Rail and is set to welcome over 200 global speakers and upwards of 20k industry attendees to share innovative solutions and develop partnerships.

Saudi Arabia will host the Saudi Maritime and Logistics Congress on Wednesday, 1 October and Thursday, 2 October in Dammam. It will host over 200 registered exhibitors and some 15k attendees from over 90 countries to discuss AI-powered fleet optimization, shifts in global trade, and intelligence-driven infrastructure.

The UK will host the Marine Environment Protection Committee Extraordinary Session from Tuesday, 14 October until Friday, 17 October at the International Maritime Organization’s (IMO) HQ in London. The session is set to see the intergovernmental body formally adopt its Net-Zero Framework — rolling out new fuel standards for ships and a global pricing mechanism for emissions.

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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