Good morning, friends. We’re kicking of the week with another busy issue, packed with M&A, debt, and earnings updates from different players in the region’s aviation industry. AD Ports also secured a stake in Syria’s Latakia Airport, joining DP World in expanding UAE’s footprint in Syrian ports. But first, a look into the major air traffic disruptions the US is witnessing amid the gov’t shutdown…

THE BIG LOGISTICS STORY- Lingering US gov’t shutdown disrupts air traffic: An upwards of 3.2k flights were cancelled and more than 10k flights were delayed on Sunday in the US as the government shutdown, which began on October 1, became the longest in US history as it enters its seventh week. This comes on top of delays and cancelations on Saturday that came after the Federal Aviation Administration (FAA) decided to slash air travel capacity by 4% at 40 of the nation’s busiest airports starting last Friday.

Why? The FAA slashed capacity in a bid to maintain safety standards at airports amid rising absenteeism among air traffic controllers and security screeners, who continued to work without pay for over five weeks since the shutdown began.

Expect more disruptions unless…: The FAA’s reductions are set to increase to 6% by 11 November, 8% by 13 November, and 10% by 14 November unless Congress reaches a resolution. The US may be looking at a 20% cut in air traffic if matters deteriorate and air traffic absenteeism continues, Transportation Secretary Sean Duffy reportedly said.

The story received a lot of attention in the int’l press: Reuters | AP | Financial Times | New York Times | Washington Post | CBS | USA TODAY | BBC

PLUS- Introducing EnterpriseAM MENA <> India,  our new briefing, published every Monday, Wednesday, and Friday, to track the transactions, trends, and market moves connecting these two dynamic regions. The flow of capital, talent, and trade between MENA and the Indian subcontinent is one of the most important economic stories in the world. And we’re telling it the way only we can.

The very first edition will be sent out today at 8am KSA time / 9am UAE time. If you’re investing, trading, or scouting for your next big move in MENA or India, subscribe to EnterpriseAM MENA <> India by tapping here to get the strategic intelligence you need.

HAPPENING TODAY-

#1- It’s day two of the transport and logistics exhibition TransMEA, which kicked off yesterday at the Egypt International Exhibition Center. The exhibition, organized with the Transport Ministry, will run between 9-11 November, bringing together 500 global and regional players from 30 countries to showcase innovations in mobility, logistics, and smart infrastructure.

#2- Syrian President Ahmed Al Sharaa is in Washington today for a meeting with US President Donald Trump, during which he is expected to discuss joint efforts to tackle remnants of the Islamic State in Syria, BBC reports. The US visit — the first for a Syrian head of state in decades — comes days after the United Nations lifted terrorism-related sanctions against Al Sharaa and Syrian Interior Minister Anas Khattab, who were previously targeted for affiliation with Al Qaeda.

WATCH THIS SPACE-

#1- Construction work on phase one of the Oman-UAE freezone project, Al RawdahSpecial EconomicFreezone, has kicked off, AGBI reported on Thursday. The USD 2 bn phase will be developed over 14 sq km, expandable to 25 sq km in the second phase.

The pitch: Investors setting up shop in the zone would be exempted from export and import duties, with corporate taxes also lifted for 15 years. Located in Mahdah town in the Omani border province of Buraimi, the zone also boasts a prime location — nestled midway between Oman’s Sohar port and the UAE’s Jebel Ali port — which is set to facilitate logistical access and boost cross-border trade the Gulf, Africa, and Asia.

REMEMBER- The project is developed by Mahadha Development Company, an Emirati-Omani joint venture between DP World and Oman’s Public Authority for Special Economic Zones (Opaz). DP World and Opaz inked an agreement for the development and operation of the zone’s first phase back in May.

#2- SAL Saudi Logistics Services is set to break ground on the SAR 4.2 bn Falcon City Logistics zone in Riyadh within the next two months, CEO Omar Hariri told Al Arabiya on Wednesday (watch, runtime: 07:15). The company expects to allocate 20% of the project’s value in 2026 for infrastructure development and complete the first phase by 2027, targeting full delivery by 2030. A portion of the project will follow a build-to-suit model, backed by long-term contracts of up to 25 years, Hariri said.

REFRESHER- The company finalized in October an agreement it had signed in March with Sela Company to lease 1.5 mn sqm of land in Riyadh’s Falcon City for 30 years to develop and operate a logistics zone. The project covers 1.6 mn sqm and includes a three-year grace period.

AND- SAL will unveil more details about its SAR-denominated sukuk program in 1H 2026, Hariri said. JP Morgan Saudi Arabia and SNB Capital were appointed as arrangers for the program, which will proceed following regulatory approvals, with further details to be announced once finalized.

ALSO FROM SAUDI- The Kingdom is planning to privatize some of its roads, beginning with the Makkah-Jeddah highway, Aleqtisadiah reported, quoting Transport and Logistics Minister Saleh Al Jasser as saying in his address to the Saudi Federation of Chambers of Commerce on Thursday. Transportation projects available to investors are set to increase fourfold when the ministry’s privatization agency kicks off operations within weeks, Al Jasser added.

#3- Egypt to get a Romanian industrial zone? The cabinet is studying a proposal for a Romanian industrial zone after more than ten Romanian companies expressed interest in investing in sectors including food, ready-made garments, and home appliance components, Al Borsa reported last week, citing unnamed sources. The plan is expected to materialize soon in light of the government’s push to localize industry, the executive director of the Egyptian Businessmen’s Association told EnterpriseAM.

#4- New details on Baghdad Int’l Airport’s development: Iraqi real estate firm Amwaj International is part of the consortium that will develop Baghdad International Airport on a 25-year build, operate, and transfer agreement, Amwaj International CEO Namir El Akabi told Reuters last week. The project’s first phase — expected to wrap up within three years — will entail setting up a new terminal that will raise passenger capacity to 8.5 mn.

ICYMI- The Iraqi government awarded a consortium led by Luxembourg-based Corporation America Airports the contract to develop the airport last month. The parties will plug some USD 764 mn into the project, which includes infrastructure rehabilitation, a new passenger terminal, and a revamp of the air cargo building.

#5- Adnoc’s distribution unit is setting aside USD 250-300 mn a year to fund organic expansion in the UAE, KSA, and Egypt, state news agency Wam reported on Thursday, citing CEO Bader Al Lamki. The company is also assessing non-organic options, including acquisitions and potential new-market entries, as it looks to lift long-term returns.

The fuel retailer plans to set up some 100 new stations this year, with more than 70 of them in Saudi Arabia under a low-cost operating model. The network is projected to reach 1.15k stations by 2028. On the mobility side, the company expects to scale its EV charging footprint to 500-750 points by 2028, up from 368 today.

IN OTHER EXPANSION UPDATES- Abu Dhabi-based oil giant Adnoc’s trading unit is planning to increase the volume it handles by nearly two-thirds over the next few years as it seeks international expansion in a bid to maximize the value derived from selling locally and internationally produced fuels, CEO of Adnoc Global Trading (AGT) Ahmad Bin Thalith told Bloomberg. AGT is set to open an office in Houston, Texas in 2027, which will help boost its volume targets given how big of an export market the US is, he added.

About AGT: AGT is a joint venture (JV) between Adnoc, Italy’s Eni SpA, and Austria’s OMW AG. It focuses on the trade of refined products, including diesel, gasoline, jet fuel and naphtha — where it delivers these products to customers in both local and global markets, according to its website. The trading unit has established offices in Singapore and Geneva.

MARKET WATCH-

#1- Oil prices rose this morning on hopes for a rebound in US oil demand amid reports the longest government shutdown in US history could be nearing a resolution, Reuters reports. Brent crude futures increased by USD 0.45 to USD 64.08 / bbl as of 04:26 GMT, while US West Texas Intermediate (WTI) went up by USD 0.48 to trade at USD 60.23 / bbl.

Meanwhile, Saudi Arabia trimmed its official selling prices to Asia for December, pushing Arab Light to an 11-month low as Aramco cut the grade by USD 1.20 / bbl to a USD 1 premium over the regional Oman-Dubai benchmark, Bloomberg reported last week, citing a list it saw. Aramco also lowered Medium and Heavy grades by USD 1.40 / bbl and reduced Super Light and Extra Light by USD 1.20.

The company also cut all grades to North America by USD 0.50 / bbl while keeping prices unchanged in northwest Europe and the Mediterranean. The reduction came in slightly smaller than the USD 1.25 cut expected by refiners and traders, the business news service said.

#2- Baltic index rises once again: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 2% to 2,104 on Friday. The capesize gained by 3.1% to 3,341, while the panamax index inched up 0.9% to 1,833. The smaller supramax index was up 0.5% to 1,319.

#3- The Drewry World Container Index increased by 8% to USD 1,959 per 40-ft container on Thursday, according to the latest index readings. The drop comes on the back of market turbulence driven by the US’s tariff policies since April. The container forecaster projects the supply-demand balance to fall in 2H 2025, causing spot rates to fall further.

***YOU’RE READING EnterpriseAM Logistics, the essential MENA publication for senior execs who care about the industry that connects producers and retailers to global markets. We’re out Monday through Thursday by 9:15am in Cairo and Riyadh and 11:15am in the UAE.

EnterpriseAM Logistics is available without charge thanks to the generous support of our friends at Hassan Allam Utilities, Transmar, and AK-Ships.

Were you forwarded this email? Tap or click here to get your own copy of Enterprise Logistics.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on logistics@enterprisemea.com.

DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the UAE ***

CIRCLE YOUR CALENDAR-

The UAE will host the Dubai Airshow on Monday, 17 November until Friday, 21 November in Dubai. The event will host over 1.5k exhibitors and 148k industry experts from over 150 countries, to discuss air mobility, new MRO breakthroughs, sustainable aviation, startups, and new tech for aircraft simulations.

Saudi Arabia will host the ShipTek International Conference and Awards on Tuesday, 18 November in Al Khobar. The conference will host policymakers, organizations, suppliers, and experts on maritime, offshore, and oil and gas.

Egypt will host the International Procurement Supply Chain Conference on Saturday, 6 December in Cairo. The event will gather over 1k delegates, more than 400 organizations, and over 30 global speakers to discuss the future of trade through keynotes and panel discussions. The discussions will center on Egypt’s transformation in the logistics sector, the future of smart ports and supply chains, as well as digital ecosystems.

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

Tags: