Good morning, nice people. The news cycle is picking up some steam as we inch closer to the weekend, leaving us with an issue full of M&A, debt, and trade updates.

Leading the news well today is Sisco Holding’s completion of the acquisition of Port Services and Storage Company (PSS). For years, Sisco’s logistics operations gravitated toward the Red Sea — but with the PSS acquisition, it adds critical nodes in Dammam and Jubail that could enable it to establish a privately-backed east-west landbridge capable of bypassing third-party operators.


On the credit markets front, SAL Saudi Logistics is tapping into a massive regional rush for debt. SAL is out with a SAR-denominated sukuk following a record-breaking week for MENA bond sales that saw USD 30 bn raised in early January alone. With oil prices softening and non-oil growth accelerating, the window for corporate borrowing is wide open.

ALSO: The UAE continues to insulate its trade future by bagging two more CEPAs with Nigeria and the Philippines, targeting a combined bns in GDP growth by 2032. From machinery in Nigeria to electrical equipment in the Philippines, these pacts add more building blocks to the UAE's goal to hit USD 1.1 tn in non-oil trade by 2031.

Watch this space-

TRADE — The US President Donald Trump is threatening a 25% tariff on countries that “do business” with Iran, as the US ramps up threats against Iran, including the “ use of military force,” in an alleged bid to back protesters vying for the fall of the regime.

Why does this matter? Well, the UAE (and China) could have a lot to lose from the tariff threat. The UAE is Iran’s second biggest trading partner, with some USD 16.1 bn in trade taking place between the two countries in 2024, Bloomberg reports, citing IMF data. It’s also a major re-export hub for Iran, with the Economy and Tourism Ministry data (pdf) showing that UAE-Iran non-oil trade reached USD 6.6 bn in 2024. Trump’s claimed the tariff would “ take effect immediately,” though he has yet to clarify which countries (and goods) would be affected.

The UAE has so far gotten away almost scot-free from Trump’s tariff wars last year, with just a 10% tariff slapped on most UAE imports, though it’s subject to the 25% tariff on the US’ steel imports from all countries.

PORTS — DP World’s Berbera Port operations remain stable: Dubai’s DP World confirmed today in a statement to Reuters that its operations at Somaliland’s Berbera Port are unaffected by Somalia’s recent decision to break ties with the UAE. Somaliland also refuted in a statement Somalia's claims of authority over agreements related to Berbera Port — reaffirming the breakaway region’s sovereign hold over the port. The logistics giant holds a 65% stake in the port.

REMEMBER- Somalia’s government said yesterday it was annulling all of its contracts with the UAE for ports, defense, and security, over what its Council of Ministers said were “actions undermining [its] national security.”

MARITIME — Maersk quietly tests the Red Sea again: Danish shipping giant Maersk completed another cautious transit through the Red Sea earlier this week via its Middle East-US East Coast service. The trip affirms Maersk’s gradual approach to the return to the Suez Canal route after they tested a transit last December, and comes as CMA CGM also completed cautious sailings via Bab El Mandeb.

The return’s big picture: For over a year, the Cape diversion has absorbed capacity — soaking up an oversupply of new vessel deliveries by making trips longer. A sustained return to the Suez Canal will reduce voyage times and effectively increase market capacity. If this trend holds amid a steady stream of new ship deliveries, it could drag down freight rates.

Market Watch-

Oil prices reversed their four-day upward streak, falling this morning amid rising US inventory and the resumption of Venezuelan exports, Reuters reports. Brent crude futures were down USD 0.20 to trade at USD 65.27 / bbl as of 05:25 GMT, while US West Texas Intermediate (WTI) fell by USD 0.23 to USD 60.92 / bbl.

Baltic index downward streak isn’t going anywhere: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — declined 3.1% to 1,608 points on Tuesday. The capesize dipped by 5% to a six-month low at 2,446 points, while the panamax index went down 0.7% to 1,331 points, and the smaller supramax index eased 8 points to 952 points.

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