Good morning, folks. We have big M&A news from the UAE this morning and a couple of key DP World developments on the horizon. Let’s dive right in.

WATCH THIS SPACE-

#1- Hungary's government is in talks with the UAE and the Qatar Investment Authority to sell a less than 10% minority stake in Budapest Airport, Hungarian Economy Minister Marton Nagy told Bloomberg earlier this week. The government acquired an 80% stake in the airport for EUR 3.1 bn last month as part of plans to increase local ownership of strategic assets amid budget challenges. French construction firm Vinci holds the remaining 20% stake in the airport.

Where the funding is going: The government plans to construct a third terminal and enhance the rail and road infrastructure, Nagy told Bloomberg. The funding for improving airport access will be finalized in the next two months. Each investment option, whether in rail or road, is projected to cost approximately EUR 1 bn, he added.

#2- Construction works on Morocco’s Tiznit-Dakhla section of a new MAD 8.5 bn expressway are 98% finished, Moroccan news outlet Le360 reports. The Guelmim-Dakhla section has been completed, with the overall project slated to open later this year. The highway will boost freight and passenger access to southern Morocco.

About the project: The expressway will stretch a little over 1k km cutting down on travel times to and from Morocco’s southern provinces, Morocco World News reports. The agreement was inked in 2015 and slated for completion in 2021, but the project was set back by a lag in the feasibility study phase, delaying tendering and contract approval.

#3- Oman’s Asyad Shipping is reportedly purchasing four VLCC newbuilds worth USD 520 mn from South Korea’s Hanwha Ocean, Splash reports, citing several shipping brokers. Deliveries are slated for 2026 and 1Q 2027. Asyad also reportedly placed an order for two USD 128 mn 320k dwt scrubber-fitted VLCC berths last month.

REMEMBER- Asyad chartered two 174k cubic meter new builds from South Korean ship manufacturer Hyundai Samho Heavy Industries in December, set to be delivered by June 2026.

#4- Regular flights between Syria and Saudi resumed yesterday, with the first flight arriving at King Khalid Airport from the Syrian capital’s airport, Syrian state news agency Sana reports. This marks the return of commercial flights between both countries after over a decade of hiatus, except for a temporary resumption that took place during the 2024 Hajj season. The story also got ink in the Associated Press.

ALSO- Long awaited eVTOLs are coming: KSA’s flagship carrier Saudia is reportedly close to formalizing a framework agreement with Germany-based air taxi developer Lilium to purchase some 100 electric jets, Reuters reported, citing a source it says was familiar with the agreement. Lilium plans to announce the order by Saudia at its headquarters near Munich on Thursday, 18 July. The framework agreement was signed in October 2022.

#5- The UAE started construction on Abu Dhabi’s Zayed International Airport North Runway, according to a statement on X. The project is part of the General Civil Aviation Authority’s Building Better Airports campaign, which aims to boost capacity and streamline operational efficiency to cater to rising air traffic.

MARKET WATCH-

#1- KSA’s crude production dipped 0.8% m-o-m in June to 8.9 mn bbl / d in June, marking its third consecutive drop, according to the Opec Monthly Oil Market Report (pdf). Total OPEC crude production was down 0.3% m-o-m in June to 40.8 mn bbl / d.

The bigger picture: Opec kept its forecast for a robust global oil demand for 2024 and 2025 unchanged at 2.2 mn bbl / d and 1.8 mn bbl / d, according to the report. The forecasts come on the back of growing demand on transportation fuels during the summer. “Expected strong mobility and air travel in the Northern Hemisphere during the summer driving/holiday season is anticipated to bolster demand for transportation fuels and drive growth,” the report read.

#2- Baltic index hits one-month low: The Baltic Exchange’s Dry Bulk Index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 2.4% to 1,894 points, approaching a near one-month low, Reuters reports. The capesize segment fell 4.8% to 3,119 points, while the panamax index inched up 0.3% to 1,536 points. The smaller supramax index was up 0.1% to 1,347 points.

DATA POINT-

Qatar recorded 10.1% y-o-y growth in air cargo volumes in June 2024 reaching 214k tons, Qatar Civil Aviation Authority said on X. Aircraft movement increased 11.3% to 23k flights and passenger numbers increased 16.4% to reach 4.3 mn.

CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Warehousing and Logistics Expo on Monday, 2 September to Wednesday, 4 September in Riyadh. The event will bring together leaders in the supply chain, warehousing and logistics industry from across the Kingdom to discuss investments, trade, geopolitical risks, and localized manufacturing.

Egypt will host the Egypt International Airshow on Tuesday, 3rd September to Thursday, 5 September in El Alamein. The event will host a range of discussions touching on industrialization, digitalization, and globalization in the regional commercial aviation sector. During the event, aircrafts and innovative aerospace products, and services will be showcased.

Saudi Arabia will host SkyMove MENA on Tuesday, 10 September and Wednesday, 11 September in Riyadh. The event will gather global industry stakeholders, experts, and service providers to discuss challenges in the regional aviation industry.

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