Good morning, folks. Apologies for the late arrival this morning, we were busy unpacking the freshly released Egypt and Saudi PMI readings that dropped mere hours ago to deliver you all the need-to-know information on last month’s purchasing activity. Let’s jump right in.

WATCH THIS SPACE-

#1- Qatar Airways is reportedly close to finalizing its acquisition of a minority stake in Bain Capital-owned Virgin Australia Airlines within days, according to the Australian Financial Review. The agreement will be conditional on receiving approval from the Foreign Investment Board and could threaten Australia’s flagship carrier Qantas’ stronghold on domestic routes, the outlet added. News emerged in July that Qatar Airways is eyeing a 20% stake in Virgin Australia.

#2- Egypt explores setting up an African investor-focused freezone: Egypt’s industry, transport, and investment ministries are mulling the creation of a freezone for African investors as part of the government’s long-term goal of increasing trade with the continent, Al Borsa reports, citing sources it says have knowledge of the matter. African investors are increasingly turning to countries with better-developed infrastructure to produce their goods, after which they re-export them to their home markets, sources said.

Remember: The new Madbouly cabinet has placed a special emphasis on increasing trade with the rest of Africa via the African Continental Freetrade Area (AfCFTA) — which seems to be picking up steam — and the Common Market for Eastern and Southern Africa (COMESA). African exports will also be supported by new trade missions, with added support for companies targeting exports to Africa also on the cards.

ALSO- A wave of Indonesian investments incoming? Indonesia plans to ink USD 3.5 bn worth of trade and investment agreements with African countries — with a particular focus on Egypt, Kenya, South Africa, and Nigeria — as it looks to expand its investment portfolio outside its usual trade partners, Bloomberg reports, citing a senior diplomat with knowledge of discussions. Areas of focus include the gas, healthcare, and agriculture sectors. Agreements will be announced during the Indonesia-Africa Forum that will wrap up today, according to Indonesia’s Deputy Foreign Minister Pahala Mansury.

#3- Gulf Mercantile Exchange is now live: The Dubai Mercantile Exchange changed its name to Gulf Mercantile Exchange yesterday, following Tadawul Group’s acquisition of a 32.6% stake in the energy and commodities trader back in June.

How they’re positioning it: The name change reflects GME’s ambitions to grow both regionally and globally, it said yesterday.

#4- The London Metal Exchange (LME) is considering listing Jeddah Islamic Port as a new aluminum delivery center, joining other centers in New York, Shanghai and London, Aleqtesadiah reports, citing sources it says have knowledge of the matter. The move would boost the Kingdom’s position as a global hub for metal storage, trade, and distribution and comes on the heels of the LME deciding in July to list Jeddah as a warehouse delivery point for copper and zinc.

MARKET WATCH-

#1- It was a mixed bag for oil prices in early morning trading with brent prices falling and West Texas Intermediate (WTI) prices edging up, Reuters reports. Brent crude futures fell USD 0.37 to USD 77.15 a barrel by 05.25 GMT on the back of weaker than expected PMI data emerging from China and demand concerns. US WTI prices rose USD 0.29 to trade at USD 73.84 due to the country’s Labour Day weekend.

#2- Baltic index is making a big comeback: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — surged 13.5% to 1,919 points on Monday, marking its highest increase since mid-July. The capesize index increased 28% to 3,248 points, boosted by coal and bauxite shipments to China. The panamax index dipped to its lowest record in over a year at 1,305 points, while the smaller supramax index lost 17 points to 1,289 points.

#3- Saudi Arabia and Algeria boost LPG prices for September: Saudi Aramco and Algeria’s Sonatrach have increased official selling prices for liquefied petroleum gas (LPG) for September by 3% to 13% compared to August on the back of increased global demand, traders told Reuters.

DATA POINTS-

#1- Saudi Arabia’s e-commerce logistics market is projected to grow at a 10.9% compound annual growth rate (CAGR) between 2024 and 2029 to reach USD 3.32 bn, while the 2024 forecast is estimated at USD 2.02 bn, according to data by Mordor Intelligence. E-commerce is expected to see SAR 49 bn (USD 13.07 bn) in revenues by 2025.

#2- The UAE has a 42% share of the Gulf Cooperation Council market for data centers, AlEtihad reports, citing the Data Center Map. The UAE operates a total of 30 data centers — 16 in Dubai, 12 in Abu Dhabi, one in Al Ain, and one in Sharjah, while Saudi has 25. Egypt, meanwhile, is home to 14, Data Center Map writes.

The fine print: Al Etihad’s metric is a bit blunt — being home to 42% of the region’s data centers doesn’t necessarily correlate to market share of contract value, of data housed, or other metrics.

#3- Moroccan ports recorded a 15.3% y-o-y increase in commercial cargo volumes to 116.4 mn tonnes in 1H 2024, Atalayar reports, citing data from the Ministry of Equipment and Water. The movement of goods within the country saw a 13% y-o-y growth to 60.8 mn tonnes, while transshipment traffic surged 17.8% y-o-y to 55.6 mn tonnes during the same period.

#4- The Qatari port authority (Mwani) handled 115k TEUs in August 2024, a 40% y-o-y increase, according to a statement. The port operator processed 111k tons of general and bulk cargo, 10.8k Ro-Ro units, and 24k heads of livestock.

Also in Qatar- Hamad Port handled 113k container TEUs, 10k Ro-Ro units, and 71k freight tons of breakbulk cargo in August, according to a statement.

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CIRCLE YOUR CALENDAR-

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.

The UAE will host the Intelligent Transport Systems World Congress from Monday, 16 September to Friday, 20 September in Dubai. The Congress is expected to welcome 20k participants to explore innovations in smart mobility and transportation technology.

Saudi Arabia will host the Saudi Maritime and Logistics Congress on Wednesday, 18 September and Thursday, 19 September in Dammam. The event will gather international industry leaders in the maritime sector to discuss a range of topics including interconnected logistics, supply chains, digitalization, decarbonization and workforce development.

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