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Etihad Airways acquires AED 1.5 bn worth of engines from Sanad

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What we're tracking today

TODAY: Etihad Airways acquires AED 1.5 bn worth of engines + Acquisition updates from EasyLease and FedEx Maroc

Good morning, friends. It’s a fairly busy news morning with a large Etihad Airways transaction and a couple of acquisition updates from the UAE and Morocco, plus we have the latest on the global e-commerce sector outlook thanks to DHL. Shall we?

WATCH THIS SPACE-

#1- LNG buyers are turning away from Qatar and towards the UAE, Oman, and the US for more flexible supply agreements, Reuters reports. Japan and South Korea are looking for suppliers who offer shorter-term contacts and, unlike Qatar, do not limit the cargoes’ final destination. Qatar’s agreement to supply some 4.92 mn tons of LNG per year to Korea Gas Corp is set to expire this year. QatarEnergy said it would not comment on market speculation, the newswire writes.

What we know: Negotiations with South Korea and Japan have stalled due to Qatar’s insistence on destination clauses, which prevent buyers from selling cargoes if they no longer need them. “The Qataris try to achieve a lot in how they sell their LNG in terms of retaining control over the market … the UAE’s Adnoc and Oman are kind of happy to just get a good price,” a senior trading source told Reuters. Japan, along with other top LNG buyers, is looking for more supply flexibility to adapt to variable power demand amid nuclear reactor restarts and increasing integration of renewable energy, industry sources told Reuters.

Going forward: QatarEnergy is in talks with European and Asian buyers to supply LNG from its North Field expansion project, which is set to expand production by 85%, Reuters said. CEO Saad Al-Kaabi expressed his belief in a promising future for LNG, particularly in Asia, for at least the next 50 years.

#2- Morocco’s ONHYM + ONEE ink natgas agreement: Morocco’s National Office of Hydrocarbons and Mines (ONHYM) has inked an agreement with the National Office of Electricity and Drinking Water (ONEE) to transport natural gas that supplies ONEE’s gas-fired power plants through the Maghreb-Europe gas pipeline (GME), according to a statement. The agreement allows the import of liquefied natural gas (LNG) — which is unloaded and regasified in Spanish terminals — to be transported to Morocco through the GME.

Background: The pipeline transported gas from Algeria to Spain via Morocco until late 2021 before Algeria suspended flows after cutting off diplomatic ties with Morocco. It was reported at the time that Algeria would compensate for lost supplies to Spain via the Medgaz undersea pipeline running directly from Algeria to Spain and with extra shipping capacity.

Recent moves to import gas: Morocco was lining up a tender for a floating LNG terminal at Nador West Med port this summer in a bid to develop a means to connect to an existing pipeline that facilitates the import of 0.5 bn cubic meters of LNG per year from Spanish terminals. Morocco intends to connect to gas fields under development in the east and west of the country.

#3- Egypt greenlights Tenth of Ramadan dry port: Egypt’s House of Representatives has approved a public-private partnership (PPP) with Medlog, a subsidiary of Italy’s Mediterranean Shipping Company (MSC), to finance, design, construct, exploit, and maintain a dry port and logistics center in the Tenth of Ramadan City, Mubasher reports. The partnership extends for 30 years, starting from the date of receiving the land for the port.

We knew this was coming: Medlog inked the agreement to develop the USD 100 mn dry port in August 2023. Unnamed sources confirmed in September that final agreements were to be signed following the greenlighting of the project.

ALSO- Egypt’s Borg El Arab and El Alamein airports are getting a capacity boost come November: Developments to the Borg El Arab and El Alamein International airports are set to be completed by early November, Egyptian Civil Aviation Minister Sameh Elhefny said. Borg El Arab International Airport will have the capacity to welcome 6 mn passengers a year when the government and the Japan International Cooperation Agency (JICA) set up Terminal 2 — the country’s first eco-friendly passenger terminal. Meanwhile, work on the El Alamein International Airport is set to push its annual capacity to 1 mn passengers.

MARKET WATCH-

#1- Oil prices dipped in early morning trading on the back of a spike in US crude inventories but MENA regional tension continues to impact further decreases, Reuters reports. Brent crude futures slipped USD 0.20 to USD 75.84 a barrel by 03.30 GMT, while US West Texas Intermediate (WTI) futures dipped USD 0.20 to USD 71.54 a barrel. Both contracts settled higher in the two previous sessions.

#2- Baltic index down across the board: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — dropped 4.3% to 1,480 points on Tuesday, registering at its lowest reading since early February. The capesize index fell 183 points to 2,008 points, while the panamax index lost another 18 points to 1,260 points. The smaller supramax was down an additional point to 1,249 points.

PSA-

Saudi Arabia prohibits foreign truck operations without license: Saudi Arabia’s Commerce Ministry has prohibited suppliers from contracting foreign trucks to operate in the country without obtaining a license from the Transport General Authority (TGA), Jehat reports, citing a circular from the ministry.

The details: The TGA requires foreign vehicles to disclose their operational age, have a tracking device installed, and have approval from the authority to transport goods. Non-Saudi vehicles are not allowed to remain within the country for more than the approved time. The authority is also prohibiting foreign vehicles from transporting passengers and goods unless they are going back to their country of origin from the city of arrival, or from other cities along the route of return.

***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.

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***

CIRCLE YOUR CALENDAR-

The International Conference on Tourism, Transport, and Logistics (ICTTL – 2024) is being held on Saturday, 26 October and Sunday, 27 October in Dubai. The conference will bring together experts, present ongoing research activities, and discuss future projects and partnerships.

The UAE will host the International Conference on Tourism, Transport, andLogistics on Saturday, 26 October and Sunday, 27 October in Dubai. The event will gather scientists, scholars, and engineers from around the world to discuss new ideas and research development projects in the industry.

Saudi Arabia will host the Saudi Airport Exhibition on Monday, 11 November and Tuesday, 12 November in Riyadh. The two-day exhibition will bring together global industry leaders to discuss the latest technologies around the world in the aviation industry. It looks to encourage discussion between Saudi aviation leaders and the global supply chain industry.

The UAE will host the ADIPEC Maritime and Logistics Exhibition and Conference on Monday, 11 November and Thursday, 14 November in Abu Dhabi. The event looks to explore ways to reduce emissions through innovative solutions. It will bring together industry leaders, regulators and decision makers in the global maritime and logistics sector.

Bahrain will host The Bahrain International Airshow on Wednesday, 13 November and Friday, 15 November near Awali. The three-day event is bringing together over 180 participating companies from over 59 represented nations globally.

Egypt will host the Autotech Exhibition on Sunday, 17 November until Tuesday, 19 November in Cairo. The event will bring together prominent local and international companies to discuss and evaluate the latest developments and trends in the automotive aftermarket and feeder industries.

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

This publication is proudly sponsored by

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Aviation

Etihad Airways acquires AED 1.5 bn worth of engines from Sanad

More aircraft engines for Etihad: Sovereign investment fund Mubadala’s aerospace engineering and leasing subsidiary Sanad finalized an agreement to sell 16 aircraft engines to Etihad Airways for approximately AED 1.5 bn, according to a press release.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

What’s Etihad buying? Etihad will receive nine GEnx engines for its Boeing 787 aircrafts, five GP7200 engines for its Airbus A380s, one Trent XWB engine for its Airbus A350, and one V2500 engine for its Airbus A320.

A long-standing partnership: Sanad has been a provider of maintenance, repair, and overhaul (MRO) services for Etihad since 2003, the statement said. Total financing transactions between Etihad and Sanad are valued at over AED 3 bn.

REMEMBER- Etihad Airways has been pushing forward with its expansion plans as it gears up for an IPO next year. The airline plans to double its fleet size and triple passenger numbers by 2030, adding 16 aircraft to its 92 fleet in 1H, and said it was expecting to add more than 20 new generation aircraft to its fleet in the next 18 months. Etihad’s parent company ADQ is reportedly going after both a traditional IPO and direct listing on ADX no sooner than in 2025, with the offering expected to raise as much as USD 1 bn.

Impact on Sanad: The company sees revenues reaching AED 4.5 bn by year-end, after seeing some AED 3.4 bn in revenues in 9M 2024, Sanad’s CEO Mansoor Janahi, told CNBC Arabia (watch, runtime: 6:55) in an interview.

Coming soon: The company is planning to launch a fifth maintenance line on 18 November with an investment of AED 100 mn, Janahi said. Sanad plans to boost its capacity to 172 engines this year, and more than 200 engines next year, he added.

And there’s more in the pipeline for Etihad: Etihad Airways is planning to reveal a significant network expansion in late November and early next year as it prepares to receive its first Airbus A321LR. “The date to watch out for is November 25, when we will announce 11 new cities. And then, next year — around January or February — we’re going to announce 20 more cities. So we have a lot of growth coming,” Etihad Airways Chief Revenue and Commercial Officer Arik De told delegates at a summit earlier this month.

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M&A Watch

EasyLease acquires 51% stake in Gallega Global Logistics

UAE’s EasyLease makes another acquisition: Motorcycle lessor and International Holding Company (IHC) subsidiary EasyLease acquired a 51% stake in Dubai-based Ghassan Aboud Group’s multi-sector logistics services provider Gallega Global Logistics for an undisclosed sum, according to a statement.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

What’s in it for EasyLease? The company will gain access to Gallega’s existing infrastructure, including 3.5 mn sq ft of logistics infrastructure in Abu Dhabi, as well as other the firm’s facilities in Dubai, the statement notes. The acquisition will allow EasyLease to expand its service offerings and enter new markets, it added. Both companies are looking to invest in advanced mobility technologies and AI.

On an acquisition spree: EasyLease acquired a 60% stake in UAE-based Alserkal Group subsidiary and transportation technology solutions provider United Trans back in April. The firm also snapped up a 60% stake in Ripe last December, which offers various services including container and commercial kiosk rentals. That same month, it acquired a 60% stake in UAE-based electric charger manufacturing and installation company Fully Charged, to increase decarbonization in last-mile delivery across the UAE and the region.

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M&A Watch

Amethis + FedEx Maroc finalize Logic Transport acquisition

Amethis + FedEx Maroc acquire Morocco’s Logic Transport: French private equity firm Amethis and Globex (FedEx Maroc) have fully acquired Moroccan transport and logistics player Logic Transport for an undisclosed sum, according to a press release.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Why is this important? The acquisition — which Amethis partially financed — expands Globex’s presence in Morocco’s transport and transit sector by using Logic Transport’s fleet of over 150 trucks. Globex — which operates under the exclusive license of FedEx — will continue to deploy its sustainable development approach, with a particular emphasis on assessing and managing the carbon footprint of its vehicle fleet.

Background: Amethis acquired a minority stake in Globex Group back in 2022 in a bid to grow Globex into a regional logistics leader. The company has since seen the development of Globex’s logistics platform, freight activity, and enhanced delivery times across the country.

About Logic: Founded in 1980, the road transport company operates in the transit, container management, handling and warehousing sectors.

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Aviation

A new MRO facility is heading to Dubai South

A new MRO facility at Dubai South: Dubai aerospace platform Mohammed bin Rashid Aerospace Hub (MBRAH) has inked an agreement with International Energy Resources (IER) MRO Industries to build a maintenance, repair, and overhaul (MRO) and engine testing facility at Dubai South, according to a press release. The hub is expected to be completed in two phases by 4Q 2026 and 3Q 2027.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Details: The new facility will cover an area of 880k square feet and offer services including the manufacturing of gas turbine engine components as well as engine repair and overhaul. The facility will also feature an engine test cell capable of testing both aero engines and aero derivative industrial engines, with an initial capacity to test 50 engines per year.

MBRAH has been busy: The aerospace platform and UAE-based MRO outfit Tim Aerospace broke ground on a new MRO hangar at Dubai South back in March. It had inked an agreement with UAE-based budget carrier Flydubai in November 2023 to develop a purpose-built USD 190 mn MRO facility in Dubai South, with plans to kick off the construction of a hangar and workshop this year to complete development by 2026. MBRAH inked another agreement the same month with integrated cabin completion and modification service center UUDS to open its third hangar at Dubai South.

The region’s MRO sector has been on an upswing: The region’s MRO sector has seen a slew of new investments recently, as regional players look to establish localized maintenance rather than outsource these services to external outfits. EgyptAir’s maintenance and engineering arm inked a three-year service contract earlier this month with Germany-based Liebherr-Aerospace to provide heat transfer equipment maintenance for airlines with existing MRO contracts with Egyptair. The UAE’s Sanad partnered with Airbus back in August to provide MRO for Airbus engines. Bahrain’s national carrier Gulf Air announced in July that it was establishing an MRO hangar at Bahrain International Airport.

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Also on Our Radar

A heap of updates in zones, trade, logistics handling, and supply chains from Oman, Jordan, the UAE, and KSA

ZONES-

Oman + Jordan ink MoU to boost economic ties in Duqm and Aqaba: Oman’s Public Authority for Special Economic Zones and Freezones (OPAZ) and Jordan’s Aqaba Special Economic Zone Authority have signed an MoU to bolster economic ties and investment activity, ONA reported. Under the MoU, the pair will work to attract investments to their respective economic zones. The two sides will share knowledge and expertise in a variety of matters, including legislation, management bylaws, and operating and developing economic zones.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Egypt + KSA firm discussing building door factory in Egypt: Egypt’s Industry and Transport Ministry is in talks with Saudi Arabia’s Iron Technology Company to establish a factory for the production of armored and fire-resistant metal doors and their accessories in Egypt, according to a statement. The Saudi firm exports to several Arab and European countries.

TRADE-

Sharjah Chamber + Japan discuss activation of trade MoU: The UAE’s Sharjah Chamber Commerce and Industry (SCCI) is in talks with Japan to boost trade and joint investment between the two countries, Wam reports. The two sides are discussing activating an MoU inked in March between the Japan External Trade Organization and the Sharjah Chamber to boost trade relations. The two parties discussed potential mechanisms for increasing trade volumes, which would entail developing communication frameworks and partnering in an array of sectors, including technology, innovation, and renewable energy.

SUPPLY CHAINS-

Vallourec + Asmo partner up on supply chains services: France-based Vallourec has signed an MoU with Advanced Supply Management Operations (Asmo) — a JV between DHL and Aramco — to provide a wide range of end-to-end supply chain services, according to a press release (pdf). The services include sourcing, procurement, inventory management, logistics, and warehousing.

OTHER STORIES WORTH KNOWING THIS MORNING-

  • Tunisia-Libya Ras Jedir border crossing reopens: Libya has resumed commercial trade activities with Tunisia at the Ras Jedir border crossing. (The Libya Observer)
  • Air Arabia connects Cairo to Kuwait: The UAE’s Air Arabia is launching three weekly flights between Cairo and Kuwait starting 14 January 2025. (Statement)
  • Gasco + DESFA partner up on gas transport: The Egyptian Natural Gas Company (Gasco) has signed an agreement with Greek national gas system operator DESFA to collaborate on natural gas, hydrogen, and renewable gas transport. (Statement)
  • Rakez holds Canada roadshow: The Ras Al Khaimah Economic Zone (Rakez) has wrapped up a roadshow in Canada where it held meetings with Canadian companies looking to access emerging markets in the MENA region. (Statement)
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Around the World

Global trade barriers will intensify in 2025, South Korean manufacturers predict

South Korean firms expect heightened trade barriers on the back of US presidential elections, with tariffs topping their concerns regardless of which candidate wins, Bloomberg reports. South Korea is one of the largest exporters globally, which leaves its economy dependent on demand from abroad. Donald Trump has promised to hit China, South Korea’s biggest trading partner, with increased tariffs, while Kamala Harris looks to raise corporate taxes, which could slow growth and weigh on international purchasing power.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Trade protectionism is expected to intensify next year, said some two-thirds of 300 manufacturers surveyed by the Korea Chamber of Commerce and Industry. Over half of respondents stressed that geopolitical risks would grow next year due to ongoing conflict in Europe and the Middle East.


US oil industry secures extension to prevent Gulf of Mexico shutdown: The US oil industry received a postponement in a significant legal battle with environmental groups regarding regulations that it argued could lead to a total halt in production in the Gulf of Mexico, Financial Times reports. On Monday, a federal court decided that agency regulations set to expire in December can stay in effect until May, even though it had previously determined that they did not provide adequate protections for endangered species.

The dispute: The US National Marine Fisheries Service and environmentalists warned that the five-month delay for improving regulations increases the risk of extinction for Rice’s whales in the Gulf of Mexico. The species’ whole population has fallen to 50 whales. The industry contended that if the “biological opinion” from the US National Marine Fisheries Service was canceled without a replacement, it would create a gap that could disrupt production, resulting in the loss of hundreds of thousands of jobs and a monthly economic impact of USD 2.8 bn on the national output.

OTHER STORIES WORTH KNOWING THIS MORNING-

  • Charleroi Airport halts flights amid strike: Belgium’s Charleroi Airport canceled all flights on Tuesday due to a security staff strike, saying the worker shortage meant the safety of passengers and staff could not be guaranteed. (Brussel Times)
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On Your Way Out

E-commerce on social media is set to grow 12x by 2030

The global e-commerce market is booming with around 51% of online shoppers buying online at least two to three times a week, according to a recent DHL report(pdf). Purchases using social media platforms are forecasted to grow 12x and reach USD 8.5 tn by 2030, according to DHL. The growth pattern extends to regional e-commerce markets funneling a slew of investments towards e-commerce and last-mile delivery platforms.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Key findings: Some 80% of buyers said the choice of logistics provider influenced their buying decisions. On top of this, affordable and flexible delivery options were identified as a key decision factor for e-commerce customers, as 41% of shoppers were found to abandon their carts due to expensive delivery fees.

Going green: The integration of sustainable practices in the supply chain is becoming increasingly relevant to buyers, with 76% considering sustainability important to their purchasing decisions. In the Europe and Asia-Pacific markets, 73% of buyers wanted to know the carbon emissions related to their deliveries, with 43% of shoppers willing to accept longer delivery times if it impacts the sustainability of their delivery, the report finds.

Cross-border transactions are on the rise: Some 75% of buyers shopped from foreign retailers once a month, and 17% once a week, with the majority making purchases in fashion, electronics, and cosmetics.

Closer to home: Saudi Arabia’s e-commerce market is expected to be worth USD 44 bn by 2030, up from USD 21 bn today. The sector is slated to grow by 13.5% annually, beating a global average of 11.2%, as digital infrastructure and e-commerce are a key pillar of the Kingdom’s diversification efforts.

E-commerce players are flocking to the region: The Saudi Export Development Authority (Saudi Exports) inked an agreement in June with Chinese e-commerce company Alibaba to offer Saudi products on the platform, expanding their reach to global markets. Nigeria-headquartered Jumia Group launched an integrated 5k sqm warehouse in June near Casablanca and another 30k sqm integrated facility in Lagos.

Expansions on the rise: DHL Express inaugurated a EUR 218 mn expansion of its MENA hub and main office at Bahrain International Airport (BIA) last month. The new 54k square meter expansion can accommodate 12 DHL aircraft and process over 2 mn shipments annually. Dubai South and Abu Dhabi-based real estate developer Al Dar Properties (Aldar) inked an agreement back in May to develop a build-to-suit facility for Swiss-based logistics provider Kuehne+Nagel at Dubai South’s EZDubai e-commerce hub. The pair broke ground in June on their new e-commerce fulfillment and distribution center in Dubai South’s e-commerce zone EZDubai.


OCTOBER

22-24 October (Tuesday-Thursday): Asean Ports and Logistics, Johor, Malaysia.

22-24 October (Tuesday-Thursday): Global Ports Forum, Singapore.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai, UAE.

NOVEMBER

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh, Saudi Arabia.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

11-14 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

13-15 November (Wednesday-Friday): The Bahrain International Airshow, Sakhir Airbase, Bahrain.

13-15 November (Wednesday-Friday): ITC North-South – New Horizons, Astrakhan, Russia

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Damman, Saudi Arabia.

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam, Saudi Arabia.

18-19 November (Monday-Tuesday): G20 Summit, Rio de Janeiro, Brazil.

20-21 November (Wednesday-Thursday): Saudi Rail Exhibition, Riyadh, Saudi Arabia.

DECEMBER

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh, Saudi Arabia.

10-11 December (Tuesday-Wednesday): Rail Industry Summit, Casablanca, Morocco.

10-12 December (Tuesday-Thursday): Middle East Business Aviation, Dubai, UAE.

20 December (Wednesday): The Iran-Senegal Joint Economic Cooperation Commission, Dakar, Senegal.

EVENTS WITH NO SET DATE

IATA Annual General Meeting (AGM) and World Air Transport Summit, New Delhi, India.

1H 2024: Civil Construction subcontracts for construction firms in Oman for implementation of the Abu Dhabi – Suhar rail link to be announced.

2H 2024: Bahri’s barges for Saline Water Conversion Corporation (SWCC) to begin initial and commercial operation.

King Salman Energy Park is set to become operational.

The Cross-Border Digital Trade Forum, Dubai.

2025

FEBRUARY

4-5 February (Tuesday-Wednesday): Seatrade Maritime Qatar, Doha, Qatar.

APRIL

16-17 April: Global Ports Forum, Dubai, UAE.

Mid-2025: Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

AD Ports-operated Safaga Port’s multi-purpose terminal will become operational.

Phase 3 of APM Terminals Tangier MedPort to be complete and operational.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

1Q 2025: Phase twoof Jafza Logistics Park to be completed.

NOVEMBER

4-6 November: The International Air Cargo Association TIACA’s Air Cargo Forum 2025, Abu Dhabi, UAE.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

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