Delivery Hero to float 15% of Talabat on DFM

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What we're tracking today

TODAY: AD Ports to upgrade Pakistan’s logistics and maritime infrastructure + Dubai earmarks AED 3.7 bn for new roads

Good morning, friends. We have a mixed bag of news for you this morning, with Delivery Hero publishing its prospectus for Talabat’s IPO, set for December, and updates on the manufacturing front in Egypt. Plus: A read on the expected ripple effects of Donald Trump’s US presidency on global supply chains.

HAPPENING TODAY-

Saudi Arabia is hosting the two-day Saudi Airport Exhibition starting today in Riyadh. The exhibition will bring together global industry leaders to view the latest global aviation technologies and build new partnerships. The event seeks to encourage bilateral discussions between Saudi aviation leaders and global supply chains to boost the country’s aviation industry.

WATCH THIS SPACE-

#1- AD Ports Group + Pakistan ink several logistics MoUs: The UAE’s AD Ports Group has inked MoUs with Pakistan to boost the nation’s maritime, rail, airport, customs, and logistics infrastructure, a statement on Saturday. AD Ports signed MoUs with Pakistan’s Federal Revenue Board, Railways Ministry, National Shipping Corporation, Karachi Port Trust, and Pakistan Airports Authority.

Details: The group will evaluate ways to boost cooperation to expand trade and develop infrastructure, including digital custom controls, developing freight rail corridors, and upgrading the nation’s maritime fleet and airport.

Background: AD Ports Group and Pakistan’s Karachi Port Trust (KPT) inked a 25-year concession agreement in February for a bulk and general cargo terminal at Karachi Port.

#2- Dubai unveils five-year plan for new internal roads: Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum has approved a five-year plan for the emirate’s internal roads with an investment of AED 3.7 bn to develop 21 road projects, according to a press release. Under the project, Dubai’s Roads and Transport Authority (RTA) will build 634 km of roads across 12 residential, commercial, and industrial areas with urbanization rates between 30% and 80%, RTA director general Mattar Al Tayer said.

#3- Riyadh Air to put in new jet order: Riyadh Air is gearing up for a major fleet expansion, with plans to place a new wide-body jet order by 1H 2025, CEO Tony Douglas tells Reuters, without disclosing details on the size of the order. The PIF-owned startup airline is eyeing the Boeing 777X and Airbus A350-1000 to meet its long-haul needs, after having purchased 39 Boeing 787s and 60 Airbus A321neos which are scheduled to arrive between 2H 2026 and 2030.

With the ultimate goal of operating more than 200 aircraft, Riyadh Air is aiming to start formal talks for the new order in the coming months, with some long-range versions likely in the mix to support new routes and optimize load factors, according to Douglas.

Riyadh Air has been on a shopping spree: The airline placed a firm order with Airbus for 60 A321neo aircraft in October for USD 4 bn, and deliveries are expected to run between 2H 2026 and 2030.

MARKET WATCH-

#1- Oil prices declined on Friday by 2% as traders grew less concerned about prolonged supply disruptions from a hurricane in the US’ Gulf of Mexico, while China’s economic-stimulus packages failed to impress oil traders, Reuters reports. Brent crude fell 0.39% to USD 73.58, while US West Texas Intermediate dropped 0.5% to USD 70.02.

#2- Baltic index continues to rise: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 3% on Friday to a two-week high after several weeks of falling. The capesize index gained 154 points to 2,316 points, while the panamax index lost two points to 1,176 and the smaller supramax shed 19 points to 1,079.

#3- The Drewry World Container Index rose by 7% to USD 3,444 per 40-ft container on Thursday, according to the latest index readings. Spot rates for 40-ft containers are now 67% below the previous pandemic peak, but remain 142% above the pre-pandemic rate of USD 1.4k. The average composite index YTD is USD 4,005 per 40ft container, which is USD 1,162 higher than the 10-year average rate of USD 2,843.

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CIRCLE YOUR CALENDAR-

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.

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.

Delivery Hero’s Talabat to IPO on DFM in December

Delivery Hero is selling a 15% stake of Middle East food delivery unit Talabat in an IPO on the Dubai Financial Market (DFM) in mid-December, the company said in its intention to float (pdf) this morning. The transaction is expected to exceed USD 1 bn, Reuters reports, citing people it says are familiar with the matter.

The timeline: The subscription period will open on 19 November and wrap on 27 November for retail Investors, and will end a day later for institutional investors. Shares will start trading on the DFM on 10 December.

Allocation: 95% of the shares offered in the IPO will be allocated to institutional investors, while 5% will be allocated to retail investors, according to the prospectus.

Talabat’s valuation could hit somewhere between EUR 11.5-13.5 bn, managing director of equity research firm Jefferies, Giles Thorne, said. These figures exceed previous expectations of Bloomberg Intelligence which put the valuation between USD 9-12 bn.

Post-IPO ownership: The German last-mile delivery company plans to retain a majority stake in Talabat, with a lock-up period of 180 days following the listing, according to a statement.

The Berlin-based company’s MENA activities are flourishing: Delivery Hero’s gross merchandise value, measuring the total value of all goods sold, increased by 30% across the MENA region in 3Q 2024, according to a statement. This performance came on the back of a 25% y-o-y increase in order volumes and affordability initiatives in this quarter.

Dividends: Post-IPO, Talabat aims to distribute dividends amounting to 90% of net income, starting with a minimum payout of USD 100 mn in April, according to the statement. Additional installments totaling USD 400 mn are scheduled across 2025 and 2026.

ADVISORS- Delivery Hero appointed Emirates NBD Capital, Morgan Stanley, and JP Morgan as joint coordinators and bookrunners, with Abu Dhabi Commercial Bank (ADCB), Barclays, EFG-Hermes UAE, First Abu Dhabi Bank (FAB), Goldman Sachs, ING, and UniCredit also acting as joint bookrunners. Emirates NBD is the lead receiving bank, while ADCB, Abu Dhabi Islamic Bank, Al Maryah Community Bank, Wio, Emirates Islamic Bank, FAB, and our friends at Mashreq are also acting as receiving banks.

Egyptian-Chinese JV to set up USD 360 mn tire factory in the SCZone

Chinese firms eye tire factory in Egypt: An unnamed Chinese company is looking to set up a USD 360 mn tire factory in the Suez Canal Economic Zone (SCZone) in partnership with the state-owned Arab Organization for Industrialization (AOI), Asharq Business reported last week, citing what it says are two informed sources.

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Who will do what? The Chinese company will own 52% stake of the JV and will be responsible for securing financing for the project, while AOI will provide the land for the factory and will own the remaining stake.

The project is expected to begin production by the end of 2025, and will produce some 6 mn tires annually in its first phase, with plans to increase production to 12 mn tires in the future.

This isn’t the first time we heard about a Chinese company interested in local tire production: The Military Production Authority signed a contract with China’s Poly Group in December 2019 to jointly establish a tire production facility with an annual capacity of 3 mn tires, but we haven’t heard much on the project since then. We also heard that the China National Tire & Rubber Corporation was in talks with the military production and public enterprise ministers all the way back in 2018 to discuss setting up a tire factory, but likewise didn’t hear anything more about the project later down the line.

There’s also other sizable tire factories in the pipeline: Rolling Plus Chemical Industries signed a contract last year to establish a EUR 1 bn tire factory to produce some 7 mn tires. The government is also reportedly working with the private sector to revive and develop state-owned tire manufacturer Trenco with estimated investments of USD 160 mn.

UAE’s Emirates Group and Aramex report 3Q earnings

EMIRATES-

UAE-based Emirates Group’s top line rose 5% y-o-y to hit AED 70.8 bn in the six months ending on 30 September, marking its “best-ever half-year” financial performance to date, according to an earnings release (pdf) published on Thursday. The group’s net income amounted to AED 9.3 bn in 1H. The performance was attributed to heightened customer demand across all business divisions and regions.

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National airline Emirates’ net income attributable to owners declined by 6.9% y-o-y to AED 8.7 bn during that same period, according to its financials (pdf), while the carrier’s revenues rose by 4.5% y-o-y to AED 62.2 bn due to strong travel and air cargo demand. Overall capacity increased by 5% y-o-y to 29.9 bn available tonne kilometers (ATKM) in 1H.

Boosted cargo capacity: The group’s cargo arm Emirates SkyCargo transported 16% more cargo tonnes y-o-y to just over 1.1m tonnes in 1H. This performance was driven by a growth in Dubai-bound shipments and heightened Chinese e-commerce traffic. The cargo carrier experienced an 11% increase in cargo yields, driven by high customer demand for its specialized products and its network of freighter and bellyhold cargo services, the statement said.

And an upswing for subsidiary Dnata: Air services provider Dnata, a subsidiary of Emirates Group, saw its top line grow 11% y-o-y to AED 10.4 bn over the first six months of this year. dnata saw its net income reach AED 571 mn during the period, down 19.5% y-o-y on the back of a one-off impairment charge of AED 152 mn. Dnata’s airport operations division contributed the bulk of this performance, accounting for AED 4.8 bn in revenues. The number of aircraft turns handled by the firm grew by 2% y-o-y to settle at 391k, and the volume of cargo handled increased by 18% y-o-y to 1.5 mn tonnes in 1H.

Looking ahead: “The Group’s strong profitability enables us to make the investments necessary for our continued success. We’re investing bns of USD to bring new products and services to the market for our customers; to implement advanced technologies and other innovation projects to drive growth,” said Emirates Airline and Group Chairman and CEO Ahmed Al Maktoum.

ARAMEX-

UAE-based logistics outfit Aramex’s net income rose 212.1% y-o-y to AED 27.1 mn in 3Q 2024, according to its financial statements (pdf).The company recorded AED 1.6 bn in revenues, up 18% y-o-y, buoyed by “consistent volume gains across all product lines,” with each achieving double-digit revenue growth during the quarter, according to a separate earnings release (pdf).

On a nine-month basis, Aramex saw its bottom line rise 49.8% y-o-y to AED 76.9 mn. The company’s top line also increased 11.0% during the same period to AED 4.6 bn, driven primarily by improved sales, especially in international and domestic express operations.

Looking ahead: Aramex is on track to meet its year-end targets, it said. The company is currently “reassessing certain activities” within its freight business, anticipating lower margins across the industry due to a challenging operating environment.

Saudia Cargo appoints Loay Mashabi as CEO

Saudia Cargo appoints new CEO: Air cargo carrier Saudia Cargo has appointed Loay Mashabi (LinkedIn) as its new CEO, starting 1 January 2025, a press release said last week. Mashabi is moving from his previous role as managing director and will succeed Teddy Zebitz (LinkedIn), who will continue to serve as a board member.

Trump’s victory to send ripples across global supply chains

Global trade braces for a new Trump presidency: The world is gearing up for US President-elect Donald Trump’s potential trade war, which could see a 10 to 20% tariff on imports from all foreign countries and an additional 60 to 100% tariff on imports specifically from China, with several logistics players urged to front load their shipments ahead of any changes in tariff policy, CNBC reports. The tariffs will likely impact US retailers and manufacturers as they grapple with increased prices.

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“2018 all over again”? The frontloading of freight during Trump’s trade war on Chinese imports in 2018 drove a rise in ocean container shipping freight rates by more than 70%, but fears of a 100% tariff — compared to 25% in 2018 — is making the incentive to front load greater. “This is 2018 all over again… the calls expand beyond shippers who have Chinese imports. The global tariff threat is fueling calls for frontloading from all around the globe,” VP for global supply chain at ITS Logistics Paul Brashier said.

The impact of Trump’s proposed tariff increase will lead to “dramatic” double-digit percentage price spikes in all six retail categories, including footwear, furniture, household appliances, travel goods, toys, and clothing, according to an NRF report (pdf). The tariff hikes will “create an enormous headache” for retailers, which are prone to pass those increases on to consumers, resulting in decreased spending from already price-conscious shoppers, CNBC reports, citing comments by GlobalData managing director Neil Saunders.

Which companies will be affected? Which companies will suffer from tariff increases will depend on where their goods come from and whether they have the pricing power and popularity to force higher profit margins or raise prices. Giant retailers like Crocs, Skechers, and American Eagle Outfitters are at a higher risk because 20% or more of their goods are sourced from China, retail analyst Lorraine Hutchinson said in a Bank of America research note. On the other hand, companies that source their products from the US would be less vulnerable to the tariffs.

Countries set to be impacted the most:

China will likely face a squeeze on its supply of cheap Iranian crude if Trump ramps up his enforcement of sanctions on Tehran, putting more pressure on its refining sector (Reuters)
Vietnam will likely face trade volatility and potentially benefit from the increased US-China trade tensions as companies shift production there, but it may also become “collateral damage” of US protectionist measures (Reuters)
South Korea will likely face renegotiations of a series of trade and investment agreements with the US should Trump roll back American concessions granted under President Joe Biden’s administration, and is planning on launching consultative bodies and implementing a cohesive step-by-step plan to address market volatility (Bloomberg)

Updates on cargo, ports, and data centers from UAE, Qatar, and Oman

PORTS-

QTerminals + QFZ partner up on Marsa Port: Qatari port operator QTerminals has signed a cooperation agreement with Qatar’s Freezones Authority (QFZA) to manage and operate Qatar’s Al Marsa Port at the Umm Alhoul Freezone, according to a statement. QTerminals will be responsible for managing and developing all operations at Marsa port, providing marine and handling services, bulk and breakbulk cargo operations, yacht building and repair, and managing multi-use berths to support industries and factories that export products from Qatar.

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DATA CENTERS-

Equinix and Omantel launch SN1: Digital infrastructure company Equinix and Omani telecommunications firm Omantel have launched a new data center — dubbed SN1 — in Salalah, Oman, a press release said on Thursday. The center will feature direct fiber connectivity to Equinix’s MC1 data center in Muscat, offering carriers, hyperscalers, content providers, and cloud service providers the ability to co-locate their key infrastructure and further boost regional operations.

PROJECTS-

Egypt and Djibouti ink infrastructure projects agreement: Egypt’s Holding Company for Maritime and Land Transport and Djibouti's Ports and Free Zones Authority signed an MoU to develop infrastructure projects, according to a statement from the Transport Ministry. The statement named ports, roads, logistics zones, and renewable energy facilities as projects that Egyptian companies could offer their expertise and experience to Djibouti.

OTHER STORIES WORTH KNOWING THIS MORNING-

Royal Air Maroc expands fleet: Morocco’s national carrier Royal Air Maroc has added two jets to its Boeing 787-9 Dreamliner fleet. One Dreamliner will operate the Casablanca-Los Angeles route, while the second will operate Casablanca-Beijing. (Morocco World News)
Greek tanker transfers oil after Houthi attack: Greek oil tanker Sounion, which caught fire and lost power after a Houthi attack in August, has transferred over 150k barrels worth of crude to another vessel at anchor in Suez port. (Al Arabiya)
Spain bars Israel-bound Maersk ships from calling at port: Two Maersk vessels, the Maersk Denver and the Maersk Seletar, have been denied entry into Spain’s Algeciras Port by Spanish officials over suspicion of carrying weapons to Israel. (El Pais)

China Airlines to split jet order between Airbus and Boeing + Panama revokes four US-sanctioned LNG vessels

Boeing compensates furloughed staff, moves ahead with job cuts: Boeing is set to repay employees furloughed during the seven-week strike by factory workers for lost wages, but will proceed with plans to cut nearly 10% of its global workforce, Reuters reported on Friday. The planemaker is facing morale issues as it moves ahead with its job cuts, with many of its workers set to be notified about their future roles this month.

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Background: Boeing has racked up nearly USD 8 bn in losses this year after wrestling with a quality crisis in January, and raised USD 24 bn in fresh funds last month to shore up its finances. The firm may end up selling some assets as it downsizes its workforce to prioritize the company’s key civil planemaking and core defense units.

ALSO FROM BOEING- The airline is reportedly nearing a funding agreement with aerostructures manufacturer — and supplier to Boeing — Spirit Aerosystems in the next few days to help Spirit Aerosystems’ finances and fix Boeing’s supply chain issues and revive its jet production, Reuters reports, citing an industry source in the know. Boeing agreed to acquire Spirit Aero for more than USD 4 bn in June.

ALSO WORTH KNOWING- Panama to revoke flag-registration for US-sanctioned LNG vessels: Four LNG vessels sanctioned by the US — North Air, North Mountain, North Way, and North Sky — are having their flag registrations canceled by Panama’s Maritime Authority, Reuters reported last week. The four ships were on Singapore's flag-registry earlier this year, but later shifted over to Panama’s, the newswire says, citing data from maritime database Equasis.

What’s driving the crackdown? The vessels, managed by UAE-registered White Fox Ship Management, were placed on the US sanction list due to their links with Russian gas producer Novatek, Reuters explains. The US sanctioned White Fox Ship Management in August, and are now being targeted by the US State Department for the transfer of LNG from Russia’s Yamal and Arctic LNG 2 projects under a leasing agreement by Novatek and UAE-based associate New Transshipment.

Calendar

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.

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.

29 November (Friday): Egypt and Italy to launch a ro-ro shipping line connecting Damietta Port with Port of Trieste.

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

2Q 2025: ICAO Facilitation Conference 2025 (FLAC 2025), Dohar, Qatar.

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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