UAE to invest in Italy’s data centers and mineral supply chains

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What we're tracking today

TODAY: UAE eyes big investments in Italy + Egypt ramps up export projects

Good morning, folks. Ramadan is just a few days away, and the news cycle has slightly slowed down. Still, we have in today’s issue a few important export-oriented and investment watch updates from across the region. Let’s dive right in.

HAPPENING TODAY-

The WCA Worldwide Conference is kicking off today and will run through to Saturday, 1 March in Dubai. The networking event is set to bring together over 4.5k freight forwarders from about 180 countries and will host several workshops and courses over one week.

WATCH THIS SPACE-

#1- Jordan’s ADC launches EOI for a new Aqaba terminal concession: Jordan’s Aqaba Development Corporation (ADC) — the developer of the Aqaba Special Economic Zone (ASEZ) — has launched an expression of interest (EOI) for a 20-year concession for managing and operating the Aqaba New Silica Terminal, according to a statement. The deadline for EOI submissions is set for 2 March 2025.

The project: ADC is looking to form a public-private partnership for the project, which aims to establish a terminal specialized in handling silica by repurposing and rehabilitating the current cement terminal facilities and Mu’tah floating berth under a build-operate-transfer agreement.

ADC was active in 2024: ADC — whose assets include Jordan’s port, Aqaba airport, and land spanning most of the 375 km2 Aqaba zone — signed a USD 125 mn agreement last August with a consortium of international firms to develop Aqaba’s Sheikh Sabah Al Ahmad LNG terminal to shore up Jordan’s energy supply. It also partnered with Aqaba Container Terminals to jointly manage and operate the inaugural hazardous materials yard within the Aqaba Special Economic Zone last April.

#2- Egypt to launch fresh LNG tender for summer shipments: The Egyptian General Petroleum Corporation will reportedly launch a tender in 2Q 2025 for additional LNG shipments on behalf of the Egyptian Natural Gas Holding Company, CNN Business Arabic reports, citing an unnamed government official. The planned shipments — planned for 3Q 2025 delivery — aim to meet the heightened summer demand.

ICYMI- Egypt reportedly signed agreements with Shell and TotalEnergies in December to purchase a total of 60 LNG shipments in 2025 for around USD 3 bn. The agreements, which reportedly came into effect in early January, require the two companies to supply around five shipments per month.

#3- Feasibility studies kick off in Oman’s EZAD: Saudi contractors are conducting feasibility studies for the development of dry port facilities and a veterinary quarantine at Oman’s Economic Zone at Al Dhahira (EZAD), Aleqtisadiah reports. The Public Authority for Special Economic Zones and Free Zones (OPAZ) issued a tender last week for Omani and Saudi firms interested in the implementation of civil, mechanical, electrical, plumbing, and structural work for the port. The dry port will be operated by Oman Investment Authority subsidiary Asyad Group. The tenders are part of the third phase of a SAR 1.2 bn Saudi-funded infrastructure enhancement plan for EZAD.

BACKGROUND- The Saudi Fund for Development inked an agreement back in 2023 to finance the construction of EZAD’s infrastructure for SAR 1.2 bn (c. USD 319.9 mn). The first phase of the zone will cover 20 sq km and is expected to boost trade with Saudi Arabia.

#4- Updates on Iraq-Turkey oil pipeline: Iraq has earmarked 185k barrels per day (bpd) of crude oil from Kurdistan’s fields — out of its 300k bpd capacity — for exports through the Iraq-Turkey pipeline once it becomes operational, Bloomberg reports, citing remarks by Deputy Oil Minister Basim Mohamed Khudair. The exact date for resumed exports has not been definitively determined, however, as Iraq waits for Turkey's assessment of the “readiness of the pipeline.” Earlier this month, Kurdish region President Nechirvan Barzani said that oil exports could resume in March 2025.

ICYMI- Iraq has taken several steps in the last few weeks to bring the pipeline back to life after it was shut down in February 2023 for earthquake repairs and subsequent financial and technical disagreements with Turkey, which suspended its side of operations following an arbitration court order for it to pay USD 1.5 bn in compensation to Iraq.

#5- Bahrain’s Parcel lands in KSA: Bahraini digital logistics platform Parcel has expanded its operations into Riyadh, where it aims to help businesses streamline last-mile operations, reduce overhead costs, and enhance customer satisfaction, according to a statement. The firm has already received its first 1k orders in Riyadh and has plans to reach 1k orders per day, CEO Ali Dhaif said in a separate statement.

About Parcel: Parcel’s digital platform links businesses to a network of on-demand drivers, eliminating the need for full-time drivers and managing delivery fleets. Businesses using the platform can fulfill instant pickup services by requesting a driver and sending out their orders within 15 minutes, according to the firm’s LinkedIn page. The company has provided its delivery services to over 3k businesses in Bahrain, completing over 1.5 mn deliveries for SMEs and restaurants in the country.

#6- International investors went all in on Adnoc Gas’ 4% stake offering: Over half of the demand for Adnoc Gas' massive USD 2.8 bn follow-on offering came from international investors, with non-GCC accounts securing the majority (75%) of the order book, IFR reports. The offering — which increased the company’s free float to 9% — sets the stage for Adnoc Gas’s inclusion in the MSCI and FTSE emerging market indices, offering global investors greater exposure to the company.

ADVISORS- The state-owned energy giant enlisted BofA Securities, Citi, EFG Hermes, First Abu Dhabi Bank, HSBC, and International Securities as coordinators and bookrunners to manage the sale.

MARKET WATCH-

#1- Crude prices went up this morning, buoyed mainly by the healthy margins reported from refineries and projections of tighter supply as a result of US sanctions on Iranian crude, Reuters reports. Brent crude futures went up this morning by USD 0.38 to USD 75.16 a barrel, while the US West Texas Intermediate (WTI) rose by USD 0.47 to USD 71.17 a barrel by 04.01 GMT.

#2- Asia’s LNG imports are expected to drop 8.8% y-o-y to 20.7 mn tonnes in February, their lowest level in almost two years, Reuters reports, citing Kpler data. The projection comes as Asian buyers turn away from higher LNG prices that are mainly driven by heightened European demand as the continent pushes to replenish its stockpiles, as well as warmer winter in North Asia. Meanwhile, Europe’s LNG imports are projected to increase to 11.8 mn tons during the same period, marking its second-highest month since April 2023.

#3- Baltic index sustains growth trend: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 21 points to 1,002 on Monday, boosted by gains across all segments. The capesize gained 48 points to 1,039, while the panamax index increased 7 points to 1,177. The smaller supramax index grew 9 points to 895.

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CIRCLE YOUR CALENDAR-

The UAE will host the Gulf Ship Finance Forum on Thursday, 10 April in Dubai. The forum will host shipping and finance executives from around the region and the world to host presentations, interviews and panel discussions on ownership, management, chartering, legal and trading in shipping.

The UAE will host the CargoIS Forum on Monday, 14 April in Dubai. The event will discuss industry insights and strategies from leading logistics players, including Emirates SkyCargo and Lufthansa Cargo.

The UAE will host the IATA World Cargo Symposium from Tuesday, 15 April to Thursday, 17 April in Dubai. The event will host sessions, specialized streams, workshops and summits related to technology, security, customs, cargo operations and sustainability for over 1.4k industry leaders.

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

UAE earmarks investments in Italy for data centers and supply chains

The UAE plans to invest USD 40 bn in Italy with a portion of investments pegged for data centers and supply chains, the two countries said in a joint statement picked up by state news agency Wam. The news comes after UAE President Mohamed bin Zayed Al Nahyan wrapped a visit to Rome to meet Italian Prime Minister Giorgia Meloni in Rome and work towards a comprehensive strategic partnership.

The logistics angle: Italian energy firm Eni signed three agreements with Emirati companies, according to a press release. The investment values for the agreements were not disclosed, but they cover:

A letter of intent signed with Abu Dhabi’s AI fund MGX and state AI firm G42 to develop blue-powered data centers — using energy from Eni’s natural gas power plants, whose CO2 emissions are captured and stored — with an initial 1 GW capacity in Italy, with the first project taking place over two phases;
An agreement with Taqa Transmission and renewables giant Masdar to serve as preferred off-taker for the tripartite subsea cable project Italy and the Emirates inked with Albania last month ;
An agreement with sovereign wealth fund ADQ to develop a critical minerals supply chain.

There’s more: The visit saw the signing of over 40 agreements covering collaboration in AI, space exploration technologies, defense tech, cybersecurity, policing, health, energy and sustainability, and water. Cooperation between the two countries and African nations is also in the cards.

Italy has been growing ties with the GCC: The country also signed USD 10 bn in agreements with Saudi Arabia last month.

AD Ports launches Al Faya Dry Port

AD Ports has launched its first custom-bound inland dry port facility, according to a statement. The facility — dubbed as Al Faya Dry Port — will serve as an inland container depot (ICD) connected to Abu Dhabi’s Khalifa Port and function as a transit terminal for trucks. The new facility looks to streamline market access and cut costs for cargo handling operations from Khalifa Port to Dubai and the northern Emirates region.

The new facility looks to boost connectivity and operations at Khalifa Port’s recently launched AED 3.1 bn container terminal as part of a JV between AD Ports and CMA Terminals, a subsidiary of French logistics giant CMA CGM Group. The French company will be the dry port’s key initial client, with other players operating at Khalifa Port, like Switzerland's MSC and China’s Cosco, set to be serviced later as operations scale up.

REMEMBER- The terminal is set to expand the port’s total container capacity by 23% to reach nearly 10 mn TEUs.

More details: The truck terminal at the dry port has an initial container capacity of 900 TEUs – scalable dependent on demand. AD Ports will deploy its Maqta Technologies’ Advanced Trade & Logistics Platform to digitally connect Khalifa Port to the new dry port.

Not the first we’ve heard of the dry port: Abu Dhabi Customs greenlit the establishment of a new customs center — Al Faya Dry Port Customs Center — last month, which is set to oversee the new center, offering 24-hour service throughout the week.

AD Ports + CMA CGM have overseas ventures: The pair formed a JV to develop and operate the New East Mole multipurpose terminal in Pointe Noire, Congo, for which AD Ports Group secured a 30-year extendable concession for the terminal in June 2023. The first phase includes a USD 220 mn investment to construct a 400 m quay wall and a 10-hectare logistics zone. The terminal will handle containers, general, break-bulk and other types of cargo at the Central West African nation’s biggest Atlantic port.

CMA CGM’s been busy in the region: Saudi Arabia’s Almajdouie Logistics finalized in October a joint venture (JV) with France-based CMA CGM’s logistics arm CEVA Logistics to boost logistic services in the Kingdom. The Saudi Ports Authority (Mawani) and CMA CGM broke ground over a year ago on their new SAR 487 mn integrated logistics area in Jeddah Islamic Port.

IN OTHER AD PORTS NEWS-

Noatum + Erkport launch RoRo liner JV: AD Ports subsidiary Noatum Maritime has entered into a JV with Turkish shipping firm Erkport to launch a new RoRo liner — dubbed United Global RoRo — that aims to link key ports in the automotive sector, according to a statement. Noatum Maritime will hold a 60% stake in the JV, while Erkport will retain the remaining 40%,

The plan: The JV aims to establish regional feeder networks as well as boost the accessibility of RoRo liner services across the Arabian Gulf, Europe, the Mediterranean Sea, South Africa, and Asia. The venture is slated to use integrated regional networks to cap transit times and advance cargo delivery efficiency. Once operational, the JV will operate 11 vessels over five services, deploying container RoRo, Pure Car and Truck Carrier (PCTC) and RoRo vessels.

Qalaa Holdings opens two export-ready facilities in Egypt

Qalaa Holdings opens export-ready herb drying facility in Egypt: EGX-listed Qalaa Holdings inaugurated a new herb drying facility for its subsidiary Dina Farms, completing the EGP 400 mn first phase of the project, according to a statement (pdf). The factory has received the needed international certifications to begin production for export, the release added.

Qalaa also inaugurated a new EGP 27 mn production line for glass wool pipe insulation at Glass Rock Insulation, a subsidiary of Qalaa’s ASCOM.

Both facilities stand to boost Egypt’s FX revenues: “We expect export revenues from insulation products and the new herb drying facility to reach around USD 40 mn,” Qalaa Holdings founder and chairman Ahmed Heikal said, adding that the company’s export revenues reached USD 47.7 mn in the first nine months of 2024.

IN OTHER EGYPT NEWS-

#1- Haier to invest USD 500 mn in expanding Tenth of Ramadan complex: Chinese appliance manufacturer Haier plans to inject USD 500 mn over the next five years to expand its industrial complex in Tenth of Ramadan to increase its production capacity 5x, Haier Egypt General Manager Ahmed El Gendi told Al Borsa. The company plans to export 30% of its increased output, with the remaining 70% allocated to meet domestic demand,

Exports expansion plans: The company has started exporting to a number of countries — namely Tunisia and Kenya — with plans to soon tap the Algerian and Jordanian markets. He also mentioned plans to export to central African and European markets, El Gendi said.

REMEMBER- Haier laid the foundation stone for the USD 40 mn second phase of its eco-industrial complex in Tenth of Ramadan City last September.

What’s coming: Haier will begin operating the second phase of the complex in 4Q 2026, and preparations for launching the third phase of the complex are already underway after the Industrial Development Authority allocated 45k sqm for the third phase, El Gendi said at the time. The third phase will produce 22k air conditioning units a year with an investment of USD 60 mn.

#2- Swedish home appliance maker Electrolux has decided to ramp up its Egypt operations and target exports, scrapping plans to exit the Egyptian market and sell its local operations after a final review, the company said in a statement (pdf).

The Swedish giant had been exploring a potential exit since July 2023 but cited strong market fundamentals and brand equity — particularly for Zanussi — as key reasons for staying. CEO Yannick Fierling said Electrolux sees greater value in scaling up its Egypt operations, tapping into rising consumer demand while using the country as an export hub.

The group currently ships to 20 markets and dominates key segments, with Olympic Electric leading in water heaters, Zanussi in automatic washing machines, and Ideal in single-door fridges, Maissam Hannawi, Managing Director of Electrolux Egypt, said.

A 14-year presence: Electrolux has been active in Egypt since 2011 when it acquired Egyptian home appliances manufacturer Olympic Group.

Spring Valley to invest AED 189 mn in distribution hub at Jafza

UAE’s local agro-commodity supplier Spring Valley is investing AED 184 mn to develop a new distribution hub at Dubai’s Jebel Ali Freezone (Jafza), according to a statement. Once fully operational, the project is set to process over 65k tonnes of staple food items and garner over AED 440 mn annually. The project’s first phase is slated to be completed within two years.

Jafza’s big on F&B: Jafza’s food and beverage (F&B) sector facilitated some AED 23.2 bn in trade in 2023, amounting to 26% of the total value of Dubai’s F&B trade. F&B firms operating within the zone grew by 14% y-o-y to host over 770 businesses, the statement said.

ICYMI- Jafza inked an agreement with Indian food giant Haldiram last week to establish one of the largest saffron processing facilities in the GCC. The facility — which will be managed by saffron processing specialist Kesar Expert & Packer — is set to begin operations in March 2025. It will initially process 30 metric tonnes of saffron, with plans to scale up to 100 tonnes over five years.

Flybdubai reports “strongest-ever” results for FY2024

Emirates’ budget airline Flydubai achieved its strongest-ever financial results in 2024, reporting a 16% y-o-y increase in net income before tax to AED 2.5 bn, while net income after tax reached AED 2.2 bn, the company said in its earnings release (pdf). Revenue climbed 15% y-o-y to AED 12.8 bn, driven by strong travel demand and network expansion.

Highlights of the year: Flydubai added four Boeing 737 MAX 8 aircraft to its fleet, bringing the total to 88 aircraft. The carrier also expanded its connectivity to global destinations, including Switzerland, Malaysia, Kenya, Nepal, Iran, Pakistan, and Saudi Arabia, and moved about 46.5k tonnes of cargo.

What’s next in 2025? The airline aims to add 12 new Boeing 737s in 2025 to continue its fleet expansion and upgrades as well as boost its network development strategies.

REMEMBER- Flydubai inked a services agreement with Boeing earlier this month to boost its fleet operations. Boeing will make its tailored parts package available to maintain Flydubai’s fleet and will provide quick engine change kits for the airline’s 737 Max aircraft to cut down on costs and reduce schedule disruptions.

Updates on roads, aviation, and storage from Qatar, Jordan, and KSA

AVIATION-

AIG to modernize Jordan’s Queen Alia Airport: Jordan’s Transport Ministry has inked a joint declaration with Airport International Group (AIG) to upgrade Queen Alia International Airport, Petra reports. The agreement will see AIG — which is majority-owned by Groupe Aéroports de Paris (Groupe ADP) — implement several developments to the airport, including upgrading the southern runway and integrating electronic security gates. The move comes after the Jordanian government’s decision to extend AIG’s build-operate-transfer concession of the airport until 2039.

ROADS-

Qatar’s Public Works Authority (Ashgal) has broken ground on a road and infrastructure development project in Birkat Al Awamer, according to a statement. The project — which will serve Qatari Economic Zones Company Manateq’s logistics zone in the area — involves building a 24 km road network, a 5km drainage network, and a 27k cubic meter rainwater storage lagoon. The project is set to be completed by 3Q 2027.

Strikes called at several Germany airports

Strikes called at two Germany airports on Monday: Public sector employees issued a 24-hour warning strike at Germany’s Cologne-Bonn and Düsseldorf airports that brought operations to a halt, Deutsche Welle reports. The warning strikes came as part of Germany’s Verdi trade union push for better benefits for airport workers as it seeks to secure an 8% or EUR 350 hike in pay per month for public sector workers, increased bonuses, and three additional days off.

Panic at the airports: Strikes at Cologne-Bonn Airport — which started on Sunday until yesterday evening — saw 106 out of 168 scheduled flights canceled during the period, with expectations for further delays down the line, according to a statement. As for Düsseldorf Airport, 334 flights were canceled during the strike period, according to a statement.

Another strike is coming: Verdi announced it is planning another 48-hour strike at Munich Airport, which is set to begin at midnight on Wednesday, DW reports.

Calendar

MARCH

No events announced at the moment.

APRIL

2-4 April (Wednesday-Friday): Global Supply Chain and Logistics Summit, Amsterdam, The Netherlands.

3-4 April (Thursday-Friday): Africa Supply Chain Optimization, Johannesburg, South Africa

10 April (Thursday): Gulf Ship Finance Forum, Dubai, UAE.

14 April (Monday): CargoIS Forum, Dubai, UAE.

15-17 April (Tuesday-Thursday): Transport Middle East Exhibition and Conference, Aqaba, Jordan.

15-17 April (Tuesday-Thursday): IATA World Cargo Symposium, Dubai, UAE.

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

28 April-2 May: 7th Export Capabilities Exhibition (Iran Expo), Tehran, Iran.

MAY

6-8 May (Tuesday-Thursday): Airport Show, Dubai, UAE.

12-15 May (Monday-Thursday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

13-14 May (Tuesday-Wednesday): Global Ports Forum, Dubai, UAE.

20-22 May (Tuesday-Thursday): Seamless Middle East, Dubai, UAE.

27-29 May (Tuesday-Thursday): Saudi Warehousing & Logistics Expo, Riyadh, Saudi Arabia.

JUNE

1-3 June (Sunday-Tuesday): Annual General Meeting & World Air Transport Summit 2025, Delhi, India.

2-4 June (Monday-Wednesday): Propak MENA, Cairo, Egypt.

5-6 June (Thursday-Friday): Supply Chain & Logistics Innovation Summit, Amsterdam, Netherlands.

11-13 June (Wednesday-Friday): Sustainability World Summit, Frankfurt, Germany.

17-19 June (Tuesday-Thursday): Terminal Operations Conference & Exhibition, Rotterdam, Netherlands.

19 June (Thursday): East Med Maritime Conference, Athens, Greece.

25-26 June (Wednesday-Friday): Decarbonizing Shipping Forum, Hamburg, Germany.

JULY

1-3 July (Tuesday-Thursday): ASEAN Ports and Logistics, Jakarta, Indonesia.

SEPTEMBER

24-26 September (Wednesday-Friday): Routes World, Hong Kong.

OCTOBER

1-2 October (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam, Saudi Arabia.

14-15 October (Tuesday-Wednesday): Investing in Africa Conference and Expo, London, UK.

NOVEMBER

3-6 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

4-6 November (Tuesday-Thursday): Air Cargo Forum, Abu Dhabi, UAE.

17-21 November (Monday-Friday): Dubai Airshow, Dubai, UAE.

EVENTS WITH NO SET DATE

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 two of Jafza Logistics Park to be completed.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

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

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