Qatar Airways gets green light for Virgin Australia acquisition

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What we're tracking today

TODAY: A heap of M&A updates + Dubai’s roads investment push

Good morning, nice people. We have a packed issue today that is heavy on M&A updates from across the region. But first, more on Trump’s never-ending trade warring…

THE BIG LOGISTICS STORY- Trump picks another trade fight: US President Donald Trump has ordered a new trade investigation into lumber products that could lead to additional tariffs on major exporters. The investigation — which will also look into lumber’s derivatives like furniture and kitchen cabinets — will take 270 days to finish. No timeline for the investigation’s start and end has been disclosed.

By the numbers: In 2022, Canada, China, Brazil, Mexico, and Germany were the US’ top lumber exporters. The US also exported nearly USD 9.83 bn in wood products back in 2023, while it imported nearly USD 24.8 bn in wood products — making it the largest importer of wood products in the world, according to OEC data.

Canada and Mexico could be hard hit: Any tariffs resulting from the investigation would be added to the existing 14.5% combined anti-dumping and anti-subsidy duties on Canadian softwood lumber. The tariffs could also stack on top of the existing 25% tariffs on all Canadian and Mexican goods that are scheduled to take effect this week.

ICYMI- The Trump administration launched a probe last week that could result in a fresh new round of tariffs on copper imports in a bid to curb alleged moves by China to dominate the global copper market.

WATCH THIS SPACE-

#1- Egypt-based Intro Group plans to launch the first phase of its Kemet Data Center project in the Suez Canal Economic Zone (SCZone) next year, Intro Group’s managing partner Ayman Mamdouh Abbas told Asharq Business. The first phase will see USD 150 mn in investments.

What we already know: The project will include four phases, each with a capacity of 20 MW and will have a final price tag of USD 1 bn, the company’s representatives said in November. The first phase will see Intro develop a capacity for 2.5k data transport cabinets and an electrical capacity of 20 MW. The project is expected to be fully completed by the end of 2030.

IN OTHER EGYPT NEWS- Eight Turkish apparel and textile manufacturers are in talks to enter the Egyptian market this year, Head of Egypt’s Apparel Export Council Marie Bishara told Al Borsa on Sunday. Investors are assessing industrial zones and eyeing temporary production partnerships with local manufacturers until their facilities are operational.

Why it matters: The move could boost Egypt’s garment exports by 25% to USD 4.1 bn by 2026, up from USD 3.3 bn this year, Bishara said.

ALSO- Egypt makes headway on Ain Sokhna Port: Infrastructure work at Hutchison Port’s container terminal project in Egypt’s Ain Sokhna Port is complete, while superstructure work is 20% finished, Egyptian Prime Minister Mostafa Madbouly said in a statement during a tour of the site on Thursday. Overall, the project is 96% complete.

Part of a bigger picture: The port is part of an integrated logistics project to link the Red Sea and Mediterranean coasts dubbed the Sokhna-Alexandria Corridor. The corridor — part of Egypt’s Transport Ministry logistic corridors’ project — will be connected to the rail network through the Robeiky-10th of Ramadan-Belbeis railway line, and will pass through the 10th of Ramadan industrial zone, its logistics zone and dry port, then the 6th of October Industrial Zone, its dry port, and logistic zone, before reaching Alexandria Port.

REMEMBER- Egypt signed two agreements worth USD 1.6 bn with two consortiums — both including the Hong Kong-based Hutcherson Ports — to develop new container terminals at the Ain Sokhna and Dekheila ports back in 2023. The Sokhna project — co-developed with Cosco and CMA CGM through a 30-year concession — will double the port’s annual capacity to 3.5 mn TEUs.

#2- Turkey is calling for the Iraq-Turkey oil pipeline to operate at “maximum level” capacity upon resumption, Reuters reports. “We want some of the oil passing through this line to go to the refinery in Kirikkale, and also via ships through Ceyhan, to refineries in Turkey or to different refineries in the world,” Turkish Energy Minister Alparslan Bayraktar was quoted as saying.

REMEMBER- Baghdad recently earmarked 185k barrels per day (bpd) of crude oil for export through the Iraq-Turkey pipeline — out of a total capacity of 300k bpd — once it becomes operational. The pipeline halted operations in February 2023 for earthquake repairs, after which Turkey indefinitely paused oil flow due to an arbitration court ordering it to pay USD 1.5 bn as compensation to Iraq.

#3- Egypt and Morocco have agreed to address trade imbalance and promote bilateral trade after the kingdom halted Egyptians imports over reported trade issues, according to statements here and here. Egypt’s Investment Minister Hassan El Khatib’s visit to Morocco came after reports that Morocco had put a stop to Egyptian imports citing trade imbalance in Egypt’s favor — ended with the two sides agreeing to establish a “direct line of communication” to address any trade issues that arise, fast-track Moroccan exports into Egypt, and increase efforts to promote Egyptian imports of Moroccan-made goods — especially for automobiles.

What trade imbalance? Egyptian exports to Morocco came in at USD 898 mn for the first 11 months of 2024, while Egypt-bound Moroccan goods amounted to only USD 42.1 mn, according to Capmas data seen by EnterpriseAM.

The two nations are also hoping to get each other’s private sectors on board, with a business-to-business forum for specific sectors set to take place in Egypt in April. Preparations are also underway to activate the Business Council between the two and for the Egypt-Morocco Joint Trade Committee to meet.

Remember: Egypt sent a high-level delegation to Rabat last week to push for the removal of recent restrictions that have left Egyptian exports piling in Morocco’s ports for two weeks, a government source previously told EnterpriseAM. Nearly 150 containers loaded with Egyptian ceramics, food products, and insulation materials were said to be impacted.

MARKET WATCH-

#1- Oil prices inched up in early morning trading driven by positive manufacturing figures from China, Reuters reports. Brent crude futures increased by USD 0.36 to USD 73.17 a barrel, while the US West Texas Intermediate (WTI) rose by USD 0.34 to USD 70.10 a barrel by 04.41 GMT.

IN OTHER RELEVANT NEWS- Opec+ is reportedly on the fence about whether to hike oil outputs in April as planned, or to keep them at their current level, Reuters reported on Thursday, citing eight anonymous Opec+ sources. This comes as the oil market faces uncertainty caused by the new US sanctions on Venezuela, Iran, and Russia. The US has been raising its pressure on Opec+ to boost production and lower prices to USD 60-70 per barrel.

Another decision to postpone the 120k barrel per day (bpd) production increase would mark the fourth time that the group has decided to put off rolling back production caps, which first came into effect in 2022, the business news information service said.

The group’s final decision is expected to be confirmed by the end of the first week of March, with sources telling Reuters that members have so far not reached a consensus.

REMEMBER-Opec+ began withholding 5.85 mn bpd, or 5.7% of global supply, via a series of cuts beginning in 2022 with the aim of supporting markets. The latest extension of output cuts through 1Q 2025 delayed production increases until April.

ALSO- Saudi’s Aramco expected to lower April Arab Light Crude price for Asia: Aramco may cut the April official selling price (OSP) for Arab Light crude to Asia by c. USD 0.20 to USD 0.65 per barrel, Reuters reported on Friday, after surveying four Asian refining sources. The pricing would place it at a premium of USD 3.25-3.70 per barrel over Oman/Dubai, down from USD 3.90 in March, which was the highest pricing in over a year. A separate Bloomberg survey suggests an average drop of USD 0.10 per barrel, though estimates range from a modest USD 0.15 decline to as much as USD 1 per barrel, Asharq Business reported.

The March OSPs for other Saudi crude grades are also expected to decline, with Arab Extra Light and Arab Medium projected to have a drop of at least USD 0.65 per barrel, while Arab Heavy is expected to fall between USD 0.10-0.65 per barrel, Reuters said.

#2- Baltic index on an upswing: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 70 points to 1,299 on Friday. The capesize surged by 245 points to 1,818, while the panamax index fell 29 points to 1,063. The smaller supramax index shed 8 points to 895.

#3- The Drewry World Container Index decreased 6% to USD 2,629 per 40-ft container on Thursday, according to the latest index readings. Spot rates for 40-ft containers are now 75% below the previous pandemic peak but remain 85% above the pre-pandemic rate of USD 1.4k. The average composite index YTD is USD 3,372 per 40ft container, which is USD 489 higher than the 10-year average rate of USD 2,882.

DATA POINTS-

#1- Qatar’s private sector saw a 68.5% y-o-y boost in exports to QAR 4.48 bn (c. USD 1.23 bn) in 4Q 2024, buoyed by an increase in the value of exported commodities, according to a statement published last week. However, FY 2024’s total exports dipped 41% y-o-y to QAR 12.2 bn. 104 countries received exports from Qatar’s private sector during the year.

#2- GCC leads Dubai Chamber members’ record AED 309.6 bn exports in 2024:

GCC markets accounted for 52% (AED 161 bn) of Dubai Chamber of Commerce members’ exports and re-exports in 2024, according to a statement published on Thursday. Total exports and re-exports surged 9.2% y-o-y to AED 309.6 bn — crossing for the first time the AED 300 bn mark since the chamber’s inception.

Non-GCC Middle Eastern countries came in second with 24.8% (AED 76.8 bn) in exports, while Africa and Asia-Pacific contributed 10% (AED 30.9 bn) and 9.6% (AED 29.7 bn).

#3-The UAE’s DP World processed 1.3 mn vehicles across its Dubai terminals in 2024, marking a 53.6% y-o-y increase and the firm’s highest number yet, according to a press release. Jebel Ali Port alone handled some 960k vehicles, with the remaining vehicles handled in Mina Al Hamriya and Mina Rashid. China accounted for 25% of all vehicles passing through DP World’s terminals, followed by Japan, Korea, and India.

#4- The on-demand delivery market in Saudi Arabia is expected to grow to SAR 50 bn by 2026, after hitting SAR 13 bn in value in 2023, Mr. Mandoob CEO Obaid Al Enezi told Asharq Business. The average order value also rose to SAR 77 in 1H 2024 from SAR 66 in 2023.

Driving the expansion: The sector’s growth is fueled by increased smartphone use, as well as the user base expanding to include children aged 10 to 12 as “active participants,” rising women’s workforce participation, and increased competition from new entrants like China’s Kita, according to Al Enezi.

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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.

Qatar Airways gets green light for Virgin Australia acquisition bid

Qatar’s flagship carrier Qatar Airways has received approval from the Australian government for its proposed acquisition of 25% of Virgin Australia, Reuters reported on Thursday. The Qatari carrier will acquire the share from US private equity firm Bain Capital, which would still retain the majority stake in the airline.

What’s in it for the Aussies? “It will bring USD 3 bn in value, we estimate, over the course of the five years that gets pumped into the economy as a consequence of increased visitation and knock on activity,” CEO of Virgin Australia Jayne Hrdlicka told The Australian last week.

There’s a small catch: Qatar Airways still needs a final nod from Australia’s treasurer Jim Chalmers, who has the right to cancel any global investments if they are deemed a risk to Australia's security. The current agreement also includes binding obligations to ensure adequate Australian representation on Virgin’s board and the safeguarding of its customer data.

A long time coming: Qatar Airways first proposed the uptake of the minority share of Virgin Australia Airlines, at an undisclosed figure, back in October.

What’s in the cards? As part of the transaction, Virgin Australia plans to launch flights from Brisbane, Melbourne, Perth, and Sydney to Doha from mid-2025 with leased aircraft. The flights will translate to over 100 new connecting itineraries across Europe, MENA, and Africa for Virgin customers. The increased traffic would spell benefits for Qatar’s Doha hub regardless of whether the Australian government approves Qatar Airways' multi-year lobbying effort to add additional routes.

Australia’s flagship carrier to face increased competition: The potential acquisition sparked concern due to the challenge posed for Australia’s flagship carrier Qantas Airlines — which currently splits the domestic market with Virgin Australia, with the latter holding 35% and Qantas and its budget airline Jetstar controlling 65% of the market share.

IN OTHER REGIONAL M&A UPDATES-

#1- PIF in early talks to acquire Italian jet parts maker: The Public Investment Fund (PIF) has reportedly entered into discussions with Italian state-backed industrial giant Leonardo to acquire its cash-strapped aerostructure unit, Bloomberg reported on Thursday, citing sources with knowledge of the matter. The ongoing talks may include plans to build a civil aviation manufacturing plant in Saudi Arabia, the people said.

The timing checks out: The sources said delegates from the PIF toured Leonardo’s southern Italy facilities earlier this week, just as CEO Roberto Cingolani — who recently confirmed securing a new investment partner — prepares to unveil details at the company’s strategy update on Tuesday, 11 March.

Throwing a lifeline: The PIF’s potential investment would provide much-needed financial support for Leonardo’s struggling aerostructure division which supplies key parts for Boeing’s 787 Dreamliner and Airbus A220 but has been hit by US production slowdowns.

About Leonardo: Founded in 1948, Leonardo, which is 30% owned by the Italian government, operates through five main divisions: Helicopters, Aircraft, Aerostructures, Electronics, and Cybersecurity. Its Aerostructures arm focuses on producing and assembling major structural components for commercial and military aircraft.

By the numbers: Leonardo’s aerostructure division employs some 4k people across four plants in southern Italy. The company reported revenues of EUR 746 mn last year, and an EBITDA loss of EUR 151 mn.

#2- Egypt-based Organi Group revive Rolling Plus’ tire factory project: Organi Group acquired 50% of Rolling Plus Chemical Industries to revive its EUR 1 bn tire factory project in the Suez Canal Economic Zone (SCZone) in partnership with Concrete Plus — which previously held a 70% stake in the company — an unnamed official told Asharq Business last week. Half of the factory’s production is planned for exports.

Why is this happening? Rolling Plus — a joint project between Concrete Plus and Gulf investors — signed a contract in September 2023 to establish a EUR 1 bn tire factory in the Ain Sokhna Industrial Zone to produce some 7 mn tires annually. Limited progress on implementation in the years since prompted the company to reach an agreement with Organi Group earlier this year to contribute half of Rolling Plus’ capital, the source told Asharq Business.

The details: The project is expected to be rolled out in three phases, beginning with a EUR 400-450 mn initial investment that will see the factory produce 3 mn tires annually. The second phase is expected to expand production, while the third will push output to 7 mn, adding heavy-duty tires.

Not the only local tire project in the cards: An unnamed Chinese company is reportedly looking to set up a USD 360 mn tire factory in the SCZone in partnership with the state-owned Arab Organization for Industrialization. Meanwhile, the government’s attempt to revive and develop state-owned tire manufacturer Trenco seems to be bearing fruit with an agreement to develop Trenco’s Alexandria-based factory with unnamed European companies and an agreement to establish a new Trenco tire factory with a Chinese company in Alexandria.

** Read more about Egypt’s fledgling domestic tire industry — and the challenges it’s facing — in this Inside Industry two-parter we published in 2023 (Part I | Part II).

#3- The shareholders of South African construction equipment outfit Barloworld rejected Saudi-based Zahid Group’s takeover offer, which had proposed purchasing all shares at ZAR 120 apiece, valuing the company at some USD 1.3 bn, according to a press release. The rejection triggered a standby offer by the Zahid consortium at the same price. Bloomberg also has the story.

What swayed the vote: The transaction failed to meet the 75% approval threshold, with key shareholders — including the Public Investment Corp., which holds a 22% stake — rejecting it due to concerns over corporate governance and the board's handling of the transaction. Other investors, such as London-based Silchester International Investors, had previously stated their refusal to sell for less than ZAR 130 per share.

IN CONTEXT- Heavy equipment distributor Zahid and Entsha placed a bid to fully acquire Barloworld in December 2024, offering a 30% premium on its last closing price and a ZAR 3.10 dividend. Zahid — holding a 19% stake in the firm — was looking to reap gains from an uptick in construction activity in the African market, projected to expand 27% by 2029 on the back of government outlays for infrastructure and strong consumer demand.

RTA + Dubai Holdings invest AED 6 bn to expand Dubai’s internal roads and access points

Dubai’s Roads and Transport Authority (RTA) inked an AED 6 bn agreement with Dubai Holding to expand internal roads and access points across the emirate, according to a statement. The expansions look to cut down travel time and boost the capacity of key access points by 30-70% across Dubai’s communities and residential projects, Wam reports. The timeline for the project was not disclosed.

The details: New roads and bridges will be built to improve entry points for five Dubai Holding developments: Jumeirah Village Circle, Dubai Production City, Business Bay, Palm Jumeirah and the International City 3 Phase.

The breakdown:

New intersections and entrances and exits at JVC will double capacity and reduce travel time by 70%;
New bridges between Sheikh Mohammed bin Zayed Road and Dubai Production City will improve traffic flow by 50%;
Integration of six acceleration and declaration lanes built along Palm Jumeriah;
Two pedestrian bridges replacing at-grade crossings to reduce travel time within the area by 40%.

The agreement will also strengthen and upgrade road infrastructure in Dubai Islands, Jumeirah Village Triangle, Palm Gateway, Al Furjan, Jumeirah Park, Arjan, Majan, Liwan 1 Phase, Nad Al Hamar, Villanova and Serena.

RTA is on a development kick: RTA awarded a contract valued at AED 798 mn (c. USD 217 mn) for the development of Al Qudra Street last week. It rolled out three major improvements on Sheikh Zayed Road to boost road capacity and efficiency in January, and an AED 1.5 bn contract for the Al Fay Street Development Project in January. It also awarded an AED 696 mn contract for its Trade Center Roundabout development project back in October.

Flynas clinches SAR 495 mn loan for three Airbus A320neos

Saudi Arabia’s budget airline Flynas has secured a SAR 495 mn (c. USD 132 mn) loan from Aljazira Bank to back its purchase of three Airbus A320neo aircraft, according to a statement released on Thursday. The company is planning on adding 100 aircraft to its fleet by 2030, Flynas CEO and Managing Director Bander Al Mohanna told SPA. The company has 280 jets on its orderbook.

Wheels up for a big year: Flynas is expected to receive a green light from KSA’s Capital Market Authority soon to list a 30% stake in 2025, with official IPO plans announced last year. The airline has reportedly been mulling an IPO since 2008, and tapped Goldman Sachs, Morgan Stanley, and Saudi Fransi Capital for the offering in late 2023.

REFRESHER- In 2022, the airline received two out of 12 Airbus A320neo aircraft ordered from KSA’s financing solutions and aircraft capacity provider AviLease.

AD Ports inks a slew of agreements to bolster Pakistan logistics, maritime sectors

AD Ports Group inked an MoU with the Pakistan Board of Investment to explore the establishment of an industrial zone near Karachi Port and Qasim Port, according to a statement released on Thursday. The group acquired logistics businesses in Kazakhstan, Uzbekistan and Georgia over the course of the past year, all of which will strategically benefit from Pakistan serving as a middle corridor linking Asia and Europe.

The firm also inked three separate agreements in digitalization, maritime services, and freight forwarding to expand its footprint in Pakistan’s logistics sector:

Digitalization: AD Ports Group’s Maqta Technologies and Pakistan’s PSW will partner — in collaboration with Pakistan’s Customs Services — to strengthen Pakistan’s Sing Window systems, modernize border services, and analyze cross-border systems.
Maritime services: AD Ports and Pakistani industrial development conglomerate Bahria Foundation will pair up to bolster the productivity of dredging, marine services, and vessel pooling at Karachi Port.
Freight forwarding: AD Ports’ freight forwarding subsidiary Noatum Logistics and its JV with Pakistan’s Kaheel Terminals, dubbed Karachi Gateway Terminal Multipurpose (KGTL), will partner to offer logistics solutions across air, ocean, and inland transport — including warehousing and distribution — to advance Pakistan’s existing inland trade corridors into Central Asia.

AD Ports ? Pakistan: AD Ports Group inked a 25-year concession agreement last year to develop and operate berths 11 to 17 at the Eastern Wharf of Karachi Port. This agreement builds on a 50-year concession agreement inked by AD Ports in 2023, in which the firm acquired the rights to develop, operate and manage the Eastern Wharf's container terminal berths 6 to 10.

Adnoc + Japan’s Osaka Gas finalize 15-year agreement for 0.8 mn tonnes of LNG

Adnoc Gas finalizes long-term LNG agreement with Japan’s Osaka Gas: Adnoc Gas has signed a 15-year sales and purchase agreement (SPA) with Japan’s Osaka Gas to supply it with 0.8 mn tonnes of LNG a year, according to statements published here and here (pdf) on Thursday. No financial details have been disclosed.

The LNG will be sourced from Adnoc’s Ruwais LNG project, which is set to more than double Adnoc Gas’ existing LNG production capacity to nearly 15 mtpa when it becomes operational in 2028. The LNG supply will be shipped to the ports of Osaka Gas and its Singapore-based subsidiary Osaka Gas Energy Supply and Trading Pte. Ltd, the statement adds.

This has been in the works for a while: Adnoc inked a long-term Heads of Agreement with Osaka Gas back in August 2024, and delivery is reportedly slated to start in the late 2020s.

Not Adnoc’s first with Japanese partners: Adnoc Gas inked an AED 1.65 bn three-year LNG supply agreement with Japan’s Jera in January, but the volume and timeline were not disclosed.

Adnoc Gas is on a long-term supply agreements streak: Adnoc Gas inked in February a USD 7-9 bn 14-year LNG supply agreement with Indian Oil Corporation — India’s biggest energy firm — to export up to 1.2 mn mtpa of LNG annually. The company also secured multiple long-term LNG supply agreements in 2024, including a 10-year SPA with Indian state-owned natural gas company Gail, a 15-year SPA with Sefe Marketing & Trading Singapore for 1 mn tonnes of LNG, and other long-term LNG supply agreements to deliver 1.6 mn tonnes per year from the new plant to Shell and Mitsui. It also inked a 15-year agreement to supply 0.6 mn tonnes of LNG per year to German energy giant Energie Baden-Württemberg.

Etihad Cargo awarded Air Cargo Airline of the Year at the Aviation Achievement Awards

Etihad Cargo has snagged three wins at MEA Business Magazine’s Aviation Achievement Awards, according to a statement released on Thursday. The Abu Dhabi-based airline was awarded Air Cargo Airline of the Year and Air Cargo Pharma Service of the Year for its reliability in the safeguarding of critical shipments and commitment to providing industry-leading solutions in the aviation industry. The airline was also recognised for its operational longevity, nabbing an award for 20 Years of Enduring Excellence.

The airline recently brought home a slew awards: Etihad Cargo won two accolades at the Boston Brand Research & Media Global Brand Frontier Awards in January. The airline was awarded for Excellence in Air Cargo Services - Middle East, 2024, and Best Specialized Logistics Solutions Provider - MEA, 2024.

Updates on zones, cargo, shipping, rail and trade from Kuwait, Egypt, UAE, and Iraq

ZONES-

#1- Two Chinese textile firms to set up shop in Egypt’s West Qantara: Egypt’s Suez Canal Economic Zone (SCZone) has inked two strategic agreements with Chinese textile firms for two projects in the West Qantara Industrial Zone with a total investment figure of USD 28 mn, according to a statement. The two new facilities will be fully dedicated to exports.

The details: Changzhou Kingcason Printing & Drying Company will establish a USD 24.5 mn facility spanning 60k sqm dedicated to textile production, including textile threads, dying, printing, knitting, and design, and Shanghai Honor and its UAE-based subsidiary Home Hub Textile will invest USD 3.5 mn to establish a 40k sqm factory for the manufacturing of fabric and home textiles.

Things are heating up in West Qantara: The SCZone has so far attracted 15 companies to West Qantara, signing some 14 agreements over the last 20 months for new projects with total investments of USD 542.3 mn, the statement notes. The projects include a USD 30 mn factory by Chinese textile manufacturer Kelida and a USD 70 mn factory by Chinese dyeing and finishing outfit Zhejiang Hengsheng.

#2- Egypt’s Suez Canal Economic Zone (SCZone) and Kuwaiti logistics giant Agility have inaugurated a new USD 60 mn customs logistics center, according to a statement released on Thursday. The facility — spanning 100k sqm — will include a secure storage facility and offer transportation services in a bid to ensure the seamless efficiency of operations. It will integrate a digital platform that will connect investors to a large network of Egyptian transport firms in a bid to offer more flexible logistics solutions.

Sounds familiar? The European Bank for Reconstruction and Development (EBRD) chose Agility’s automation solutions subsidiary Transfora to develop a digital operations platform for SCZone back in October 2024 to enable the SCZone to handle inquiries from potential investors and manage essential investor documentation.

#3- Egypt’s Prime Minister Moustafa Madbouly spent last Thursday inaugurating a handful of factories by local and international companies in SCZone’s Sokhna Industrial Zone. Here’s a rundown of the export-bound projects:

Egypt’s Ceramica Cleopatra inaugurated the second phase of its factory in the Sokhna Industrial Zone, aimed at raising production and exports. The new phase — built on 500k sqm with investments of EGP 5 bn (c. USD 98.8 mn) — will produce ceramic and porcelain with an annual capacity of 80 mn sqm.
Saudi’s Beam launches USD 40 mn expansion in its Egypt facility: CBoard — a member of Saudi construction materials manufacturer conglomerate Beam — inaugurated the expansion of a cement board and wall manufactu ring facility. The newly inaugurated expansion includes a cement board plant with a price tag of USD 25 mn and a gypsum panels manufacturing facility worth USD 15 mn, bringing total investments in the facility to USD 100 mn. Half of the company’s production is earmarked for export.
India’s Abdos opened its USD 30 mn cosmetics manufacturing plant, with planned an annual production capacity of 50k tons of shampoos, creams, soaps, and other cosmetics. The project’s second phase is scheduled to go live in June. Production is planned for the local market and exports.
Egyptian-German partnership opens USD 19.5 mn sanitary ware factory: Azura Egypt's sanitar y ware manufacturi ng plant also opened its doors in the Orascom Industrial Zone in Sokhna, with total investments of USD 19.5 mn. The Egyptian-German partnership project spans 70k sqm and will produce 160k pieces annually, earmarked for both the local market and exports.

CARGO-

#1- Iraq launches operation with TIR system: Iraq’s Transport Ministry has launched its first transport operation in partnership with International Road Transport Union (IRU) via their TIR system, according to a statement. The operation started from Turkey’s Mesrin port via Iraqi territory to Ibrahim Al-Khalil port, then towards Umm Qasr port before reaching its final destination at Abu Dhabi’s Khalifa Port.

What is the TIR system? It is the IRU’s global transit system that streamlines procedures for goods to be shipped from country to country, reducing administration work for customs authorities, according to the IRU’s website. The system also saves time and banknotes for transport operators and logistics companies.

#2- Menzies Aviation to provide Air India with cargo services: Menzies Aviation — the ground handling subsidiary of Kuwait-based Agility — has inked a three-year agreement with Air India to deliver ground handling and cargo services at eight locations across four continents, according to a statement released on Thursday. The firm is set to handle nearly 9k tonnes of cargo in the first year of the agreement, providing cargo warehouse handling services for Air India at Kuwait International Airport, the US’ Dallas Fort Worth International Airport, and Australia’s Sydney Airport and Melbourne Airport.

SHIPPING + MARITIME-

Egypt + Maersk partner up to enhance ship recycling: Egypt’s Maritime and Land Transport Holding Company has inked an MoU with shipping giant Maersk to enhance cooperation in responsible ship recycling (RSR) in the country, according to a statement released on Thursday. The project will help scrap ships at Damietta Port to provide raw materials for the iron and steel industry and reduce the import of scraps.

ICYMI: Egypt's Holding Company for Maritime and Land Transport and El Wehda Industrial Development teamed up in May 2024 to launch Egypt's inaugural ship scrapping and recycling yard.

Not Maersk’s first ship recycling project in the region: Maersk inked an MoU with Bahrain in July 2024 to develop and expand the ship recycling sector in the country to promote sustainable manufacturing and accelerate local economic growth.

E-COMMERCE-

Egypt’s Paysky launches e-commerce platform for Ugandan market: Egyptian digital payment platform Paysky and the fintech arm of South African telecom giant MTN are collaborating to launch a new application, Market by MoMo, to enhance the online shopping experience for Ugandan merchants and consumers, according to a statement (pdf) released last week.

TRADE-

Abu Dhabi and Italy ink cross-border investment partnership to boost business expansion: The Abu Dhabi Investment Office (Adio) and Italy’s Cassa Depositi e Prestiti (CDP), a national promotional institution, signed a pact to support Italian and UAE businesses expanding into each other’s markets, according to a press release from last week.

Under the partnership, Adio will connect Italian firms — including CDP-backed companies — with Abu Dhabi investment opportunities, while UAE businesses gain streamlined access to Italy’s market. The two entities will organize trade delegations, seminars, and knowledge-sharing programs to foster commercial ties.

In context: The UAE revealed plans earlier this week during President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Rome to invest USD 40 bn across strategic sectors in Italy. The two nations agreed to pursue a comprehensive partnership, formalizing over 40 agreements spanning data centers, AI, space tech, defense, cybersecurity, energy, health, and critical minerals.

RAIL-

UAE and Pakistan to cooperate on railways: Etihad Rail and Pakistan’s Railways Ministry signed MoUs to ramp up the operational efficiency of Pakistan’s rail network and explore the development of a new railway network to improve connectivity and support economic growth, according to a statement released last week.

OTHER STORIES WORTH KNOWING THIS MORNING-

Gulf Air flies to London Gatwick: Bahrain’s flagship carrier Gulf Air launched a new service to the UK's London Gatwick Airport, operating three weekly direct flights. (Statement)
Delta Airlines to land in Morocco: American carrier Delta Airlines will launch the first direct line between Atlanta and Marrakech in October 2025. (MAP)
UAE opens Fujairah border crossing with Oman: The UAE’s Federal Authority for Identity, Citizenship, Customs, and Port Security has opened a border crossing between Fujairah and Oman. (WAM)
India’s Akasa Air to boost flights to UAE: India’s budget airline Akasa Air launched daily flights linking Abu Dhabi with Indian cities Bengaluru and Ahmedabad. (Statement)

Calendar

MARCH

24-25 March (Monday-Tuesday): Airbus Summit, Toulouse, France.

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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