Emirates airline invests USD 5 bn in jet retrofitting

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What we're tracking today

TODAY: Emirates invests in jet retrofits + UAE gets new MRO

Good morning, nice people. It is another brisk read as we head into the first weekend in Ramadan. Emirates airline’s big investment push for jet retrofits lead the pack today, and we also have the latest PMI figures from Qatar and Lebanon. Shall we?

WATCH THIS SPACE-

#1- Egypt is expecting an estimated flow of about 900 mn cubic ft per day (cf/d) of Cyprus gas marked for liquefaction and re-exports by the end of the decade, Asharq Business reports, citing an unnamed Egyptian government official. Cronos field’s supply could reach 400 mn cf/d during the first phase in mid-2027, while the Aphrodite field will deliver 500 mn cf/d two or three years later, the official said.

ICYMI: Egypt’s Oil Ministry inked two agreements with Cyprus and international companies operating the gas fields last month to liquefy and re-export Cypriot natural gas. The agreements will see Cyprus ship natural gas from its offshore fields to be liquefied in facilities in Idku and Damietta before being re-exported to foreign markets.

The plans: The previously-approved development and production plan for the Aphrodite field includes a floating production unit within Cyprus’ exclusive economic zone and a pipeline to transport gas to Egypt. For the Cronos field, gas will be re-exported to European markets after being processed in Zohr facilities and liquefied in Damietta.

ALSO FROM EGYPT- Royal Home eyes export-bound appliances complex: Egyptian home appliances manufacturer Royal Home plans to establish a USD 50 mn industrial complex for electrical appliances in the Tenth of Ramadan within two years, the company’s CEO told Al Borsa. Some 70% of the complex’s output will be earmarked for export.

The details: The hub will have an annual production capacity of 150k units, including refrigerators, deep freezers, air conditioners, fully-automatic washing machines, and stoves — the company's primary product. The group plans to self-finance 65% of the project's cost, with the remainder to be secured through bank facilities. Negotiations are currently underway with the National Bank of Egypt to obtain the required financing in EGP.

#2- Oman’s Asyad Shipping IPO wrapped with 1.44x oversubscriptions valued at OMR 177 mn, according to a statement. All of the shares bought by large and small individual investors have been allocated, with shares allocated to local and foreign institutions in tandem with the joint global coordinator as stipulated in the prospectus. Asyad raised OMR 127 mn (c.USD 332.8 mn) from the IPO that secured a final share price at the higher end of the range at OMR 0.123.

MARKET WATCH-

#1- Oil prices went up this morning, reversing a a series of rate drops yesterday that brought crude rates to a “multi-year low,” Reuters reports. Brent crude futures increased by USD 0.39 to USD 69.69 a barrel, while the US West Texas Intermediate (WTI) fell by USD 0.39 to USD 66.70 a barrel by 04.16 GMT.

#2- Baltic index dips once again: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 34 points to 1,228 on Wednesday. The capesize fell by 75 points to 1,894, while the panamax index fell 24 points to 1,000. The smaller supramax index eased 8 points to 868.

DATA POINT-

#1- Oman’s Salalah Port recorded a 10% y-o-y hike in general cargo volumes handled to 22.6 mn tonnes during 2024, driven by an increase in limestone, gypsum, and other dry bulk volumes, Oman Daily Observer reports. Container volumes fell by 13.2% y-o-y to 3.3 mn TEUs on the back of reduced shipping in the Red Sea.

#2- The number of factories in Egypt’s Suez Canal Economic Zone (SCZone) has doubled to 130 over the past three years, with another 120 under construction, Prime Minister Moustafa Madbouly said in his weekly presser yesterday.

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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.

Emirates is investing some USD 5 bn to upgrade its fleet amid delivery delays

Emirates Airlines to invest big in retrofitting existing aircraft: Emirates is investing nearly USD 5 bn in cash to upgrade its existing aircraft — including Airbus A380 jumbo and Boeing’s 777 — in a bid to hedge against deliveries of backlogged orders, Bloomberg reports, quoting President Tim Clark as saying. The airline is retrofitting aircraft and equipping them with new cabin interiors and tech upgrades to extend the life span of the models at its engineering complexes in Dubai.

Going rogue? “We’ve had to take control of our own destiny,” Clark added, indicating that Emirates is also mulling the idea of evaluating an order of the Airbus 350-1000 model, but said that the engine supplier — Rolls-Royce Holdings Plc — needs to ensure its reliability and engine performance before Emirates make a final decision.

Sounds familiar? Clark slammed Boeing for the delays back in October, stressing UAE-based airline has “had to make significant and highly expensive amendments to [its] fleet programmes as a result of Boeing’s multiple contractual shortfalls.”

REMEMBER- Boeing pushed back delivery dates of its new 777x aircraft in October, with first delivery of its 777-9 airplane forecasted to be in 2026 and its 777-8 freighter aircraft in 2028. Emirates is expecting not to receive the first batch of Boeing 777x jets in 2026 after deliveries have been postponed several times over the past couple of years. The company’s backlogged orderbook of the model family is reportedly over 200 jets.

Sace considers USD 3 bn in additional backing for the PIF

Italy’s state export credit agency Sace could double its backing for PIF-led projects with an additional USD 3 bn following a new MoU they signed yesterday, the PIF said in a statement. The MoU will see the two sides “cooperate on sharing information and business expertise, with a focus on strategic sectors,” in addition to considering the USD 3 bn funding provision from Sace that would also contribute to supporting Italian firms investing in Saudi, the statement says.

ICYMI- The PIF recently secured EUR 3 bn in loan.guarantees from Sace, which will be used to back a group of international banks that finance PIF companies. Italian Prime Minister Giorgia Meloni also visited the Kingdom in January, where she and Crown Prince and Prime Minister Mohammed bin Salman inked USD 10 bn worth of agreements.

Falcon Aviation to invest USD 100 mn into its MRO facilities at Dubai’s Al Maktoum International Airport

Falcon to invest USD 100 mn to upgrade its MRO facilities in Dubai: Alex Group Investment’s aviation solution subsidiary Falcon Aviation will plug nearly USD 100 mn (c. AED 367 mn) over the next five years into upgrading its Maintenance, Repair and Overhaul (MRO) facilities at Dubai’s Al Maktoum International Airport, according to a statement.

The facility: Falcon Aviation’s existing MRO facility — spanning some 13.7k sqm — is located at Dubai’s Mohammed Bin Rashid Aerospace Hub. The facility is capable of servicing a wide range of narrow-body and wide-body carriers, as big as the Airbus A380 and including Embraer and the Bombardier Challenger. The firm was granted approval to offer its MRO services in the UAE by the General Civil Aviation Authority (GCAA) last year.

UAE’s been getting a lot of MRO attention: Mohammed Bin Rashid Aerospace Hub (MBRAH), Liebherr-Aerospace, Flydubai and Etihad Engineering all had a streak of MRO agreements at MRO Middle East in Dubai last month. MBRAH also secured two agreements to establish MRO facilities in Dubai South back in October — the first was with the France-based aerospace and transport firm Liebherr-Aerospace and the other with International Energy Resources MRO Industries. Sanad — Mubadala’s Abu Dhabi-based aerospace engineering and leasing subsidiary — also partnered with Emirati Military MRO provider Ammroc to expand its MRO operations in UAE’s Al Ain last month.

How non-oil private sectors in Lebanon + Qatar fared in February

Lebanon’s non-energy private sector growth slowed down ever-so slightly in February from the more than decade-long high recorded in January, as growth continued to be supported by greater levels of new business, especially coming from abroad, according to Blominvest Bank’s Lebanon PMI (pdf). The nation’s headline figure came in at 50.5, down from 50.6 in January, marking Lebanon’s second month in expansion territory since July 2023.

REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.

Outstanding business levels were at their highest mark since the survey began in May 2013, with improving sales performances pushing companies’ operating capacities “as evidenced by an uptick in backlogged orders,” according to the report. The country also saw an upturn in sales that was also among the sharpest on record. This reflected in “greater new business volumes from overseas customers,” with private sector firms registering higher new export orders for the first time since November 2023.

Geopolitical factors may be behind the slowdown: “The PMI may have eased due to Israel's continued presence in five strategic locations, which threatens Lebanon's security,” Blominvest Bank’s Mira Said said.

New order growth was also sustained throughout the month, albeit at a lower pace than in January. Meanwhile, purchasing activity saw its fastest expansion since 2013, with stocks of inputs expanding at an accelerated pace.

Price pressures rose during the month, as a sharp rise in purchasing costs drove up businesses’ operating expenses. Meanwhile, “greater shipping fees were accompanied by vendor charge increases” — all of which collectively contributed to output price inflation accelerating towards a near two-year high.

Businesses remain confident: “The year-ahead outlook also remained buoyant, with survey respondents predicting further activity growth over the next 12 months.” The election of a new president and the formation of a new cabinet — one that is believed to be pro-reform — have boosted optimism among Lebanese businesses, Mira Said wrote.

Over in Qatar: Qatari non-oil private sector’s growth rose for the first time in three months in February, in a jump that indicates “a faster overall improvement in business conditions in the non-energy private sector economy,” according to Qatar Financial Center PMI (pdf). The nation’s headline figure rose to 51.0, up from 50.2 in January, sending Qatar more comfortably above the 50.0 threshold indicating growth.

New orders fell for the second month running, but overall business activity remained broadly stable. Meanwhile, purchasing activity slowed down once again, with firms optimizing inventories with a reduction in stock levels for the second month in a row.

Employment grew at a record high of 61.9 in February, extending the current sequence of job creation to seven consecutive months. The wholesale & retail sectors posted a fresh record increase in jobs during the month, while the construction sector saw the slowest level of recruitment this month. "The employment component was the dominant influence on the headline PMI in February. The four other sub-indices included in the calculation of the PMI all had negative impacts, albeit each to lesser degrees than in January,” S&P Global Market Intelligence’s Economics Director Tyler Balchin said.

Qatari businesses remain optimistic: “Outstanding business continued to increase and the 12-month outlook remained positive, with confidence holding above the post-pandemic average,” Bachlin said.

Updates on trade from UAE

TRADE-

Emirates’ Sharjah and Bangladesh ink MoU on bilateral trade: The Sharjah Chamber of Commerce and Industry (SCCI) signed an MoU with Bangladesh’s Dhaka Chamber of Commerce and Insudstry (DCCI) to strengthen bilateral trade and economic partnerships, Wam reports. The DCCI also signed an MoU with Dubai Chambers last month and organized a conference with its Abu Dhabi counterpart.

On a national level, President Sheikh bin Zayed Al Nahyan discussed increasing Emirati-Bangladeshi trade last May, and 2024 also saw AD Ports ink an MoU to develop and operate a multi-purpose port in Chittagong in Bangladesh.

ZONES-

#1- UAE’s IFZA to invest in Pakistan’s special economic zones: The International Freezones Authority (IFZA) signed an MoU with Pakistan’s government to invest in Pakistan’s special economic zones, according to a statement on X from Pakistan’s Prime Minister Shehbaz Sharif’s office.

REMEMBER- The UAE, Pakistan’s third-largest trading partner, also inked several agreements with Pakistan just days ago to up cooperation in natural resources, logistics, ports, financial services, and infrastructure.

#2- Egypt’s Cabinet approves green industrial zone plans: The cabinet approved the establishment of a green industrial zone for petrochemical and green hydrogen production in the Gulf of Suez’s Ras Shukeir. It also gave an initial nod for the Transport Ministry to proceed with contracts for a green hydrogen and green ammonia project in Ras Shukeir in partnership with a consortium of international companies, the Red Sea Ports Authority, and the New and Renewable Energy Authority.

Canada launches retaliatory tariffs on the US, Mexico to respond + US firms to control Panama Canal ports

Canada retaliates with tariffs on US: Canada has launched 25% retaliatory tariffs on a total of CAD 155 bn worth of US goods, the tariffs on CAD 30 bn of the total will be effective immediately, while the other CAD 125 bn will be effective in three weeks, on cars, trucks, steel and aluminum, Asharq Business reported on Tuesday. Ontario state is also planning to impose another 25% tariff on electricity supplied to 1.5 mn homes in the US’ Minnesota, Michigan and New York, according to the news outlet, citing Ontario Premier Doug Ford.

And Mexico pledges a response by Sunday: Mexico’s President Claudia Sheinbaum said that her administration would respond with retaliatory tariffs by Sunday, but said that it will wait for a planned phone call with Trump before the announcement, the Associated Press reports.

REFRESHER- US President Donald Trump officially slapped 25% tariffs on Canada and Mexico starting Tuesday, effectively leaving no further room for talks.

Some good news? Trump is ready to scale back some of the recently imposed tariffs and to “meet [Mexico and Canada] in the middle,” the US Commerce Secretary Howard Lutnick told CNBC on Tuesday. The unspecified compromises were supposed to be revealed yesterday.

Other countries might be next: Trump blasted both South Korea and India for their alleged high tariffs on US products during his address to the US Congress on Tuesday, raising the prospect of an expanding trade war, Bloomberg and the Times of India reported. “South Korea’s average tariff is four times higher” what the US impose on Korean products, Trump bemoaned in his speech. The US President also accused India of imposing duties on US auto imports that are “higher than 100%”, pledging to consider retaliatory tariffs starting 2 April.

US firms snap up Panama Canal ports: Hong Kong-based conglomerate CK Hutchinson has sold a majority stake in its USD 22.8 bn ports arm to a consortium led by the US’ Blackrock for USD 19 bn, Reuters reports. The transaction saw the US-based buyers handed control of ports along the Panama Canal, which US President Donald Trump commended as the US “reclaiming” the waterway, CNBC reports.

Here is a rundown of the assets secured by Blackrock investors:

43 ports including 199 berths across 23 nations globally.
90% of the Panama Ports Company, which operates 53 ports, including two at either end of the Panama Canal — Cristobal and Balboa
80% of Hutchinson Ports

The elephant in the room: CK Hutchison’s co-managing director Frank Sixt has emphasized that the sale is “purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.” Last month, US Secretary of State Marco Rubio threatened “immediate consequences” if China does not scale back its alleged influence over the canal. This came around a month after Panama began an audit into Hutchison Ports to confirm adherence to the terms of a 25-year concession awarded to the company in response to US pressure.

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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