Dubai Aerospace Enterprise mulls selling its stake in Joramco

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What we're tracking today

TODAY: DAE considers selling its Joramco stake + Saudi’s Red Sea Gateway Terminal lands in Djibouti

Good morning, folks. The news cycle has picked up some rigor as we head into the weekend, with ports, debt and M&A watch updates from across the region. But first, the latest update on the world’s intensifying trade warring…

THE BIG LOGISTICS STORY- The EU claps back at the US: The EU will impose tariffs on up to EUR 26 bn (USD 28 bn) of US goods starting April in retaliation for the US’ most recent 25% tariffs on steel and aluminum imports which took effect yesterday. The EU’s strategy involves “strong but proportionate” measures including reinstating previously suspended tariffs on EUR 9 bn worth of US exports and introducing new countermeasures on EUR 18 bn worth of goods.

The ex is playing it cool: The UK has decided not to retaliate immediately and will “[focus on] rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy,” UK Business and Trade Secretary Jonathan Reynolds told Bloomberg.

WATCH THIS SPACE-

#1- Egypt’s National Railway Authority is reportedly seeking an EGP 2 bn loan from a consortium of local banks for its Arish-Taba logistics corridor project, informed sources told Al Mal. The loan will be backed by the Finance Ministry and is slated to be secured by the end of the fiscal year. The Arish-Taba corridor will connect the Red Sea’s Taba to the Mediterranean’s Arish in Sinai, passing through the heavy industries’ zones in Central Sinai.

Part of a larger plan: The Arish-Taba corridor is part of the Transport Ministry’s plan to develop seven new integrated logistic corridors to connect production areas with seaports, or to link Red Sea ports with their Mediterranean counterparts. The ministry’s plan also seeks to connect these corridors to dry ports and logistic zones via rail and road networks.

ALSO FROM EGYPT- New public freezones could be in the works: The General Authority for Investment and Freezones (GAFI) submitted a proposal to Egyptian Prime Minister Moustafa Madbouly to set up new freezones catering to the spinning, textiles, engineering, and chemical production industries, GAFI head Hossam Heiba told Al Borsa. The authority says it's ready to start infrastructure work after it gets the green light.

Unlike private freezones, public freezones are a bit of a rarity, with only nine public freezones in the country and 230 private freezones, Heiba said. The new zones will support the expansion of companies operating in the country and attract new foreign companies to the market, the authority head said.

#2- Construction on eight LNG vessels commissioned by Qatar Gas Transport Company Limited’s (Nakilat) has begun at South Korea’s Hanwha Ocean Shipyard, according to a statement. The move is part of Qatar’s ongoing initiative to expand its fleet of LNG vessels as it advances plans to bolster its LNG production capacity to some 142 mn tons per year by 2030.

Qatar’s growing orderbook: QatarEnergy inaugurated four new LNG vessels developed in South Korea last November, bringing its tally to 128, including 24 QC-Max mega vessels. QatarEnergy inked a 15-year time charter last year with Nakilat to operate 25 conventional-size LNG vessels as part of the second ship-owner tender under QatarEnergy’s LNG Fleet Expansion program. The vessels will each have a capacity of 174k cubic meters and will be built by South Korea’s Hyundai Heavy Industries and Hanwha Ocean.

IN OTHER NAKILAT NEWS- Credit ratings agency Fitch Ratings has sustained the company’s debt outlook prompted by robust government support, according to a statement released last week. The assessment maintained an ‘AA-’ rating for Nakilat’s USD 850 mn series A senior secured bonds due in 2033 and an ‘A+’ rating for its junior debt offering of USD 300 mn series A subordinated second-priority secured bonds.

The rationale: Fitch says the state-backed Nakilat is integral to Qatar’s LNG exports — a sizable contributor to the nation’s inflows — and that the authorities are incentivized to support its projects. Nakilat’s operational risks remain ballasted by its passing-on of voyage costs, fuel costs, and port charges to charterers, as well as its outsourcing of ship management to Shell.

#3- DP World to expand its London Gateway Logistics Park: UAE’s DP World has received the green light to expand at its UK London Gateway Logistics Park after the Thurrock borough council approved a new 10-year local development order (LDO) for the site, according to a statement. Under the new order, new builds will be granted final approval within 28 days of submission — streamlining the process of granting lease agreements and construction approvals of new facilities. DP World has so far developed half of its London hub — the largest of its facilities in the UK at an area spanning 9 mn sqft.

Background: The park originally obtained its first 10-year LDO in 2013, which allowed for the development of 17 state-of-the-art facilities spanning over 4 mn sqft and 1.5k jobs on the site.

#4- Asyad Shipping makes its debut on MSX: Asyad Shipping — the LNG transport unit of Omani state-backed logistics giant Asyad Group — has successfully debuted on the Muscat Stock Exchange (MSX) following an IPO that raised USD 332.8 mn, according to a press release. The floated shares will now be available for trades at MSX under the symbol “ASCO.”

REFRESHER- Asyad Shipping wrapped an IPO offering 20% of its shares — over 1 bn — earlier this month that saw the company’s market capitalization hit over USD 1.66 bn.

#5- Riyadh Air is exploring partnerships with Air India and IndiGo to strengthen its presence in India, according to a statement released following CEO Tony Douglas’s visit to the country. “India has long been a crucial part of Riyadh Air’s network planning ahead of our operations launch,” Douglas said. The airline plans to launch this year, with several Boeing aircraft scheduled for delivery in 3Q.

#6- Boeing beats Airbus’ deliveries once again: American aircraft manufacturer Boeing delivered 44 aircraft in February — including 32 from its 737 models — beating its European rival Airbus for the second month in a row, Bloomberg reports. Boeing delivered a total of 89 commercial aircraft since the start of the year — outpacing Airbus’ 65 deliveries. For new orders, Boeing received a total of 13 aircraft orders in February against Airbus’ 14.

Could it be the start of a good year? The plane manufacturer delivered some 45 aircraft in January, its busiest month since 2023. Deliveries included 40 737 MAX jets, which saw a 60% y-o-y increase in deliveries. In contrast, Airbus only delivered 25 aircraft in January.

REMEMBER- Boeing’s delivery delays and general supply chain disruptions have been projected to persist into 2025. The manufacturer is bracing for a tough year that could see its supply chains destabilized and operational costs rocked as a result of US President Donald Trump’s tariffs.

MARKET WATCH-

#1- Oil prices saw a slight drop this morning after a major surge on Wednesday driven by reports of lower-than-expected US stockpiles, Reuters reports. Brent crude futures decreased by USD 0.05 to USD 70.90 a barrel, while the US West Texas Intermediate (WTI) went down by USD 0.10 to USD 67.58 a barrel by 04.26 GMT.

ALSO- Opec+ oil output jumped in February to 41.01 mn bbl / day, rising 363k bbl / d from the previous month, according to Opec’s monthly oil market report (pdf). The increase was driven primarily by higher output from Kazakhstan, which added 198k bbl / d to its monthly production — bringing its monthly production to “at least 300k bbl / d above the Opec+ ceiling,” Bloomberg notes.

#2- Baltic index on a winning streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — gained 128 points to 1,559 on Wednesday, buoyed by all segments. The capesize climbed 285 points to 2,759, while the panamax index rose 94 points to 1,158. The smaller supramax index rose by 8 points to 872.

#3- Chinese alumina prices are projected to fall to CNY 3k a ton this year, signaling the end of 2024’s market rally that saw its prices double to CNY 5.7k a ton (USD 795), AZ China Ltd analyst Zhang Meng told Bloomberg. Alumina is a multi-purpose industrial material that is also essential for aluminum smelting.

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CIRCLE YOUR CALENDAR-

The UAE will host the Fujairah International Bunkering and Fuel Oil Forum (FUJICON 2025) from Monday, 7 April to Wednesday, 9 April in Fujairah. The forum will host energy leaders from the private and public sector to discuss geopolitical and decarbonization impacts on shipping and bunker markets, fuel quality, market trends, pricing and technological advancements.

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, se

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

Dubai Aerospace Enterprise mulls sale of its MRO arm Joramco

UAE aircraft-leasing company Dubai Aerospace Enterprise (DAE) is reportedly mulling the sale of its Jordan-based maintenance, repair and overhaul (MRO) unit Joramco, Bloomberg reports, citing sources with knowledge of the matter. DAE has reportedly tapped Morgan Stanley for the possible sale, which could see it divest its entire holding — about an 80% stake — in the company. Royal Jordanian airline currently holds the remaining 20%.

DAE could be trying to take advantage of the hot demand for jet maintenance providers, as delays in new jet deliveries by Boeing and Airbus and global aircraft shortage push airlines to extend the life of older planes. Last summer, the company said that its services were fully booked for 18 months in advance, citing a surging demand for MRO services amid aircraft delivery delays. The company also plans to open a new hangar by this month to accommodate this growth, Bloomberg reports.

About Joramco: The company serves more than 130 customers across over 60 countries through 5 hangars and 10 workshops, according to DAE’s investors presentation (pdf). Most of its business is concentrated in Europe (58%), followed by the Middle East (34%) and South Asia (4%). This MRO provider reported a 35% rise in sales in 9M 2024.

Saudi’s Red Sea Gateway Terminal to operate Djibouti’s Tadjourah Port

RSGT to drop anchor in Djibouti: Saudi port operator Red Sea Gateway Terminal (RSGT) has inked an MoU to operate and manage Djibouti's Tadjourah Port for 30 years, according to a statement. No investment ticket or timeline for the project has been disclosed.

About Tadjourah: The port — which spans 30 hectares — primarily supports local potash exports and serves as a multipurpose port for neighboring landlocked countries. It includes two berths and a 190m RoRo quay, and has the capacity to handle up to 2k tonnes of potash cargo per hour and up to 4 mn tonnes annually.

KSA’s making moves in Djibouti: A consortium of Saudi investors inked a 92-year contract back in June to establish a 120k sqm Saudi Logistics City in Djibouti Port freezone, which is poised to become the Kingdom’s largest logistics zone overseas. The project is set to position Djibouti’s port as a gateway for Saudi exports to Africa. The Kingdom’s Transport General Authority also inked a cooperation agreement to expand its ties with Djibouti in the maritime transport sector back in 2022.

RSGT has other overseas ventures: RSGT announced plans in January to invest up to USD 200 mn in Bangladesh’s Chittagong Port’s Patenga Container Terminal — which it already manages through a 22-year concession — to expand its handling capacity.

Kuwait’s Agility refinances debt, raises USD 47 mn at five-year tenor

Agility restructures debt + renews tenor: Kuwait’s Agility Public Warehousing Company has refinanced a segment of its existing credit facilities, incurring an additional USD 47 mn to bring the total borrowed value to USD 280 mn, according to a disclosure (pdf). The logistics player has also arranged to renew the facility’s tenor by five years.

Debt-full: As part of its ongoing refinancing program that began in 2022, the company entered into an agreement with regional and international banks to refinance and raise credit facilities to USD 3.2 bn (KWD 980 mn at the time). Agility secured a USD 75 mn facility — its latest facility in the program — from an unnamed regional bank in March 2023, bringing its total borrowings at the time to about USD 3.1 bn (KD 938 mn).

MORE DEBT WATCH UPDATES-

IFC + Kazyon expand partnership: The World Bank’s International Finance Corporation (IFC) is expanding its partnership with Egyptian budget supermarket chain Kazyon through a USD 30 mn loan to support its Morocco discount retail operations expansion, according to a statement. The money will be used to increase the company's warehousing and storage capacity, as well as add more retail stores in Morocco.

This has been in the works: Kazyon was in line for a USD 30 mn loan from the IFC to fund the company’s expansion agenda in Morocco, the lender said in a project summary back in November 2024. Kazyon Morocco CEO told Asharq Business back in October 2024 that the company is investing USD 144 mn to expand in the Moroccan market — particularly in major cities — over the coming four years.

The supermarket chain also first tapped into the Saudi market earlier in February, with its 50% stake purchase in Saudi Arabia’s sole discount retailer Dukan in a SAR 250 mn (c. USD 66.7 mn) transaction.

Sanad sees 40% y-o-y increase in revenues in FY 2024

Mubadala’s aerospace engineering and leasing arm Sanad Group reported a 40% y-o-y revenue increase to AED 4.9 bn in 2024, according to a press release (pdf). The top-line performance was attributed to a rise in global demand for engine maintenance, repair, and overhaul (MRO) services, expanding into foreign markets, and inking agreements with airlines and original engine manufacturers.

REMEMBER- Sanad signed a AED 73.5 mn agreement to extend its partnership with aviation maintenance firm Global Aerospace Logistics (GAL) in November 2024, allowing it to continue providing maintenance services for the Rolls-Royce Trent 700 engines. It also sold 16 aircraft engines to Etihad Airways, valued at approximately AED 1.5 bn in October 2024. The company also partnered with Airbus in August 2024 to provide MRO services for Airbus engines.

Updates on rail, trade, shipping and maritime from Morocco and Egypt

RAIL-

Tender for Egypt’s railway manufacturing complex has frontrunners: Four local firms — Hassan Allam, Concord, El Rowad Contracting, and Redcon Construction — have been shortlisted as front runners in the French rolling stock manufacturer Alstom’s tender to build a EUR 80 mn railway manufacturing complex, Alstom’s Egypt General Manager Ramy Salah told Al Borsa. The selected firm will be announced by the end of this month, with construction slated to begin effective immediately, Salah added. The complex is planned to begin production in 1Q 2027.

Production will be earmarked for both the local use and exports to markets in the Middle East, and Africa, Salah said. Alstom has also started a promotion campaign exploring possible exports to European markets, he added.

What we know: The tender pertains to the initial phase of the project, which includes the construction of a components factory, an insider source with knowledge of the matter told us. The tender for the main manufacturing factory has not been issued by Alstom yet.

ICYMI- Alstom launched a tender in January for the construction of its planned Borg El Arab railway manufacturing complex, which was sent to around 15 Egyptian contracting firms.

SHIPPING + MARITIME-

MSC to expand its footprint in Egypt: The Transport Ministry’s Holding Company for Maritime and Land Transport inked an MoU with Italy’s shipping giant Mediterranean Shipping Company (MSC) to boost logistics cooperation, according to a statement. Under the agreement, the two sides will work to identify areas of potential cooperation in the management and operation of seaports, dry ports, railway cargo facilities, and logistics zones.

Egypt 💙 MSC: Egypt inked a more final agreement with Medlog — the cargo subsidiary of Italy’s Mediterranean Shipping Company (MSC) — to develop a dry port and logistics hub in the Tenth of Ramadan City under a public-private partnership in January. The project — first signed in 2023 — will be set up with investments amounting to USD 130 mn. The 250-feddan project will be carried out under a 30-year PPP contract and is expected to serve the industrial area in Badr, Ain Sokhna, East Port Said, the New Capital, and the Tenth of Ramadan.

TRADE-

Saudi-Egyptian investment pact gets the green light from Egypt’s parliament: The Egyptian Parliament approved an agreement with Saudi Arabia to encourage bilateral investments, boost capital flow, and create new jobs, the Saudi Chambers Federation said in a post on X.

BACKGROUND- The Saudi-Egyptian Business Council called for stronger relations between Cairo and Riyadh, including the establishment of “an economic alliance” to penetrate third markets at the 18th session of the Saudi-Egyptian Joint Committee held in Riyadh earlier this month.

Panama Canal considers developing of gas pipeline

Panama Canal eyes gas pipeline: The Panama Canal is considering the construction of a pipeline to diversify its operations and to move up to 1 mn barrels per day of liquefied petroleum gas (LPG) across the passage — with Japan as the leading prospective buyer of the LPG, canal administrator Ricaurte Vasqueez told Reuters. The canal expects to make a final decision about the pipeline in the next 12 months, with investment tickets totaling USD 8 bn for the infrastructure and sustainability projects spread over the next decade.

ICYMI: 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 last week. 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.

Some US airlines might hit turbulence in earnings: Major US carriers Delta Airlines and Southwest Airlines have tempered their earnings forecasts for 1Q 2025 amid stock rate losses that could be bigger than Silicon Valley’s recent USD 750 bn market value loss, Reuters reports.

Sign of the time? Airlines struggling have been generally treated as one of the early signs of a recession, Reuters reported. It signals both less spending on travel and a possible slowdown in trade, impacting cargo movement amid economic uncertainty stemming from the US’ ongoing tariff war, which prompted cutbacks in corporate and discretionary spending.

Airline-specific headwinds: American Airlines pointed to a slump in consumer spending on domestic leisure — especially in March — as the reason behind its own forecast reduction, Axios reports. Delta Airlines also noted a “softness in bookings and demand trends” in a recent disclosure. Airlines are also pointing to fliers’mounting safety concerns following a series of accidents such as last January’s plane crash in Washington — the deadliest US crash in 20 years.

A story told in figures: Delta cut its 1Q revenue growth forecast by about half on Tuesday — projecting a 3-4% y-o-y growth, down from a prior forecast of 7-9%. The carrier’s stock price declined 24% in the past month, largely echoing the 22% drop seen by the S&P 500 passenger airlines index in the same period. Southwest Airlines also cut its projections for revenue per available seat mile by 3%, citing weaker bookings.

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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