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Aramco, China’s Sinopec to launch USD 4 bn JV to invest in joint China operations including oil logistics

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What we're tracking today

TODAY: Aramco JV to invest in oil logistics in China + Mawani inks agreements for logistics zones in Dammam

Good morning, nice people. We’re inching closer to the month’s end with a brisk read that includes updates on Aramco’s investment venture in China and logistics zone projects in KSA’s Dammam. Let’s dive right in.

WATCH THIS SPACE-

#1- Khazna eyes big market share in Saudi push: Dubai-based Khazna Data Centers is eyeing an expansion drive into Saudi Arabia, aiming to capture at least 25% of the kingdom’s growing data center market, CEO Hassan Al Naqbi told Bloomberg. Khazna currently controls about 71% of the UAE’s existing data center capacity, with European expansion plans and 12 data centers under construction including sites in Turkey and Kenya.

The plans: The firm has picked two sites for potential developments in Saudi. The company is aiming to leverage its experience with the sector’s hyperscalers — usually US firms with an appetite for large cloud services and data centers — that are increasingly looking to the Gulf’s cheap energy and real estate for expansion. “None of [the Saudi competitors] have the experience to handle the hyperscalers, in terms of design, delivery, and operation,” Al Naqbi said.

IN CONTEXT- Backed by an implied USD 5.5 bn valuation following a stake sale to private equity firm Silver Lake and AI fund MGX, Khazna is positioning itself as a sector heavyweight, and is making the move into the Kingdom just as it advances law facilitating trans-national data center developments in a bid to bring international companies’ data facilities to the kingdom.

#2- Oman’s Asyad Shipping has reportedly purchased two VLCCs for USD 205 mn from Chinese maritime transportation firm Huwell Group, Trade Winds reports, citing European and US shipping brokers. The transaction is allegedly funded by the Chinese leasing houses CSSC Shipping and Jiangsu Financial Leasing.

What else we’re hearing: Both oil tankers were reportedly built at Dalian Shipbuilding Industry in China, have a dwt of 308k tons, and are fitted with scrubbers, according to the news outlet. The first — the 2020-build Landbridge Wisdom — is said to be on a charter expiring this August with major oil firm BP, while the 2019-built Landbridge Glory is on a charter with private equity firm Clearlake Capital until July.

We knew expansion was coming: Asyad Group was reported in February to be planning on adding 33 more vessels in 2025 to its 89-vessel fleet in 2025 to boost the firm’s network to Europe, as well as Asian countries like Japan and South Korea. The new additions are expected to be a combination of oil, gas, and cargo tankers.

ICYMI: Asyad Shipping successfully debuted on the Muscat Stock Exchange (MSX) following an IPO that raised USD 332.8 mn in March. The floated shares are now available for trades at MSX under the symbol “ASCO.”

#3- A Moroccan trade delegation representing 20 companies is expected in Egypt next week to promote Moroccan exports, according to a statement from the General Confederation of Moroccan Enterprises. The mission will also take part in the Moroccan-Egyptian Business Forum, which will focus on connecting Egyptian importers and Moroccan exporters, the statement said.

IN CONTEXT- The visit follows a recent flare-up in trade tensions that spurred efforts to rebalance the lopsided trade relationship between the two countries in favor of Egypt. Tensions reached a boiling point after Morocco introduced restrictions in February that held up some 150 containers of Egyptian goods in Moroccan ports. Investment Minister Hassan El Khatib was soon dispatched to Rabat and agreed with his Moroccan counterpart to establish a “direct line of communication” to address any trade issues that arise, the fast-tracking of Moroccan exports into Egypt, and increasing efforts to promote Egyptian imports of Moroccan-made goods — especially for automobiles.

Egyptian exports to Morocco reached some USD 1 bn last year, while Egypt imported less than USD 50 mn worth of goods from Morocco, according to data from the state statistics agency Capmas seen by EnterpriseAM. Morocco is keen to up its exports to Egypt — and fast — with a target to grow its Egypt-bound exports to USD 500 mn by next year, Moroccan Confederation of Exporters head Hassan Sentissi told Asharq Business earlier this month.

#4- WB warns of rising debt pressure amid trade war: Debt pressure is piling up on developing countries and emerging markets from rising trade uncertainty, adding to their woes from high debt levels and sluggish growth, Reuters reports, citing the World Bank Chief Economist Indermit Gill.

About half of the developing countries are now at risk of default or rapidly approaching that point, almost double the 2024 rate, Gill warned. For emerging markets, net interest payments now account for 12% of their GDP, up from 7% in 2014. For poorer countries, the situation is even worse, with about 20% of their GDP now going to debt services, which is double the rate a decade ago.

What to expect for trade: Global trade is expected to grow by just 1.5%, a significant decrease from the 8% seen in the 2000s. With decade-high uncertainty indices, global economists expect the World Bank to announce further significant cuts to both growth and trade forecasts in June, Gill added.

REMEMBER- The IMF revised its global growth forecast for 2025 to just 2.8%, a 0.5% cut from its January estimate, warning that further trade tensions would drag growth further down.

MARKET WATCH-

#1- Oil prices dipped early this morning as concerns over the global growth outlook took its toll on investors, Reuters reports. Brent crude futures decreased by USD 0.25 to USD 65.61 a barrel, while the US West Texas Intermediate (WTI) went down by USD 0.18 to reach USD 61.87 a barrel by 00.24 GMT.

DATA POINT-

#1- The amount of handled cargo at Queen Alia International Airport (QAIA) decreased

16.5% decrease y-o-y, reaching 16.2k tons of cargo in 1Q 2025, Petra reports, citing figures from Airport International Group. The first three months also saw QAIA register 17.5k aircraft movements, a 5.3% y-o-y increase.

#2- Egypt’s non-oil trade deficit narrowed by 27.7% y-o-y in 1Q 2025 to USD 6.3 bn, according to a government document seen by Asharq Business. This was supported by a 27% y-o-y rise in non-oil merchandise exports, reaching USD 12.7 bn, up from USD 10.0 bn.

Arab countries accounted for around 48% of Egypt’s exports in 1Q 2025, equivalent to USD 6 bn, followed by the European Union at 22% at USD 2.7 bn.

#3- Egypt’s airports handled nearly 338.6k tonnes of air cargo in FY 2023, positioning the country as the 39th largest air cargo market globally, according to data released in a recent International Aviation Transport Association (IATA) report (pdf). Egypt’s aviation sector — including its airlines, airports, civil manufacturing, and air navigation service providers — generates nearly USD 3.5 bn annually, accounting for 0.9% of the nation’s total GDP.

#4- DP World recorded a 7.5% y-o-y jump in its gross container volumes to 22.3 mn TEUs globally in 1Q 2025, according to a company report (pdf). Jebel Ali port saw its handling volumes up 10% y-o-y to 4 mn TEUs in 1Q. The Middle East, Europe, and Africa sub-section recorded the steepest increase in its handled gross volume up 13.7% y-o-y to 8.3 mn TEUs from 7.3 mn TEUs the year prior. Meanwhile, Asia Pacific and India handled the largest total gross volume at 10.6 mn TEUs, growing 3.2% y-o-y from 10.3 mn TEUs in 1Q 2024.

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CIRCLE YOUR CALENDAR-

The UAE will host the Airport Show on Tuesday, 6 May to Thursday, 8 May in Dubai. The event will show products and technology for the airport industry from over 160 international suppliers and manufacturers across 20 countries. It will also provide a platform for networking with key players across seven airport sectors.

Saudi Arabia will host the Saudi Smart Logistics trade fair on Monday, 12 May to Thursday, 15 May in Riyadh. The event will provide insights into the latest international and local technology, solutions, equipment providers, and sustainable workflow practices within the logistics industry in the country.

The UAE will host the Global Ports Forum on Tuesday, 13 May to Wednesday, 14 May in Dubai. The forum will cover topics such as port strategy and development, port automation, finance, and efficiency.

The UAE will host the Seamless Middle East from Tuesday, 20 May to Thursday, 22 May in Dubai. The event will cover topics including digital marketing, e-commerce, and retail and merchant payments.

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

This publication is proudly sponsored by

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Investment Watch

Aramco + China’s Sinopec launch USD 4 bn JV with focus on oil logistics

Aramco to form JV with China’s Sinopec: Saudi Aramco and China’s state-owned Sinopec inked an agreement to establish a joint oil logistics venture (JV) with a registered capital of USD 3.95 bn (c. CNY 28.8 bn), Reuters reports, quoting Sinopec as saying. The JV — dubbed Fujian Sinopec Aramco Refining and Petrochemical Co — will cover port operation and crude oil transportation at their planned joint refinery and petrochemical complex, which is now under construction in China’s Gulei Port Economic Development Zone in the Fujian province.

Who owns what? The agreement was inked between Aramco’s Asia arm Aramco Asia Singapore and Fujian Petroleum Chemical Industry Co — a JV between Sinopec and the Fujian government. Aramco Asia Singapore and Sinopec will each supply 25% of the JV’s registered capital, while Fujian Petroleum Chemical Industry will contribute the remaining CNY 14.4 bn in cash.

REMEMBER- Aramco and Sinopec kicked off construction work at a refinery and petrochemical complex in southeast China’s Fujian province back in November 2024, with operations expected to begin in 2030.

Project profile: The new refining hub is situated in Zhangzhou city’s Gulei industrial park and includes a 320k bbl / d refinery, ethylene and paraxylene plants, as well as a 300k-ton crude oil terminal. Once operational, the facility is expected to supply some 5 mn tons of petrochemical feedstocks a year. The initiative is separate from another USD 6.4 bn Sabic refining complex that is also situated in Gulei industrial park, Reuters explained.

Aramco is doubling down on downstream assets in China: The state-owned oil giant is “recalibrating” its petrochemicals portfolio and shifting its focus towards Asia, with the firm pursuing several downstream oil investments in China to lock in demand for Saudi crude in the long run. Aramco also sees demand for plastics and other petroleum derivatives growing in Asia and is angling for a larger market share in those markets. The Saudi major has set its sights on supplying 1 mn bbl / d of crude to China to support petrochemical production investments.

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Zones

Dammam’s King Abdulaziz Port to get two new logistics zones

The Saudi Ports Authority (Mawani) inked two contracts to develop two logistics zones in King Abdulaziz Port in Dammam, according to statements here and here. The two developments will have a combined investment ticket of SAR 500 mn.

#1- Alissa Universal Motors — a subsidiary of automotive group Abdullatif Alissa Group Holding — will invest 300 mn to build an automative-specialized logistics zone, according to a statement. The zone — to be established over a 382k sqm area — will be specialized in handling the import and re-export of vehicles, trucks, and their spare parts, with a handling capacity of more than 13k auto units. The zone will also feature a 7k sqm warehouse for spare parts.

#2- Dammam-based Sultan Logistics Company will develop a 197k sqm logistics zone with an investment ticket of SAR 200 mn, according to a statement. The zone will include a warehouse spanning some 35 sqm, a dedicated container storage area, a maintenance area for dry and temperature-controlled containers, and an administrative office.

Mawani’s been ramping up capacity at port: Mawani and Al Jeri Logistics Services have inked two contracts worth SAR 160 mn to develop two logistics zones for storing and handling containers at Jeddah Islamic Port and King Abdulaziz Port in Dammam last year. Mawani also signed a SAR 200 mn agreement with G4 Logistics last year to set up silos and warehouses for grain storage at the port.

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Aviation

Regional aviation players reposition amid trade disruptions, uncertainty

Regional airliners brace for uncertainty, eye opportunities: Major airlines in the Middle East are bracing for the impact of the ongoing global trade war, but some are remaining cautiously optimistic as they eye opportunities arising from the shifting landscape. Global trade uncertainty is expected to still cast its shadow through supply chain disruptions and delayed IPO plans.

Etihad remains cautiously confident: Abu Dhabi’s Etihad Airways has yet to see any fallout from US President Donald Trump’s tariff policies, CEO Antonoaldo Neves told Reuters, although he added that it is too soon to judge the full impact. Despite trade volatility, the carrier continues to record stable seat occupancy rates and expects to “see more Europeans coming” to the region, Neves added.

But we’re yet to see progress on Etihad’s IPO plan, which were reported last month to be postponed to after Eid al Fitr amid speculations on the timing. The company is ready for the move, but a decision from the shareholders is yet to be made, Neves told Reuters. Etihad kicked off a roadshow earlier in February to feel out investors for the 20% offering sale.

Qatar and Etihad keep expansion plans unchanged: Both Qatar Airways and Etihad indicated they’re expecting to see their fleets expand in accordance with expectations. Some 22 aircraft are expected to be added to Etihad fleet this year, including 10 Airbus A321LRs, six Airbus A350s, and four Boeing 787s, Neves said. Qatar Airways also confirmed it would still go ahead with a major widebody order it is working on, with plans to announce in the coming weeks, CEO Badr Al Meer told Bloomberg (watch, runtime: 6:03).

And Qatar Airways is stockpiling parts: Qatar’s flagship carrier Qatar Airways is stockpiling aircraft spare parts in anticipation of import difficulties, Bloomberg reported on Friday. While the carrier is trying to “absorb and adapt with any changes” on the back of the tariffs’ impact on supply chain and cargo operations, passenger demand is projected to stay strong enough, Al Meer said.

Meanwhile, Riyadh Air is eyeing China’s Boeing orders if the deliveries are not fulfilled due to the ongoing trade war, CEO Tony Douglas told Reuters on the sidelines of the Arabian Travel Market conference. The carrier has “made it quite clear to Boeing, should that ever happen, and the keyword there is should, we’ll happily take them all,” Douglas added.

REMEMBER- Riyadh Air is desperate for jets: The new airline’s first flight was pushed back to 3Q 2025 from earlier this year on the heels of delivery delays from Boeing, but the young airliner is expecting to receive as many as four Boeing 787 Dreamliners this year, with more jets from Airbus scheduled to trickle in starting 2H 2026 as part of a 60-jet order of A321neos.

The competition for halted China-bound jets, however, is expected to be tense, with Russia offering to buy Boeing jets, as well as Asian airlines from Taiwan and Vietnam, which are eying a piece of the cake as they attempt to score a point in their bilateral trade talks with the US.

ICYMI- Chinese airlines sent back two Boeing 737 MAX jets that were due to deliver last week after the Chinese government ordered its airlines earlier this month to stop receiving Boeing jets and halt any acquisitions of aircraft-related equipment or parts from US companies.

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Also on Our Radar

Updates on trade, aviation, zones, and ports from around the region

TRADE-

#1- Egyptian manufacturer Massoud Steel signed a contract to build an EGP 965 mn metal packaging factory in the Sokhna Industrial Zone, according to a statement from the Suez Canal Economic Zone (SCZone). The project — the first dedicated metal packaging and tinplate printing project within the SCZone — will prioritize local market needs and is poised to ramp up exports overtime, which SCZone head Walid Gamal El Din said will be helped by the zone’s exemptions, support program, and infrastructure for exports. The project is expected to create around 130 direct jobs and kick off operations in 1Q 2026.

DATA POINT- The SCZone signed USD 8.3 bn worth of actual investment contracts across 272 projects between July 2022 and March 2025, Walid El Din said in a separate statement. The projects — including 262 industrial, services, and logistics developments and 10 port projects — are expected to create over 40k jobs.

#2- Iraq to restart oil pipeline through Syria: Iraq is making headway on the resumption of the Kirkuk-Baniyas pipeline that extends through Syria to Mediterranean ports, Asharq Business reported on Friday. The 800 km-long pipeline boasts a 300k barrels per day (bpd) capacity, which could enable Iraq to avoid full dependence on its Turkey-boundCeyhan pipeline to reach Europe. On its end, Syria hopes reviving the pipeline could help secure much-needed energy imports to support reconstruction efforts, with eyes on possible investments in refinery projects to process Iraqi oil.

AVIATION-

More Syria-UAE flights: Syrian Airlines is set to boost its flights to Dubai by adding two new flights per week from Damascus as of 2 May, according to a statement. The airline is also adding two additional flights between Damascus and Sharjah, effective from 5 May, according to a separate statement.

REMEMBER- Flights between the UAE and Syria were resumed earlier this month, as most airlines resumed flights to the country following the ouster of former president Bashar Al Assad. A Syrian Airlines flight to Sharjah was the first to take off from Damascus International Airport in January.

PORTS-

Eco-friendly vessels land Salalah Port: Oman’s Port of Salalah has welcomed five eco-friendly container vessels from Maersk, according to a statement. The vessels have dual-fuel propulsion systems and were powered by methanol.

ICYMI: Maersk-owned operator of Salalah Port APM Terminals completed earlier this year a USD 300 mn expansion project of the port to support the launch of Maersk and Hapag-Lloyd’s Gemini Cooperation launch.

ZONES-

Dubai CommerCity has new AI partners: Digital-focused freezone Dubai CommerCity has signed strategic partnerships with trade-focused AI companies qeen.ai and Portmind to accelerate digital commerce and trade operations, according to a press release. The partnership with qeen.ai will embed AI-driven automation and solutions into the freezone’s ecosystem, supporting e-commerce SMEs and high-growth brands in scaling operations and boosting competitiveness. Meanwhile, Portmind’s Sail platform will automate customs documentation and regulatory compliance, helping businesses speed up clearances, improve shipment visibility, and lower operational costs.

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Around the World

Airbus to acquire some Spirit AeroSystems assets + Double trouble for foreign firms producing in China

Airbus to acquire some Spirit AeroSystems assets: Airbus has inked an agreement with leading parts provider Spirit AeroSystems to acquire industrial assets for its commercial aircraft programs, according to a statement. The move comes as Airbus seeks to strengthen the stability of supply for its commercial aircraft production.

Airbus will take ownership of the following assets:

  • A350 fuselage sections production facilities at the sites of Kinston in North Carolina in the US and St. Nazaire in France;
  • A321 and A220 components site at Casablanca in Morocco;
  • A220 pylons production site in Wichita, Kansas in the US;
  • A site making A320 and A350 wing components in Prestwich, Scotland;
  • A220 wings and mid-fuselage site in Belfast, Northern Ireland.

A slight change in plans: Spirit will now compensate Airbus with USD 439 mn — subject to certain adjustments. The amount is an adjustment to a revised scope of an agreement that was signed between Airbus and Spirit back in July 2024. Spirit also intends to sell the site of Subang, Malaysia to a third-party owner. The closing of the transaction is scheduled for 3Q 2025, with regulatory and customary approvals still pending.

ICYMI- Spirit received up to USD 350 mn from Boeing and up to USD 107 mn from Airbus in advance payments back in November to help it stay afloat as it continued to burn through cash after four consecutive years of losses.

Boeing’s been eyeing full acquisition: Spirit’s shareholders approved a Boeing purchase agreement back in February, clearing the path for Boeing to fully acquire AeroSystems. The acquisition is expected to close the USD 4.7 bn transaction by mid-2025, subject to regulatory approvals.


Foreign firms in China reel from trade war: Foreign manufacturers in China are getting slapped with double tariffs — up to 125% to import components and 145% to export secondary and final products to the US, the Financial Times reports. “Foreign firms are really being squeezed in the Chinese market…if they import, they pay the Chinese tariffs. When they export back to the US, they pay the US tariffs…they are hit twice,” director of the Asia Global Institute at the University of Hong Kong Heiwai Tang told the outlet.

Who’s bearing the brunt? Major US firms like Apple and Tesla and several small-scale producers rely on China as a manufacturing hub. China has so far allowed a tariff exemption if the final product is exported back to the US within a specific time frame, but the country did not grant the exemption if the goods are exported to countries other than the US.

Is it too far gone? Although foreign companies account for one-third of China’s total trade, their trade share in the country has fallen from 55% of its total trade in 2008 to 29.6% in 2024, which comes on the back of a strict policy of industrial self-reliance fostered over the years.


APRIL

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

MAY

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

6-7 May (Tuesday-Wednesday): Capital Market Summit, Dubai, UAE.

13-14 May (Tuesday-Wednesday): Egypt Facility Management Forum, Cairo, Egypt.

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

15-18 May (Thursday-Sunday): Global Logistics Conference, Dubai, UAE.

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.

28-30 (Wednesday-Friday): International Conference on Logistics and Supply Chain Management, Casablanca, Morocco.

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

4-10 September (Thursday-Wednesday): Intra-African Trade Fair, Algiers, Algeria.

7-10 September (Sunday-Wednesday): Comex Global Technology Show, Muscat, Oman.

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

30 September – 2 October (Monday-Thursday): Global Rail Transport Infrastructure Exhibition and Conference, Abu Dhabi, UAE.

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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