UAE, USA advances cooperation with 5 GW AI complex + USD 14.5 bn Boeing, GE order

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What we're tracking today

TODAY: Aviation, data centers spree + DP World lands in Syria

Good morning, friends. Aviation and data center agreements from Trump’s GCC tour continued to trickle in over the weekend, with news on the UAE-US investment push in the sectors leading the pack. We also have updates on regional LNG trade, as well as DP World’s push into Syria. Shall we?

WATCH THIS SPACE-

#1- Can the reduction in transit fees help boost traffic levels in the Suez Canal? The Suez Canal Authority announced a 15% reduction on transit fees for container vessels in a bid to encourage major shipping lines to return to transiting through the canal, but some are skeptical the move will bear fruit. The move is not enough to incentivize shipping companies to return as security remains a main concern, Chairman of the Suez Chamber of Shipping Abdel Qader Gaballah told EnterpriseAM. With the current security risks, the premiums for ships going through Suez are far higher than the fee reductions, he added.

Shipping giants are still monitoring the situation: Sources from Maersk and other major shipping companies said that they are monitoring the situation and will only consider returning to the canal if security improves.

REMEMBER- Some major shippers may also lack the financial incentive to accelerate their return to the Red Sea route. For example, Maersk forecasts a net income of USD 3 bn if the route’s disruption continues until the end of the year, whereas an earlier return to Red Sea — by the start of 2H — would leave the company barely breaking even.

#2- Iraq has completed the first section of the road links in the Development Road project, which includes part of a three-lane road for heavy trucks and cargo, the Iraqi Shafa q News reported on Saturday, citing a statement from Iraq’s General Company for Ports. “The first section of the road stretches from Grand Al-Faw Port to the submerged tunnel, covering 51km, and then continues from the tunnel to the main Safwan road for an additional 11km, bringing the total length of this segment to 62 km,” company director Farhan Al Fartousi told the news outlet.

ICYMI: Baghdad established a private company to manage the Development Road project in April. Turkey, Qatar, and the UAE signed on to contribute to the project last year.

About the project: The Development Road aims to connect Iraq’s Al Faw mega port — currently under construction — to Turkey via road and rail covering 1.2k km. The project is set to rival the Suez Canal route for cargo moving from Asian to European markets. The project is estimated to have an investment ticket of over USD 4 bn, Shafaq News reported.

#3- Saudi real estate firm Al Otaishan Holding is planning to develop a SAR 80 mn automated petrochemical logistics warehouse in Al Jubail Industrial City, CEO Dhary Al Otaishan (LinkedIn) told EnterpriseAM during a summit held by Egypt’s proptech platform Aqarmap. The flagship project — the first of its kind in the region — will be developed in partnership with the German company Al Otaishan-Schmidt, managed by Al Otaishan Holding, and is expected to be operational by November 2026, Al Otaishan said.

IN THE PIPELINE- Al Otaishan Holding is set to develop a 21k sqm food warehouse in Al Khumrah, Jeddah. The company will also build, own, and manage a 14k sqm office project in Dammam targeting corporations lease, set to be managed by its property management subsidiary.

About Al Otaishan Holding: Founded in 1982 as a transport establishment, Al Otaishan evolved into a specialized company offering logistics, industrial, and trading services. Al Otaishan Holding was launched in 2022, with operations spanning the construction, maintenance, logistics, and industrial sectors.

MARKET WATCH-

#1- Oil prices remained largely unchanged early this morning, as the markets wait on key economic data from China and updates on the US-Iran talks, Reuters reports. Brent crude futures saw a minor drop of USD 0.05 to reach USD 65.36 a barrel, while the US West Texas Intermediate (WTI) slightly increased by USD 0.03 to reach USD 62.52 a barrel by 00.22 GMT.

#2- Baltic index snaps losing streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — climbed 6% to 1,388 points on Friday. The capesize surged 14% to 2,018 points, while the panamax index gained 3 points to 1,290. The smaller supramax index was up 3 points to 978.

PSA-

Hapag-Lloyd rolls out new PSS: Shipping giant Hapag-Lloyd will add a peak season surcharge (PSS) of USD 400 (EUR 350) per container for all types coming from the Middle East, Europe, the US, and the Indian Subcontinent to Banjul in Gambia, according to a statement released on Thursday. The PSS is applicable starting 19 May and until further notice.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Warehousing & Logistics Expo from Tuesday, 27 May to Thursday, 29 May in Riyadh. The expo will host over 18k supply chain industry professionals and more than 400 exhibitors. It will also explore over 3.5k solutions.

Morocco will host the International Conference on Logistics and Supply Chain Management from Wednesday, 28 May to Friday, 30 May in Casablanca. The conference will cover scientific research, technologies, and environmentally friendly digital solutions in the logistics, transport, and supply chain sectors.

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

UAE to build 5 GW data center with US firms, secures major Boeing order

UAE and US companies have inked several agreements to collaborate on aviation and data centers, according to a White House statement released on Thursday. The collaborations are part of USD 200 bn worth of agreements signed during US President Trump’s visit to the Emirates, bringing the total investment ticket of his Gulf tour to USD 2 tn.

AVIATION-

Boeing jets incoming: Etihad Airways will invest USD 14.5 bn in Boeing and GE Aerospace for 28 Boeing 787 and 777X aircraft manufactured in the US by GE engines. The flag carrier currently has a fleet of around 100 aircraft, with CEO Antonoaldo Neves saying last month it plans to add 20 to 22 new planes this year in a bid to meet its target of 170 planes by 2030. The airline is gearing up for an IPO on the ADX.

REMEMBER- Boeing was heavily featured in the tour: Qatar’s flagship carrier inked a USD 96 bn agreement to acquire up to 160 jets from US manufacturer Boeing, with an option to add 50 more aircraft, and Saudi Arabia’s PIF placed a USD 4.8 bn order for 20 Boeing 737-8 jets for its aviation leasing firm AviLease, with an option for 10 more.

DATA CENTERS-

#1- The two countries will build a 5 GW US-UAE data center complex in Abu Dhabi — set to be the largest outside of the US — to house UAE hyperscalers and large enterprises, according to a Commerce Department statement. The facility will use nuclear, solar, and gas power, and will house a science park to drive AI innovation.

State AI giant G42 will build the complex in partnership with US companies, the statement said, without disclosing their names. However, OpenAI and Oracle are reportedly the leading US companies involved in the project, people familiar with the matter told Bloomberg.

What else we know: Once completed, the facility will span 10 square miles and consume the power equivalent to that generated by five nuclear reactors — positioning it as the largest of any site announced by OpenAI or any of its rivals, people familiar with the matter told Bloomberg. The 5 GW will be distributed across multiple unnamed firms, with Abu Dhabi-based investment firm MGX reportedly considering participating in the data center project alongside OpenAI and G42, as well as other undisclosed US partners.

ICYMI- The US + KSA underwent a data center round recently: A slew of Saudi Arabian tech players inked agreements with US firms last week, chief among them was a USD 20 bn data centers and AI infrastructure agreement between KSA’s DataVolt and US-based Super Micro Computer Inc (Supermicro). Also, Saudi Telecom Company (STC) and Oracle expanded their partnership with a SAR 2 bn pact to boost Saudi’s AI-powered cloud infrastructure and sovereign cloud solutions. The Kingdom’s newly launched AI company Humain also finalized a barrage of agreements with Amazon, Nvidia, and AMD for data center developments and microchip imports.

DP World secures Tartus terminal concession in USD 800 mn Syria logistics push

UAE moves on Syria’s logistics sector: State-owned logistics giant DP World inked a USD 800 mn MoU to develop and operate a multi-purpose terminal at Tartus Port, according to a statement released on Friday. The agreement will also see DP World set up industrial and freezones, as well as dry ports and freight transit stations, in strategic areas across Syria under the agreement.

IN CONTEXT- The move comes only a couple of days after US President Donald Trump pledged to lift long-standing sanctions in place against Syria during his first leg of his regional tour in Riyadh. If the US follows through, the move is expected to finally bring in much-needed investments to the country, and help restore its infrastructure and revive its economy.

The agreement is the biggest investment agreement yet for the new Syrian government, after it signed a USD 260 mn new berth agreement for Latakia port with French shipping giant CMA CGM earlier this month.

More temporary sanctions relief on the way: Washington is set to relieve sanctions on Syria by issuing 180-day waivers for the "Caesar Syria Civilian Protection Act” — a restriction applied on Syria’s ousted government and any states or companies affiliated with it, Reuters reported last week, citing US Secretary of State Marco Rubio. “[W]e'd like to see the [the Caesar Act] repealed, because you're going to struggle to find people to invest in a country when in six months sanctions could come back," Rubio said (watch, runtime: 4:44). “We want to start with the initial waiver which will allow foreign partners who want to flow in aid to do so,” Rubio said.

REMEMBER- UAE officials have been warming up to the new Syrian administration for the past few months, with Vice President Sheikh Mansour bin Zayed Al Nahyan meeting with Syrian Transitional Government Finance Minister Mohammad Yisr Barnieh and Central Bank Governor Abd El Kader Al Husariah in Abu Dhabi only this month to discuss bilateral cooperation, particularly in finance and trade, and President Sheikh Mohamed bin Zayed Al Nahyan meeting with Syrian President Ahmad Al-Sharaa in April to discuss ways to strengthen bilateral relations.

UAE-Syria CEPA in the works? The UAE is open to launching comprehensive economic partnership agreement (CEPA) negotiations with Syria, Foreign Trade Minister Thani Al Zeyoudi told Asharq Business. Al Zeyoudi said there are investment windows in Syria’s manufacturing and energy sectors, noting that sanctions had previously blocked formal economic engagement.

Regional energy leaders look to export LNG shipments to Egypt

Egypt snaps up offers for regional gas shipments: A number of regional energy firms have put in offers to supply Egypt with LNG this year, a government source told EnterpriseAM confirming news first picked up by Asharq Business. Saudi Aramco, UAE’s Adnoc, Algeria’s Sonatrach, and QatarEnergy have submitted technical and financial offers to the Egyptian Natural Gas Holding Company (EGAS), Asharq’s source said, adding that EGAS is currently reviewing the offers.

We knew Qatari gas was on the table: Egypt has been mulling signing long-term contracts with Qatar to secure natural gas shipments for domestic consumption.

Egypt is likely to continue importing LNG until 2030, a government source in the energy sector told EnterpriseAM. The contracts will likely cover a period of five years and offer favorable pricing and flexible payment terms, the source added. The government is reportedly eying contracts running until 2028 and 2030, unnamed informed insiders also told Bloomberg last weekend.

We’re not bidding farewell to short-term contracts just yet: Heightened demand, price fluctuations, and geopolitical conditions mean the country will continue to depend on short- and medium-term contracts to secure gas needs, the source said.

Another sign we’re looking at long-term reliance on natgas imports: EGAS inked a 10-year agreement with global maritime energy infrastructure player Höegh Evi for an LNG regasification vessel last week.

Terms and conditions apply: Earlier this year, Asharq reported that Egypt has set a pricing and payment mechanism for securing LNG supply agreements for the summer months. EGAS sent the conditions to global LNG suppliers in a bid to secure direct contract offers instead of issuing public tenders — including a price cap, deferred payments, and overprice charges.

UAE’s GulfNav and Abu Dhabi Ship Building report 1Q earnings

DFM-listed GulfNav trims losses, but remains in red: UAE-based shipping firm Gulf Navigation (GulfNav) recorded a net loss of AED 6.9 mn in 1Q 2025, trimming their losses by about 39.5% y-o-y — in on our calculations — compared to AED 11.4 mn in 1Q 2024, according to the firm’s unaudited financials (pdf) released on Thursday. The DFM-listed firm’s topline rose 8.3% y-o-y, reaching AED 25.8 mn.

REFRESHER- GulfNav posted a net loss of AED 20.1 mn for FY 2024 due to a strategic focus on fleet modernization, with revenues also slipping 16% y-o-y to AED 88.7 mn.

ABU DHABI SHIP BUILDING-

ADSB posts a rough Q: Abu Dhabi Ship Building (ADSB) posted a net income of AED 1 mn in 1Q 2025, a 91.8% y-o-y decrease, according to financial statements released last week here (pdf) and here (pdf). The firm saw its top line slip 8.3% y-o-y — in on our calculations — to AED 253.1 mn during the same period, with ongoing work including the Falaj 3 contract to build four new maritime patrol vessels.

Behind the drop: The decline in the firm’s bottomline is attributable to delays in revenue recognition and accumulated accounts receivables of AED 20 mn — which should be consolidated in 2Q or 3Q of 2025.

REMEMBER- ADSB reported a 92% y-o-y increase in net income to AED 77.3 mn in FY 2024. Revenues rose 19% y-o-y to AED 1.5 bn, driven by progress on key contracts, including the Falaj3 contract for four offshore patrol vessels for the UAE Navy and progress on the BR71 MKII corvettes, ADSB-designed patrol boats, and logistical support for the Angolan Navy.

Updates on all things logistics from around the region

ZONES-

#1- GS Global to develop a USD 15 mn project in Qantara West: The General Authority for the Suez Canal Economic Zone (SCZone) inked an agreement with the Chinese textile company GS Global Sourcing to develop a USD 15 mn ready-made clothes factory in the Qantara West Industrial Zone, according to a Cabinet statement. Spanning over 27k sqm, the facility will produce over 12 mn garments annually, with 100% of output earmarked for export. The project is expected to create 2k direct job opportunities.

#2- Egypt’s government has reallocated two plots of land in New October City for investment and industrial use, according to a statement released last week. The first — spanning nearly 270 feddans — will serve as a private freezone and logistics area and will house a vehicle assembly plant. The second plot — covering almost 30 feddans — will be used for industrial activities.

M&A WATCH-

EGX has given UAE-based NAS Investment Holding an additional four days to complete its mandatory tender offer (MTO) for up to 57.5% of phosphate fertilizers exporter EgyFert, according to an EGX bulletin. The offer — priced at EGP 95 per share — will now run through to the end of the trading session on Thursday, 29 May.

ICYMI- The offer, which was submitted by NAS in January and greenlit by the Financial Regulatory Authority last month, could raise NAS’ stake in EgyFert from 32.4% to up to 90% in a transaction valued at EGP 524.4 mn.

SHIPPING + MARITIME-

#1- AED 112 mn wharf lands at Dubai Creek: Dubai has inaugurated a 2km-long wharf at Dubai Creek’s wharf side in an AED 112 mn investment, according to a statement. The project has raised the retaining wall height to 8.3m as well as equipped the quay with 200 anchors and 500 ship berths. The total area of the quay has increased to 320k sq ft — featuring new cargo handling zones and a public promenade.

#2- PIF-owned Folk Maritime added three new container vessels to its fleet, according to a statement released on Thursday. The new vessels — M/V Folk Dammam (1,868 TEIJs), M/V Folk Yanbu (702 TEIJs), and M/V Folk Jubail (1,118 TEUs) — are set for deployment starting June 2025 to serve routes along the Red Sea, Arabian Gulf, and Indian subcontinent, and are all registered under the Saudi flag at Jeddah Islamic Port.

REMEMBER- Folk Maritime is lining up a multi-mn USD fleet expansion with plans to buy or charter 15-18 container ships in the next three to five years to increase access for the Kingdom’s smaller ports and alleviate demand for road transportation. Recent additions to the fleet include the 2k TEU Folk Jazan from April and the 1,868 TEU Folk Jeddah from last September.

CUSTOMS-

The Kingdom will begin implementing revised customs duties starting 1 June, after Finance Minister Mohammed Al Jadaan approved changes to the unified GCC tariff schedule, Umm Al Qura reported on Friday. The new rules set a 5% import duty on various chemical compounds, including acetophenone and benzophenone, as well as on natural honey products including filtered manuka honey, Al Arabiya reports.

TRADE-

Iran + EAEU update FTA: Iran and the Eurasian Economic Union (EAEU) have updated their freetrade agreement (FTA) to lower the average rate on import custom levies on goods supplied from EAEU countries to Iran from 20% to 4.5%, Tehran Times reported on Thursday. The new rules will come into effect in 60 days after all EAEU member countries complete the necessary legal processes.

STARTUP WATCH-

Aramco-backed VC fund Prosperity7 participated in a USD 100 mn funding round for Las Vegas-based AI infrastructure startup TensorWave, according to a press release issued last week. Magnetar Capital, AMD Ventures, Maverick Silicon, and Nexus Venture Partners also participated in the round.

About TensorWave: Founded in 2023, TensorWave builds data centers primarily with AMD chips and currently operates an AI training cluster with over 8k AMD GPUs. The startup plans to use the fresh funding to expand its GPU clusters and team.

Canada keeps most US tariffs in place + China issues 90-day pause on export restrictions

Canada locks down on most US tariffs: Canada’s government is keeping in place its 25% retaliatory tariffs on US goods — with 70% of the counter-tariffs implemented in March still in place, Bloomberg reports, quoting Canada’s Finance Minister Francois-Philippe Champagne as saying. The minister indicated the government “temporarily and publicly paused tariffs” on select goods for health and public safety reasons.

This was Champagne’s pushback on Oxford Economics’ recent report, which claimed that Canada has suspended almost all of its retaliatory tariffs on US products, making their tariff-rate increase “nearly zero" in an attempt to bolster its economy, Bloomberg reported on Thursday, citing Oxford Economics calculations.

Catching a break…almost: It was alleged that a six-month exemption period would be implemented on retaliatory tariffs for products used in Canadian manufacturing as well as processing and F&B packaging, and public safety, national security, and healthcare-related items. Automakers, such as General Motors, or manufacturing companies in Canada were also said to be exempt from the tariffs.

China has issued a 90-day pause of its export restrictions on dual-use goods — items used for both civil and military purposes — that it previously imposed on 28 US firms, Bloomberg reported on Wednesday, citing a Chinese Commerce Ministry statement. The move is yet another sign of trade war de-escalation between Beijing and Washington that saw the pair agree to slash their bilateral tariffs for 90 days earlier this month.

Uncertainty on rare earths inclusion? While the notice didn’t list specific items, earlier filings on 4 April and 9 April named seven rare earth elements as controlled dual-use goods. The pause gives US firms temporary relief, but it’s unclear if curbs will return after the 90-day window.

The background: The world’s second-largest economy had announced export controls on rare earth minerals in February, citing national security concerns. The restrictions were part of a wider retaliatory package from Beijing that also imposed a 15% duty on US coal and LNG and a 10% duty on oil, farm equipment, and some vehicles.

DATA POINT- The US’ current 30% rate is set to cripple Chinese exports: Washington’s 30%tariff on inbound Chinese imports — predicted to last throughout until late this year — is set to effectively slash 70% of China’s medium-term exports to the US, according to a survey of 22 Asian, European, and US fund managers conducted by Bloomberg on Friday. Respondents generally believe that the US is unlikely to bring its tariffs on Beijing to less than 30%, with six predicting a hike and seven predicting a further cut below the 30% rate.

Calendar

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

20-22 May (Tuesday-Thursday): Mediterranean Ports and Logistics 2025, Barcelona, Spain.

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.

18-19 June (Wednesday-Thursday): Eurasia Rail, Istanbul, Turkey.

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.

22-24 July (Tuesday-Thursday): Intermodal Africa, Beira, Mozambique.

SEPTEMBER

1-3 September (Monday-Wednesday): Transport Middle East 2025, Salalah, Oman.

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.

28-30 October (Tuesday-Thursday): Borneo International Maritime Week, Sarawak, Malaysia.

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

27-29 January (Tuesday-Thursday) Transport Middle East 2026, Abu Dhabi, UAE.

28-30 April (Tuesday-Thursday) Mediterranean Ports and Logistics, Porto, Portugal.

24-26 June (Wednesday-Friday) Transport Logistic & Air Cargo 2026, Shanghai, China.

7-9 July (Tuesday-Thursday) Asean Ports and Logistics, Kuala Lumpur, Malaysia.

17-19 November (Tuesday-Thursday) Intermodal Africa 2026, Luanda, Angola.

2027

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

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