Flydubai breaks ground on USD 190 mn MRO hub in Dubai South

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What we're tracking today

TODAY: Flydubai breaks ground on MRO facility + More export-bound factories from Egypt, Oman

Good morning, folks. We have a brisk read as we head into the weekend, with a variety of project updates across the region’s ports, zones, and aviation industries. UAE is also getting a special kudos for its Data Center progress, clinching top growth rankings among emerging markets. Let’s get the ball rolling.

WATCH THIS SPACE-

#1- Iran eyes full control of Russian terminal on Caspian sea: Iran’s Nasim Bahr Kish has placed a bid to purchase 25% of Astrakhan Port from the Russian government for RUB 437.5 mn (c. USD 5.6 mn), Reuters reports, citing company records. The Iranian firm — which is under US sanctions — already owns a controlling share of the Caspian Sea port, which specializes in shipping grain, fertilizers, metals, and timber.

In numbers: The terminal saw its y-o-y grain handling halve from approximately 275k tons to just 139.5k tons this agricultural season — with no grain shipped in May — after Russia's temporary export ban on barley and corn. A shipment rebound is expected in the 2025-26 agricultural season, however, as Iran looks for more imports due to an expected smaller crop yield this year.

#2- Egypt’s Suez Canal maintained normal traffic flows despite the capsize and sinking of drillship Adam Marine 12, Suez Canal Authority head Osama Rabee said in a statement. The Osoco-owned drillship capsized in the Gulf of Suez late Tuesday evening near Gabal El Zeit, some 300 km south of the Suez Canal. Of those onboard, at least four died, six are still missing, while the remaining 21 were rescued.

#3- SGP moves into east coast terminals: Modern Port Services Company — a subsidiary of Saudi Global Ports (SGP) — officially took charge of multipurpose terminals along Saudi Arabia’s Eastern Coast on Tuesday, TradeArabia reports. The ports include King Abdulaziz Port in Dammam, Jubail’s Commercial Port, King Fahd Industrial Port, and Ras Al Khair Port.

REMEMBER- SGP — a JV between the Public Investment Fund and Singapore’s PSA International — was tapped by the Saudi Ports Authority last month to operate the ports.

#4- Saudi, Morocco to boost maritime links: Saudi and Moroccan officials agreed to look into launching a maritime link connecting the two kingdoms as part of an effort to boost bilateral trade and investment in the food, renewables, and tourism sectors, Asharq Business reports. The shipping link will “enable the private sector to play its role in promoting trade exchanges between the two countries as strong economies can open partnerships in other markets,” ٍSaudi Chambers of Commerce President Hassan bin Moejeb Al Huwaizi told the newspaper.

The context: The move comes as Morocco and Saudi Arabia gear up to host consecutive editions of the FIFA World Cup in 2030 and 2034, which are set to open up avenues for major investments for Moroccan and Saudi private investors.

All eyes on trade: The new link comes as the pair look to boost their trade from USD 1.6 bn in 2024 to USD 5 bn, Moroccan Industry and Trade Minister Riad Mazour told Asharq Business. Morocco is also looking to a more balanced trade relationship, with volumes currently dominated by Saudi oil exports — currently standing at c. USD 1.1 bn, Mazour said.

#5- MMC Port Holdings inches closer to IPO: Malaysia’s largest port operator MMC Port Holdings filed a draft prospectus for its initial public offering with Malaysia’s securities regulator, Reuters reports. Some 4 bn shares will be offered for institutional investors, with 286 mn shares available to retail investors, according to the filing (pdf). The timeline of the IPO was not disclosed in the filing, but the move could happen as early as 2H 2025, two sources familiar with the company's plans told the newswire.

We knew this was coming: MMC Corp — which fully owns the port operator — is expected to float a 30% stake in the operator via the listing, which could raise upwards of MYR 6 bn (c. USD 1.4 bn), the newswire reports, citing unnamed sources. MMC Port Holdings tapped local banks CIMB and Maybank for the IPO earlier this year.

Previous suitors: US-based investment firm Global Infrastructure Partners scrapped plans to acquire a 49% stake in MMC Port Holdings after failing to reach an agreement on the price for the stake last year.

MARKET WATCH-

#1- Oil prices went down this warning amid emerging signs of weakened US demand and rising stockpiles over the last week, Reuters reports. Brent crude futures dropped USD 0.24 to USD 68.87 a barrel by 03.45 GMT, while US West Texas Intermediate (WTI) futures declined by USD 0.24 to trade at USD 67.21 a barrel.

#2-Baltic index hits new low: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — dropped 1% to 1,443 points on Wednesday. The capesize was down 2.6% to 1,958 points, while the panamax dipped 0.5% at 1,492 points. The small supramax index inched up 13 points to settle at 1,031.

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CIRCLE YOUR CALENDAR-

Intermodal Africa will kick off on Tuesday, 22 July and run till Thursday, 24 July in Beira, Mozambique. The forum will host over 300 senior government officials, industry leaders, academics, senior executives, and harbor masters in the ports, shipping, and logistics sector. Attendees and speakers will be coming from countries across the Middle East, Africa, and Europe.

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

Flydubai break ground on USD 190 mn MRO hub in Dubai South

UAE budget carrier flydubai broke ground on its USD 190 mn aircraft maintenance, repair, and overhaul (MRO) facility in Dubai South, according to a statement. The facility — scheduled for completion in 4Q 2026 — will span 32.6k sqm and host an aircraft hangar, support workshops, and office buildings.

The rationale: “When it is up and running in 2026, the MRO facility on Dubai South will bring us significant reductions in operational costs,” COO Mick Hills said. “Having our own in-country MRO facility will ensure a quicker turnaround of our fleet maintenance while adhering to the highest quality standards.”

Part of a larger strategy: Flydubai has been on a quest to secure catered MRO services for its growing operations in order to cut down on costs and reduce schedule disruptions due to repairs. In February, the airline inked a services agreement with Boeing that will see the latter provide tailored parts packages, including quick engine change kits for the airline’s 737 Max fleet.

REFRESHER- Flydubai secured an agreement with Mohammed bin Rashid Aerospace Hub (MBRAH) in Dubai South to set up the purpose-built MRO facility back in November 2023. MBRAH launched the first phase of its Aerospace Supply Chain zone in Dubai South in April, featuring 11 separate facilities tailored to support engine shops, solution workshops, and landing gear MRO services.

UAE’s been getting a lot of MRO attention lately: Falcon Aviation is set to plug nearly USD 100 mn (c. AED 367 mn) over the next five years into upgrading its MRO facilities at Dubai’s Al Maktoum International Airport. MBRAH, Liebherr-Aerospace, and Etihad Engineering all had a streak of MRO agreements at MRO Middle East forum in Dubai back in February.

Chinese glassware firm plugs USD 70 mn into new SCZone factory

Deli Glass Co to set up shop in Sokhna’s TEDA Zone: China’s Deli Glass Co broke ground on a new USD 70 mn factory for glassware goods in Egypt’s Suez Canal Economic Zone’s (SCZone) China-Egypt TEDA trade zone in Ain El Sokhna, according to a statement. Some 80% of the goods produced at the facility are earmarked for export, while 20% will be directed into the local market.

The details: The new facility – spanning 120k sqm – will be developed in two phases, with phase one scheduled to be operational by 2H 2026. The project’s target annual capacity was not disclosed.

Not the only glassware player in the zone: China Glass Holding subsidiary CNG Egypt New Energy Glass began construction work on a USD 300 mn glass factory last year. The project will have a flat glass production line with a daily capacity of 1k tons and a photovoltaic glass production line with a daily capacity of 800 tons.

DATA POINT- The SCZone has inked contracts for some USD 8.5 bn in investments, amounting to 297 projects in its zones and ports across the country.

IN OTHER ZONES NEWS FROM OMAN-

US-based mattress manufacturer SweetNight will set up a USD 70 mn facility in Oman’s Sohar Port and Freezone, after the pair inked a new land lease agreement, according to a statement. The facility — spanning some 96k sqm — will have a production capacity of up to 3 mn mattresses annually. The site will initially produce goods for export to the US, with plans to expand later into the local Omani, GCC, Indian, and EU markets. The company will import raw materials from China, Thailand, Japan, and Korea.

Iraq to quadruple capacity at Umm Qasr port

Iraq advances Umm Qasr Port upgrades: The Iraqi government is looking to quadruple capacity at Umm Qasr port as part of an ongoing project to revamp one of its main ports on the Arabian Gulf, Shafaq News reports. The upgrades — divided between UAE’s Gulftainer and China’s Lurin Investment — will see the port add new berths, advanced storage yards, digital and customs systems

Who’s doing what? China’s Lurin Investment will develop berths 22, 23, and 24 and work on expanding RoRo terminals and rear storage areas, Shafaq News reports, citing an Iraqi engineer. Berths under Lurin’s purview will extend over 550m to add 850k containers to the terminal’s capacity and accommodate refrigerated, empty, and general cargo handling. Certain berths and storage zones upgrades will be handled by Gulftainer — whose terminal at the port spans 450k sqm and comprises refrigerated warehouses, around-the-clock customs, and security services.

About Gulftainer: Sharjah-based regional port operator Gulftainer has a portfolio spanning many terminals including Jubail Commercial and Jubail Industrial ports in Saudi Arabia, Iraq’s Umm Qasr Port, and Florida-based Canaveral Cargo Terminal in the US, according to its website. The firm operates the Umm Qasr Logistics center, as well as Iraq South Terminal on berth four, which it began operating in 2018 in tandem with local Iraqi outfit Manarat Umm Qasr, according to its website.

Iraqi ports have depth problem: Shallow depths hamper progress at Iraqi ports, which have not been deepened in some 40 years, transportation expert Basel Al Khafaji told the news outlet. “Ships are limited to 25k tons due to shallow docking zones… Deepening to 20–25 meters is essential for accommodating larger vessels and increasing import volumes,” Al Khafaji said.

About Umm Qasr Port: The multipurpose port has 21 operational berths across three port zones — namely Umm Qasr South Port, North Port, and Umm Qasr Mid Port, according to the Arab Sea Ports Federation. Certain portions of the port are dedicated to moving and storing grain and oil, among other goods, with cold storage capabilities. Notable port operators Gulftainer and France’s CMA CGM are active in the complex.

Oman Air appoints Hamood al Alawi as deputy CEO

Oman’s flag carrier Oman Air has tapped Hamood al Alawi (LinkedIn) as deputy CEO, Omani outlet Muscat Daily reports. Al Alawi joins fresh off his tenure as acting CEO at the state-owned airport operator Oman Airports. His track record includes high-ranking roles in the private and public sectors, notably at energy giant Shell and Petroleum Development Oman.

Updates on aviation, zones, and roads from the UAE and Syria

AVIATION-

#1- Sanad expands Leap engine overhaul capacity with GE and Safran: Mubadala-owned aerospace engineering and leasing solutions firm Sanad will expand its existing maintenance agreement with GE Aerospace and Safran Aircraft Engines to offer full maintenance, repair and overhaul (MRO) capabilities for LEAP-1A and LEAP-1B engines at its Abu Dhabi facilities, according to a press release (pdf). The expansion will see Sanad invest in tooling, equipment and infrastructure upgrades.

IN CONTEXT- The Leap engine powers two of the highest in-demand aircraft in the narrow-body sector — the Boeing 737 Max and Airbus A320neo groups. The narrow-body aircraft segment is projected to dominate the aviation industry, accounting for over 75% of the future global commercial fleet, the statement says.

#2- Dar tapped as engineer for Paris airport expansion: Sidara-owned Dar will oversee a five-year modernization program at Paris-Beauvais Airport under a contract with project commissioner SPV Bellova, according to a press release.

The details: The project will include airside and landside upgrades, parking expansions, building renovations and equipment installations. The engineering firm's French subsidiary, Dar France, will audit designs, monitor construction quality and work on resolving any outstanding issues through to the end of the liability period.

ZONES-

#1- Companies registered in Dubai’s Meydan Freezone will get preferential shipping rates and dedicated assistance for DHL services under an agreement with the global shipper, according to a press release. The tie-up looks to boost SME growth, particularly in the e-commerce, manufacturing, healthcare, and retail sectors, by facilitating cross-border trade, faster customs clearance, and automated tracking.

ROADS-

Syria + France to rehabilitate 37 bridges: The Syrian government and France’s Matière have amended an MoU — signed in 2023 — to rehabilitate 32 damaged bridges, adding five more bridges to the agreed-upon infrastructure, the Syrian News Agency (SANA) reports. The recently added bridges will now be treated as a priority for rehabilitation among the 37 selected, the news agency reports.

Latest reconstruction efforts: Damascus clinched a USD 147 bn grant from the World Bank to fix up its weathered electricity infrastructure last week, which comes as part of a concerted regional and international effort to jumpstart its economy and reconstruction efforts. Turkey will provide Syria with 1 GW of electricity and 2 bn cbm of natural gas annually, enough to generate an additional 1.3 GW, whereas Qatar also pledged 2 mn cbm of natural gas daily for 400 MW of electricity.

Abu Dhabi and Dubai take top global spots in data center growth rankings

Abu Dhabi and Dubai now lead the world’s emerging data center markets, ranking first and second in Cushman & Wakefield’s 2025 Global Data Center Market Comparison. Rapid infrastructure rollout, competitive infrastructure costs, fast-track approvals, and accelerating demand tied to AI and cloud expansion have put the two emirates in the top spots, the report said.

How fast are we talking? While global markets struggle with grid delays, the UAE is accelerating delivery. Dubai’s Electricity and Water Authority connects commercial projects up to 150 kW within five days. Abu Dhabi’s Transco and Taqa are coordinating inter-emirate grid links, with Taqa planning USD 10.9 bn in upgrades. A zero-VAT regime for most data center activities also adds to investor appeal.

Anchor tenants are also driving scale: The availability of land, infrastructure, and power is attracting global hyperscalers to the emirate. Microsoft leads a USD 540 mn du-developed facility in Dubai, while OpenAI and Oracle are anchor tenants at Stargate UAE in Abu Dhabi. Other hyperscalers including Amazon Web Services, Alibaba, Equinix, and Khazna are scaling up, while enterprise demand is rising — with Emirates Group relocating its infrastructure to a solar-powered site at Mohammed bin Rashid Solar Park.

Global partnerships and access also helps ease supply chain woes: Despite global bottlenecks in GPUs, cooling systems, and transformers, Emirati projects are advancing quickly, with several expected online within a year of announcement. Efficient customs and strategic public-private partnerships, like Microsoft’s USD 1.5 bn investment in G42, are helping to mitigate the procurement and supply chain delays normally affecting the industry, Cushman & Wakefield said.

REMEMBER- The UAE and the US reportedly reached an export agreement allowing the UAE to receive up to 500k Nvidia chips annually.

By the numbers: The UAE hosts over 250 MW of live capacity, with an additional 500 MW in development. Abu Dhabi accounts for 40% of that pipeline, including 150 MW set to go live by end-2025. Khazna Data Centers — valued at USD 5.5 bn — holds over half of the current market share.

Khazna is pushing expansion at home: The operator is building three AI-optimized facilities in the UAE — two 30 MW data centers in Mafraq and Masdar City, and a 100 MW site in Ajman — all scheduled for completion by end-2026. Khazna is also partnering with Nvidia to deploy up to 250 MW of AI clusters across the Middle East and Africa, starting with UAE facilities based on Nvidia’s Blackwell architecture.

Chinese LNG tanker manufacturers ride demand wave to record income

China sees LNG tanker orderbooks swell: China-based shipyards are slated for a record year as demand for LNG tankers surge, contrary to China's economic downturn, Bloomberg reports. Shipyard incomes have doubled in the first five months of 2025, with industry giant Hudong-Zhonghua shipyard’s orderbook reaching CNY 150 bn for 60 vessels slated for delivery by 2031. Chinese manufacturers have cut the construction time for LNG tankers in half to 15 months, largely by sourcing 80% of their components locally, Bloomberg reports, citing Chinese state media.

Against the odds: The uptick comes as a surprise, following a proposed fee by the Trump administration on China-built and China-flagged vessels earlier this year that several industry analysts predicted would undermine demand on China-builds. The fee — USD 50 per net ton — was reportedly slated to upend global shippers — namely Maersk and the Mediterranean Shipping Company (MSC) — unless they took costly steps to diversify away from China. Earlier reports suggested that South Korean shipyards — which have floated the idea of building LNG tankers on US soil as a way to hedge against the proposed fee — were slated to pick up some of China’s market share as a result of the US fees.

Calendar

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.

3-4 September (Wednesday-Thursday): Sustainable Maritime Industry Conference, Jeddah, Saudi Arabia.

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.

25 September (Thursday): World Maritime Day 2025.

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

OCTOBER

The International Maritime Organization (IMO) is set to formally adopt the Net-zero Framework this month, stipulating new fuel standards for ships and a global pricing mechanism for emissions.

1-2 October (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam, Saudi Arabia.

7-8 October (Tuesday-Wednesday): Global EV & Mobility Technology (GEMTECH) Forum, Riyadh.

13 - 17 October (Monday-Friday): The Marine Environment Protection Committee’s second extraordinary session, London, UK.

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.

24-26 November (Monday-Wednesday) The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh.

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.

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.

2027

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

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