UAE’s data center capacity is set to triple over the next three years

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TODAY: UAE’s data centers capacity forecast to triple in the next three years

Good morning, ladies and gents. We have another brisk read this morning, but not void of important news — led primarily by Emirates NBD’s projection on UAE’s data center capacity in the upcoming years.

PLUS: Oman, Qatar could be supplying Iraq with LNG, and more aviation projects land in Morocco.

HAPPENING TODAY-

#1- The Marine Environment Protection Committee Extraordinary Session is on its second day and will run until this Friday, 17 October at the International Maritime Organization’s (IMO) HQ in London. The session is set to see the intergovernmental body formally adopt its Net-Zero Framework — rolling out new fuel standards for ships and a global pricing mechanism for emissions.

Why this matters: The Net-Zero Framework will roll out mandatory emissions limits and greenhouse gas pricing across the entire shipping sector, including large ocean-going ships over 5k gross tonnage that account for 85% of international shipping’s emissions. The framework was adopted last April and would oblige the global shipping industry — which is responsible for 3% of the world’s GHG emissions — to reduce and pay for a portion of its emissions. It is expected to come into effect in 2027.

A rift among IMO members: The draft was passed with support from 63 countries including China and Brazil. Sixteen countries voted against — nine of which were from our region, including Iran, Iraq, Jordan, Yemen, Oman, Bahrain, Saudi Arabia, Qatar, and the UAE. The US threatened IMO members with retaliation last August, and renewed its warnings last week, threatening visa restrictions and sanctions to retaliate against nations that vote in favor, Reuters reported on Saturday.

#2- The Iraq International Transportation & Airports & Logistics Expo & Conference will open its doors today until Friday, 17 October in Baghdad. The expo — Iraq’s first platform focused exclusively on transport and logistics services — is expected to feature over 100 exhibitors, including ports, aviation, road, and rail players as well as logistics tech firms.

WATCH THIS SPACE-

#1- Turkish Airlines might be dumping Boeing for Airbus: Turkey’s flagship carrier Turkish Airlines is mulling switching its recently announced Boeing 737 Max jet order to Airbus aircraft if talks with engine supplier CFM grind to a halt, Chairman Ahmet Bolat told Reuters last week. The Turkish carrier is in current discussions with CFM on costs — if no agreement is reached, Turkish Airlines is set to tap Airbus and engine manufacturer Pratt and Whitney for engine contracts for the A320neo line.

Things were just looking up for the two…: Turkish Airlines recently finalized a large order of 75 Boeing 787 Dreamliner jets scheduled for delivery between 2029 and 2034.

…but it was expected: The order — while still major — wound up being much smaller than originally planned. Up to 150 737 Max jets — previously floated as part of the order — were missing from the finalized agreement. Boeing appeared optimistic, saying that it wrapped up negotiations with Turkish Airlines for up to 150 737 Max airplanes, but added that talks are still ongoing with CFM International over the engine component.

#2- Iraq’s Grand Faw Port draws int’l appetite: The Iraqi government has received requests from international companies to establish facilities for handling iron, steel, and grain at Iraq’s southern Grand Faw Port, General Company for Ports Director General Farhan Al Fartousi told the Iraq News Agency. A specific request by one of the companies — none of whom were named — entails a grain handling station with a capacity of 3-4 mn tons, comprising silos and mills, Al Fartousi said.

ALSO- Baghdad is working to establish a governmental authority to manage all projects related to its Grand Faw Port as well as its Development Road megaproject, Al Fartousi reportedly said. The government is also considering creating a private company under the Iraq Development Fund to enable easier investment in the country.

#3- Iran, Russia, and Azerbaijan have agreed to boost cargo traffic through their territories, Iran’s Mehr News reports, citing Russian Deputy Prime Minister Alexey Overchuk. The tripartite agreement aims to streamline cargo movement between the Barents and Baltic Seas and the Arabian Gulf, allowing countries to establish a common commodity market with accessible logistics.

MARKET WATCH-

#1- Oil prices declined this morning as IEA projections of a 2026 surplus and US-China trade tensions worry investors, Reuters reports. Brent crude futures declined USD 0.21 to USD 62.18 / bbl as of 04.25 GMT, while US West Texas Intermediate (WTI) shed USD 0.16 to trade at USD 58.54 / bbl.

What the IEA is penciling in: Global oil supply is set to surge by 3 mn bbl / d in 2025 — up from previous forecasts of 2.7 mn bbl / d — followed by another 2.4 mn bbl / d increase in 2026, according to the International Energy Agency’s (IEA) latest monthly report. The rise will be driven by higher production from Opec+ members and others outside the group.

Supply is rising faster than demand: The IEA trimmed its forecast for world oil demand growth this year to some 700k bbl / d, 40k bbl / d lower than its previous estimate, citing weaker macroeconomic conditions. Consumption is expected to stay muted through 2025 and 2026, with annual growth averaging around 700k bbl / d.

The IEA is signaling a growing supply glut, with global output in September already up by 5.6 mn bbl / d from a year ago — 3.1 mn bbl / d of which came from Opec+. If current trends hold, global supply is estimated to exceed demand by some 4 mn bbl / d next year, compared to around 3.3 mn bbl / d last month.

That’s not what Opec said: In its monthly oil report, the group kept its global oil demand growth forecast unchanged at 1.3 mn bbl / d for 2025 and 1.4 mn bbl / d for 2026 — almost double the IEA’s — arguing that global supply is expected to match demand next year as the group continues to boost production.

#2- Baltic index continues to rise upwards: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — slipped nearly 5.7% to 2,022 points yesterday. The capesize fell by 11.4% to 3,007 points, while the panamax index climbed 0.5% to 1,815. The smaller supramax index increased 0.6%to 1,408.

PSA-

Hapag-Lloyd to roll out PSS: Shipping giant Hapag-Lloyd will add a new peak season surcharge (PSS) of USD 250 (EUR 215) per 20-ft container and of USD 300 (EUR 260) per 40-ft container on all types of equipment headed to Dakar, Senegal, according to a statement. The PSS will be effective starting 27 October for containers coming from the Middle East, Africa, Asia, Oceania, Europe, and the Indian Subcontinent.

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CIRCLE YOUR CALENDAR-

Morocco will host the International Forum and Expo on Mobility, Transport, and Logistics (Logiterre) tomorrow through to Saturday, 18 October in Casablanca. Logiterre will host main operators within the industry from West and Central Africa.

The UAE will host the Adipec Maritime and Logistics Exhibition and Conference on Monday, 3 November until Thursday, 6 November in Abu Dhabi. The conference will host over 250k attendees working in government entities, finance, and tech.

The UAE will host the Air Cargo Forum on Tuesday, 4 November until Thursday, 6 November in Abu Dhabi. The forum — hosted by Etihad Cargo — will bring together air freight industry leaders, policymakers, innovators, and stakeholders to discuss industry solutions, tech, strategies, and collaborative initiatives for global air logistics.

Egypt will host the TransMea Expo on Sunday, 9 November until Tuesday, 11 November in Cairo. The expo will host regional and international players in the transport industry to explore tech, new smart solutions and products for transport and logistics services.

The UAE will host the Dubai Airshow on Monday, 17 November until Friday, 21 November in Dubai. The event will host over 1.5k exhibitors and 148k industry experts from over 150 countries, to discuss air mobility, new MRO breakthroughs, sustainable aviation, startups and new tech for aircraft simulations.

Saudi Arabia will host the ShipTek International Conference and Awards on Tuesday, 18 November in Al Khobar. The conference will host policy makers, organizations, suppliers and experts on maritime, offshore and oil and gas.

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

Data center capacity to nearly triple in the next three years -Emirates NBD

UAE data center capacity to jump 165% by 2028: The UAE’s data center capacity is expected to climb 165% to around 950 MW by 2028, up from 358 MW currently, according to Emirates NBD Research (pdf). The UAE currently operates 35 data centers — 18 in Dubai, 16 in Abu Dhabi, and one in Fujairah — at a 98.7% utilization rate, and leads the GCC with a USD 46.1 bn investment pipeline, representing 55% of the region’s total.

Data center operators are expanding in the UAE: Chinese e-commerce giant Alibaba’s cloud business unit opened its second data center in Dubai to meet rising demand, nine years after it launched its first in the UAE, according to a statement. Meanwhile, Khazna Data Centers’ — already a leader in the market — is investing USD 1.3 bn in five new facilities adding 210 MW. Other major AI infrastructure set to come online include G42’s Stargate campus, which will contribute 200 MW by mid-2026.

REMEMBER- Khazna Data Centers is working on two new 30 MW data cente rs — AUH4 in Mafraq and AUH8 in Masdar City — set to come online by 2H 2026. Its 100 MW QAJ1 Ajman facility is also expected to be completed in December 2026, and it has two other facilities under construction which Emirates NBD says will take its capacity up to 210 MW. Du is also building a AED 2 bn hyperscale data center in the UAE for Microsoft, which will be its main tenant

Government-to-government cooperation is also giving the sector a boost: Agreements with countries like the US, France, and now, Canada, are helping prop up the sector. Just yesterday, the UAE signed an initial agreement with Canada to boost cooperation in data centers and AI infrastructure, according to an X post.

This came after Economy and Tourism Minister Abdullah bin Touq Al Marri met with Canadian AI and Digital Innovation Minister Evan Solomon in Abu Dhabi to discuss expanding cooperation in advanced technology and AI, state news agency Wam reports. Talks covered developing joint economic partnerships, AI policy exchange, and collaborations in other sectors, well as investment windows between Emirati and Canadian tech firms.

Headwinds remain, with significant energy needed to keep data centers cool in the MENA climate. TheG42 AI Campus alone is set to require more electricity than New Zealand consumes in a year to stay up and running. Annual energy use is expected to rise to some 12.6 TWh, a 127% increase from current levels and equivalent to over 6% of total national electricity consumption. Ongoing battery, solar, and nuclear projects are looking to improve energy infrastructure to cope with the incoming demand.

Advanced cooling solutions could also come to the sector, courtesy of Tabreed…: State-owned district cooling company Tabreed is exploring investment windows in the data center sector, citing strong growth possibilities driven by the industry’s heavy reliance on advanced cooling systems, CEO Khalid Al Marzouqi told Asharq Business (watch, runtime: 11:10) cites as saying. The company will use various financing tools and support from key partners Mubadala and Engie to fund its expansion, Al Marzouqi said.

…and Mitsubishi Electric: Italy-based Mitsubishi Electric Hydronics & IT Cooling Systems (MEHITS) established a new subsidiary in the Dubai Airport Freezone, MEHITS Middle East FZCO, to strengthen its regional air conditioning business presence, according to a press release. The new subsidiary is expected to serve as a regional hub for the design, sales, installation, operation and maintenance of air conditioning and data center cooling systems.

Iraq to receive LNG from Oman + Qatar

Is LNG en route to Iraq? Opec+ member Iraq inked a preliminary agreement with Qatar and Oman to receive an unspecified amount of LNG by summer 2026, Zawya quotes Iraqi Electricity Ministry spokesperson Ahmed Mousa as saying. The move comes as Iraq aims to boost its gas supply — with the two Gulf nations supplying it with LNG until Iraq’s gas production becomes sufficient, Mousa added.

Take that, Washington: The decision comes after Washington objected to giving the go-ahead to Iraq to uptake 20 mn cbm of Turkmen gas per day through a swap agreement — held up since last October when it was inked. The agreement’s execution is still pending as the US is concerned that the transit mechanism through Iran may violate international sanctions.

No giving up until gas is acquired: Iraq is mulling over other options to acquire gas, with the country awarding a contract to US-based firm Excelerate Energy to set up an offshore floating LNG import terminal in Umm Qasr port and other unnamed southern Iraqi ports. No timeline has been disclosed for contract finalization and implementation.

Lots of trade troubles for Iraq: The US abrogated a waiver in March to allow Iraq to import Iranian electricity, undermining Iraq’s power output, which relies on electricity and natural gas imports, as Iraq needs 40 GW to keep the lights on throughout the day.

France’s Safran plugs some EUR 320 mn in Morocco’s aviation projects

Safran inaugurates Casablanca’s Leap MRO facility: French aviation manufacturer Safran inaugurated its Leap engine maintenance, repair, and overhaul (MRO) shop in Morocco at an investment cost of roughly EUR 120 mn (c. MAD 1.3 bn), according to a press release. The facility — located in the Casablanca airport zone — spans 25k sqm and will handle 150 engines per year. It is expected to launch in 2027.

IN CONTEXT- The Leap engine — meaning Leading Edge Aviation Propulsion — powers two of the highest in-demand aircraft in the narrow-body sector — the Boeing 737 Max and Airbus A320neo groups. The facility aims to satisfy demand for Leap engines designed by CFM International, a JV comprising Safran Aircraft Engines and GE. Over 750 of CFM Leap engines are used by more than 20 airlines in the Middle East, Turkey, and a number of countries in the Eurasia region.

There’s more: Safran will establish an assembly line in Casablanca focused on Leap-1A engines dedicated to Airbus jets at an investment cost of EUR 200 mn, the press release said. The 13k sqm facility will accommodate a scheduled ramp-up in Safran’s production, with a capacity to handle 350 engines annually. It is also expected to launch by the end of 2027.

Safran in the region: Safran, GE, and aerospace engineering and leasing solutions firm Sanad agreed to expand Sanad’s existing maintenance agreement to deliver full MRO capabilities for Leap-1A and Leap-1B engines at its Abu Dhabi facilities earlier this year.

Asyad Shipping posts mixed 3Q + 9M financial results

Asyad Shipping posts 3Q figures: Oman’s Asyad Shipping saw its bottom line hit OMR 12.4 mn in 3Q 2025, marking a 41.4% q-o-q rise, according to a disclosure (pdf). Comparative y-o-y figures for 3Q 2024 are not publicly available. Asyad’s top line grew 9.3% q-o-q to OMR 88.3 mn for the same period. Management attributed this to higher shipping rates, rising chartering activity, and the addition of two owned very large crude carriers to the operating fleet.

In 9M terms: The firm saw its net income drop 29% y-o-y to around OMR 33 mn in 9M 2025, the disclosure said. Its revenues shrank 8% y-o-y, reaching OMR 253 mn for the same period. The company pointed to the cyclical nature of the shipping industry to explain the downward trends.

Mixed results for the year, so far: Asyad Shipping’s bottom line fell 41% y-o-y to OMR 8.8 mn in 2Q 2025, while its top line fell 15% y-o-y to OMR 85.3 mn. For 1H 2025, the firm’s net income fell 27% y-o-y to OMR 20.2 mn, while its revenues dropped 9% y-o-y to OMR 169.1 mn.

ADIO, AD Ports team up with Stellantis to build automotive ecosystem

PORTS-

ADIO, AD Ports partner with Stellantis to build automotive ecosystem: Abu Dhabi Investment Office (Adio) and AD Ports Group signed an agreement with automotive giant Stellantis to boost exports and technological development in Abu Dhabi’s automotive sector, Abu Dhabi Media Office reports.

The details: Stellantis and Adio will identify investment windows in the Emirati auto sector, and AD Ports will provide logistics, supply chain, and manufacturing expertise. The tie-up looks to position Abu Dhabi as an export hub for the sector and will also develop an autonomous taxi ecosystem in the emirate.

DIGITILIZATION-

Dubai streamlines berth rentals under new digital platform: Dubai’s Ports, Customs, and Freezone Corporations (PCFC) has launched a unified digital platform — named Marsa — to manage berth rentals under the supervision of the Dubai Maritime Authority, according to a statement. The platform is set to automate the entire berth rental process, including applications, fee calculation, invoicing, and smart payments. It will operate across 20 marinas with a 4.2k marine vessel capacity. The platform is also poised to standardize lease contracts and link them to electronic payment systems.

That’s not all: The PCFC also launched additional projects, including an advanced drone-based system — named Port Eye — to monitor ship movement and docking. An innovative navigation training simulator — named Smart Navigation — was also integrated to train port personnel.

CUSTOMS-

Dubai launches new system to streamline customs checks: Dubai Ports and Borders Security Council has inaugurated a new advanced cargo information (ACI) system set to boost customs security and cap the need for field inspections through smart data analysis, according to a statement. The ACI will allow the receipt of shipment data before the shipment leaves the exporting country, aiming to shorten the time needed to obtain information beforehand. The system applies load data from sea and air ports as well as customs data to ensure the accuracy and speed of risk analysis.

AVIATION-

Saudia Cargo to improve air freight in Hail: Saudia Cargo and Saudi Arabia’s Hail Region Development Authority inked an MoU to boost air cargo and logistics capabilities in the Hail region, according to a press release. The pact entails implementing special shipping rates to boost regional exports, logistics initiatives, and launching joint projects.

Hail is getting some attention: The Saudi Transport and Logistics Ministry will expand Hail International Airport. This comes as part of a broader plan to leverage the airport’s proximity to 11 Arab capitals and transform Hail into an integrated logistics center — a plan that includes a 374k sqm logistics hub.

China collects port fees from US vessels in retaliation move

China is ringing the till at its ports: China has started collecting fees across its ports from US-owned, built, or flagged vessels in retaliation for the US imposing port fees on Chinese vessels earlier this year, Reuters reports, citing Chinese state broadcaster CCTV. China announced the plan on Friday, when US President Donald Trump threatened to increase tariffs on Chinese exports to the US to 100% starting 1 November.

What’s getting affected? The fees will apply to all cargo, except for empty ships entering shipyards for repairs or on Chinese-built vessels stopping in Chinese ports. The fees will be collected from US vessels at the first port entry on a single journey or for the first five voyages within the year — with the annual billing cycle starting 17 April, 2026.

It’s looking bleak: Container shipping outlook forecasts that firm earnings will continue to decline y-o-y by 4Q 2025, Judah Levine, head of research at cargo booking platform Freightos, told Bloomberg. Shipping carriers will be decreasing ship capacity, skipping transpacific journeys or ports, due to an oversupply of ships and not enough cargo, in hopes of controlling ocean freight rates.

Calendar

14-17 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.

14-16 October (Tuesday-Thursday): AntwerpXL, Antwerp, Belgium.

15 October (Wednesday): Global Trade Review, Cairo, Egypt.

15-17 October (Wednesday-Friday): Iraq Transport, Logistics & Airports Exhibition & Conference, Baghdad, Iraq

16-18 October (Thursday-Saturday): International Forum and Expo on Mobility, Transport and Logistics (Logiterre), Casablanca, Morocco.

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.

9-11 November (Sunday-Tuesday): TransMea Expo, Cairo, Egypt.

11-13 November (Tuesday-Thursday): Freightcamp, Bangkok, Thailand.

17-21 November (Monday-Friday): Dubai Airshow, Dubai, UAE.

18 November (Tuesday): ShipTek International Conference and Awards, Al Khobar, Saudi Arabia.

24-26 November (Monday-Wednesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

DECEMBER

6 December (Saturday): International Procurement Supply Chain Conference, Cairo, Egypt.

9-10 December (Tuesday-Wednesday): Rail Industry Summit, El Jadida, Morocco.

16-17 December (Tuesday-Wednesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

JANUARY 2026

19-23 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

27-28 January (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh, Saudi Arabia.

27-28 January (Tuesday-Wednesday): Middle East ProcureTech Summit, Dubai, UAE.

FEBRUARY 2026

4-5 February (Wednesday-Thursday): Breakbulk Middle East, Dubai, UAE.

4-5 February (Wednesday-Thursday): MRO Middle East, Dubai, UAE.

25-27 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

MARCH 2026

10-12 March (Tuesday-Thursday): World Cargo Symposium, Lima, Peru.

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