Good morning, folks. We’re kicking off the week with a super-packed issue, led by big investment updates from the UAE and Saudi. PLUS: A flurry of M&A and aviation updates from UAE players. Let’s get the ball rolling.

WATCH THIS SPACE-

#1- Borg Al Arab dry port project has a new interested suitor in the mix: Egypt’s Transport Ministry is in talks with UAE-based Al Ahmadiah Contracting & Trading to obtain the rights to set up, manage, and operate a new dry port in Borg Al Arab, the Chairman of the General Authority for Land and Dry Ports (GALDP) Sayed Metwally told Al Borsa on Saturday. Al Ahmadiah is currently conducting a preliminary study of the potential project and is slated to submit the final financial and technical tenders by next month.

Egypt has been looking for a developer for some time: At least two players were tied to the project in 2023 and 2024, including Ocean Express Shipping, which signed an MoU with GALDP back in August 2023 to explore developing the port, but no headway has been made since.

The new port is forecasted to handle some 120k containers annually — transporting about 6.7 mn tons of dry goods. It will offer storage and logistics areas that cover nearly 85k sqm. The project will be implemented in two phases, with the first phase covering 40% of the site — which will feature a train station, the handling yard, and the first half of the container yard. The port is expected to streamline Egypt’s railway network — linking Borg Al Arab with Alexandria, Dekheila, and Abuqir Al Bahri ports.

#2- Qatari-backed IAG joins race to acquire Tap Air stake: British Airways owner IAG has submitted an expression of interest (EOI) to acquire a minority stake in Portugal’s flag carrier Tap Air, Bloomberg reported last week, citing an emailed statement from the firm.

The race is on: Germany's Lufthansa also submitted an EOI to acquire a minority stake in Tap Air, according to a statement published last week. Lufthansa’s move came a few hours after Air France-KLM became the first formal bidder for Tap Air’s stake last week.

REMEMBER- The Portuguese government is floating a 44.9% stake in Tap Air, subject to certain requirements, namely, maintaining the carrier’s Lisbon headquarters, expanding Tap Air’s network — especially to Portuguese-speaking nations — and preserving the Tap brand.

#3- Oman Air is looking into ways to boost its fleet of narrowbodies, exploring a potential new order and leasing options for next year, the CEO of the Omani flag carrier Con Korfiatis told Reuters. The additions are expected to be part of a five-year strategic plan that will soon be presented to the airline’s board and come as the carrier eyes growth in shorter routes focused on tourism and regional traffic.

IN CONTEXT- Oman Air’s board of directors approved a bold plan back in2023 to restructure operations in a bid to reverse accumulating losses. The effort — which saw the company trim routes, cut staffing by 25%, and push for higher fleet utilization — is set to pay off next year, with the company now expecting its EBIT to break even by late 2026, Reuters reported.

The new additions are slated to be Boeing jets, as the airline — which runs an all-Boeing fleet made up of nine 787 widebodies and 23 narrow-body jets — looks to avoid the surge in costs associated with operating jets from multiple manufacturers, Korfiatis said. Any future Airbus orders would only be made after 2030 post-expansions, he added.

MARKET WATCH-

#1- Oil prices remained steady this morning as the market continued to weigh the impacts of a possible US rate cut and a Russia-Ukraine peace pact, Reuters reports. Brent crude futures were unchanged at USD 62.56 / bbl as of 04:58 GMT, while US West Texas Intermediate (WTI) dropped by USD 0.02 to USD 58.04 / bbl.

#2- The Drewry World Container Index remained stable at USD 1,859 per 40-ft container on Thursday, according to the latest index readings. The Index remained stable because the decrease in Transpacific rates was offset by the increase in Asia-Europe rates.

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CIRCLE YOUR CALENDAR-

Egypt will host the International Procurement Supply Chain Conference on Saturday, 6 December in Cairo. The event will gather over 1k delegates, more than 400 organizations, and over 30 global speakers to discuss the future of trade through keynotes and panel discussions. The discussions will center on Egypt’s transformation in the logistics sector, the future of smart ports and supply chains, as well as digital ecosystems.

Morocco is hosting the Rail Industry Summit on Tuesday, 9 December until Wednesday, 10 December in El Jadida. The two-day event will gather 130 exhibitors, 250 companies, and over 900 participants from 15 countries. It will feature business meetings, high-level conferences, and workshops focused on new market trends and future strategies.

Saudi Arabia is hosting the Saudi Airport Exhibition on Tuesday, 16 December until Wednesday, 17 December in Riyadh. Upwards of 10k global attendees are expected to participate in the event from over 100 countries. The two-day event will focus on airport-related innovation, and will feature participation from Saudia, SolitAir, and Amadeus.

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

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