Oman’s Sohar Freezone secures USD 220 mn in funding for phase two expansion

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What we're tracking today

TODAY: Sohar Port and Freezone taps local banks for phase two

Good morning, friends. We’re inching closer to the last weekend of the month with a brisk read, led by debt updates from Oman’s Sohar. We also take a close look at a new bonded warehouse pilot in Egypt — and how it could help drive up demand for re-export service. Let’s dive right in.

WATCH THIS SPACE-

#1- Maersk has pledged to begin a gradual return to the Red Sea route starting in December after signing a strategic partnership agreement with the Suez Canal Authority, according to a press release. No timeline for a full return, however, was given. CMA CGM also committed to a full return by December, Suez Canal Authority’s Chief Osama Rabie said during a presser yesterday.

Other players are not fully convinced just yet: Japanese marine logistics giant NYK is holding off its return to the Red Sea on the back of geopolitical risks — which outweigh the benefits of faster and cheaper routes, Lloyd’s List reports. The firm is currently waiting to see if talks between Israel, the Houthis, and Iran can bear fruit and deliver a lasting settlement.

There are other reasons to be wary of a quick return: With spot rates for containers falling more than 50% this year, shipping lines are incentivized to maintain their current voyages around the Cape of Good Hope over fears that a return to the shorter Red Sea route “would flood the market with capacity and cause freight rates to plunge even lower,” freight analytics firm Xeneta’s Chief Analyst Peter Sand told Bloomberg.

In perspective: A return to the Red Sea route could loosen up about 6% to 7% of the world’s shipping capacity at some 2 mn TEUs, which are otherwise tied up due to the long distance of the Cape of Good Hope route.

#2- Construction on Tanzania’s Omani-backed USD 10 bn Bagamoyo port is set to kick off next month — ending a decade of holdups and contract discussions with the foreign developers, a senior government official told Reuters. The initial phase of construction will feature 14 berths, though the complete port is planned to include 28 berths in total. Once operational, the facility will be able to handle ships carrying up to 25k containers, the newswire adds.

Part of a bigger picture: The port is part of a larger special economic zone initiative that is set to encompass industrial parks and crucial rail and road infrastructure.

Background: State-run China Merchants Holdings International and Oman’s State General Reserve Fund — a sovereign wealth fund now merged under the Oman Investment Authority — inked contracts to develop the project back in 2013. The original framework was tied to a USD 10 bn plan projecting up to 20 mn TEUs by 2045. However, progress stalled in 2019 after former President John Magufuli criticized the terms — specifically the 99-year lease and tax exemptions. In 2021, talks with the involved foreign investors were revived under the then-new President Samia Suluhu Hassan.

#3- OpenAI enables UAE-based data storage: OpenAI has activated local data residency in the UAE for organizations using ChatGPT Enterprise, ChatGPT Edu, and its API platform, giving businesses, government entities, and universities the option to store data inside the country to meet compliance and governance requirements, according to a statement.

The move comes as adoption continues to climb: OpenAI says its UAE user base has tripled over the past year, with around 60% of 18 to 24-year-olds and 50% of 25 to 34-year-olds using ChatGPT weekly. Enterprise users now include G42, Mubadala, Abu Dhabi Investment Council, Aldar, MBZUAI, Khalifa University, NYU Abu Dhabi, and Tabby.

REMEMBER- Public-service rollout underway: As part of the Stargate UAE initiative, OpenAI and G42 are integrating ChatGPT Plus into public services such as education and healthcare, though personal ChatGPT Plus subscriptions remain USD 20/month.

DISRUPTION WATCH-

#1- China has ordered its airlines to limit Japan-bound flights through March 2026, Bloomberg reports, citing unnamed sources. The decision was made last week in response to comments made by Japan’s newly appointed Prime Minister Sanae Takaichi, who told lawmakers that Chinese aggression against Taiwan jeopardizes Japan’s security and leaves military retaliation on the table, Reuters reported at the time. The order was instated “for now," indicating that the decision may change if diplomatic relations warm, the sources said.

The impact, in numbers: Flights from China to Japan scheduled for December have fallen by more than 20% compared to October, with cancellations affecting flights through April 2026, the news outlet reported, citing market research outfit China Trading Desk. More than 50% of China-Japan routes are expected to be axed by the end of the year — and Tokyo could sustain as much as USD 1.2 bn in losses in visitor spending.

Cargo flow hangs in the balance: The limit on flights will significantly hinder cargo movement between the two economies, as passenger aircraft’s belly storage typically accounts for 54% of global air cargo capacity, according to a Boeing report (pdf). In 2023, the Shanghai–Tokyo route was the seventh busiest cargo route globally, and its 43% y-o-y growth rate was the highest among the world's top 10 busiest routes, according to an International Civil Aviation Organization factsheet (pdf).

#2- Nationwide strike cripples Brussels Airport: Belgium’s Brussels Airport is canceling 110 flights scheduled for today amid a three-day nationwide strike that began on Monday, Reuters reports. Some of the airport's security and ground-handling staff are joining the strike, protesting against the government's austerity plans. These 110 canceled flights are in addition to cancellations announced earlier this week, while the remaining 93 flights scheduled for today will remain unaffected, a spokesperson said.

MARKET WATCH-

Oil prices went up this morning despite projected oversupply and the prospects of a Russia-Ukraine peace agreement, Reuters reports. Brent crude futures surged by USD 0.27 to USD 62.75 / bbl as of 04:12 GMT, while US West Texas Intermediate (WTI) rose USD 0.24 to USD 58.19 / bbl.

But don’t hold your breath: The gains from today are expected to be temporary rather than reflecting a trend. “The market remains fundamentally skewed to the downside, with investors increasingly pricing in an oversupplied 2026 and no convincing demand catalyst to offset it,” Phillip Nova’s senior market analyst Priyanka Sachdeva told Reuters.

FROM OUR REGION- More Dubai Murban is heading to India: Mangalore Refinery and Petrochemicals (MRPL) has purchased 2 mn bbl of Abu Dhabi’s Murban crude for January loading through a tender awarded to BP, as Indian refineries continue to avoid Russian barrels, Reuters reports.

REMEMBER- Middle East producers are finding a lifeline in China and India — which have been absorbing surplus from the region — as the world’s biggest importers shift away from Russian grades. Chinese state-owned refiner Yanchang Petroleum secured 2 mn bbl of Abu Dhabi Murban from Swiss trader Mercuria last week, while MRPL purchased 2 mn bbl of Abu Dhabi’s Murban for December loading from Glencore to replace the Russian supply. India’s Hindustan Petroleum Corp also booked 2 mn bbl of Abu Dhabi’s Murban crude for January.

ALSO- China’s appetite for Southeast Asian imports suggests growing Iranian oil exports: Suspiciously high Chinese imports of Indonesian crude oil suggest masked shipments of Iranian fuel into the world’s second-largest economy, Reuters reports, citing industry traders. Iran-sourced crude oil is thought by industry experts to be transshipped from Malaysia.

Why the suspicion? Chinese imports of Malaysian and Indonesian crude have somehow exceeded the capacities of Southeast Asian countries — raising scrutiny over the true origin of the cargoes, the newswire reports, citing customs data.

DATA POINT-

Half of the USD 11.6 bn invested in the Suez Canal Economic Zone in the last three and a half years came from China, according to a statement. The China-Egypt Teda industrial zone has so far attracted some USD 3 bn over 200 projects, while the Qantara West Industrial Zone has seen more than USD 700 mn in investments from China.

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DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the UAE ***

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.

Oman’s Sohar Freezone secures USD 220 mn financing for expansions

Sohar locks in USD 220 mn for phase two: Oman's Sohar Port and Freezone closed a USD 220 mn financing agreement with Oman Arab Bank and another local Omani bank to finance its expansion efforts, Muscat Daily reports. The funds will back expansion in the port's southern area, including the Marsa LNG project — a TotalEnergies-OQ JV — and the second phase of the Freezone. Oman Arab Bank is taking on the roles of facility agent, security agent, and principal financier.

What’s in store for the zone? We know that the zone’s second phase involves adding 670 hectares in a bid to boost cargo capacity, the Oman News Agency reported earlier this year.
The upcoming phase will also include a USD 565 mn solar production facility by China-based Ja Solar, which is slated to begin operations by 1Q 2026.

Marsa LNG is making strides: This month, the project signed a natural gas sales agreement with Oman’s state-owned Integrated Gas Company to offtake and transport 150 mn cbm of natural gas.

REMEMBER- Marsa LNG — the first LNG bunkering project in the region — is a 44.5-hectare LNG liquefaction plant boasting a total investment ticket of USD 1.6 bn. The plant will be powered by a 300 MW solar plant and will produce one mn tonnes of LNG annually. Dredging began earlier this year, with LNG production at the plant set to kick off in 1Q 2028.

Furnishing outfit Abyat launches its SAR 100 mn logistics center at King Abdulaziz Port

Abyat lands at King Abdulaziz Port: The Saudi Port Authority (Mawani) has launched furnishing firm Abyat's new logistics center at King Abdulaziz Port in Dammam, according to a statement. The project — which spans more than 110k sqm — had an investment ticket of more than SAR 100 mn.

The hub has it all: The center includes an integrated customs-bonded zone that covers 40k sqm. The hub also features two main warehouses, integrated storage yards, and automated racking systems.

What’s so special about a customs-bonded zone? The zone will enable Abyat — which is among an early batch of firms to obtain a license to establish and operate such a zone — to expedite its customs clearance procedures, cap shipment transit times, and reduce operator costs through cargo consolidation and managing storage phases before distribution.

The Dammam area has been seeing a lot of logistics action recently, with the recent SAR 1.5 bn expansion of the second container terminal at King Abdulaziz Port. It also houses two logistics zones totaling SAR 500 mn in investments announced in 2025, a SAR 200 mn grain storage hub and a logistics zone disclosed in 2024, and a SAR 150 mn logistics center from 2023. The eastern province is also planning to build an 8 mn sqm regional logistics hub, the Dammam Regional Logistics Center, near Dammam Port.

Egypt is running a bonded warehouse pilot test — it could help crank up demand for re-export services

Egypt is testing a fresh model for bonded zones: Earlier this month, we heard that Transcargo International (TCI) will set up Egypt’s first customs-licensed, port-based distribution center in the Suez Canal Economic Zone’s (SCZone) Adabiya Port. EnterpriseAM sat down with our friend Mohamed Mahgoub, Deputy CEO of TCI and sister company Transmar, to discuss how the new facility stands out from other existing privately managed bonded warehouses in Egypt, and what Egypt stands to gain if the model picks up pace.

The new facility is fundamentally different from traditional bonded warehouses, which normally serve importers inside Egypt, Mahgoub explained. “Instead, our new zone acts as a distribution center for foreign exporters, removing the need for them to set up shop in Egypt, with Transcargo serving as the custodian of their goods within the country,” Mahgoub explained.

SOUND SMART- A bonded warehouse refers to a government-authorized storage facility, where imported goods are held without facing customs duties until they are ready for distribution or export. This allows for the deferral of import taxes and duties on the stored goods, offering businesses the flexibility to manage inventory in a strategic and cost-efficient manner.

Who is the client? Mahgoub did not tell us. “The project was specifically designed for one of our biggest foreign clients…and has been in the works for the last two years.”

How does this work? Under the terms of the new development, Transcargo will manage the designated warehouse, acting as a custodian that receives the products and ensures their integrity during transit time in storage, all the while the product remains under the ownership of the client. Transcargo is also responsible for all related customs procedures in Egypt, such as issuing the needed declarations for the Advance Cargo Information system.

The model is especially well-suited for clients with extensive global operations. “The client did not want to go through the process of setting up a company in Egypt, as it would be a drain on its resources to do so in the large variety of countries it trades with,” Mahgoub said. It also allows foreign companies to set up a base in Egypt by proxy, without the need for a consignee name or dedicating the cargo to a specific entity, Mahgoub said.

If this new concept of bonded warehouses picks up pace, re-exports from Egypt could go up as much as 20%, Transcargo believes. At present, the zone is still in a trial period. “We collaborated with the Finance Ministry and Customs Authority on the project,” Mahgoub explained. “Both departments were very helpful and accepted the idea of having a trial, starting with our facility, ensuring the process went forward without snags.”

“We are already working on the expansion of this model,” remaining confident in its promise, Mahgoub told us. The firm is now looking into options for expansion on the Red Sea, as well as the Mediterranean.

REMEMBER- Egypt’s local warehousing market is forecast to grow at 7% y-o-y over the next five years amid rising demand driven by new industrial zones and expanding e-commerce operations. On a larger scale, the global bonded warehouse market is forecast to grow at a compound annual growth rate of 8%, projected to hit a valuation of USD 50 bn by 2028. The market’s rapid growth is being driven by expanding e-commerce and manufacturing sectors and rising complexity within global supply chains.

One reason Transcargo’s client chose Egypt is its strategic location. The new facility looks to act as a bridge between its clients and their markets. “Shipping a cargo from the UAE to the Mediterranean could take up to 50 days, versus shipping cargo from Egypt to, let's say, Turkey in one to two days,” Mahgoub said.

Growing global trade instability is expected to bolster the demand for bonded zones in Egypt beyond GCC players. Major global trade players — including India and China — are looking to shorten their time-to-market due to the fluctuation of prices and the turbulent global trade environment. More North American players are also eyeing the GCC, which is set to increase the demand for bonded zones across Mediterranean ports. This marks an opening that could allow Egypt to act as a pillar for intercontinental trade, expanding its role beyond the region to service the broader flow of East-West trade.

Al Seer appoints Mark Hawkes as new CFO

Al Seer Marine names new CFO: IHC maritime solutions subsidiary Al Seer Marine tapped Mark Hawkes (LinkedIn) as its new chief financial officer, according to an ADX disclosure (pdf). Hawkes will take up the role this month.

Hawkes brings over 25 years of international experience in financial and operational leadership, with a focus in logistics, investment, and petrochemicals. He was CFO at Petrochem Middle East before joining Al Seer, and held the same position at Emirates Worldwide Shipping and Al Hamra Group.

Gulf Navigation’s board chairman resigns: Shipping and maritime services company Gulf Navigation Holding’s board chairman Theyab bin Tahnoon bin Mohammed Al Nahyan has stepped back from the position, according to a DFM disclosure (pdf). The decision has been in effect since this Monday, 24 November, and the disclosure did not specify a successor.

Saudi’s SAL to provide logistics services for Flyadeal

AVIATION-

Flyadeal taps SAL for logistics services: SAL Saudi Logistics Services has inked an agreement with budget carrier flyadeal — under which SAL will offer flyadeal with services, including freight forwarding, customs clearance, warehousing, and transportation services, according to a Tadawul disclosure. The agreement — slated to cover a three-year period — has no fixed contract value; services will be priced on an on-demand basis throughout the contract period.

PROJECTS-

AD Ports, Masdar team up on offshore wind projects: AD Ports and Mubadala-owned renewables firm Masdar signed a partnership agreement to collaborate on global offshore wind developments, according to a statement. AD Ports will act as a technical and logistics partner on Masdar’s future offshore wind projects, with potential roles spanning substation fabrication, onshore and offshore logistics, subsea services, and maintenance and operations support.

REMEMBER- Masdar is already developing major offshore wind assets in Europe, including the 476 MW Baltic Eagle project in Germany and the 1.4 GW East Anglia Three project in the UK. The new partnership is aimed at supporting similar large-scale deployments.

SHIPPING + MARITIME-

#1- SeaLead axes Med-US service: Singapore-based shipper SeaLead has terminated its MEDUS service linking the Mediterranean Sea with the US East Coast, Al Mal reports, citing Alphaliner data. The service — launched earlier this year — operated bi-weekly and linked Mediterranean ports including Mersin, Istanbul, Gebze, Aliaga, and Casablanca.

A tough year for SeaLead: SeaLead lost one-third of its fleet after canceling charters for 16 boxships linked to sanctioned entities, Lloyd’s List reported earlier this year. The development jeopardized the firm’s ranking as the 13th-largest liner operator worldwide.

#2- Pan Marine debuts Ropax service: Egypt’s Pan Marine Shipping Group has launched a new shipping service — Ropax — that aims to connect Saudi Arabia’s Neom port to Egypt’s Safaga port, Al Mal reports. The service — scheduled to operate in the first week of December — will feature four fixed trips per week with seven-hour transits, carrying over 130 trucks and 100 wagons.

Amazon doubles down on US data centers with USD 15 bn investment

Amazon is gearing up to invest USD 15 bn in Northern Indiana to develop hyperscaler data center campuses, according to a statement. The tech giant inked an agreement with Indiana’s natural gas firm Nipsco for the project — which is set to cover the costs for the project’s power needs. Amazon has invested over USD 31.3 bn in Indiana since 2010, Reuters reports.

On a data center push in the region: The investment in Indiana builds on a USD 11 bn data center project announced by Amazon last year — which is projected to add around 2.4 GW of capacity in the region. The tech firm also announced a separate plan to funnel nearly USD 50 bn into AI infrastructure — a project slated to start in 2026 and expected to add approximately 1.3 GW of capacity, according to a separate statement.

Canada-backed JV expands logistics portfolio in India: IndoSpace Core, a JV between Indian warehouse developer IndoSpace and Canada’s Pension Plan Investment Board (CPPIB), acquired six industrial and logistics parks across India for INR 30 bn (USD 336.3 mn), Reuters reports. CPPIB — which owns 97% of the JV since its founding in 2017 — committed INR 14 bn to fund the acquisition of these assets, which are strategically located across key Indian logistics hubs, including Bengaluru, Chennai, Delhi, Mumbai, and Pune. It is still not clear how the JV will fund the remaining INR 16 bn of the transaction.

DATA POINT- The Indian warehousing market is forecasted to double in size by 2032 to reach USD 37 bn, the newswire reported, citing data from market research firm Imarc Group.

Calendar

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

3-4 February (Tuesday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

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

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

9-11 February (Monday-Wednesday): Future Warehouses & Logistics, Dubai, UAE.

10-12 February (Tuesday-Thursday): Sustainable Aviation Future MENA, Dubai, UAE.

15-17 February (Sunday-Tuesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

20-22 February (Friday-Sunday): Dubai Freight Camp, Dubai, UAE.

24-25 February (Tuesday-Wednesday): Green Shipping Summit, Athens, Greece.

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

MARCH 2026

5-6 March (Thursday-Friday): CargoIS Forum, Miami, United States.

9-13 March (Monday-Friday): WCA Worldwide Conference, Singapore.

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

18-19 March (Wednesday-Thursday): IntraLogisteX, Birmingham, United Kingdom.

18-19 March (Wednesday-Thursday): Green Marine Transport Conference, Amsterdam, The Netherlands.

26 March (Thursday): Gulf Ship Finance Forum, Dubai, UAE.

APRIL 2026

12-15 April (Sunday-Wednesday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

16-17 April (Thursday-Friday): Global Supply Chain and Logistics Summit, Amsterdam, The

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