Sisco Holding completes 51% acquisition of PSS to establish presence on Saudi’s East coast

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What we're tracking today

TODAY: Sisco Holding is now a majority shareholder in PSS

Good morning, nice people. The news cycle is picking up some steam as we inch closer to the weekend, leaving us with an issue full of M&A, debt, and trade updates.

Leading the news well today is Sisco Holding’s completion of the acquisition of Port Services and Storage Company (PSS). For years, Sisco’s logistics operations gravitated toward the Red Sea — but with the PSS acquisition, it adds critical nodes in Dammam and Jubail that could enable it to establish a privately-backed east-west landbridge capable of bypassing third-party operators.

On the credit markets front, SAL Saudi Logistics is tapping into a massive regional rush for debt. SAL is out with a SAR-denominated sukuk following a record-breaking week for MENA bond sales that saw USD 30 bn raised in early January alone. With oil prices softening and non-oil growth accelerating, the window for corporate borrowing is wide open.

ALSO: The UAE continues to insulate its trade future by bagging two more CEPAs with Nigeria and the Philippines, targeting a combined bns in GDP growth by 2032. From machinery in Nigeria to electrical equipment in the Philippines, these pacts add more building blocks to the UAE's goal to hit USD 1.1 tn in non-oil trade by 2031.

Watch this space-

TRADE — The US President Donald Trump is threatening a 25% tariff on countries that “do business” with Iran, as the US ramps up threats against Iran, including the “ use of military force,” in an alleged bid to back protesters vying for the fall of the regime.

Why does this matter? Well, the UAE (and China) could have a lot to lose from the tariff threat. The UAE is Iran’s second biggest trading partner, with some USD 16.1 bn in trade taking place between the two countries in 2024, Bloomberg reports, citing IMF data. It’s also a major re-export hub for Iran, with the Economy and Tourism Ministry data (pdf) showing that UAE-Iran non-oil trade reached USD 6.6 bn in 2024. Trump’s claimed the tariff would “ take effect immediately,” though he has yet to clarify which countries (and goods) would be affected.

The UAE has so far gotten away almost scot-free from Trump’s tariff wars last year, with just a 10% tariff slapped on most UAE imports, though it’s subject to the 25% tariff on the US’ steel imports from all countries.

PORTS — DP World’s Berbera Port operations remain stable: Dubai’s DP World confirmed today in a statement to Reuters that its operations at Somaliland’s Berbera Port are unaffected by Somalia’s recent decision to break ties with the UAE. Somaliland also refuted in a statement Somalia's claims of authority over agreements related to Berbera Port — reaffirming the breakaway region’s sovereign hold over the port. The logistics giant holds a 65% stake in the port.

REMEMBER- Somalia’s government said yesterday it was annulling all of its contracts with the UAE for ports, defense, and security, over what its Council of Ministers said were “actions undermining [its] national security.”

MARITIME — Maersk quietly tests the Red Sea again: Danish shipping giant Maersk completed another cautious transit through the Red Sea earlier this week via its Middle East-US East Coast service. The trip affirms Maersk’s gradual approach to the return to the Suez Canal route after they tested a transit last December, and comes as CMA CGM also completed cautious sailings via Bab El Mandeb.

The return’s big picture: For over a year, the Cape diversion has absorbed capacity — soaking up an oversupply of new vessel deliveries by making trips longer. A sustained return to the Suez Canal will reduce voyage times and effectively increase market capacity. If this trend holds amid a steady stream of new ship deliveries, it could drag down freight rates.

Market Watch-

Oil prices reversed their four-day upward streak, falling this morning amid rising US inventory and the resumption of Venezuelan exports, Reuters reports. Brent crude futures were down USD 0.20 to trade at USD 65.27 / bbl as of 05:25 GMT, while US West Texas Intermediate (WTI) fell by USD 0.23 to USD 60.92 / bbl.

Baltic index downward streak isn’t going anywhere: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — declined 3.1% to 1,608 points on Tuesday. The capesize dipped by 5% to a six-month low at 2,446 points, while the panamax index went down 0.7% to 1,331 points, and the smaller supramax index eased 8 points to 952 points.

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Sisco Holding now owns 51% of port and storage services outfit PSS

Sisco Holding is now a 51% shareholder in PSS: Tadawul-listed Sustainable Infrastructure Holding Company (Sisco Holding) has completed its acquisition of a 51% equity stake in Port Services and Storage Company (PSS), according to a Tadawul disclosure.

We got wind of this last October: The transaction, fully financed in banknotes, was valued at SAR 132.6 mn, with an initial payment of SAR 91.8 mn and performance-based earn-out payments of up to SAR 40.8 mn — pegged to specific financial targets to be met over the next two years.

Why does this matter to Sisco? It completes the East-West corridor. Sisco’s portfolio has been skewed toward the West, anchored by its 36% stake in the Jeddah-based Red Sea Gateway Terminal (RSGT) and its logistics arm LogiPoint. PSS adds the missing nodes in Dammam and Jubail — enabling asset-backed presence for cross-Kingdom transport. The move would internalize inland transport margins previously lost to third parties and link RSGT’s port throughput with LogiPoint’s bonded zones and PSS’s Eastern warehousing — creating what could be a competitive, privately-backed landbridge.

Impact on the books: The port and storage services firm is set to be fully consolidated into Sisco’s financial statements — effective 1Q 2026, the disclosure adds.

The broader perspective: The transaction is the latest move in Sisco’s campaign to verticalize its logistics stack beyond the quayside. The group’s subsidiary LogiPoint recently expanded its footprint with the new Al Noor Logistic Park in Riyadh, while its logistics investment vehicle Green Dome Investments continues to roll up regional capacity, most notably by acquiring Transcorp International in late 2025 to merge with its existing courier arm, Elite Co.

What’s next? By integrating more assets and operations along Saudi’s east-west corridor, Sisco is well-positioned to leverage a trove of data from its tracking and customs operations across RSGT, LogiPoint, and PSS to provide digital brokerage services for freight forwarding — if it chooses to.

SAL Saudi Logistics Services issues fresh sukuk

Tadawul-listed SAL Saudi Logistics is out with a fresh SAR-denominated sukuk issuance, through a private placement with a minimum subscription value of SAR 1 mn, it said in a disclosure to the bourse. The company appointed JP Morgan Saudi Arabia and SNB Capital to manage the private placement. The offering wraps up on 29 January.

The big picture: Bond sales in the MENA started the year very strongly, with 14 borrowers raising almost USD 30 bn in international markets in just the first full week — more than the region raised in the whole of January last year, according to International Financing Review (IFR). Investors had plenty to choose from last week, with agreements from Saudi Arabia, the UAE, Kuwait, and Israel across government, bank, and corporate bonds. Many were keen on higher-yielding, lower-ranking bonds as tight pricing on top-quality debt pushed them to look for better returns.

Why this rush to debt markets? “Funding needs are elevated given lower oil prices as well as sustained growth in the non-energy sector, which is creating strong demand and profitable [windows] for borrowers,” IFR cites Faisal Ali, senior portfolio manager at Azimut. Issuance is expected to rise by 25-30% this year compared with last year’s record USD 172 bn, IFR said, citing LSEG data.

What’s next? Watch out for the demand and final pricing of the issuance. Recent issuances in the region’s logistics industry — especially in the aviation sector — have seen robust demand, with Dubai Aerospace Enterprise’s USD 600 mn issuance earlier this month closing 3.3x oversubscribed and with pricing tighter by 25 bps from initial guidance to a spread of 120 bps over US Treasuries.

UAE locks in trade agreements with Nigeria, Philippines

The UAE has inked two trade agreements as part of its push to lock in favorable terms across Asia and Africa, deepening economic ties with Nigeria and the Philippines on the sidelines of Abu Dhabi Sustainability Week.

Machinery, EVs, chemicals, and more targeted in Nigeria’s pact

The UAE and Nigeria have signed a trade and economic partnership agreement — also known as a CEPA — aimed at accelerating trade and investment flows, with a focus on technology, energy, agriculture, and precious metals. The agreement will cut tariffs, remove trade barriers, and expand private and public-sector cooperation.

The relationship is already sizable: Bilateral non-oil trade reached USD 4.3 bn in 2024, up 55.3% compared to the year before, and hit USD 3.1 bn in 9M 2025, underscoring Nigeria’s growing weight in Abu Dhabi’s Africa-focused trade strategy.

The products in focus: The agreement is set to immediately wipe out tariffs for 7k Nigerian products, including chemicals, pharma products, and cotton, while machinery, electrics, and vehicles will be able to be imported without a levy within five years, according to Nigerian news agency Nan.

Ease of doing business: Execs hailing from Nigeria can stay in the UAE for renewable three-year periods, and nationals on business can stay for as many as 90 days per year.

Philippines’ exports to UAE could rise 9% following trade pact

The UAE has also signed a trade and economic partnership agreement with the Philippines, targeting cooperation in electrical equipment, financial services, agriculture, and precious metals, while easing tariff and non-tariff barriers.

What’s in it for the UAE? The pact is set to lift UAE GDP by USD 2.4 bn by 2032, with bilateral trade already nearing USD 1.8 bn in 2024, according to the Philippine Information Agency. Preliminary estimates suggest the agreement could boost Philippine exports to the UAE by 9.1% — as the UAE ranks 18th among the archipelago’s trading partners and absorbs around 39% of its Middle East-bound exports.

Bigger picture

The twin agreements feed into Abu Dhabi’s CEPA program, which targets USD 1.1 tn in non-oil foreign trade by 2031, with Asia and Africa firmly in focus. As we’ve previously reported, the UAE has already inked trade pacts with the likes of India, Malaysia, Angola, Vietnam, Indonesia, and Turkey, with agreements with South Korea and Thailand nearing the finish line.

Sky Ports breaks ground on cement silo project in East Port Said

East Port Said to soon host cement silo courtesy of Sky Ports

Sky Ports has earmarked USD 50 mn for the cement silo project at East Port Said, the firm said at the groundbreaking ceremony for the new terminal. The project is expected to have a major impact on the economy — by opening entirely new export lanes for Egyptian cement, Sky Ports’ Chairman Tarek Hussein told us back in November. It comprises eight concrete silos, designed to handle up to 20k tons per day and around 4-5 mn tons per year of bulk cement for export. The silos — which are being prepped in Denmark and Spain — are slated for delivery by the end of 2027.

Why it matters? “This project is especially built to meet international standards that could enable [Egypt] to unlock new markets we have never reached before for this product, such as the United States, which will have a positive impact on Egyptian exports,” Hussein said.

Sky Ports has been busy: Egypt inaugurated a USD 65 mn multipurpose terminal set up by Sky Ports back in November also in East Port Said.

Temu expands its business model in the UAE-

Chinese PDD Holdings-backed e-commerce leader Temu’s local-to-local model hasexpanded its operations in the UAE — launching a local seller platform that will give UAE-registered firms with locally stocked inventory access to fresh distribution channels and delivery tools via the platform. The move aligns with recent efforts by a number of e-commerce giants to up their hold on the increasingly competitive GCC market.

What’s changing? Since its UAE launch in September 2023, the platform has operated primarily as a cross-border play, serving as a digital window to factories in China with delivery times often stretching past 10 days. This move introduces Temu’s local-to-local marketplace, allowing UAE-registered businesses with existing local inventory to sell directly on the platform.

GFH wagers on chemicals as logistics goes niche-

GFH moves deeper into high-spec warehousing: GFH Partners Manrre Reit — in partnership with Palmon Group — has launched a specialized temperature-controlled chemical warehouse in Dubai’s Jebel Ali Freezone (Jafza). The facility — spanning 180k sq ft with 112k sq ft of built-up space — has capacity for up to 17k pallets and is equipped with nine loading docks and three loading bays.

Calendar

2026

JANUARY

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

21-22 January (Wednesday-Thursday): IOSA Operator Workshop, Dubai, UAE.

FEBRUARY

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.

12 February (Thursday): Technical Seminar on Marine Biofuels, London, UK.

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.

25-27 February (Wednesday-Friday): Air Law Treaty Workshop, Tanzania, Dar es Salaam, Tanzania.

MARCH

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

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

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

MAY

19-21 May (Tuesday-Thursday): Ground Handling Conference (IGHC), Cairo, Egypt.

12-14 May (Tuesday-Thursday): Aviation Energy Forum (AEF), Paris, France.

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