Good morning, folks. We have a compact issue this morning with the latest M&A updates from Adnoc and a bit of financing news from Al Seer Marine, along with a smattering of investment and aircraft manufacturing tidbits to unpack below.

WATCH THIS SPACE-

#1- Saudi and Egyptian private sector players have pledged to make investments worth USD 15 bn in Egypt across renewable energy, industry, real estate, tourism, and technology sectors, Saudi-Egyptian Business Council head Bandar Al Amri told Al Arabiya Business, without naming any of the potential investors. The investments were pending the Promotion and Mutual Protection of Investments agreement was signed on Tuesday in Cairo during Crown Prince and Prime Minister Mohammed bin Salman’s meeting with President Abdel Fattah El Sisi.

ALSO- Saudi firms are reportedly in negotiations for projects with Algeria’s state-owned oil company Sonatrach to ramp up production at the company’s facilities, Elkhabar quotes National Agency for Hydrocarbon Resources Development President Mourad Beldjehem as saying. No additional details were provided.

CLOSER TO HOME- Saudi Industry Minister Bandar Al Khorayef met with Italian and global companies to explore the localization of EV manufacturing, according to a statement. The two parties also discussed enhancing cooperation in the aviation and shipbuilding industries. Al Khorayef also held talks with officials from Swiss EV company Piëch, Saudi-based holding company Nimr, Italy-based shipbuilding company Fincantieri, and Italy-based tech player AlmavivA.

#2- Alexandria Port Authority + AVITEM discuss port development: The Alexandria Port Authority received a delegation from the French Agency for Sustainable Mediterranean Cities and Regions (AVITEM) to discuss the possibility of enhancing cooperation in port development and expansion, including strengthening capabilities and expanding capacities, according to a statement. They also discussed the construction and operation of three bridges to directly connect the port gates to the Marshal Abu Zekry Axis to alleviate traffic congestion in the governorate and reduce the number of trucks on its roads.

#3- Emirates taps Airbus and Boeing for new freighter order: The UAE’s Emirates is in talks with Airbus and Boeing to acquire freighter versions of the A350 and 777X as it plans to triple its cargo fleet to 35 planes by 2030, senior vice president Nadeem Sultan told The National. Although the size of the order is still undecided, the airline expects to make a decision on the investment ticket within weeks.

Expanding its fleet: Emirates currently boasts a fleet of Boeing 777 freighters, with several of them on lease. The airline announced a freighter aircraft order in July to replace some of the expiring leases.

Despite the woes: The decision is being taken despite delays in Boeing 777X’s programme and Rolls-Royce engine durability issues on the A350s.

SPEAKING OF THOSE TWO- Airlines are growing exasperated with the lack of choice: The aviation industry requires more aircraft manufacturers to enter the production game and challenge Boeing and Airbus’ duopoly, The National reports, citing comments made by flydubai Chief Executive Ghaith Al Ghaith at Aviation Future Week in Dubai. “It’s about time that there’s a third and even fourth aircraft manufacturer. The bottleneck, the choke, that we see right now in the business is because of the limitation that you don’t have enough competition,” Al Ghaith said. The UAE’s budget carrier flydubai announced its expansion plans would be hampered by delays in Boeing’s delivery schedule back in July.

Frustrations are boiling over: There’s no sign that the “massively frustrating” delivery delays from both Boeing and Airbus will improve, Reuters reports, citing comments made by International Air Transport Association Director General Willie Walsh. A number of European airlines have spoken out about the impact on their operations, with Air France-KLM saying that it had experienced engine issues on its Airbus A220 orders and Lufthansa saying that Boeing 777X delays have reached around five years, Reuters reports.

Is there an alternative? Chinese aircraft manufacturer Comac is pushing its C919 narrow-body plane as an alternative to Airbus’ A320 Neo and Boeing’s 737 Max, the news outlet writes. Although the plane is new and its long-term performance is still unknown, it could be a “potential competitor” for two of the dominating manufacturers' popular models, Air Arabia fleet planning director Tony Whitby told the news outlet.

REMEMBER- Dubai Aerospace Enterprise CEO Firoz Tarapore backed Comac’s chances of breaking the Boeing-Airbus duopoly within the next 10 years back in June. Despite difficulty in obtaining certifications from European and US regulators, Comac is garnering attention as the other planemakers face labor shortages and engine issues resulting in delivery delays and disrupting airline growth plans, Reuters wrote at the time.

#4- E-commerce retailer Jumia is shutting down its Tunisian operations by year-end, CEO Francis Dufay told Reuters. The company is also closing its South African online fashion retailer Zando in an attempt to cut costs to raise profitability. The e-commerce platform — which is still operating in Egypt, Morocco, Kenya, and Nigeria — will “easily” regain any volumes lost in the move from its remaining markets, Dufay told the newswire, adding that the Tunisian and South African markets accounted for 2.7% of total orders in the six months ending in 30 June. Neither operations will be sold, and instead clearance sales will be held before closing down operations.

MARKET WATCH-

#1- Watch and wait: Oil prices edged higher in early morning trading as investors monitor developments in the Middle East and await US oil inventory data and China’s stimulus plans, Reuters reports. Brent crude futures rose USD 0.17 to trade at USD 74.39 per barrel by 04.08 GMT, while US West Texas Intermediate (WTI) futures gained USD 0.19 to trade at USD 70.58 per barrel. Oil prices closed at their lowest levels since 2 October yesterday for the second day in a row.

Oil product stock at UAE’s Port of Fujairah increased by 5.6% last week amounting to a total of 16.9 mn barrels, according to an S&P Global report. It’s the third consecutive weekly increase and comes thanks to a 38% rise in inventories of so-called middle distillates such as jet fuel and diesel. Fuel oil exports to Saudi Arabia from Fujairah rose by almost five-fold in the second week of October.

#2- Baltic index continues decline: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — dropped about 5.1% to 1,676 points on Tuesday, registering an over two-month low. The capesize index dipped 221 points to a two-month low of 2,552 points, while the panamax index shed 55 points to 1,309 points. The smaller supramax lost another 3 points to 1,257 points.

PSA-

Hapag-Lloyd issues Turkey-to-Morocco surcharge: Shipping giant Hapag-Lloyd will add a peak season supercharge (PSS) from Turkey’s Istanbul and Gemlik to Casablanca in Morocco starting 1 November 2024 and until further notice, according to a statement. The PSS will be applied to all cargo and equipment at a rate of USD 300 per 20ft container and USD 350 per 40ft container.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Smart Ports & Logistics Transformation Summit on Monday, 21 October and Tuesday, 22 October in Riyadh. The two-day conference aims to discuss strategies, innovation, and technologies in line with Saudi Arabia’s Vision 2030, which aims to position KSA as a logistics hub in the MENA region.

The UAE will host the International Conference on Tourism, Transport, andLogistics on Saturday, 26 October and Sunday, 27 October in Dubai. The event will gather scientists, scholars, and engineers from around the world to discuss new ideas and research development projects in the industry.

Saudi Arabia will host the Saudi Airport Exhibition on Monday, 11 November and Tuesday, 12 November in Riyadh. The two-day exhibition will bring together global industry leaders to discuss the latest technologies around the world in the aviation industry. It looks to encourage discussion between Saudi aviation leaders and the global supply chain industry.

The UAE will host the ADIPEC Maritime and Logistics Exhibition and Conference on Monday, 11 November and Thursday, 14 November in Abu Dhabi. The event looks to explore ways to reduce emissions through innovative solutions. It will bring together industry leaders, regulators and decision makers in the global maritime and logistics sector.

Bahrain will host The Bahrain International Airshow on Wednesday, 13 November and Friday, 15 November near Awali. The three-day event is bringing together over 180 participating companies from over 59 represented nations globally.

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