Bahri expands its fleet after adding nine new VLCCs from a USD 1 bn order

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What we're tracking today

TODAY: Bahri adds nine VLCCs to fleet + Houthis’ third attack this summer

Good morning, folks. The news cycle has slowed down after a weekend surge of industry updates. In today’s issue, the shipping industry dominates, with updates on Bahri’s fleet expansion and the latest Houthi attacks in the Red Sea. On the global front, we have a round-up on the intensifying shipbuilding competition amid a surge in consolidations. Shall we?

HAPPENING TODAY-

The Syria Recovery and Investment Forum will close its doors today in Bahrain’s Manama. The forum is hosting global industry leaders, policymakers, and stakeholders to discuss Syria's most urgent rebuilding needs — and attract investments — across key sectors including education, energy, housing, smart cities, ports, and metro systems.

The Transport Middle East Exhibition is on its second day and will run until tomorrow, 3 September, in Salalah, Oman. The exhibition hosted by Salalah Port features 35 international speakers and over 50 exhibitors from the maritime sector to discuss global transportation and logistics.

WATCH THIS SPACE-

#1- Quick-commerce startup Ninja is reportedly in talks with investment banks to advise on a potential IPO that could hit the market as early as 2026, Bloomberg reports, citing people it says are familiar with the matter. The three-year-old company asked banks to pitch for roles as underwriters and advisers, though no final decision has been made on timing or size, and a listing could be pushed to 2027.

ICYMI- Ninja became one of the kingdom’s newest unicorns earlier this year, after raising USD 250 mn from a Riyad Capital-led round at a USD 1.5 bn valuation. A Ninja IPO would further swell Riyadh’s tech pipeline, which already includes fintech heavyweights like Tabby and Emkan Finance.

#2- G42’s shopping for tenants for its 5 GW UAE-US AI Campus…: Abu Dhabi’s state AI firm G42 is still negotiating with US tech giants including Amazon Web Services, Google, Meta, Microsoft, and xAI to become tenants for the planned 5 GW UAE-US AI Campus, with no agreements yet finalized, Semafor reports, citing a person with direct knowledge of the matter. Google is said to be furthest along in talks to offtake computing capacity. The firm is also considering providing capacity to foreign governments, in an arrangement described as “foreign embassies,” where foreign sovereign tenants can store data as an overseas backup, the source added.

… and is looking to diversify chip suppliers: G42 is holding discussions with AMD, Cerebras Systems, and Qualcomm for computing capacity, the source said. This comes as some US officials have sought to slow the UAE’s access to Nvidia hardware over concerns China might get access to the technology.

REFRESHER- Announced during US President Trump’s visit to Abu Dhabi in May, the project is billed as the largest AI infrastructure development outside the US. Its first phase — a 1 GW Stargate data center led by OpenAI, MGX, SoftBank, and Oracle — is slated to launch in 2026 using Nvidia’s latest GB300 systems.

#3- US-based logistics giant FedEx inaugurated a new head office in Riyadh, set to manage operations in Qatar, Bahrain, and Kuwait, FedEx’s head of the Middle East, Indian Subcontinent, and Africa operations Kami Viswanathan‏ told Aleqtisadiah yesterday.

The expansion includes launching an air and ocean logistics division and providing new services like a non-stop air connection from the West to the Kingdom, which will cut delivery time down to 48 hours, Viswanathan‏ said. Four gateways and four operational stations will be introduced across Riyadh, Jeddah, and Dammam, the Transport General Authority said on X.

#4- UAE eyes cooperation on LNG with Nigeria: Energy and Infrastructure Minister Suhail Al Mazrouei met with Nigerian State Minister for Petroleum Resources Ekperikpe Ekpo, to discuss cooperation on LNG trading, cargo swaps, and midstream projects such as pipelines and processing hubs, according to a statement from Ekpo. The two ministers also discussed cooperation on decarbonization initiatives like carbon capture and storage, blue hydrogen, and methane management.

DISRUPTION WATCH-

Houthis claim near-miss strike on Israeli-owned tanker: Yemen’s Houthi militants have claimed responsibility for a ballistic missile attack on a Liberian-flagged, Israeli-owned tanker close to Saudi Arabia's Yanbu, Reuters reports. The attacked vessel, Scalet Ray, is owned by the Singapore-based Eastern Pacific Shipping, which is itself owned by the Israeli shipping magnate Idan Ofer. The incident was first reported by the the United Kingdom Maritime Trade Operations (UKMTO), which said the vessel and its crew were unharmed and are continuing their journey.

REMEMBER- The Houthis are now adopting a broader strategy to its selection of targeted vessels to include vessels whose owners have any operational links to Israel, potentially putting one out of every six ships at risk of future attacks. Following the group’s attack on the Magic Seas vessel in July, the Houthis spokesperson Yahya al-Sarea said the vessel was targeted because its owner also operates ships calling on Israeli ports. Initial reports of the attack were unable to pinpoint why the vessel was targeted despite the lack of Israeli ports calls linked to its name.

The militant group recently published a set of frequently asked questions to help shippers navigate their ‘policies’, ostensibly promising safe passage through Yemeni waters for any vessel unaffiliated with their list of “sanctioned” entities, Lloyd’s List reported last month. The militant group instructed seafarers to submit a safe passage request via the Humanitarian Operations Coordination Center (HOCC), a Houthi-run platform.

MEANWHILE- The Red Sea route is seeing some healthy signs of return, with Suez Canal transits growing by some 33% y-o-y so far this year, TradeWinds reports, citing Baltic and International Maritime Council (Bimco) Chief Analyst Niels Rasmussen. “The ratio between deadweight transiting the Suez Canal and the Cape of Good Hope has year to date increased to 1.44 from 1.09 in 2024,” Rasmussen said.

This might be bad news for shippers: The traffic surge is set to increase the supply of available vessels, given that now more voyages take less time. Product tanker supply is forecasted to grow some 3.5% y-o-y in 2025 and 6.5% y-o-y next year, while demand growth is expected to be stagnant — settling between an annual -0.5% to 0.5% growth rate this year and a 0.5-1.5% rate in 2026.

MARKET WATCH-

#1- Oil prices surged this morning amid increasing concerns over possible supply shortages due to the Ukraine-Russia conflict, Reuters reports. Brent crude futures went up by USD 0.40 to reach USD 68.55 / bbl by 01.49 GMT, while US West Texas Intermediate (WTI) surged by USD 1.05 to trade at USD 65.06 / bbl.

ON A RELATED NOTE- Aramco, Somo halt supplies to India’s Nayara: Saudi Aramco and Iraq’s state oil company Somo have suspended crude oil sales to India’s Nayara Energy, following European Union sanctions imposed in July on the Russian-backed refiner, Reuters reports, citing sources it says are familiar with the matter. The US has also imposed 50% tariffs on India last month, up from 25%, in a move that aims to punish the Asian giant for Russian crude imports.

What's on the line for Nayara? The Indian refinery typically gets around 1 mn barrels of Saudi crude and 2 mn barrels of Iraqi crude each month, but it did not receive shipments from either in August, Reuters said, citing data from Kpler and LSEG. Nayara Energy is responsible for around 8% of India’s total 5.2 mn bbl / d refining capacity.

With Gulf flows suspended, Nayara — majority-owned by Russian entities like Rosneft — sourced all of its August crude from Russia, according to LSEG data and industry sources cited by Reuters. A Russian Embassy official in New Delhi told the newswire last month that Rosneft is supplying the refiner directly.

#2- Baltic index maintains upwards trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — went down 0.1% to 2,024 points on Monday. The capesize climbed 0.8% to 2,949 points, while the panamax index dipped 1.8% to 1,813 points. The smaller supramax index rose by 2 points to reach 1,467 points.

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CIRCLE YOUR CALENDAR-

Oman will host the Comex Global Technology Show on Sunday, 7 September until Wednesday, 10 September in Muscat. The event will host over 360 participants and 133 tech startups to show achievements in eGovernment, fintech, smart cities, health tech, agritech, and cybersecurity.

Saudi Arabia will host the Smart Ports and Logistics Transformation Summit on Monday, 15 September and Tuesday, 16 September in Jeddah. The summit will host over 40 global and local speakers, industry experts, and policymakers to explore smart port solutions, port operations, and logistics within Saudi Arabia.

The UAE will host the Syria Recovery and Investment Forum on Wednesday, 24 September in Abu Dhabi. The forum will host leaders in business, regional investors, policymakers, and advisory experts to develop practical solutions for Syria’s road to recovery and economic revival.

The UAE will host the Global Rail Transport Infrastructure Exhibition and Conference on Tuesday, 30 September until Thursday, 2 October in Abu Dhabi. The event will be hosted by Etihad Rail and is set to welcome over 200 global speakers and upwards of 20k industry attendees to share innovative solutions and develop partnerships.

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

Bahri added nine new VLCCs to its fleet

Bahri’s VLCC fleet hits 50 ships: National Shipping Company of Saudi Arabia (Bahri) added nine very large crude carriers (VLCCs) earmarked at USD 1 bn — bringing its total operational fleet to 50 of the advanced vessel model, according to a statement. The deliveries came one year after Bahri signed a SAR 3.75 bn (c. USD 1 bn) agreement with global shipping outfit Capital Maritime and Trading Corporation to procure nine VLCCs.

About the vessels: Each vessel has an average capacity of 310k dwt, increasing the company’s total fleet handling capacity to 15.5 mn dwt. The vessels are scrubber-fitted and equipped with tech ensuring higher energy efficiency and lower emissions.

The funding: The company secured a SAR 2.8 bn (USD 756 mn) Murabaha financing agreement with Alinma Bank to back the acquisition last October. The 10-year facility — backed by mortgaging VLCCs — covered about 70% of the acquisition costs for nine new VLCCs.

The wider picture: The acquisition brings Bahri’s total fleet to 104 vessels, made up of 33 chemical and product tankers, eight multipurpose vessels, and 13 dry bulk carriers — in addition to the 50 VLCC carriers, according to its website.

The Saudi shipping giant is also venturing into LNG cargo, with plans announced last year to build a fleet of 20-30 new LNG tankers — also capable of moving green hydrogen and ammonia. The bid to move LNG cargo comes as Aramco — one of Bahri’s owners — ramps up its natural gas production and trade operations amid growing global demand for the fuel.

REMEMBER- The vessels — reportedly built in South Korean shipyards — were scheduled for delivery in batches before the close of 1Q 2025.

Ashghal awards QAR 3.5 bn highway project to Egis, Qatari firms

Ashghal awards QAR 3.5 bn highway project to consortium: Qatar's Public Works Authority (Ashghal) has awarded highway project contracts worth QAR 3.5 bn (c. USD 967 mn) to a consortium comprising France’s Egis, Qatar Building Company, and Waagner Biro Bridge Qatar Association, TradeArabia reported on Sunday. The contracts were awarded under a 10-year framework agreement.

The details: The consortium will take over operational, maintenance, and rehabilitation duties for highways across Qatar, the outlet reported. This includes operating and maintaining tunnels, pavements, and street lighting; providing structural, beautification, and safety services; and installing intelligent transport system (ITS) roadside devices and equipment.

Ashghal’s latest road efforts: Ashghal is set to award a contract for the QAR 354 mn Umm Slal Ali roads development and infrastructure project in 4Q 2025. The tender includes the first package covering Umm Ebariya Village, South Umm Al Amad, and North Bu Fessela roads.

ROAD PROJECTS ELSEWHERE-

Saudi Arabia’s Najran region completed three road projects valued at SAR 110 mn with a total length of 159 km, covering road maintenance, repairing flood and rockfall damage, along with installing fences for safety purposes, state news agency SPA reported yesterday.

ICYMI- Najran recently launched 10 developmental projects worth SAR 325 mn by the National Water Company, and another 19 projects valued at SAR 825 mn focusing on critical infrastructure.

Batic Investments and Logistics taps Abdulmalek Al Mudraa as CEO

Saudi-based Batic Investments and Logistics appointed Abdulmalek Al Mudraa (LinkedIn) as CEO, the company said in a disclosure to Tadawul yesterday. Al Mudraa had been the general manager of Batic Real Estate since 2023 and has also been serving as the managing director of the Saudi Transport and Investment (Mubarrad) since the start of this year.

About Batic: Founded in 1983, Batic’s operation now covers transportation and logistics, real estate, facilities management, and smart city services, among others, according to its website. The company’s transportation and logistics segment is focused on cold-chain logistics, as well as providing technology solutions to enhance fleets’ management. The company’s working capital stands at SAR 600 mn.

Updates on warehousing, trade, and aviation from the UAE and Egypt

STORAGE + WAREHOUSES-

Australia’s Toll Group breaks ground on Dubai South hub: Australian freight company Toll Group has started building a 25k sqm distribution center at Dubai South’s Logistics District, according to a Dubai Media Office statement. Scheduled for completion in August 2026, the facility will function as a regional hub for third-party logistics, stock management, value-added services, and cross-border transport. It will feature palletized cargo zones, temperature-controlled storage, and office space, with capacity for more than 30k pallets.

REMEMBER- Dubai South is adding more logistics hubs: International freight forwarder UPS is due to open a new site in the Logistics District by year-end, while Aldar is developing logistics facilities under a JV agreement. The zone is also set to serve as a hub for aviation services, with a USD 190 mn aircraft maintenance, repair, and overhaul (MRO) facility under construction for Flydubai and a USD 27 mn cargo center under development for air services provider dnata.

TRADE-

Egypt will permit Shell and Petronas to export two liquefied natural gas (LNG) cargoes in September and October from the Idku liquefaction plant, Asharq Business reports, citing a government official. Each cargo will carry about 165k cbm of LNG — roughly 3.5 bcf of gas.

But why? Despite local gas output falling to a nine-year low in 2Q 2025, the Madbouly government believes the move to resume LNG exports will encourage international firms to increase their investment in the sector, the source said.

REFRESHER- Shell and Petronas jointly hold 71% of Idku, while the EGPC and EGAS together own 24%, and France’s Engie controls the remaining 5%.

AVIATION-

GCAA streamlines air operations with new digital platform: The UAE’s Civil Aviation Authority (GCAA) launched a new integrated digital platform — Flight Operations Centralized Unified System — to streamline communication between aviation stakeholders and air operators across the country, state news agency Wam reports. The new platform will serve as a one-stop destination for players seeking licenses to operate at the country’s airports. “This platform is part of our broader vision to integrate federal and local aviation entities under one umbrella, making processes more agile and responsive to operators’ needs,” GCAA Director General Saif Al Suwaidi said.

Shipbuilding competition rages amid heavyweight mergers in top-producing nations

The race to dominate shipbuilding is driving a consolidation wave among top-producing nations — with major heavyweight mergers underway in South Korea and Japan. This comes as China’s top two competitors see a narrow opening to shake its market dominance amid a US crackdown on Chinese-built vessels.

Competition in numbers: Japanese and South Korean shipyards have built about a third of the world’s operational fleet capacity in terms of tonnage — though China currently dominates in terms of future orders, with a 70% market share.

Over in South Korea, HD Hyundai Heavy Industries (HHI) announced last week it will merge with its affiliate — HD Hyundai Mipo Dockyard — to boost its production of LNG vessels, icebreaker ships, and naval carriers, Splash247 reported. The move appears to be partly aimed at the US market, as demand for naval and arctic ships rises.

HHI is also consolidating its global operations, with the launch of a new Singapore-based subsidiary that will oversee the company’s shipyards worldwide, including in Vietnam and the Philippines, Splash247 reported.

Meanwhile, Japan’s top producer Imabari Shipbuilding is working to acquire 60% of Japan Marine United — a merger that could create the world’s fourth-largest shipbuilder, Financial Times reported last month. The Japanese government also announced a USD 7 bn public-private fund to modernize existing shipyards and build new ones.

China has its gears up too…: China State Shipbuilding Corp. (CSSC) — the world’s largest shipbuilder — is in the final steps of acquiring its local competitor, state-owned China Shipbuilding Industry Corp. (CSIC), Business Insider (BI) reported earlier this month. The move will help China’s state-controlled industry consolidate and expand operations while cutting costs and boosting efficiency.

…and is likely to remain on top: The merger is set to make CSSC “the largest listed shipbuilding company in the world by a considerable margin, in terms of both assets and revenue,” Matthew Funaiole, senior fellow at the Washington-based Center for Strategic and International Studies, told BI. It will also have the “full backing of the Chinese state and its industrial policy," he added.

Japanese firm builds ammonia-fueled engine in decarbonization milestone

The Japan Engine Corporation (J-Eng) has built what it claims is the world’s first ammonia-fueled engine, according to a press release. The engine is slated for delivery in October 2025 and will be installed in an ammonia-fueled medium gas carrier set to enter service next year.

Who’s involved? Japanese national research agency NEDO oversaw the unit’s development under its Green Innovation Fund Project. Japanese shipping giants Nippon Yusen Kaisha (NYK Line), Nihon Shipyard Co., Japan Marine United Corp, and Nippon Kaiji Kyokai (ClassNK) supervised the testing.

The race so far: ClassNK and NYK Line launched the world’s first ammonia-fueled tugboat — the Sakigake — for service in Tokyo Bay in August 2024, Reuters reported last year. NYK is also building the world's first ammonia-fueled medium gas carrier, set for completion in November 2026 and boasting a 40k cbm capacity, according to a press release published earlier this year.

The MENA region is taking steps to accommodate ammonia-powered vessels:

In Egypt, the Suez Canal Economic Zone has lined up at least two projects for ammonia fuel production and bunkering;
Morocco’s in too: Morocco has lined up several green ammonia production projects, with some lining up exports of ammonia as fuel for ships, such as the Dahamco-led facility in Dakhla ;
Over in Oman, the government is aiming for massive green ammonia production targets, and international players like Yamna are exploring ammonia bunkering projects in some of the country’s ports like Salalah and Duqm.

Calendar

SEPTEMBER

1-2 September (Monday-Tuesday): Syria Recovery and Investment Forum, Manama, Bahrain

1-3 September (Monday-Wednesday): Transport Middle East 2025, Salalah, Oman.

3-4 September (Wednesday-Thursday): Sustainable Maritime Industry Conference, Jeddah, Saudi Arabia.

4-10 September (Thursday-Wednesday): Intra-African Trade Fair, Algiers, Algeria.

7-10 September (Sunday-Wednesday): Comex Global Technology Show, Muscat, Oman.

15 September (Monday): Logistics Leaders Saudi 2025, Riyadh, KSA

15-16 (Monday-Tuesday) September: Smart Ports and Logistics Transformation Summit, Jeddah, KSA

23 September (Tuesday): TradeWinds Shipowners Forum Greece 2025, Athens, Greece

24 September (Wednesday): Syria Recovery & Investment Forum, Abu Dhabi, UAE

24-26 September (Wednesday-Friday): Routes World, Hong Kong.

25 September (Thursday): World Maritime Day.

30 September-2 October (Monday-Thursday): Global Rail Transport Infrastructure Exhibition and Conference, Abu Dhabi, UAE.

OCTOBER

The International Maritime Organization (IMO) is set to formally adopt the Net-Zero Framework this month, stipulating new fuel standards for ships and a global pricing mechanism for emissions.

1-2 October (Wednesday-Thursday): Saudi Maritime and Logistics Congress, Dammam, Saudi Arabia.

6-8 October (Monday-Wednesday): Maritime Cyprus Conference 2025, Limassol, Cyprus.

7-8 October (Tuesday-Wednesday): Global EV and Mobility Technology (GEMTECH) Forum, Riyadh.

13-17 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.

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

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

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

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

DECEMBER

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.

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