Common law coming to Dubai freezones?

1

What we're tracking today

TODAY: Russia-Africa economic forum kicks off today + Kuwait to issue tenders for Mubarak Al Kabeer Port

Good morning, friends. We have yet another zones and legislation-heavy issue for you today, with news that Dubai is considering adopting common law across all its freezones.

Also driving the conversation this morning: East Port Said port’s new multipurpose terminal could become operational in October.Meanwhile, Lloyds’ List’s ranking of the top 100 ports in 2023 featured 12 MENA ports.

HAPPENING TODAY-

The Russia-Africa Summit and Economic and Humanitarian Forum kicks off in St. Petersburg, Russia today and will run through Friday. The summit will include discussions about Moscow's grain and fertilizer exports, Reuters reported earlier, citing statements from Oleg Ozerov, ambassador at large at the Russian Foreign Ministry. It will also build on discussions in the last iteration of the summit, which took place in Sochi in 2019, and will look to develop ties between Russia and partner countries in Africa.

ICYMI- Russia recently withdrew from a UN-brokered Black Sea grain agreement that facilitated the safe export of Ukrainian grains, leading to calls from the UN for Russia to reconsider. The summit will explore the possibility of creating logistics corridors and hubs for various Russian products, including food and fertilizers, as Russia and the West vie for influence in Africa.

Italy’s national carrier ITA Airways has launched its first flight to Libya in almost a decade, Aviation Week reported. The trip between Rome’s Fiumicino and Tripoli’s Mitiga airports came less than three weeks after Italy lifted a ban on Libyan commercial flights entering Italian airspace. The ban had been in place since December 2014 when all Libyan airlines were blocked from EU airspace due to safety concerns. ITA’s inaugural trip should pave the way for regular routes beginning in the winter, according to Italian authorities cited by Aviation Week.

WATCH THIS SPACE- Kuwait plans to issue new tenders for the completion of Mubarak Al Kabeer Port, a project that began two years ago as part of China's Belt and Road Initiative, Zawyareports. Most of the work on the port, located in Bubiyan Island, has been completed, and it is set to be partially operational by 1 October, Al Qabas reports. The upcoming tenders will cover various projects, including constructing main buildings, roads, a container yard, supplying and operating necessary equipment, and deepening the canal connecting the port with Khor Abdullah Port.

DATA POINT #1- Egypt’s current account deficit narrowed by 40% y-o-y to USD 3.5 bn in 3Q 2022-2023 on the back of falling imports,according to Enterprise calculations of Central Bank of Egypt figures (pdf) released this week. The deficit came in at USD 3.5 bn during the January-March quarter, down from USD 5.8 bn in the same period last year and compared to a USD 1.4 bn surplus in 2Q, the country’s first since 2014.

The reasons: A 25% y-o-y fall in imports to USD 17.5 bn during 3Q helped narrow the current account deficit, more than offsetting a 18% y-o-y fall in exports, which came in at USD 9.6 bn. Accordingly the trade deficit narrowed more than 30% y-o-y to USD 8.1 bn.

DATA POINT #2- Alexandria Port has achieved its highest-ever handling rate for transit containers, according to a statement. 1H 2023 saw a 96% y-o-y boost in transit container handling at Alexandria and Dekheila ports compared to the same period last year. Closer coordination between authorities and local and international stakeholders, better coordination with Egypt’s customs and storage companies, the rolling out of an electronic portal, and the introduction of fee reductions underpinned the spike in volumes, according to the statement. Absolute figures of the volumes were not disclosed in the statement.

DATA POINT #3- Air cargo and mail handled by Qatari airports declined 0.9% y-o-yto 195.1k tons in June 2023, according to a statement released by Qatar’s Civil Aviation Authority. Aircraft movements saw a 15.1% y-o-y increase to 20.9k flights during the same period. The number of passengers also rose 20.3% y-o-y to 3.7 mn in June.

CIRCLE YOUR CALENDARS- The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial, or fill out this form and we’ll be in touch.

DID YOU MISS THE ENTERPRISE EXPORTS AND FDI FORUM? Tune in to the Enterprise Podcast and listen for yourself: The Enterprise Podcast is back with another installment of our forum series, where we bring you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum,which took place in May.

WANT TO LISTEN? Head to: Apple Podcast | Spotify | Google Podcast | Anghami. We’re releasing a new episode every Sunday morning.

IN THIS WEEK’S EPISODE- We ask some of the biggest multinationals and suppliers operating here — namely, in logistics, e-commerce, and FMCG — what it is they’re looking for in a local partner, product or service and what are some of the pain points they’ve had to cope with. We were joined on that panel by Khaled Morsy, CEO of DB Schenker Egypt, Omar Elsahy, General Manager at Amazon Egypt, Tarek Kamel, Chairman and CEO of Nestlé Egypt and Sudan.

CIRCLE YOUR CALENDAR-

Kuwaiti Foreign Minister Sheikh Salem Al Sabah will visit Iraq by the end of the month,state-owned Iraqi News Agency reports, citing statements from the Kuwaiti ambassador to Iraq, Tariq Al Faraj. Al Faraj met with Iraqi President Abdul Latif Rashid yesterday to discuss ways to enhance bilateral cooperation and resolve outstanding issues.

The UAE’s Finance Ministry is holding a digital public consultation on its website that began last Wednesday and runs until 2 August,as part of the UAE’s corporate tax freezone regulations,Emirati news agency WAM reports.The consultation aims to gather feedback from freezone-based companies, WAM added.

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

Dubai’s freezones could soon all adopt the English common law system

Dubai is mulling adopting common law across its freezones, in a move that would improve its business environment and attract more investors, Emirati news agency WAM reports. Dubai currently has 20 freezones under its belt, only one of which models its judicial system according to the English common law system — the DIFC.Abu Dhabi Global Market (ADGM) also fully adopts the system as its judiciary system, according to its website.

SOUND SMART- Common law is a legal system that originated in the UK and relies on court decisions — precedents — rather than codes or statutes. This means courts governing freezones in Dubai will rule based on previous rulings that are similar or closely related to the case at hand, instead of relying heavily on codes and statutes.

What’s the point? The common law system is usually preferred by investors due to the consistency and flexibility it provides, particularly because it allows for laws to be updated regularly based on precedent rather than waiting to issue new laws, according to Lexology. It’s also widely used in English-speaking countries which makes it more easily accessible for international investors hailing from these countries, Lexology adds.

This builds on other measures the UAE is taking to make its freezones more attractive: Freezones in Dubai are currently exempt from all federal civil and commercial laws, according to Dubai Financial Services Authority. Businesses operating within the premises of the freezonesare also exempt from a new 9% corporate business tax which went into effect in June.

Sky Logistics wants to get started on its new-multipurpose terminal in East Port Said Port

Egypt-based Sky Logistics is planning to kick off operations for the first phase of a new multi-purpose terminal in East Port Said Port by October, Al Borsaquotes Sky Logistics Managing Director Omar El Badry as saying. The company has already received all the equipment and machinery needed for the terminal last month, El Badry added.

Timeline: The multi-purpose station is set to be built over three phases, with the land for the station to be provided to the Suez Canal Economic Zone (SCZone) sometime next month, El Badry said. The second and third phases are set to be complete by the end of 2024, he added.

About the terminal: The multipurpose terminal will be built at the western berth of SCZone’s East Port Said Port. It will feature a 900 meter container berth, and include a 380k sqm cargo handling yard.

Background:Egypt’s House of Representatives approved a bill allowing the SCZone to hand a 30-year contract to Sky Logistics earlier this month to design, construct, manage, operate and maintain the new multipurpose terminal. The project is set to create 450 direct jobs and some 1k indirect jobs, El-Badry added. The port’s main operator, the Suez Canal Container Terminal Company (SCCT), plans to invest USD 500 mn to expand the capacity of the East Port Said Port by 40%.

Qatari logistics firm GWC’s net income flat in 1H 2023

Qatari logistics giant Gulf Warehousing Company’s(GWC) bottomline recorded a 0.2% y-o-y increase to QAR 115 mn in 1H 2023,according to the company’s earnings release. GWC’s revenues rose 9% y-o-y to QAR 786 mn during the same period.

The increases came off the back of continued diversification in income sources and developing human capital, Chairman Abdulla Al Thani said in the earnings release. The results were attained in spite of challenging global economic and financial conditions due to slower trade and increased lending and borrowing profit rates.

MENA’s ports had a strong showing in Lloyd’s List’s ranking of top one hundred ports in 2023

“Resilient” economies boosted MENA ports’ performance: Despite the post-pandemic boom in the global container port sector petering out in 2022, MENA’s ports continue to post strong volumes on the back of “resilient” economies, according to maritime data platform Lloyd’s List’s ranking of One Hundred Ports 2023. The annual ranking lists the world’s top 100 container ports based on yearly throughput figures.

12 regional ports made the cut: The UAE’s Dubai and Abu Dhabi ports, KSA’s Dammam, Jeddah, and King Abdullah ports, Oman’s Salalah port, Egypt’s Port Said port, Morocco’s Tanger Med port, and Turkey’s Ambarli, Kocaeli, Mersin, and Tekirdag ports all made it into Lloyd’s ranking of the world’s busiest ports in terms of throughput volumes. Last year’s ranking featured 10 MENA ports.

The top performing ports: Dubai’s port is still the first regionally in terms of throughput, retaining its 2022 rank of 11th worldwide. Morocco’s Tanger Med port followed at 24, while Jeddah Islamic Port ranked at 41, falling one spot from last year’s ranking. Oman’s Salalah Port climbed one spot to settle at 44.

Abu Dhabi showed the biggest gains when compared to 2022, jumping 10 spots from 57 to 47, with the results highlighting the effects of significant investments at the port recently. King Abdullah’s port showed the second largest positive improvement in rankings, climbing from 74 last year to 71 in 2023.

On the downside: Egypt’s Port Said fell five spots to 48th in the world, and Salalah Port in Oman fell one spot to settle at 44.

Saudi’s Roads General Authority appoints CEO

Saudi Arabia’s Roads General Authority has appointedBadr bin Abdullah Al Dulami(Linkedin) — Saudi’s Transport and Logistics Roads Vice Minister — as its CEO, according to a statement. Al Dulami has been serving as vice transport minister since June 2018, and serves as a board member at the Saudi Public Transport Authority since November 2018.

The Saudi Cabinet last year approved the establishment of the Roads General Authority to boost competitiveness of road construction, operation and maintenance, Saudi news agency SPA reported at the time.

Oman, Belarus link air routes + Iran, Brazil discuss boosting trade ties

Oman’s Civil Aviation Authority (CAA) has inked an air services agreement with Belarus, according to a statement. The agreement — which is composed of 24 articles covering economic, technical, and operational coordination — looks to arrange air travel between Oman and Belarus and enables carriers to run freight and passenger journeys between the two countries. The arrangement also paves the way for code sharing agreements between carriers and includes an appendix of air routes, CAA’s statement said.

ALSO WORTH KNOWING-

Iran’s Supreme National Security Council Secretary Ali Akbar Ahmadian and Brazil’s assistant to the President for International Affairs Celso Amorim discusseddeeping economic ties, increasing trade, and cooperating in agriculture. (Tasnim)

No peak season for shippers this year?

Shipping companies are bracing for a disappointing peak season this fall, the Wall Street Journalreports. So far, there are no indications that the customary rush where firms scramble to shore up their inventories ahead of the holiday season will materialize. “There are no signals, neither on air or sea, at least not for the time being,” WSJ cited the CEO of freight forwarding giant Kuehne + Nagel International, Stefan Paul, as saying. Shipping firms usually rely on the seasonal upturn in volumes beginning in midsummer for a boost to their earnings.

UAE joining biofuels alliance + Kezad Musaffah to revamp roads. PLUS: More from Qatar Airways, Iraq, and IMO

TRADE-

Saudi Export-Import Bank (Saudi EXIM Bank) has inked an MoU with Japan’s Mizuho Bank aimed at bolstering trade between the two countries, Saudi Press Agency (SPA) reports. The agreement looks to boost cooperation between the countries’ private sectors, and facilitate the export of Saudi goods and services. The agreement will also drive the transfer of knowledge and expertise on export credit policies.

RAIL-

Kezad breaks ground on rolling mill for steel rail parts:Khalifa Economic Zones Abu Dhabi (Kezad) and Al Jazeera Steel Products broke ground on a new AED 250 mn rolling steel mill catering to railway parts in Abu Dhabi earlier this month, according to a statement. The 210k square kilometer steel production hub incorporates industry-leading tech from Italian steel supplier Pomini Long Rolling Mills, and is expected to produce 450k tons of steel products a year. The new facility is a regional first and is set to cater to rising demand for steel products in the region, especially as the GCC embarks on an ambitious railway project that will connect member states, the statement added.

INFRASTRUCTURE-

KEZAD to revamp its road network system:Khalifa Economic Zones Abu Dhabi(KEZAD) will upgrade the road network and facilities across 40k sqm in Kezad Mussafah district for AED 55 mn, Emirati news agency WAM reports. The project involves repairing and recarpeting 23k km of road, widening junctions, enhancing road markings and lighting, landscaping, and setting up bus stops. The project will be carried out in phases to avoid disrupting businesses in the area.

AVIATION-

Spain’s Iberia is joining Qatar Airways and British Airways’ airline joint business, according to a press release. Qatar Airways and British Airways currently operate the world’s largest airline joint business, encompassing over 60 countries. Iberia will introduce a daily service from Madrid to Hamad International Airport starting 11 December under the new agreement. With three daily flights on the route, the Iberian Peninsula will be connected to key markets in the Middle East, Africa, Asia, and Australia.

BIOFUELS-

The UAE has joined the newly launched Global Biofuels Alliance founded by India, the UK, and the US, according to a statement. The alliance aims to “accelerate sustainable biofuels deployment in support of the global energy transition,” according to the International Energy Agency (IEA).

UAE’s interest in biofuels is on the rise: Earlier this month, BP invested USD 10 mn in US startup WasteFuel to support its establishment of a UAE-based biofuels plant with a capacity of 100k barrels of the green fuel per day. UAE’s Tadweer also signed an agreement earlier this year with Austria-based integrated oil and gas company OMV to explore investments in biofuels and biowaste production.

ALSO WORTH KNOWING-

Saudi Arabia’s ports authority (Mawani) received a delegation from the International Maritime Organization to discuss strengthening collaboration in the maritime sector and developing marine projects and technology. (Statement)
Construction of five new berths at Iraq’s Al Faw port are 68% complete, with one berth ready to begin trial operations. (Statement | Statement)
Qatar Airways Cargo has rolled out a smart price optimization and management soltuions tool that provides real time personalized pricing forcustomers booking cargo on their flights. (Statement)

UPS + Teamsters reach labor agreement, averting strike + Panama Canal limits ship crossings due to drought. PLUS: DHL now owns Turkey’s MNG Kargo

United Postal Services (UPS) and the Teamstersunion have reached a preliminary labor agreement, averting a potential strike by the union's workers, CNBCreports. The agreement includes pay raises for both full and part-time workers and is valued at USD 30 bn. Part-time workers will see their wages increase to at least USD 21 per hour, while full-time workers will average USD 49 per hour. The agreement — which is pending ratification by the workers — also puts an end to mandatory overtime on drivers' days off. The agreement staves off risks of a potential supply chain disruption to over 19 mn packages if workers had followed through with a strike in August.

Panama Canal extends restrictions to conserve water amid drought: The Panama Canal Authority (ACP) has limited daily crossings to 32 ships, while extending the restrictions on the depth limit for neo-Panamax container ships, Reuters reports. The canal, through which 3.5% of global maritime trade passes, will keep the current depth limit as long as weather conditions persist.

El Niño could make it worse: “As part of a worldwide phenomenon, in the last six months, the Canal has experienced an extended dry season with high levels of evaporation, with a high probability of an El Niño condition before the end of this calendar year,” the ACP said. Water efficiency measures have been implemented since the start of the year in preparation for the long-term impacts of climate change, the authority said.

DHL Group is set to acquire 100% of Turkish cargo delivery provider MNG Kargoand its subsidiaries, according to a company statement. The company said its Turkish customers will benefit from exclusive logistics services both locally and internationally in collaboration with several already-established DHL divisions in Turkey. The acquisition gives DHL access to 27 mid-mile sorting centers and over 800 last-mile branches in all “relevant” cities of Turkey, according to the statement.

ALSO WORTH KNOWING-

South Africa's state-owned logistics firm Transnet National Ports Authority has selected three consortiums to propose design, funding, and construction plans for Boegoebaai port, which will facilitate hydrogen exports. (Bloomberg)

Calendar

JULY

17-28 (Monday-Friday): The fourth round of negotiations between the GCC and the UK for a trade agreement will take place in London.

AUGUST

Oman will award Ras Al Hadd Airport consultancy contract.

28 August (Monday): Registration for Emirates Postal Group’s Logistics Unleashed competition concludes.

SEPTEMBER

4-8 September (Monday-Friday): Logistics and Transport Management, Dubai.

5 September (Tuesday): The Leaders in Logistics KSA Summit, Crowne Plaza Al Waha, Riyadh.

6-7 September (Wednesday-Thursday): Sustainability LIVE London, Business Design Centre, London.

11-14 September (Monday-Thursday): The Libyan Moroccan Forum for Trade and Business, Tangiers, Morocco.

18-19 September (Tuesday-Wednesday): Enterprise Finance Forum, St. Regis Hotel, Cairo.

20-22 September (Wednesday-Friday): Transport Evolution Africa Forum and Expo, Inkosi Albert Luthuli ICC Complex (Durban ICC), South Africa.

20-23 September (Wednesday-Saturday): MTB Workboats, Hyatt Regency Dubai, Dubai.

25-27 September(Monday-Wednesday): Airline Economics Growth Frontiers Middle East & Africa, The Ritz-Carlton, Dubai, UAE.

26-28 September (Tuesday-Thursday): ProcureCon, Hyatt Regency Barcelona Tower, Spain.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

OCTOBER

Egypt’s Suez Canal Economic Zone (SCZone) goes on a roadshow to South Korea.

3-4 October (Tuesday-Wednesday): IATA World Sustainability Symposium, Madrid, Spain.

3-5 October (Tuesday-Thursday): Smarter Mobility Africa Summit, South Africa.

10-12 October (Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

24-25 October (Tuesday-Wednesday): Future Fuels Europe, Amsterdam, Netherlands.

26-29 October (Thursday-Sunday): International Congress of Aviation and Space Medicine, Conrad, Etihad Towers, Abu Dhabi, UAE.

30 Oct-2 Nov (Monday-Thursday): IAPH World Ports Conference, Abu Dhabi, UAE.

30-31 October (Monday-Tuesday): Gartner Supply Chain Planning Summit, London, UK.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

NOVEMBER

1 November (Wednesday): Smart Maritime Network Dubai Conference, Conrad Dubai, UAE.

9-15 November (Thursday-Wednesday): Intra-AfricanTrade Fair, Cairo, Egypt.

13-17 November (Monday-Friday): Dubai Airshow, Dubai World Center, UAE.

14-15 November (Tuesday-Wednesday): Supply Chain & Logistics Arabia, Narcissus, Riyadh, Saudi Arabia.

14-17 November (Tuesday-Friday): IATA Slot Conference, Dubai World Trade Centre, Dubai, UAE.

15 November (Wednesday): Leaders in Logistics UAE Summit, Dubai.

21-23 November (Tuesday-Thursday): Intermobility Expo 2023, Dubai World Trade Center, Dubai, UAE.

21-23 November (Tuesday-Thursday): Touchdown Middle East, Gulf Hotel, Bahrain.

23 November (Thursday): Global Supply Chain and Logistics Summit, Grand Millennium Hotel Business Bay, Dubai, UAE.

30 November-3 December (Saturday-Tuesday): Handling Expo, Egypt International Exhibition Center, Cairo, Egypt.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

DECEMBER

10-11 December (Tuesday-Wednesday): Invest in Logistics, St.Regis Almasa Hotel, New Administrative Capital, Egypt.

EVENTS WITH NO SET DATE

2H2023:Construction of Neom’s first hydrogen fueling station will kick off.

2H2023: Expansion of Baghdad International Airport to begin.

3Q 2023: Design and supervision contract for Oman’s proposed Musandam Airport to be awarded.

2024

1Q 2024: Construction of phase 3 of Agility’s logistic park in Abidjan, Côte d'Ivoire to be completed.

1H 2024: Work is scheduled to begin on the 162 km Rasht-Astara railway in Iran.

FEBRUARY 2024

13th World Trade Organization Ministerial Conference, Abu Dhabi, UAE.

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai Trade Centre.

12-15 February (Monday-Thursday): African Air Expo, Cape Town.

28 February-1 March (Wednesday-Friday): MENA Transport Congress and Exhibition 2024, Dubai.

MARCH 2024

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Center, Dubai, UAE.

12-14 March (Tuesday- Thursday): IATA World Cargo Symposium, Hong Kong International Airport.

MAY 2024

2-3 May (Thursday-Friday): Geneva Dry, Geneva, Switzerland, Hotel President Wilson.

DECEMBER 2024

10-12 December (Tuesday-Thursday): Middle East Business Aviation, DWC, Dubai, UAE.

2024

The Bahrain International Airshow will kick off to mark a decade of success

2025

Mid-2025: Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

Sections

About

Privacy & Support

Get EnterpriseAM daily