CWA Textile invests in EGP 970 mn textile factory in Sokhna Industrial Zone

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What we're tracking today

TODAY: CWA’ Textile’s new factory in Sokhna Industrial Zone + Turkish Airlines, DIB ink Islamic finance agreement

Good morning, friends, and happy Thursday. We’re ending the work week — and the month — with a brisk read today, led by yet another textile factory in Egypt’s Sokhna Industrial Zone. Plus, Turkish Airlines has signed its first shariah-compliant finance agreement to fund its Airbus jet purchase. Let’s dive in?

THE BIG LOGISTICS STORY-

The US’ latest trade agreements ahead of tomorrow’s deadline are still getting top billing in the foreign press, along with fresh sanctions on Iran.

The US and South Korea reached a trade agreement, setting a 15% tariff on South Korean exports to the US, in exchange for USD 350 bn in investments in US-owned projects selected by US President Donald Trump, Trump said on Truth Social. This is in addition to USD 100 bn in energy investments in the US. This follows a similar structure to the agreement with the UK and Japan, which also pledged investments in exchange for lower tariffs. (Reuters | Bloomberg | Financial Times | Politico | Axios)

Not yet as lucky? India, which could face a 25% tariff on its exports to the US as of tomorrow if ongoing talks end with no agreement. (Bloomberg | Guardian)

ALSO- The US doubled down on its pressure campaign on Iran with sweeping new sanctions on 115 Iran-linked individuals and businesses, broadly targeting the shipping business of Hossein Shamkhani, the son of senior adviser to Supreme Leader Ayatollah Ali Khamenei. (Bloomberg | Reuters)

WATCH THIS SPACE-

#1- Egypt’s Suez Canal Authority is extending its 15% reduction on container ship crossing fees until the end of 2025, in a bid to encourage increased traffic through the strait, Asharq Business reports. The canal introduced a markdown on container vessels with a net load over 130k tons back in May, initially for 90 days.

Did the move entice wary shippers? The move aimed to encourage shippers who may lack the financial incentive to accelerate their return to the Red Sea route. It came shortly after Authority head Osama Rabie urged global shipping lines to reassess their routes and consider a gradual return to the canal, amid improving security conditions in the region. Danish shipping giant Maersk was reportedly considering resuming transits through the Suez Canal, as it closely monitors security developments in the Red Sea.

REMEMBER- The route is vital for Egypt’s FX flows: Suez Canal transit receipts — a major source of foreign currency for Egypt — dropped 62.3% y-o-y to USD 1.8 bn in FY 2024-25 on the back of Houthi attacks on Red Sea shipping vessels, which have disrupted the passage and pushed ships to reroute away from the canal. Net tonnage fell 69.2% and vessel transits were down 52.2%.

#2- Oman is accepting bids for Musandam Airport: Oman’s Civil Aviation Authority accepted pre-qualification bids from around 20 undisclosed local and international companies for a tender to design and construct the Musandam Airport in Wilayat Khasab, Oman Observer reports. The airport — scheduled for delivery in 2028 — will cost an estimated USD 200 mn . The final design for the new airport is complete, the news outlet says.

What’s in the cards? The project will be split into phases, with the first phase set to feature a 45m-wide runway and a passenger hall capable of hosting 250k passengers annually. It will also include an air traffic control tower, a 2.5 km-long runway, taxiways, repair shops, and an aircraft hangar. The second phase is set to expand the new runway to 3.3 km, as well as the number of taxiways, air carrier hangars, and the terminal building.

#3- Houthis launch another strike on Israeli airport: Yemen’s Houthi group targeted Tel Aviv’s Ben Gurion International Airport with two missiles on Tuesday, bringing the airport’s operations to a temporary halt, according to a statement by Houthi spokesperson Yahya Saree. The move comes after the group announced a sea blockade on Sunday that will target any ships owned by firms conducting maritime activity with Israeli ports. The Houthis also attacked the airport last week, hours after an Israeli army spokesperson said in a post on X that a missile from Yemen was intercepted while en route to Israel.

MARKET WATCH-

#1- Oil prices held firm in early morning trading amid Trump’s push for tariffs to end Ukraine war and increasing US stock prices offset supply concerns, Reuters reports. Brent crude futures was down USD 0.10 or 0.1% to reach USD 73.14 / bbl by 03.45 GMT, while US West Texas Intermediate (WTI) futures dipped USD 0.05 or 0.1% to trade at USD 69.95 / bbl.

#2- Baltic index dips even further: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — decreased 5.4% at 1,995 points on Wednesday, its lowest point since 16 July. The capesize dropped 8.3% to 3,186 points, while the panamax index dipped 3% to 1,689 points. The smaller supramax index fell 0.8% to 1,271 points.

DATA POINT-

#1- The UAE’s non-oil foreign trade rose 24% y-o-y in the 1H 2025, reaching nearly AED 1.73 tn (USD 470.3 bn) during the period, driven by an unprecedented boom in non-oil exports, according to an X post from Dubai Ruler and Prime Minister Mohammed bin Rashid Al Maktoum.

Top trade partners: Trade with Switzerland surged by an impressive 120% y-o-y, followed by Turkey (41%), India (33%), the US (29%), and Saudi Arabia (21.3%).

#2- Morocco’s imports rose 9% y-o-y to MAD 398 bn (USD 44 bn) in 1H 2025, while its exports went up 3% y-o-y to MAD 236 bn (USD 26 bn), Reuters reports, citing Morocco’s Foreign Exchange Office.

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CIRCLE YOUR CALENDAR-

The UAE will host the Africa Procurement & Supply Chain Leaders’ Conference on Monday, 25 August until Friday, 29 August in Dubai. The conference will host global industry leaders, policymakers and stakeholders to discuss how AI is changing procurement and supply chain efficiency, sustainability and risk management.

Oman will host Transport Middle East on Monday, 1 September until Wednesday, 3 September in Salalah. The conference will host 35 international speakers and over 50 exhibitors from the maritime sector to discuss global transportation and logistics.

Saudi Arabia will host the Sustainable Maritime Industry Conference on Wednesday, 3 and Thursday, 4 September in Jeddah. The event is set to gather over 60 speakers and more than 3k participants to discuss maritime decarbonization, digital transformation, regulatory frameworks, capacity building, and sustainable practices.

Algeria will host the Intra-African Trade Fair on Thursday, 4 September until Wednesday, 10 September in Algiers. The fair will host over 75 countries and 2k exhibitors across several sectors to explore investment prospects and exchange information on trade between B2B and B2G.

Oman will host the Comex Global Technology Show on Sunday, 7 September and run till 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.

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

CWA Textiles to develop an EGP 970 mn textile factory in the Sokhna Industrial Zone

CWA Textiles is setting up a new EGP 970 mn (USD 19.9 mn) factory in the Sokhna Industrial Zone, according to a Suez Canal Economic Zone (SCZone) statement. The project will be located on a 15k sqm plot developed by the Main Development Company (MDC). The company aims to generate at least USD 10 mn in export revenues in its first year of operations, growing to USD 30 mn within five years.

What they’re making: The facility will produce textile goods, including floor coverings and carpet protectors, along with auxiliary services including printing, finishing, cutting, and stitching.

The timeline: The project will be implemented in phases, with production set to begin in 3Q 2026, and a total time for implementation of 12-48 months, company head Ashraf Abou El Einin said. The project is expected to create 200 jobs in its initial phase, expanding to 500 jobs over five years.

SCZone is expecting further investments in the near future. China’s Kibing Group is planning to establish a USD 685 mn solar panel glass factory in Ain Sokhna, while Hong Kong-based Crystal International Group is eyeing a USD 250-300 mn textile factory in the Qantara West Industrial Zone.

Turkish Airlines taps DIB for fleet expansion loan

DIB strikes Islamic finance agreement with Turkish carrier: Dubai Islamic Bank (DIB) has signed a 12-year Islamic finance lease agreement with national carrier Turkish Airlines to finance its purchase of a new Airbus A350-941, according to a press release.

A first for the industry: This marks the first shariah-compliant finance agreement signed by Turkish Airlines and also DIB’s first in the aviation industry.

Turkish Airlines 💙 new jets: Turkish Airlines is set to uptake 14 narrow-body jets from US-based lessor Carlyle and Irish lessor Avolon — including Boeing Max and Airbus Neo carriers — to be delivered in 2028. Last month, we heard that a new Boeing order is in the cards, with the airline closing in on an order with the aircraft manufacturer — pending a final price agreement between the two parties, including engine costs. PIF-owned Riyadh-based aircraft leasing firm AviLease inked an agreement with Turkish Airlines for a long-term lease of eight Airbus A320neo jets in April.

A flurry of 1H 2025 earnings reports from regional logistics players

NAKILAT-

Qatar Gas Transport Company Nakilat recorded a 3.7% y-o-y increase in its bottom line to QAR 860 mn in 2Q 2025, according to an IR presentation (pdf). The Qatari firm saw its top line rise 1.3% y-o-y to QAR 2.2 bn during the same period. The firm’s total expenses dipped 4.5% y-o-y to QAR 1.4 bn.

Behind the numbers: The firm attributes its growth to its fleet expansion — scheduled to hit 112 carriers once all newbuilds on order are delivered. The company currently has 27 174k-cbm LNG carriers on order, with deliveries set for 2026 onwards, as well as nine 271k-cbm QC-Max carriers and four 88k-cbm LPG carriers.

Big expansions already in the works: Nakilat inked an initial financing agreement package with Export-Import Bank of Korea. Construction on 17 LNG carriers commissioned by Nakilat kicked off at South Korea’s Hyundai Heavy Industries Shipyard in May. The vessels — whose capacities stand at 174k cbm each — were commissioned by QatarEnergy to expand its LNG-moving fleet and replace older vessels.

NMDC GROUP-

NMDC had a good 2Q: The UAE’s National Marine Dredging Company (NMDC) Group saw its bottom line rise 18% y-o-y to AED 971 mn in 2Q 2025, while its revenues increased 5% y-o-y to AED 7.1 bn during the same period, according to the company’s financials (pdf). The boost across the board is driven by enhanced cost efficiency, increased operating margins, and robust operational control, according to a separate press release.

In 1H terms: The ADX-listed firm recorded a 20% y-o-y boost in its net income to AED 1.8 bn, while its revenues rose 10% y-o-y to AED 13.4 bn during the same period. The firm attributes the increase to its expansion into regional markets and ongoing infrastructure development projects, the statement adds.

Operational highlights: The total value of the firm’s projects under development hit AED 66.2 bn — with AED 15.1 bn awarded in 2Q alone. With its current growth rate, the company estimates the value of its ongoing tenders will reach AED 100 bn. NMDC Group’s newly launched logistics arm, NMDC LTS, finalized its acquisition of a 70% stake in Abu Dhabi-based oilfield services and logistics firm Emdad last month.

More to come: NMDC is planning to invest nearly INR 210 bn (USD 2.4 bn) into Mumbai’s Vadhvan Port, a strategic mega-port currently being built by DP World and India’s Jawaharlal Nehru Port Authority.

ROYAL JORDANIAN-

Jordan’s flagship carrier Royal Jordanian returned to the black in 1H 2025, recording JOD 12.7 mn (USD 17.9 mn) in net income after sustaining a JOD 27.4 mn loss the year prior, Petra reports, citing a statement it has seen from the company’s board. Its operating revenues increased 10.9% y-o-y to JOD 375 mn during the same period.

The firm attributed its performance to an expanded and modernized fleet and network, which helped the carrier flip reverse from its net loss position. The firm reported an 8% y-o-y uptick in flight operations, carrying 1.8 mn passengers in 1H 2025, an increase of over 80% to its seat load factor, and a nearly 90% increase to its on-time performance rate.

Fleet expansions on the horizon: The airline received seven new Airbus A320neo carriers, with four more scheduled to arrive next month — bringing the total to 11, CEO Samer Majali told the news agency. Royal Jordanian expects to complete a full revamp of its medium-to-regional range fleet, including integrating 14 Airbus carriers and seven Embraer jets, by early 2026.

Big picture plans: The Jordanian flagship carrier is planning to implement company-wide reforms, including cost restructuring, revenue diversification, air cargo operations development, and investment in support units. The carrier also plans to expand its fleet to 41 aircraft by 2028. In May, it inked a USD 250 mn (JOD 177 mn) syndicated loan agreement with a consortium led by Arab Bank that included several regional and local banks.

Updates on data centers, investments, shipping, supply chains, and aviation from UAE, Egypt, Saudi Arabia, and Qatar

DATA CENTERS-

Hexnode launches Amazon-powered data center in the UAE: Unified endpoint management solution firm Hexnode established a new data center in the UAE, hosted on Amazon Web Services, according to a press release. The infrastructure will support regional data residency requirements while improving performance for Middle Eastern customers in regulated sectors like finance, healthcare, and government.

INVESTMENT WATCH-

Future cooperation with China’s UEG? Egypt’s Oil Ministry inked an MoU with China’s United Energy Group (UEG) to explore joint investments across oil, gas, renewables, and energy trading in Egypt and overseas, according to a ministry statement. The meeting between the two sides also saw UEG express interest in expanding its footprint in Egypt.

SHIPPING + MARITIME-

The Saudi Ports Authority (Mawani) added WAN HAI LINES’ AR2 Asia Redsea service to Jeddah Islamic Port, linking it to 10 regional and global ports, according to a statement. The new route — with a capacity of 3.7k TEUs — will connect Jeddah with Shanghai, Ningbo, Nansha, and Shekou in China, Port Klang in Malaysia, Aqaba in Jordan, Sokhna and Alexandria in Egypt, and Izmit and Kumport in Turkey.

SUPPLY CHAINS-

Qatar Airways partners up with Milaha, GWC on logistics services: Qatar Airways has inked a five-year agreement with Qatar Navigation (Milaha) to provide warehousing, supply chain solutions, inventory management, and distribution services, The Peninsula reports. The airline also renewed a five-year service agreement with GWC Logistics to continue using its logistics solutions for operational improvement, according to a statement. GWC will offer delivery services, including handling imports and exports, customs clearance, warehousing and distribution, inventory management, and storage documentation.

AVIATION-

Riyadh Air partners with an Air France-KLM subsidiary to maintain its Boeing Dreamliners: EPCOR, a subsidiary of Air France Industries KLM Engineering & Maintenance, will look after Riyadh Air ’s APS5000 auxiliary units powering the Boeing 787 Dreamliner fleet under a long-term maintenance, repair, and overhaul agreement it signed with the PIF-owned airline, according to a press release.

Boeing’s 1H earnings exceed market expectations

A better-than-expected 2Q for Boeing: Aircraft manufacturing giant Boeing recorded a 35% y-o-y jump in its 2Q 2025 top line to USD 22.7 bn — reflected in its 150 commercial carrier deliveries during the quarter, which soared nearly 63% y-o-y, according to the company's earnings. The US-based firm’s bottom line settled at a USD 612 mn net loss, beating analysts’ predictions of a larger swell, Reuters reports.

On a six-month basis: Boeing saw a 26% y-o-y increase in its 1H 2025 top line, while it recorded a net loss of 64% y-o-y to USD 643 mn. The firm delivered 206 737 Max jets in 1H, up nearly 52% y-o-y from 135 in 1H 2024.

Boeing ramped up its 737 production line to 38 jets per month in 2Q. The firm’s total backlog soared to USD 619 bn — comprising over 5.9k commercial aircraft. The firm secured 303 new orders in May, its sixth-highest monthly figure ever. The planemaker also saw a gigantic Qatar Airways order for 160 jets with an option to add 50 more in the same month.

REMEMBER- Boeing is benefiting from a trend of nations seeking to boost aviation ties with Washington in a bid to gain a bargaining chip in ongoing tariff trade talks.

Calendar

AUGUST

25-29 August (Monday-Friday): Africa Procurement & Supply Chain Leaders’ Conference, Dubai, UAE

SEPTEMBER

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.

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

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 & Logistics Congress, Dammam, Saudi Arabia.

7-8 October (Tuesday-Wednesday): Global EV & 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) The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh, Saudi Arabia.

DECEMBER

1-3 December (Monday-Wednesday): INTRALOGISTICS Powered by CeMAT, Riyadh, KSA

2 December (Tuesday): European Commission issues its decision on Adnoc’s Covestroc acquisition.

15-16 December (Monday-Tuesday): Supply Chain And Logistics Conference 2025, Riyadh, KSA.

2026

27-29 January (Tuesday-Thursday) Transport Middle East 2026, Abu Dhabi, UAE.

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

28-30 April (Tuesday-Thursday) Mediterranean Ports and Logistics, Porto, Portugal.

12-13 May (Tuesday-Wednesday): IntraLogistex, Abu Dhabi, UAE

24-26 June (Wednesday-Friday) Transport Logistic & Air Cargo 2026, Shanghai, China.

7-9 July (Tuesday-Thursday) Asean Ports and Logistics, Kuala Lumpur, Malaysia.

17-19 November (Tuesday-Thursday) Intermodal Africa 2026, Luanda, Angola.

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.

2027

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

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