Damac’s Edgnex commits USD 2.3 bn for Indonesian data center

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What we're tracking today

TODAY: UAE’s Edgnex commits USD 2.3 bn in Indonesian data center + More agreements from Paris Airshow

Good morning, friends. The news cycle ticked up slightly overnight with fresh updates from the seas and skies, along with more from Trump’s never-ending tariff negotiations…

THE BIG LOGISTICS STORY- US President Donald Trump inked an agreement to slash tariffs on some UK imports, upholding the current duties on UK automobiles and eliminating levies on British aerospace products, including parts and planes. The agreement will be implemented seven days after getting published on the Federal Register. A decision has yet to be reached regarding steel, aluminum import tariffs, and pharma products.

We knew this was coming: Last month, the US inked a limited bilateral trade agreement with the UK to maintain a 10% blanket tariff on UK imports into the US — applied to the first 100k British vehicles — from the current 27.5%.

That’s not all: The US is also mulling plans to impose a quota — to be decided on by US Commerce Secretary Howard Lutnick — on steel and aluminum UK imports that would be exempt from 25% tariffs. The quota would only be enforced if the UK ensures the security of its steel supply chains and production facilities.

HAPPENING TODAY-

Flynas will go public on Tadawul’s main market today, according to a Tadawul bulletin published yesterday. Shares will be allowed to trade within a 30% range for the first three days, before being capped at no more than 10% up or down starting on the fourth the day when circuit breakers kick in.

This is the region’s first IPO of a major airline since 2008 and only the third-ever carrier to list in the GCC after Air Arabia and Jazeera Airway — beating Abu Dhabi’s Etihad Airways to market.

REFRESHER- Flynas priced its IPO at SAR 80 a piece after its institutional offering saw overwhelming demand. The larger tranche of the IPO — in which the PIF-backed airline is taking a 30% stake to Tadawul — was 100x oversubscribed, while the retail tranche of its SAR 4.1 bn IPO 3.5x covered.

WATCH THIS SPACE-

#1- Two oil tankers have collided and caught fire near the Strait of Hormuz off the Emirati coast, with zero reported casualties and no resulting spillage, Reuters reports. The Suez Canal-bound Adalynn — owned by Frontline — was carrying 2 mn barrels of Iraqi crude and was bound for China when it collided with The Front Eagle, the newswire added, citing a statement from monitoring outfit TankerTrackers.

The UAE Coast Guard safely evacuated 24 crew members from Adalynn, according to a statement on X and Reuters. The incident wasn’t directly related to the conflict, one of the vessel’s owners told Bloomberg, though electronic interference in the channel has risen since Israel and Iran have exchanged air strikes, disrupting navigation signals. Upwards of 900 vessels in the Arabian Gulf and the Strait of Hormuz reported disrupted signals over the past weekend, which increased the likelihood of collisions.

Strait closure would “paralyze” the Gulf, expert warns: Any measure to restrict movement in the Strait of Hormuz will “paralyze the [Arabian] gulf and impact the entire world,” Iraqi economist Hilal Al Taan told Shafaq News. Notable ports like UAE’s Jebel Ali, along with oil-reliant nations Iraq, Bahrain, and Kuwait will incur catastrophic financial losses, Al Taan said.

IN OTHER SHIPPING NEWS- Japan’s second-largest shipping firm Mitsui OSK Lines will operate as normal in the Gulf, but plans to keep a close eye on the regional situation, CEO Takeshi Hashimoto told Reuters. Shipments in the Gulf have no alternative route — which indicates that unlike the Red Sea, shippers will not be able to follow through with shipments to and from the region if transits halt. The firm has nearly 15 to 20 vessels which regularly transit the region — including chemical tankers and car carriers — making it “very, very difficult for [MOL] to reduce or stop” their services, Hashimoto added.

#2- Morocco to produce parts for Boeing’s 737 MAX: Morocco’s Casablanca Aéronautique — a subsidiary of France’s Figeac Aéro Group — signed an agreement with Boeing to produce machined parts for the 737 MAX aircraft, Morocco World News reports. The move comes in a bid to set up a “solid aerospace ecosystem in Morocco,” VP of Global Supply Chain at Boeing Commercial Airplanes Emily Belgrade was quoted as saying.

Latest on Boeing + Morocco: Moroccan flag carrier Royal Air Maroc is reportedly close to clinching an order of some two dozen Boeing 787 Dreamliners and up to 50 Boeing 737s. Royal Air Maroc intends to quadruple its fleet in anticipation of its co-hosting of the World Cup in 2030, as Rabat plans to raise airport capacity to 78 mn passengers per year.

#3- Homs-Hama pipeline restarts after decade-long hiatus: Syria’s Homs Refinery Company has resumed operations at a pipeline — halted for 14 years — conveying oil from Homs Governorate to depots in Hama, with a daily capacity of 2.6k cbm, the Syrian News Agency reports. The government is looking to extend the 56-km pipeline to Aleppo and Idlib in the future, with an overall length of 180km.

MARKET WATCH-

#1- Oil prices kept climbing in early morning trading compounding a 4% gain from the previous session as the Israel-Iran conflict enters its sixth day, Reuters reports. Brent crude futures rose by USD 0.25 to reach USD 76.71 a barrel, while the US West Texas Intermediate (WTI) climbed USD 0.35 to USD 75.19 a barrel by 04.40 GMT. "Material disruption to Iran's production or export infrastructure would add more upward pressure to prices … even in the unlikely event that all Iranian exports are lost, they could be replaced by spare capacity from Opec+ producers ... around 5.7 mn barrels a day," Fitch analysts said a client note cited by the newswire.

Meanwhile, global oil supplies are expected to outpace demand this year even as Middle East tensions heighten concerns over potential disruptions, the International Energy Agency (IEA) said in its annual report (pdf).

By the numbers: Oil production is forecast to grow by 1.8 mn bbl/d this year to reach 104.9 mn bbl/d, while demand is projected at 103.8 mn bbl/d — resulting in rising oil inventories throughout the year. The surplus is driven by Opec+ producers gradually reversing earlier output cuts and non-Opec+ producers contributing an additional 1.4 mn bbl/d on average.

Global inventories have been rising steadily, with storage levels increasing by an average of 1 mn bbl/d since February. In May alone, oil jumped to a “massive” 93 mn bbl/d — that said, total inventories remain 90 mn bbl below year-ago levels.

Long term outlook: Global oil supply will continue exceeding demand through 2030, with production capacity rising by 5 mn bbl/d to 114.7 mn bbl/d, according to the IEA. Demand is expected to grow more slowly, increasing by 2.5 mn bbl/d to a projected peak of 105.5 mn bbl/d by the end of the decade. A major factor in this slowdown is China, where consumption is now expected to peak in 2027, driven by the widespread adoption of electric vehicles, high-speed rail expansion, and gas-powered trucking.

#2- Baltic index snaps winning streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — dipped 1.2% to 1,952 points on Tuesday. The capesize fell 1.9% to 3,660 points, while the panamax decreased 0.3% to 1,406 points. The supramax increased six points to 945.

PSA-

Hapag-Lloyd rolls out MENA price hikes: Shipping giant Hapag-Lloyd has increased its general rates from the Middle East and the Indian subcontinent to North America by USD 500 per container, effective 15 July until further notice, according to a statement. The move will impact shipments heading to the US and Canada from the UAE, Qatar, Bahrain, Oman, Kuwait, Iraq, KSA, and Jordan. The German firm is also implementing an additional general rate increase of USD 1k per container on the same routes, starting 1 August, according to a statement.

Maersk was quick to follow: Dutch Shipping giant Moller-Maersk has also revised its peak season surcharge (PSS) for cargo travelling between the region and North America — rising to USD 4k per container, effective 16 July, according to a statement. The PSS will impact shipments headed from the UAE, Yemen, Qatar, Bahrain, Oman, Kuwait, Iraq, KSA, and Jordan to the US and Canada.

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CIRCLE YOUR CALENDAR-

The UAE will host Middle East Rail from Tuesday, 24 June to Thursday, 25 June in Dubai. The conference at Dubai World Trade Center will host over 250 speakers and a multi-brand exhibition for transport solutions.

Mozambique will host Intermodal Africa from Tuesday, 22 July to Thursday, 24 July in Beira. The conference will host 35 speakers, to address challenges in global and regional maritime trade and investment.

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

Damac-backed Edgnex plugs USD 2.3 bn into new Indonesian data center project

Damac’s Edgnex to land in Jakarta: UAE-based Damac’s data center arm Edgnex is set to invest USD 2.3 bn (AED 8.4 bn) to develop a next-generation AI-powered data center in Jakarta, Indonesia, according to a press release. Damac acquired the land earmarked for the project earlier in March and has launched early phase construction at the site.

Here’s what we know: The project — Damac’s second in Indonesia — is forecasted to have a capacity of 144 MW once completed. The first phase is scheduled for operations by December 2026. The plan includes the integration of high-density AI-racks and a power usage effectiveness 1.32 PUE rate at the site.

REMEMBER- The company revealed plans back in December to invest approximately USD 3 bn in establishing data centers across Southeast Asia through its subsidiary Edgnex over the next three to five years, primarily targeting Malaysia, Indonesia, and Thailand. The firm had been planning to invest USD 5 bn to 7 bn globally over the next few years to expand its operations and address rising demand for digital infrastructure, Danish Nayar, senior vice president of investments and acquisition at Damac Group, told Bloomberg previously.

Damac is making waves in the global data center sector:

North America: Damac committed USD 20 bn to US data centers, with a focus on supporting AI and cloud businesses, with the possibility of “doubling” its investment depending on market demand;
Saudi Arabia: Edgnex is also investing USD 600 mn in data centers in Dammam and Riyadh in Saudi Arabia — expected to launch this year. The company also signed a MoU with Salam, Cinturion, and Emaar, Economic City, to develop a digital infrastructure hub in Jeddah;
Turkey + Greece: Edgnex allocated USD 100 mn with Vodafone Turkey for a 6 MW data center in Izmir, also set to go online this year, as well as a separate initial USD 150 mn investment for a data center in Sparta, Greece.

It's all falling into place: Damac had been planning to invest USD 5 bn to 7 bn globally over the next few years to expand its operations and address rising demand for digital infrastructure, Danish Nayar, senior vice president of investments and acquisition at Damac Group, told Bloomberg previously.

A slew of agreements from the region’s aviation giants at Paris Air Show

The second day of the Paris Air Show brought on a slew of new aviation agreements from the region’s aviation giants and global logistics players. The fresh signatures include leasing contracts, MRO agreements, new build acquisitions, and regulatory frameworks.

SAUDI ARABIA-

Riyadh Air ordered 50 Trent XWB engines from Rolls-Royce to power the 25 Airbus A350-1000 aircrafts it recently purchased, Rolls-Royce said in a statement yesterday. The agreement also included Rolls-Royce’s TotalCare service covering the maintenance of the engines.

The PIF-backed carrier also boosted its recent Airbus order to 182 aircraft, Marketing and Corporate Communications VP Osama Al Nwayser told Al Arabiya Business on the sidelines of the 2025 Paris Airshow. Riyadh Air — which locked in an order for up to 50 Airbus aircraft — is set to announce its first route and ticket sale mechanism in the upcoming months, Nwayser added, without specifying an official date. The airline aims to boost Riyadh’s connectivity with global destinations and finalize the firm’s readiness to launch operations by the end of 2025.

IN OTHER NEWS- Saudi Arabia and Panama agreed to establish regulatory frameworks for air transport between the two countries at the Paris International AirShow, the General Authority for Civil Aviation (Gaca) said on X.

TURKEY-

Turkey to tap two lessors for 14 jets: Turkey's flagship airline Turkish Airlines is set to uptake 14 narrowbody jets from US-based lessor Carlyle and Irish lessor Avolon — including Boeing Max and Airbus Neo carriers — to be delivered in 2028, Chairman Ahmed Bolat told Aviation Week. The move comes despite continued delivery delays from Airbus and Boeing, with both manufacturers informing the airline “day by day” that the delays are growing further, Bolat added. The Turkish carrier is also close to bagging agreements with other lessors, he added, without disclosing further details.

A new Boeing order is in the cards: Turkish Airlines is closing in on an order with Boeing — pending a final price agreement between the two parties, including engine costs, Bolat added. The airline was hoping to lock in the order at the show, but final discussions have been postponed as Boeing officials were forced to cancel appearances at the high-profile event following the Air India crash last week.

ALGERIA-

Algeria, Textron partner up on aero-meds jet: Algeria’s state-owned energy firm Sonatrach’s aviation subsidiary Tassili Travail Aérien (TTA) is set to acquire two newbuild Cessna SkyCourier aircraft from US-based Textron Aviation, according to a statement. The aero-medical equipped courier planes will offer cargo, passenger, and medevac services all in one aircraft. The SkyCourier — which includes a twin-engine, high wing-turboprop build — has capacity for both freighter and passenger operations.

About TTA: The firm offers Sonatrach — Algeria’s national oil and gas company — passenger transportation, aero-medical evacuation, and other special mission services to support its work in Algeria’s energy sector.

AND INTERNATIONAL PLAYERS-

VietJet places 100-jet Airbus order: Vietnamese budget airline VietJet has inked an MoU with Airbus for a new order of 100 narrow A321neo aircraft with an option to order another 50 jets, according to a statement. The cost and delivery time were not disclosed.

We knew this was coming: VietJet was mulling plans to order the jets from Airbus during the Paris Airshow last week, after the airline placed an order of 20 A330neo from the European manufacturer during French President Emmanuel Macron’s visit to Vietnam.

OTHER AGREEMENTS-

#1- Bahrain tackles MRO at Paris Air Show: The Bahrain Airport Company signed an MoU with cargo airline and aircraft maintenance player Texel Air on the sidelines of the Paris Air Show to expand the capabilities of the maintenance, repair, and overhaul (MRO) at Bahrain International Airport, according to a statement.

What’s in the cards? The coming overhauls will reportedly comprise establishing a new Code C aircraft — with a wingspan between 24 - 36 meters — hangar covering 7k sqm as well as allocating 10k sqm for apron and handling areas, BNA reports. The planned area can handle up to three Code C aircraft or a quantity of business jets.

#2- Egypt’s flagship carrier EgyptAir has tapped US aviation solution provider Acron Aviation to kit out its upcoming Boeing 737 Max order, according to a statement. Acron Aviation will equip the 18 newbuilds with its traffic alert and collision avoidance systems as well as its cockpit voice recorder and flight data recorder. EgyptAir appointed Acron in the past to equip its A320 fleet.

The event will run throughout this week before wrapping up on 22 June. Here’s a rundown of our previous coverage, in case you missed it:

Moroccan flag carrier Royal Air Maroc is close to finalizing an order for about two dozen Boeing 787 Dreamliners for long-haul destinations, and up to 50 Boeing 737s and 20 Airbus A220s for short-haul routes;
Malaysian airline AirAsia is set to ink an agreement for nearly 100 regional jets at the Paris Airshow, but remains undecided between Airbus’ SE A220 and Embraer SA’s E2;
IndiGo is eyeing a large order of 30-50 ATR 72-600 planes.

Roads, ports, and maritime updates from Oman, Bahrain, and Egypt

ROADS-

#1- Oman starts construction on dual carriageway: Oman’s Transport, Communications, and Information Technology Ministry (MTCIT) has broken ground on the 857-km OMR 258 mn (USD 671 mn) Sultan Said bin Taimour Road dualization project, according to a statement. This phase of the project has a total length of 400 km — with the third, fourth, and fifth sections currently under construction. The third section of the road is 132.5 km long and starts from Wilayat of Haima to Wilayat of Maqshin, the fourth section is 135 km and starts from Maqshin to the Doka area, while the fifth section is 132.5 km and starts from Doka to Wilayat of Thumrait.

We knew this was coming: MTCIT inked three agreements in May with three Omani-Saudi consortiums to continue the development of Sultan Said bin Taimour Road. The dual carriageway is set to be Oman’s longest and will be built over 36 months.

#2- Aecom + Parsons bid on Bahrain’s SJAS highway: Engineering firms Aecom Middle East and Parsons Global Services have placed commercial bids to upgrade Bahrain’s Shaikh Jaber Al Ahmed Al Sabah (SJAS) highway, according to a statement. Aecom has submitted a bid for BHD 601k (USD 1.6 mn), while Parsons submitted a bid for BHD 549k (USD 1.4 mn) — both of which have been accepted. The project updates include a five-lane dual carriageway, revised utility corridors, and other works.

PORTS-

Oman’s Asyad Group has opened submissions for technical bids for the drydock expansion tender in Port of Duqm, Zaywa reports. The technical bids — opened for consultants — include engineering, feasibility studies, yard expansion layout, and cost management of operations at the drydock. Omani local firms such as AZD Engineering Consultancy and Engineering Systems Group submitted the technical proposals.

ICYMI- Asyad Group launched a tender in May for consultants to conduct a feasibility study for the expansion of the Asyad Drydock at Duqm port. The study will assess the berth arrangement and dock options and will cover economic feasibility, revenue generation, environmental impact, operational efficiency, and any necessary engineering works.

MANUFACTURING-

MoT, Ezz El Dekheila to develop container factory: Egypt’s Ministry of Transport and Ezz Steel subsidiary Al Ezz Dekheila are partnering up to develop Egypt’s first shipping container factory, official government sources told Al Borsa. The project — which obtained approval from global shipping organisations, including Maersk, MSC, CMG, Hapag-Lloyd, Evergreen — will look into the possibility of exporting the Egypt products globally.

WAREHOUSES-

The Oman Agriculture Development Company broke ground on an agricultural logistics center in Najd slated to wrap in 2Q 2026, according to a statement (pdf). The logistics hub boasts a 4.3k sqm area and has a yearly capacity of 50k tons. It will be used as an aggregation center for the Najd Agricultural Zone to collect produce from local farmers for cold storage, sorting, packaging, and processing.

EU forecast a mixed bag for gas and LNG in 2030

EU demand for gas is projected to fall 7% to 302 bcm in 2030, down from 326 bcm in 2023, according to a report (pdf) by energy thinktank Ember. The dip in gas demand comes in contradiction with the bloc’s aim to increase its LNG import capacity to 54% in 2030 — which could lead to an oversupply and render future infrastructure investments. Demand had already faltered by 18.3% to 326 bn bcm in 2021-2023 due to firms favoring renewable energy and electrification as well as ongoing efforts to replace EU reliance on Russian gas.

Calendar

JUNE

16-22 June (Monday-Sunday): International Paris Air Show, Paris, France.

17-19 June (Tuesday-Thursday): Terminal Operations Conference & Exhibition, Rotterdam, Netherlands.

18-19 June (Wednesday-Thursday): Eurasia Rail, Istanbul, Turkey.

18-27 June ( Wednesday-Friday): The International Maritime Organization’s Maritime Safety Committee meeting, London, UK.

19 June (Thursday): East Med Maritime Conference, Athens, Greece.

24-25 June (Tuesday-Wednesday): Middle East Rail, Dubai World Trade Center.

25-26 June (Wednesday-Thursday): Decarbonizing Shipping Forum, Hamburg, Germany.

JULY

1-3 July (Tuesday-Thursday): ASEAN Ports and Logistics, Jakarta, Indonesia.

22-24 July (Tuesday-Thursday): Intermodal Africa, Beira, Mozambique.

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.

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

25 September (Thursday): World Maritime Day 2025.

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.

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.

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

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

EVENTS WITH NO SET DATE

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.

AD Ports-operated Safaga Port’s multi-purpose terminal will become operational.

Phase 3 of APM Terminals Tangier MedPort to be complete and operational.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

1Q 2025: Phase two of Jafza Logistics Park to be completed.

2026

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

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

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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