dnata to invest USD 110 mn in to upgrade its airside fleet globally in 2025

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What we're tracking today

TODAY: dnata’s airside fleet push + ALJ-backed Rivian invests in supply chain optimization

Good morning, friends. It’s a brisk read this morning, with investment updates from UAE and Saudi-backed players. We also have Egypt’s and Lebanon’s latest PMI report — and it’s not exactly rosy. Let’s dive right in.

A PROGRAMMING APOLOGY: Due to technical difficulties, today’s issue is landing in your inboxes behind schedule. Please accept our sincere apologies.

HAPPENING TODAY-

#1- The Airport Show, taking place alongside the Global Airport Leaders Forum, is on its second day and will wrap up tomorrow, 8 May at Dubai World Trade Center (DWTC). The events will bring together airport and aviation industry professionals to discuss the latest trends in airport infrastructure, emerging technologies, and solutions to industry challenges.

#2- Seatrade Maritime Logistics Middle East will also wrap up tomorrow at DWTC. The event will bring together professionals in shipping, logistics, and supply chain management to discuss and debate industry challenges and the latest innovations.

WATCH THIS SPACE-

#1- Major regional airliners are readying big Boeing orders during Trump’s anticipated visit to the Gulf next week, Bloomberg reports, citing unnamed sources familiar with the transactions. Qatar Airways is set to take the lead by finalizing an order of 100 Boeing-made widebody jets that will include Boeing 787 Dreamliner aircraft along with a smaller number of 777x jets, the sources said. UAE’s Emirates and flydubai are also mulling widebody jet orders, with flydubai eyeing hundreds of 737s.

The slew of oncoming orders will also include hundreds of General Electric (GE) engines used for Boeing aircraft, the sources said. Qatar Airways and flydubai are reportedly finalizing contracts, with the latter in the market for 70 GE engines to accommodate their 787 Dreamliners.

Riyadh Air may favor Airbus: PIF-owned Riyadh Air is reportedly negotiating an order of 50 widebody jets, but Airbus is reportedly emerging as a potential supplier. “A campaign is ongoing for an ultra wide body order and a decision will be made in the coming months,” the Saudi airline told Bloomberg.

Some context: Several airline players are looking to clinch earlier delivery slots from Boeing amid China’s halt on receiving jets from the US manufacturer, which saw Chinese companies turning down at least two deliveries recently. The orders are also viewed by Gulf governments as a nod to the US the trade war, as well as personally to Trump who likes to brag about his immense dealmaking skills, Bloomberg reports.

#2- Israel bombs Yemeni air and sea ports: Israel launched a set of airstrikes targeting Yemen’s main air and sea ports in what it said was a retaliation against the Houthi missile attack on Ben-Gurion Airport in Tel Aviv on Sunday, Reuters reports. Israel first struck Yemen’s main seaport in Hodeidah on Monday evening before following with another airstrike on the country’s main international airport in Sanaa.

The airstrikes decimated critical infrastructure: Hodeidah port — alone responsible for about 80% of the country’s food imports — sustained major damage, with some 70% of the port’s docks, warehouses, and customs area destroyed, two sources told Reuters. Sanaa’s airport was also hit hard with strikes targeting the departure hall, the runway, a military base controlled by Houthis, as well as three civilian jets owned by the country’s flagship carrier Yemenia Airways, three sources told Reuters. Yemeni authorities said the airport would be shut down until further notice.

Hodeidah Port was targeted in 2024 as part of a US-led campaign against Yemen, spearheaded by former US President Joe Biden. President Donald Trump ordered continued strikes last March, vowing to maintain the onslaught until the Houthis cease their attacks on US and US-aligned ships in the Red Sea.

#3- Airbus deliveries in April down: European jet maker Airbus delivered 55 jets to its customers in April, a 22.5% m-o-m drop — based on our calculations — from the 71 jets it delivered in March, Bloomberg reports, citing people familiar with the matter. The drop comes as the planemaker continues to face engine shortages, especially for the ones used in its A320neo model.

ICYMI: Airbus delivered a total of 136 commercial units in 1Q 2025, a 4% decrease, based on our calculations, from the company’s 142 units delivered in 1Q 2024. The deliveries included 106 units of the A320 family, 14 A220s, nine A350s, and four A330s.

MARKET WATCH-

#1- Oil prices surged this morning amid optimism over China-US trade talks and a dip in US production, Reuters reports. Brent crude futures went up by USD 0.44 to USD 62.59 a barrel, while the US West Texas Intermediate (WTI) increased by USD 0.50 to reach USD 59.59 a barrel by 04.00 GMT.

Saudi Arabia hiked its crude oil selling price for buyers in Asia despite Opec+ decision to accelerate production for June, Bloomberg reports, citing a price list it said it had seen. Aramco bolstered the price of all its crude offerings — including the Arab Light grade — by USD 0.20 a barrel in June for all its largest Asian buyers, undercutting previous forecasts that pricing would be increased by USD 0.30.

Opec+ could ramp up production rates to as much as 2.2 mn bbl / d by November, sources from the group told Reuters.

MEANWHILE- Aramco cut May’s official selling prices for propane by USD 5 to USD 610 per metric ton, while butane rates dipped by USD 15 to USD 590 a ton, traders told Reuters

#2- Baltic index dips once again: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 15 points to 1,406 on Tuesday. The capesize dropped 42 points to 2,037 points, while the panamax index dipped 8 points to 1,360. The smaller supramax index grew two points to 957.

DATA POINT-

Morocco’s trade deficit increased 17% y-o-y to MAD 72 bn (USD 7.1 bn) in 1Q 2025, Morocco World News reports, citing Office des Changes data. The country’s product imports grew by 7% y-o-y to MAD 188 bn, while exports increased 1.5% y-o-y to MAD 116 bn during the same time period.

A few notable mentions: Morocco’s aviation sector exported some MAD 7 bn worth of goods and services, while the size of the agri-food sector exports remained the same at MAD 26.7 bn. Meanwhile, imports of raw materials rose by 26% y-o-y to MAD 9.4 bn.

PSA-

Hapag-Lloyd mandates pallet use in KSA: Shipping giant Hapag-Lloyd is mandating the use of pallets to load goods in containers at ports in Saudi Arabia — as requested by the Saudi Ports Authority (Mawani) — effective 1 June, according to a statement. Failure to comply with the pallet requirement will result in penalties and fines in accordance with applicable Saudi laws and regulations. Products excluded from the requirement include dry or liquid bulk materials loaded directly on their means for transport.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Smart Logistics trade fair on Monday, 12 May to Thursday, 15 May in Riyadh. The event will provide insights into the latest international and local technology, solutions, equipment providers, and sustainable workflow practices within the logistics industry in the country.

The UAE will host the Global Ports Forum on Tuesday, 13 May to Wednesday, 14 May in Dubai. The forum will cover topics such as port strategy and development, port automation, finance, and efficiency.

The UAE will host the Seamless Middle East from Tuesday, 20 May to Thursday, 22 May in Dubai. The event will cover topics including digital marketing, e-commerce, and retail and merchant payments.

Saudi Arabia will host the Saudi Warehousing & Logistics Expo from Tuesday, 27 May to Thursday, 29 May in Riyadh. The expo will host over 18k supply chain industry professionals and more than 400 exhibitors. It will also explore over 3.5k solutions.

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

dnata to roll out 800 new airside units valued at USD 110 mn in 2025

dnata to deploy 800 ground support units globally in 2025: UAE-based aviation service provider dnata will introduce 800 new ground support equipment units across 10 countries in 2025 under a USD 110 mn investment ticket, according to a statement. The largest portion of the equipment will be allocated for operations in the UAE, Brazil, Italy, USA, and Singapore.

Part of a bigger plan: The rollout aims to ramp up dnata’s sustainability and optimization plans by deploying lower-emission equipment. The company is working on phasing out diesel engines — transitioning to electric, hybrid, or hydrogen-powered alternatives. Almost 40% of the firm’s fleet is electrified in its key markets, which include the UK, Italy, Switzerland, and The Netherlands.

REFRESHER- The equipment will be supplied under multiyear global contracts worth USD 210 mn that dnata finalized in 2024 with key manufacturers.

dnata’s on the move: dnata recently earmarked USD 110 mn for infrastructure projects in Dubai, Iraq, and the Netherlands. The firm launched its EUR 20 mn seven-year airport handling operations agreement at Rome Fiumicino Airport (FCO) earlier this year. It also rolled out a new ground handling system at the US Orlando International Airport at an investment cost of USD 3 mn.

Abdul Lateef Jameel-backed Rivian invests USD 120 mn to optimize supply chain

Abdul Lateef Jameel-backed EV maker Rivian is investing USD 120 mn to build a supplier park expansion near its facility in Illinois, according to a press release issued. The planned project will boost the company’s supply chain as it ramps up production of its smaller and cheaper R2 SUV models next year. Construction is set to be completed in 2026.

The rationale: The park is expected to reduce shipping, logistics, and warehousing costs as suppliers relocate closer to the Rivian production facility. It will also support increased production of its R1 SUVs and commercial vans while creating hundreds of jobs over the next two years.

REMEMBER- Rivian has seen some challenges with deliveries: Rivian reported a 36%decline in 1Q deliveries in April after it expected to deliver between 46k-51k EVs this year, falling short of Wall Street analysts’ estimates of around 54.8K. The company also lowered its annual production forecast for 2024 last October by over 14% due to parts shortage and demand slowdown.

Egypt and Lebanon’s non-oil private sectors remain in the red in April

How Egypt and Lebanon’s non-oil private sectors fared in April: Purchasing manager indices (PMI) tracking non-energy sectors saw both Egypt and Lebanon’s non-oil private business activity remaining in contraction in April, with the latter inching closer to the 50.0 mark threshold, while Egypt fell deeper into the red.

REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.

EGYPT-

Egypt’s non-oil private sector continued to decline in April, which non-oil firms attributed to declining demand amid weaker consumer spending, according to S&P Global’s latest Purchasing Managers Index (PMI) report (pdf). Egypt’s headline figure fell 0.7 percentage points to 48.5 in April, down from 49.2 in March, marking the lowest PMI reading for the country in 2025 so far.

New orders and overall output were both down: The new orders sub-index fell to 47.24, down from 49.0 in March, with businesses reporting a drop in customer spending leading to lower intakes of new business, Reuters reports. This, in turn, led to a reduction in output, with the output subindex dipping to 47.4, down from 48.6 previously, Reuters says. Rates of contraction for both new orders and output were at their lowest level in four months.

Input purchases were also down as a result, with lower levels of activity spurring the most marked decrease in purchasing activity since last October. Meanwhile, employment saw a decline for the third consecutive month, with firms looking to limit their hiring activity and their headcount amid subdued activity.

The effect of rising fuel prices is starting to show: Input prices rose at their highest level in four months in April, with panelists indicating that this was down to an increase in fuel prices, as well as higher material and staff costs. However, this did not reflect on output prices, which remained unchanged during the month. “Although input costs rose at a much sharper pace over the month, this was mainly attributed to the roughly 15% uplift in fuel prices, rather than underlying inflationary pressures,” S&P Global Senior Economist David Owen said.

It’s not all doom and gloom for businesses: “Non-oil firms were more confident about future activity in April, with optimism ticking up to a three-month high, although the level of confidence remained subdued in comparison to the long-run trend. Firms with a positive outlook generally hoped that market conditions at home and abroad would strengthen,” the report reads.

LEBANON-

Lebanese non-energy private sector growth continued to contract — albeit at a slower pace than last month — as new orders and business activity continued to dwindle, according to Blominvest Bank’s Lebanon PMI (pdf). The nation’s headline figure came in at 49.0, up from 47.6 in March, in what is the nation’s second month in the red following its two-month streak in expansion territory.

New orders continued to slow, due to a combination of stagnant market conditions, security concerns, regional instability and weakening customer purchasing power, according to the report. This was also seen in new export orders, which also saw a slower rate of decline compared to March.

Geopolitical strife is slowing down business activity: “The debate regarding the surrendering of Hezbollah’s weapons escalated in the last couple of weeks as some of Hezbollah’s leaders stated that no one can forcefully remove their weapons. In the meantime, Israel’s breaches of the ceasefire agreement continue. This stalemate is having negative effects on business activity in the short-run, despite the progress made on the enacting of laws essential for financial restructuring,” Blom Senior Research Analyst Helmi Mrad said.

Firms’ purchasing activity was also down in April — albeit only marginally — as part of efforts by companies to “maintain lean stocks.” The figures also revealed the first m-o-m decrease in firms’ stock of items such as raw materials and intermediate goods since last November. There was also a slight decrease in employment during the month. Meanwhile, output prices were on the rise, marking the eleventh consecutive monthly increase in prices despite input price inflation softening to a three-month low.

Businesses’ confidence is starting to shake: “For the first time since November last year, private sector firms in Lebanon were, on balance, pessimistic towards the 12-month outlook for activity. This marked a considerable turnaround from January’s record level of optimism. Security concerns, political uncertainty and expectations of weak demand, particularly from overseas, were cited by panellists,” the report reads.

Adnoc Distribution delivers double-digit net income growth in 1Q

Adnoc’s retail arm Adnoc Distribution reported a 16% y-o-y rise in net income attributable to shareholders to AED 639 mn (c. USD 174 mn) in 1Q 2025, according to the company management’s financials report (pdf). The firm’s revenues declined 3.2% y-o-y to around AED 8.5 bn for the same period, which was attributed to lower crude prices compared to 1Q 2024.

Demand for the company’s aviation fuels in the Egyptian market grew by 22.9% y-o-y, partially offsetting the impact of UAE’s lower spot market trading volume on the company’s commercial sales volumes — which fell by about 2.3% y-o-y to 3.7 bn liters.

What’s next? Adnoc Distribution predicts solid growth for 2025, driven by volume growth, higher contribution from non-fuel retail, expansions in international operations, and increased efficiency measures. The company plans on adding 40-50 new stations across its network this year, including 30-40 DOCO stations in KSA, with 15 stations currently under construction.

REMEMBER- Adnoc Distribution reported a 14.3% y-o-y drop in its bottomline for 4Q 2024 to AED 580 mn on the back of corporate tax expenses and inventory movements. It saw a 7.6% y-o-y drop in its top line to AED 8.8 bn on the back of lower selling prices for the same period.

Updates on projects, supply chains, zones, ports, and freight forwarding from across the region

PROJECTS-

STAM tapped for Casablanca Airport works: Moroccan engineering and construction firm STAM was awarded a MAD 294 mn (c. USD 29 mn) construction contract for a new terminal at Mohammed V International Airport in Casablanca, Hibapress reported on Saturday. The new terminal development aims to double airport capacity by the time of its scheduled completion in 2029 as the country prepares to host the FIFA World Cup in 2030.

REMEMBER- Morocco has been reported to be working on a new airport development in Casablanca that would accommodate about 40 mn passengers. The exact scope and the investment ticket of the new project are still unclear, with some reports citing a USD 3 bn figure and others mentioning a USD 1.6 bn ticket.

PORTS-

AD Ports eyes JV for healthcare deliveries across Africa: Abu Dhabi Ports Group inked an MoU with leading regional healthcare services provider Burjeel Holdings to explore the formation of a new healthcare logistics joint venture (JV), according to a statement. The JV would accelerate the delivery of high-quality medical supplies, equipment, and pharma goods across Africa.

Leveraging AD Ports’ Africa operation: AD Ports aims to leverage its logistics handling network to facilitate inland transport, which includes a wide portfolio of terminals and logistics zones across the continent. The company’s Africa portfolio includes operations in Egypt’s Port Said and Safaga Terminal, Angola’s Lunada Terminal, Con go-Brazzav ill’s Pointe Noire, and T anzan ia’s Dar es Salaam Port.

SUPPLY CHAINS-

Oman’s Asyad Group received four bids to conduct a feasibility study evaluating Oman’s logistical supply chain readiness for the firm’s planned green hydrogen projects, Zaywa reports. The study will review ports and inland infrastructure, as well as other aspects that could impact shipping, exports, and imports of green hydrogen. The goal of the study is to provide future contractors and developers with the required information to facilitate the execution of projects. Winners are yet to be announced for the tender.

The companies being considered are:

Management consulting outfit Boston Consulting Group with an OMR 705k bid;
Multinational consulting firm Deloitte Touche ME with a bid of around OMR 744k;
Netherlands-based Haskoning International Engineering Consultancy with a bid worth some OMR 169k;
Dubai-based consultancy Alhambra Infrastructure Advisors DMCC, whose bid had the lowest cost at OMR 102k.

ZONES-

Egypt’s Abu Qir Fertilizers launches private freezone firm: Abu Qir Fertilizers’ board approved launching Khaleej AbuQir for Agri-Nutrient as a private freezone company with USD 100 mn in authorized capital and USD 5 mn in paid-in capital, according to the EGX-listed company’s latest financials (pdf). The board also approved merging North AbuQir for Agri-Nutrient with it. The board also greenlit the liquidation of Global Company for Methanol and its Derivatives and to buy back shares from shareholders.

SOUND SMART- A private freezone designation is granted to strategic projects on a case-by-case basis, usually when the project’s economic feasibility is dependent on establishing it in a specific location outside public freezones, according to a publication by the General Authority for Freezones and Investments.

FREIGHT FORWARDING-

FedEx expands UAE retail access via Emirates Post branches: FedEx has opened 68 Authorized Shipping Centers at Emirates Post locations across the UAE, allowing walk-in customers to access international shipping services without a FedEx account, according to a press release. The rollout is part of FedEx’s push to expand its retail footprint and meet growing demand for express logistics from businesses and consumers, as the UAE’s population tops 11 mn.

China’s tariff evasion takes the spotlight + HD Hyundai, Maersk partner up on decarbonization

China’s creative tariff evasion efforts in spotlight once again: Chinese suppliers and manufacturers have been attempting to exploit a loophole in the US customs system that allows them to undervalue their products and the dues levied on them in a bid to avoid President Donald Trump’s tariffs, according to offers seen by Financial Times. The loophole — known as delivery duties paid (DDP) — allows the exporting Chinese company to cover customs duties on behalf of small US companies before selling the merchandise in the US at an altered, undervalued price.

The impact? While it is too early to determine how common this practice is, more Chinese exporters are increasingly reaching out with offers to pay the duties to American businesses, some of which face the difficult choice of either going out of business due to tariffs or colluding in the practice, the FT reports. The practice is also notoriously difficult to police, which threatens Trump’s efforts to push US companies to source more products domestically, FT reports.

Not China’s first rodeo: Some Chinese exporters are reportedly disguising products as Korean-made in a bid to evade the US tariffs, which prompted an effort by South Korea’s customs to crack down on the practice last month. The Korea Customs Service has identified nearly KRW 29.5 bn (USD 21 mn) worth of goods falsely marked as being of South Korean origin, some 97% of which were US-bound.

IN OTHER RELATED NEWS- US President Donald Trump has officially closed another loophole — called the de minimus rule — that allowed Chinese firms to avoid tariffs, the New York Times reported on Friday. The rule — which exempted shipments below USD 800 — has been leveraged by some Chinese firms, which used Mexico as a transit point to break down big cargo into small packages before shipping to the US. The official move comes two months after Trump first announced the US would work on blocking the practice.

Bad news for logistics players in the US: Firms that handle large volumes of packages from China to the US, such as UPS, FedEx, and DHL, are set to be deprived of a major source of revenues, New York Times reports. UPS — whose China-US route is its most profitable — said it could lose up to 25% of its 2Q revenue this year as a result. Airlines that mainly carry cargo and smaller logistics companies will also be impacted.

HD Hyundai and Danish shipping giant Maersk are partnering up on decarbonization technology and integrated logistics services, according to a press release. The two firms have inked an MoU that will see them leverage HD Hyundai’s HiNAS and OCEANWISE navigation and route optimization systems on Maersk vessels to assess their greenhouse gas emission reductions. HD Hyundai will also leverage Maersk’s capabilities across its East-West network, airfreight services, land transportation, and warehousing infrastructure to strengthen its global supply chains.

There’s more: The companies will jointly research the viability of Solid Oxide Fuel Cell (SOFC) systems, a new technology viewed as a non-fossil fuel candidate that could help decarbonize maritime shipping. The pair will also explore collaboration on ship retrofitting, with a focus on retrofits optimizing engine efficiency, increasing cargo capacity, and installing dual-fuel propulsion systems.

Calendar

MAY

6-8 May (Tuesday-Thursday): Airport Show, Dubai, UAE.

6-7 May (Tuesday-Wednesday): Capital Market Summit, Dubai, UAE.

13-14 May (Tuesday-Wednesday): Egypt Facility Management Forum, Cairo, Egypt.

12-15 May (Monday-Thursday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

15-18 May (Thursday-Sunday): Global Logistics Conference, Dubai, UAE.

13-14 May (Tuesday-Wednesday): Global Ports Forum, Dubai, UAE.

20-22 May (Tuesday-Thursday): Seamless Middle East, Dubai, UAE.

27-29 May (Tuesday-Thursday): Saudi Warehousing & Logistics Expo, Riyadh, Saudi Arabia.

28-30 (Wednesday-Friday): International Conference on Logistics and Supply Chain Management, Casablanca, Morocco.

JUNE

1-3 June (Sunday-Tuesday): Annual General Meeting & World Air Transport Summit 2025, Delhi, India.

2-4 June (Monday-Wednesday): Propak MENA, Cairo, Egypt.

5-6 June (Thursday-Friday): Supply Chain & Logistics Innovation Summit, Amsterdam, Netherlands.

11-13 June (Wednesday-Friday): Sustainability World Summit, Frankfurt, Germany.

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

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

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

JULY

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

SEPTEMBER

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.

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

OCTOBER

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

14-15 October (Tuesday-Wednesday): Investing in Africa Conference and Expo, London, UK.

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.

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

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

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

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