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DP World-backed consortium breaks ground on Mozambique port project

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What we're tracking today

TODAY: DP World Mozambique port expansion kicks off

Good morning, friends. We have a raft of updates this morning with news flowing in across the region, cutting across several sectors. But first, Trump’s strong-arm tactics have grabbed him a W in his tit-for-tat with Colombia…

THE BIG LOGISTICS STORY- Colombia avoids trade tussle with the US: The US and Colombia have avoided a trade war after Colombia agreed to accept military planes transporting deported migrants. US President Donald Trump had threatened to impose a 25% tariff on Colombian goods after the country refused to allow the US aircraft to land, and threatened to raise the tariffs to 50% after one week. In response, Colombian President Gustavo Petro announced a retaliatory 25% tariff on US goods. The US received around 41% of Colombia’s seaborne crude exports lastyear.

A ripple effect: Despite the quick turn-around, global markets were shaken by the potential tariffs, leaving a “broad-based negative sentiment in the market,” SEB chief commodities analyst Bjarne Schieldrop told Reuters. “Even if the sanctions didn’t take place, this still creates nervousness that Trump will bully whoever needs to be bullied to get his way.”

Taking a step back: Global policymakers should not react in haste to the Trump administration's announcements and wait to see what policies are actually enacted, World Bank President Ajay Banga told Reuters. “My only advice to everyone is don’t be in too much of a hurry to respond or judge,” Banga said.

The story grabbed a lot on ink in the int’l press: Reuters | AP News | Bloomberg | Financial Times | The Washington Post | The New York Times | CNN | BBC | CBS News

HAPPENING THIS WEEK-

The World Cargo Summit kicked off yesterday and will run through tomorrow in Ostend, Belgium. The event focuses on air cargo economics, strategy, and market trends, with a specific focus on how the industry will tackle disruptions and how firms can adapt their business models. The event features dozens of industry experts, executives, and leadership as speakers, including from our region, such as the CEO of Egyptair Cargo Ehab AlTahtawy, and Oman Air’s Head of Cargo Mike Duggan.

The ShipTek International Conference will open its doors tomorrow and wrap on Thursday in Dubai. The two-day conference will gather industry experts, including managing director at Hapag-Lloyd Carolin Stumm, CEO Adani Ports Nicolai Friis, VP International Maritime Industries Justin Taylor, CEO Tristra Tim Coffin, and others to discuss new tech and developments in the maritime industry.

WATCH THIS SPACE-

#1- AD Ports is in discussions with the Georgian government to expand its investments in the country’s logistics and transportation sectors, according to a statement from Georgia’s Economy Minister, Levan Davitashvili.

REMEMBER- AD Ports finalized the acquisition of a 60% stake in Georgia’s Tbilisi Dry Port from Inveco in August after inking an agreement back in March. The new custom-bonded and rail-connected international hub serves as a key link in the Middle Corridor, connecting Western Asia's manufacturing hubs to Eastern Europe.

#2- Asyad Shipping eyes bns in investments as it preps for IPO: Oman’s Asyad Group’s wholly-owned subsidiary Asyad Shipping (ASC) intends to invest between USD 2.3 bn to USD 2.7 bn as part of its medium-term diversification and fleet expansion strategies, according to its recently published intention-to-float document (pdf).

ICYMI- Asyad Group issued its intention to float at least a 20% stake in ASC on the Muscat Stock Exchange last week, with Asyad’s LNG transport unit reportedly seeking a valuation of USD 1 bn.

Seizing the moment: The firm’s robust market outlook is driven by positive global market dynamics across its segments, with stable growth in the global demand and supply for crude oil, LNG, and refined fossil products, as well as Oman’s expanding capacity in crude and gas production and refining. Future growth in the need to adapt and move low carbon fuels — including LNG and green hydrogen — are also two areas in which the company is well positioned to seize on, given Oman’s investments in becoming a hub for green hydrogen transportation, which includes green ammonia, green methanol, and other green hydrogen derivatives, Oman Observer wrote.

MARKET WATCH-

#1- Oil prices at almost three-week low despite uptick: Oil prices are at almost a three-week low — despite an uptick this morning — on the back of weak economic data from China and warming weather driving demand down, Reuters reports. Brent crude futures were up USD 0.42 to USD 77.50 a barrel by GMT 04.30, while the more active US West Texas Intermediate (WTI) futures increased USD 0.34 to USD 73.51 a barrel, still its lowest since 2 January.

#2- Baltic index maintains downward trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 17 points to 761 on Monday, its lowest since February 2023. The capesize index dropped 25 points to 958, while the panamax index dipped 315 points to 759 — its lowest since May 2020. The smaller supramax index eased by 10 points to 629.

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CIRCLE YOUR CALENDAR-

The UAE will host the Middle East Bunkering Convention from Monday, 3 February to Wednesday, 5 February in Dubai. The event will focus on the marine fuels sector to address the future of the industry in light of geopolitical issues, environmental regulation, and the future of artificial intelligence and digitalization.

Saudi Arabia will host the Airport Expansion Conference from Tuesday, 4 February to Wednesday, 5 February in Riyadh. The two-day conference will feature over 30 speakers to discuss challenges faced by Saudi Airports and highlight Saudi Arabia’s Vision 2030 with a clear focus on expansion, tech, and strategic partnerships.

The UAE will host the Middle East Breakbulk Conference from Monday, 10 February to Tuesday, 11 February in Dubai. The event gathers giant manufacturers, EPCs, and service providers to discuss the latest solutions in breakbulk and heavy-lift logistics across the Middle East and Africa. The two-day event features an artificial intelligence (AI) seminar, a heavy lift workshop, a chartering workshop, and a women in breakbulk panel.

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

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Ports

DP World-backed MDPC breaks ground on first phase of Maputo port expansion project

DP World-backed MDPC kicks off Maputo port expansion: Mozambique’s Maputo Port Development Company (MDPC) — a consortium including DP World, South Africa’s Grindrod, and Mozambique’s state-owned rail operator Caminhos de Ferro de Mocambique — has broken ground on the first phase of Maputo port’s expansion project, Reuters reports, citing an unnamed senior port official. The first phase of the project is estimated to cost USD 164 mn and will be completed in the next two years.

The first phase is part of a USD 2 bn expansion project by MDPC, Reuters writes. The project seeks to establish the port as a key regional shipping hub. With logistics challenges in neighboring South Africa causing delays, the port is already seeing higher traffic as commodity exporters look for alternative routes.

What we know: The first phase will more than double the container terminal's capacity, increasing it from the current 255k TEUs per year to 530k TEUs. The infrastructure upgrades will involve extending the current quay by 400 meters, reaching a total length of 650 meters, and deepening the berth draft to 16 meters to accommodate larger vessels, MPDC’s CEO Osorio Lucas told Reuters.

REFRESHER- The agreement to expand the port received the greenlight from Mozambique’s cabinet in January 2024. The agreement extended the consortium’s concession by 25 years and included a further commitment of USD 1.1 bn investment into the port until 2033, when the original concession was due to end.

IN OTHER DP WORLD NEWS-

DP World reportedly interested in India’s Thoothukudi outer harbor project: UAE logistics giant DP World is reportedly one of several global players that have shown interest in the INR 7,056 crore (c. USD 817.23 mn) outer harbor project in India’s Thoothukudi Port in Tamil Nadu State, Indian news outlet Maritime Gateway reports. The project is planned over two phases, with the first to be operational by 2028.

A re-tender: The project had its initial tender canceled due to low response, prompting authorities to announce a re-tender in December with expanded eligibility criteria to attract larger participation, according to a post on X and logistics and supply chain company Glottis Limited. Bids for the project’s tender open on 11 February 2025.

The project’s details: The port project involves dredging, reclamation, and breakwater construction under a design, build, finance, operate, and transfer (DBFOT) model to develop two container terminals with a combined 4 mn TEU capacity. Each container terminal will feature a quay length of 1000 meters. Phase one — involving developing berths 1 and 2 — will cost INR 4,494 crore (c. USD 520 mn) — whereas Phase two will include developing berths 3 and 4, with required investments of INR 2,561 crore (c. USD 296 mn).

Other interested parties: Logistic players including Adani Ports, Vendata Group, JM Baxiget, DBGT, and Belgian off-shore constructor Jan De Nul have also expressed interest in the project, Glottis Limited said.

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Trade

Adnoc Gas + Japan’s Jera ink USD 450 mn LNG supply agreement

Adnoc + Jera ink LNG supply agremeent: The Abu Dhabi National Oil Company (Adnoc) Gas has inked an AED 1.65 bn (USD 450 mn) three-year LNG supply agreement with Japanese power generating outfit Jera, according to a press release. The volume and start date of the agreement have not been disclosed.

Not their first LNG agreement: The two companies signed a multi-year liquified natural gas (LNG) supply agreement valued at USD 500 mn to USD 700 mn back in October 2023, according to a statement published at the time.

Sourced from Adnoc’s Das Island LNG facility: The LNG will be supplied from Adnoc Gas’ Das Island liquefaction facility, UAE’s only LNG export plant. The facility — which operates at an annual production capacity of 6 mn metric tonnes of LNG — has supplied over 3.5k LNG cargoes worldwide since it started operations in 1977, including to Japanese energy firms for 48 years, according to the statement. Japan’s Mitsui also has a 10% stake in the facility.

Jera has other LNG suppliers in the region: Oman LNG inked a sales and purchase agreement with Jera back in April for the supply of 800k metric tons of LNG annually over a period of 10 years starting in 2025.

Adnoc Gas is on LNG roll: The company has recently secured long-term LNG supply agreements in 2024, including a 10-year supply and purchase agreement with Indian state-owned natural gas company Gail, a 15-year sales and purchase agreement with Sefe Marketing & Trading Singapore for 1 mn tonnes of LNG, and long-term LNG supply agreements to deliver 1.6 mn tonnes per year from the new plant to Shell and Mitsui. It also inked another r 15-year agreement with German energy giant Energie Baden-Württemberg to supply it with 0.6 mn tonnes of LNG per year.

ICYMI- In April 2024, Adnoc Gas revealed its plan to invest USD 13 bn over five years in both domestic and international markets to help the firm expand its processing capacity and reach more customers.

Tags:

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Aviation

DAE enters asset sales agreement with Ireland’s K2 Aviation

DAE inks asset sales agreement with K2 Aviation: UAE’s aviation services provider Dubai Aerospace Enterprise (DAE) has inked a definitive agreement with Dublin-based mid-to end-of-life aviation investor K2 Aviation to sell seven Airbus and Boeing aircraft on a leasing contract to six undisclosed airlines, according to a statement. DAE forecasts all aircrafts’ sale to close in 1H of this year. The investment ticket has not been disclosed.

More details: Under the agreement, K2 Aviation will also be responsible for the servicing of the assets in question, while DAE will oversee lease and credit management and provide aircraft remarketing, disposition, and asset management services to K2 Aviation.

About K2 Aviation: The Dublin-based firm — founded in 2024 by CFO Michael Howard (LinkedIn) — operates as a commercial plane lessor that invests in and manages portfolios of aircraft and engines. The company’s fleet is mainly from the families of Airbus 330, Airbus 320ceo, and Boeing 737 Next Generation models, according to the company’s website.

ICYMI- DAE has been boosting its Irish ties: The firm inked a definitive agreement earlier this month to acquire 100% of Irish aircraft leasing company Nordic Aviation Capital (NAC) for an undisclosed amount. The acquisition brought DAE’s total fleet size to about 750 aircraft worth USD 22 bn, leased to 170 airlines in 70 countries.

… and expanding its fleet: The company inked a USD 500 mn agreement in October to acquire 10 narrow-body aircraft, which the company then said would be leased to four airlines across four countries. DAE also inked USD 1.1 bn agreements back in August to acquire 23 aircraft from several entities, with the announcement stating that planes would be leased to 13 airlines in nine different countries.

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Trade

Acwa Power + Italy’s Snam work on shoring up green hydrogen supply chains

Saudi’s Acwa Power signed an MoU with Italian natural gas operator Snam to explore collaboration on a green hydrogen supply chain from Saudi Arabia to Europe, according to a statement. The two sides will be “evaluating the development of an ammonia import terminal in Italy to facilitate the delivery of green hydrogen through the SoutH2 Corridor.”

ICYMI- Member countries in the SoutH2 Corridor initiative, including Tunisia and Algeria, inkeda joint declaration of intent for the project last week.

Both Italy and Acwa may be eyeing Tunisia for green hydrogen: Acwa is exploring the development of a USD 6.2 bn renewables-powered hydrogen project, with a capacity of 200k tons, which will be exported to Europe via the SoutH2 Corridor. Italy’s Enel Green Power is reportedly working on a pilot project for green hydrogen production in Tunisia, Italian news agency Aki reported last week, citing Director of Enel’s Green Energy and Thermal Generation division Salvatore Bernabé.

ALSO- Saudi and Italy’s state export credit agency Sace signed an agreement that would see the latter invest USD 6.6 bn, to facilitate bilateral trade and investment, according to a statement.

Strong ties: Italy ranked as Saudi’s second-largest European trade partner in 2023 and tenth overall, with USD 10.8 bn in trade volumes, Asharq Alawsat reports. Saudi imports from Italy stood at USD 5.78 bn, while exports to the country were valued at USD 4.92 bn — including USD 737 mn in non-oil exports, the outlet said.

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Aviation

KSA’s Matarat taps Spain’s Sener to update several airport masterplans

Saudi Arabia's state-owned Matarat Holding has contracted Spain’s Sener to update the masterplans for five airports across the kingdom, according to a press release. The airports are located in Yanbu, Tabuk, Al Baha, Al Jouf, and Al Gurayat.

What will happen: The Spanish firm will conduct a detailed study of each airport’s traffic patterns, tourism potential, facility requirements, capacity, and environmental impact. The study will also involve predicting future demand and assessing resource investment needs. These revised masterplans will equip Matarat with advanced tools for strategic planning and decision-making to help the company support the Kingdom’s national aviation strategy and attract global investments.

Why is this important? The updated plans will give Matarat data for strategic planning and decision-making in a bid to support Saudi’s national aviation strategy and reel in investment to further establish the kingdom as a regional and international aviation hub, the statement notes

Sener’s Saudi portfolio: The company has contributed to several major Saudi projects, including the Riyadh Metro project, enhancements to the Red Sea Gate Terminal, and technical studies and consultancy services for the Royal Commission for Jubail and Yanbu, according to the statement. In 2023, it was part of a consortium awarded a contract to manage the USD 7 Riyadh-Jeddah land bridge megaproject.

About Sener: Founded in 1956, Sener has a construction portfolio that involves work at more than 190 airports and associated facilities globally, according to the statement. The company was involved in developing New Mexico City International Airport’s masterplan and contributed to the construction project of the Lublin airport in Poland.

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Also on Our Radar

Zones and startups updates from Jordan, Syria and Egypt

ZONES-

#1- The Syrian-Jordanian Freezone resumed operations yesterday, Petra reported following a meeting of the General Assembly of the Syrian-Jordanian Freezone company. The officials discussed extending customs crossing hours to operate around the clock as well as activating the freetrade agreement between Jordan and Syria.

REMEMBER- Jordan resumed agriculture trade with Syria earlier this month following a 13-year hiatus due to civil unrest. The resumption should give a boost to Jordanian exports, providing a land route to European markets via Turkey.

ICYMI: Jordanian trucks reentered Syria in December 2024 via the Jaber-Nassib border crossing and the Jordanian-Syrian Joint Freezone after halting operations on 6 December due to internal safety concerns.

#2- Taqa Arabia to provide utilities to Safaga industrial zone: Egypt’s Taqa Arabia has entered into a cooperation agreement with the Golden Triangle Economic Zone Authority (GTEZ) to supply essential utilities to investors in the 9.1 industrial zone in Safaga City, which is part of Egypt's Golden Triangle, according to a disclosure.

Details: The agreement aims to implement necessary infrastructure in the industrial zone, according to the news outlet. Electricity networks will be provided using both conventional and renewable energy sources, as well as natural gas distribution networks via the national grid or compressed natural gas solutions, water for industrial and agriculture use, and facilities for distributing petroleum products and waste management.

LEGISLATION WATCH-

Saudi petroleum and petrochemical operations now require a license: Saudi Arabia’s new Petroleum and Petrochemical Law requires companies to obtain a license for all operations in the sector, Saudi Gazette reports. The new law — approved by the council of ministers earlier this month — replaces the old Petroleum Products Trade Law, aiming to attract investments, support industry localization, and prevent illegal practices like smuggling and false reporting.

Saudi’s Ministry of Energy may also deny or revoke export licenses for violators, according to the provisions of the law, and unlicensed exporters of petroleum product could face up to five years in prison and a fine up to SAR 30 mn or twice the value of the seized products at global prices, as well as confiscation of illegally traded materials.

There’s more: The new law stipulates sales and purchases of petroleum products must be priced at the global prices. Establishing petrochemical facilities will also need prior approval from the Ministry of Energy, with inspectors holding expanded powers to monitor facilities, investigate violations, and seize items suspected of breaching regulations.

STARTUP WATCH-

Egypt’s Fincart startup closes funding round: Egyptian logistics and e-commerce platform Fincart has secured pre-seed funding in a round led by regional VC player Plus VC and with participation from Plug and Play, Orbit Startups, Jedar Capital, and other regional and international investors, according to a press release (pdf). The new funds — the size of which has not been disclosed — will be used to improve the startup’s technology platform, grow its courier network, and support the “fast-growing” e-commerce market in Africa and the Middle East.

ICYMI- Regional expansion ahead: The startup announced plans back in November to expand into the Gulf and enter North and West Africa by 2025.

About Fincart: Co-founded in 2023 by Nihal Ali (LinkedIn) and Masry, Fincart helps connect small businesses with local and international shipping companies, helping them scale up operations. The platform provides multi-courier shipping options, last-mile delivery services, and access to working capital.

OTHER STORIES WORTH KNOWING THIS MORNING-

  • Oman issues tender for road development: Oman’s Transport, Communications, and Information Technology Ministry has issued a tender to develop Burj Al Sahwa roundabout and improve traffic flow. (Statement)
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Around the World

Tesla taking the EU to court over tariffs

Tesla has joined BMW and Chinese automakers in filing a lawsuit at the Court of Justice of the European Union (CJEU) over EU duties on EV imports from China, the Financial Times reports. The Chinese firms and BMW registered their complaints at the General Court — the lower of two CJEU chambers — last week. Proceedings at the General Court last an average of 18 months and can be appealed.

The tariffs: The EU imposed extra tariffs in October, ranging from 7.8% for Tesla to 35.3% for China’s SAIC. BMW was hit with a 20.7% increase due to its electric Mini Cooper and Mini Aceman models being made in China, Bloomberg reports.

What will the challenges address? The challenges will probably involve disputes over subsidy assessments, determining the harm to EU industry, and the Commission's uncommon choice to initiate a case independently rather than in response to an industry complaint, Reuters reported last week.

REFRESHER- The EU increased tariffs on Chinese-built EVs by up to 45.3% following the conclusion of its anti-subsidy probe back in October. The tariffs are intended to counter what the EU says are unfair Chinese subsidies for EV makers, including preferential financing and grants at below-market prices. Chinese EV brands make up some 8% of the EU market, up from less than 1% in 2019, and could reach 15% by 2025. Chinese EVs cost, on average, 20% less than EU-made models.

OTHER STORIES WORTH KNOWING THIS MORNING-

  • China bans livestock imports from Africa, Asia, Europe: China, the world’s largest meat importer, banned imports of processed and unprocessed livestock products, including sheep, goat, poultry, and even-toed ungulates from countries in Africa, Asia, and Europe, due to outbreaks of livestock diseases. (Reuters)

JANUARY 2025

27-29 January (Monday-Wednesday): World Cargo Summit, Ostend, Belgium.

28-29 January (Tuesday-Wednesday): Green Shipping Summit, Rotterdam, The Netherlands.

29-30 January (Wednesday-Thursday): ShipTek International Conference, Dubai, UAE.

FEBRUARY

3-5 February (Monday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

4-5 February (Tuesday-Wednesday): Seatrade Maritime Qatar, Doha, Qatar.

4-5 February (Tuesday-Wednesday): Airport Expansion Conference, Riyadh, Saudi Arabia.

10-11 February (Monday-Tuesday): Middle East Breakbulk conference, Dubai, UAE.

10-11 February (Monday-Tuesday): MRO Middle East, Dubai, UAE.

10-12 February (Monday-Wednesday): Sustainable Aviation Futures MENA, Abu Dhabi, UAE.

10-12 February (Monday-Wednesday): Japan Kyoto Trade Exhibition, Dubai, UAE.

10-13 February (Monday-Thursday): Future Warehouses & Logistics, Dubai, UAE.

18-19 February (Tuesday-Wednesday): Argus Green Marina Fuels Asia Conference, Singapore.

18-19 February (Tuesday-Wednesday): Middle East Procuretech Summit, Dubai, UAE.

19-21 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

20-22 February (Thursday-Saturday): Dubai Freight Camp, Dubai, UAE.

24 February (Monday): AD Ports Group Capital Markets Day, Abu Dhabi, UAE.

25 February - 1 March (Tuesday-Saturday): WCA Worldwide Conference, Dubai, UAE.

MARCH

No events announced at the moment.

APRIL

2-4 April (Wednesday-Friday): Global Supply Chain and Logistics Summit, Amsterdam, The Netherlands.

3-4 April (Thursday-Friday): Africa Supply Chain Optimization, Johannesburg, South Africa

10 April (Thursday): Gulf Ship Finance Forum, Dubai, UAE.

14 April (Monday): CargoIS Forum, Dubai, UAE.

15-17 April (Tuesday-Thursday): Transport Middle East 2025, Aqaba, Jordan.

15-17 April (Tuesday-Thursday): IATA World Cargo Symposium, Dubai, UAE.

16-17 April: Global Ports Forum, Dubai, UAE.

MAY

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

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

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.

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

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

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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