DP World + Oman partners invest USD 2 bn in new trade zone

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TODAY: DP World to develop new zone in Oman + A deep dive into recent US sanctions relief in Syria

Good morning, nice people. It’s a brisk read today, with investment and fleet expansion updates from Oman and the UAE. We also do a deep dive into what the recent sanctions relief in Syria means in terms of risks and opportunities for investors. But first, an update on the emerging trend of jet-orders trade diplomacy…

THE BIG LOGISTICS STORY- VietJet places 20-jet Airbus order: Vietnamese budget airlines VietJet has placed an order for 20 jets of Airbus’ widebody A330neo model during French President Emmanuel Macron’s visit to Vietnam. The new purchase will come on top of a previous VietJet order from last year for another 20 widebody Airbus aircraft. The cost and the delivery timeline were not disclosed.

The order was part of a USD 10 bn worth of agreements that were signed during Macron’s visit to Vietnam, which also cover partnerships on maritime, rail, defense, and nuclear energy.

Jet-orders diplomacy — and competition — are heating up: Jet orders are emerging as an area of trade diplomacy, with Vietnam reportedly eying a possible mega Boeing order for its flagship carrier Vietnam Airlines and its national competitor VietJet in a bid to appease Trump during trade talks. However, Airbus remains the main supplier of Vietnam’s airlines, with 86% market share, CNBC reported, citing data from analytics firm Cirium.

The story made some headlines in the int’l press: Reuters | Euronews | France24 | CNBC

HAPPENING TODAY-

The Saudi Warehousing & Logistics Expo will kick off today and will run through Thursday, 29 May in Riyadh. The second edition of the expo will host over 18k supply chain industry professionals and more than 400 exhibitors to explore over 3.5k solutions.

HAPPENING THIS WEEK-

Morocco will host the International Conference on Logistics and Supply Chain Management from Wednesday, 28 May to Friday, 30 May in Casablanca. The conference will cover scientific research, technologies, and environmentally friendly digital solutions in the logistics, transport, and supply chain sectors.

FACT CHECK-

EGX-listed Ajwa Group clarified that it’s not party to any M&A transactions with Saudi-based logistics firm Atco, stating that earlier comments made by company Chairman Ahmed Tarek pertained to his personal interest in acquiring a stake in Atco, according to a disclosure (pdf) to the bourse.

WATCH THIS SPACE-

#1- How is Qatar Airways funding its mega Boeing order? Qatar Airways is planning to finance its latest USD 96 bn Boeing order mostly through operational cashflows, as well as returns from sale-leaseback transactions, CFO Duncan Naysmith told Bloomberg. The airline is also mulling a bond issuance, and is in the process of seeking a credit rating to potentially pave the way for the move, Naysmith added.

ICYMI- Qatar Airways inked a USD 96 bn agreement during US President Donald Trump’s tour of Gulf states earlier this month to acquire 160 jets from Boeing, with an option to add 50 more aircraft — marking the largest aircraft order in the US manufacturer’s history.

Hope remains for an Airbus order: Qatar Airways might still order widebody aircraft from Airbus, despite its gigantic Boeing order, the carrier’s CEO Badr Al-Meer told Bloomberg last week. The airline has also cancelled an order for a 737 Max jet after alleging the aircraft had defective paint, Bloomberg reported.

#2- A US Industrial Zone in Egypt? President Abdel Fattah El Sisi expressed the country’s willingness to facilitate the establishment of a US Industrial Zone in the Suez Canal Economic Zone, as part of the country’s aspirations to become a major industrial hub for US industries. This came during a meeting that brought together cabinet members and President and CEO of the US Chamber of Commerce Suzanne Clark and Apache’s CEO John Christmann.

The context: The news comes one day after the US ambassador Herro Mustafa Garg and Egyptian Prime Minister Moustafa Madbouly said both countries are close to finalizing a bilateral customs agreement during the forum, attended by EnterpriseAM. Egypt’s May 11 announcement to exempt American-made automobiles from the country’s mandatory production standards helped get the agreement over the line, Madbouly said. US dairy producers will also now be exempt from having to acquire halal certifications upon import — a long-standing request from the American dairy industry.

#3- Iran is aiming to mobilize IRR 50 tn (c. USD 1.2 bn) in investments for a new development phase of the Tehran-Aprin rail terminal and dry port, Mehr News reported, citing Deputy for Investment and Economic Affairs Nourollah Beiranvand. Contracts with the private sector are in the works to secure new locomotives as well as partnerships with private operators for freight train services. No timeline has been disclosed so far.

REFRESHER- Iran and China relaunched the container train service at Tehran’s Aprin Dry Port in July 2024 in a bid to streamline trade between both countries. The full route connects China, Turkmenistan, and Kazakhstan.

Background:- The project — which spans a total area of 450 hectares — includes a 55-hectare rail terminal that was inaugurated in March 2023 with IRR 10 tn of investments. It is situated 20 km away from Tehran at the center of East-West and North-South International railways corridors, boasting a strategic location for goods distribution and exports in the country. ]

MARKET WATCH-

Oil prices dropped this morning amid chatter of a possible Opec+ production hike ahead of its meeting this week, Reuters reports. Brent crude futures dipped by USD 0.24 to reach USD 64.50 a barrel, while the US West Texas Intermediate (WTI) fell by USD 0.29 to hit USD 61.24 a barrel by 05.07 GMT.

DATA POINT-

Saudi Arabia’s national non-oil exports — excluding re-exports — rose 9% y-o-y in 1Q 2025 to SAR 54.1 bn, according to the latest data from the General Authority for Statistics (Gastat) (pdf). Total non-oil exports — including re-exports — were up 13.4% y-o-y to SAR 285.8 bn compared to 1Q 2024, with re-exports jumping 23.7% y-o-y to SAR 26.6 bn during the same period.

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CIRCLE YOUR CALENDAR-

Egypt will host the Propak MENA from Monday, 2 June to Wednesday, 4 June in Cairo. The event will feature solutions, talks and workshops for F&B and consumer goods manufacturers to source global packaging, processing and logistic solutions.

Turkey will host the Eurasia Rail from Wednesday, 18 June to Thursday, 19 June in Istanbul. The event will host 7.7k visitors interested in Turkey’s railway sector or are railway technology buyers, and will feature engineering, products and services from both private and public sectors.

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.

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

DP World, Omani partners launch new economic zone at Omani border

A new UAE-Oman trade zone: Emirati developer DP World and Oman’s Public Authority for Special Economic Zones have signed a 50-year agreement to develop and operate the first phase of the Al Rawdah Special Economic Zone in Oman’s Mahadha, Omani state news agency Oman News Agency (ONA) reports. The project’s first phase is expected to see about USD 2 bn in investments, ONA reports, citing DP World’s CEO and Chairman Sultan Ahmed bin Sulayem.

Who is doing what? Emirati-Omani joint venture (JV) Mahadha Development Company will carry out the development of the 14 sq km first phase of the project — expandable to 25 sq km in a second phase. DP World is a majority partner in the JV, which will lead on developing the infrastructure, designing the initial layout, and preparing the masterplan and environmental studies, Emirati public news agency Wam reports.

Sectors in focus: The zone’s first phase will focus on manufacturing, logistics, warehouses, pharma and medical supplies, mining, food processing, plastics, and security devices.

Incentives abound: Businesses in the zone will be exempted from import and exports customs, and will be allowed to transfer any returns abroad without constraint. Foreign ownership with up to 100% will also be permitted, and businesses will benefit from streamlined licensing processes.

Location matters: The zone’s location in the Buraimi governorate puts it between Oman’s Sohar port and the UAE’s Jebel Ali port, facilitating logistical flows between the Gulf, Africa and Asia. The zone is also targeting increasing re-export activity to international markets by integrating industrial processes within the two countries.

DP World has been on a global roll: The UAE port operation also inked a USD 800 mn agreement to develop Syria’s Tartus Port and an MoU worth USD 750 mn to expand the Port of Caucedo in the Dominican Republic earlier this month.

Asyad adds two VLCCs to fleet for OMR 206 mn

Asyad shores up fleet: Oman’s Asyad Shipping has purchased two Very Large Crude Carriers (VLCCs) from China-based Landbridge Universal Limited Company for USD 206 mn, according to a disclosure (pdf) to the Muscat Stock Exchange (MSX). The shipping giant is in talks with Landbridge Universal to determine a date for final delivery. The move is part of Asyad Shipping’s five-year investment strategy, which has earmarked investments of up to OMR 1.04 bn for fleet expansion, according to the disclosure.

Ongoing efforts: The company has already invested USD 1 bn in fleet expansion, with new vessels planned to enter service in 2026 and 2027, including two LNG carriers, four crude oil tankers, and two oil derivative tankers. The move dovetails into part of a larger plan to invest between OMR 2.3-OMR 2.7 bn, Al Khaduri said. Last month, the company purchased two VLCCs for USD 205 mn from Chinese maritime transportation firm Huwell Group.

Fleet growth ambitions: Asyad Shipping plans on expanding its fleet — which stood at 85 vessels as of April 2025 — to venture into the transportation of ethylene and ammonia, CCO Imad Al Khadhuri told Oman News Agency on Saturday. The firm previously announced a plan

IN OTHER FLEET UPDATES FROM UAE-

Adnoc LTS adds new LNG carrier: Adnoc Logistics and Services has added Al Rahba to its fleet, the second of six liquefied natural gas (LNG) carriers ordered from China’s Jiangnan Shipyard, according to a disclosure (pdf). With a 175k-cubic-meter capacity, the vessel is equipped with dual-fuel engines that aim to slash methane emissions by up to 50% compared to older vessels.

ICYMI- Adnoc received the first of six LNG carriers last November and the remaining vessels are set to be delivered throughout 2025 and 2026. The contract was agreed upon in 2022 and is part of a broader expansion strategy that has seen Adnoc place an order worth USD 1.9 bn for 11 dual-fuel low-carbon carriers in July 2024 from Jiangnan Shipyard.

Not the first order Jiangnan’s been tapped for: AW Shipping — a JV between Adnoc L&S and Wanhua Chemical Group — placed a USD 250 mn order for very large ammonia carriers from China’s Jiangnan Shipyard back in October 2024. The carriers — considered among the largest in the world — have an individual carrying capacity of 93k meters of ammonia and are slated for delivery between 2027 and 2028. Adnoc also placed an order worth USD 1.9 bn for 11 dual-fuel low-carbon carriers in July 2024 from Jiangnan Shipyard, with deliveries slated to start later this year.

It’s been on the cards: This is all part of a Adnoc L&S’ expansion spree revealed ahead of the company’s USD 769 mn IPO in 2023.

What recent developments on sanctions relief in Syria mean for investors

The US recently issued far-reaching, immediate sanctions relief for Syria as part of a wider global push to remove sanctions on the country, according to a statement by the US Treasury Department published on Saturday. The move — which includes a waiver for the Caesar Syria Civilian Protection Act — is expected to unlock new avenues for investors after over 14 years of civil war and sanctions turned the Syrian market into a dead zone for investment and development.

EnterpriseAM Logistics sat down with Mark Nakhla (LinkedIn), Chief Research Officer of Kharon — a US-based data and technology firm that advises businesses on a range of sanctions and compliance risks — to get a sense of what this push means for businesses mulling an entry into the Syrian market, the landscape in terms of risks and benefits, and what precautions they can take to protect their commercial interests.

The tides are turning: Syria is emerging as a “frontier for investment” after suffering from a decade of sanctions, Nakhla told EnterpriseAM. The lifting of restraints over the weekend on all sectors in the country represents “a significant and monumental shift” which gives non-US entities more capacity to operate, Nakhla said, pointing also to the pause on secondary sanctions under the Caesar Act.

Widening reach: What’s new about this round of sanctions relief is how far-reaching they are. Unlike previous, narrow measures that focused on humanitarian logistics, the new measures are opening avenues for commercial activities including port operations, oil and gas, and development and manufacturing. Other sectors previously out of reach, such as ins. and logistics, are now also in the mix, Nakhla added.

Some red lines remain: Both the US and the EU have left in place some restrictions on Assad regime-sanctioned persons and entities. Businesses are still required to avoid dealings with Syrian companies in which a sanctioned entity owns 50% or more, according to US rules, and EU sanctions on 300 affiliates to the Assad regime are still in place, Nakhla said.

First-mover benefits and risks: The easing of sanctions presents investors with high-reward, first-mover benefits in various sectors, and this window is “measured in weeks and months, not years,” Nakhla told us. This means that investors need to move quickly to secure contracts in the country, but it also comes with risk when the trajectory is uncertain.

Recent port concessions are a case in point: French shipping giant CMA CGM and UAE’s DP World moved quickly to secure port concessions for the country’s top ports earlier this month. CMA CGM will invest USD 260 mn in Latakia Port as part of a 30-year concession, whereas DP World has committed USD 800 mn for Tartus port and logistics zone developments. Both agreements were finalized before the US formalized sanctions relief.

One possibility that investors should be worried about is the risk of “snapback,” where sanctions could be reimposed, Nakhla said. While the EU’s relief package earlier this year did not include snapback clauses, the volatile political context in Syria makes the trajectory for long-lasting sanctions relief uncertain for the time being. The current administration in

Another main challenge for businesses lies in navigating the residual sanctions — largely those still imposed on the deeply entrenched economic networks associated with the Assad regime. “We're talking about a jurisdiction that's been under control by the Assad government for almost half a century with a very robust and significant economic and patronage network,” Nakhla explained, “nothing went in, nothing went out without it touching that network for decades.”

What does that mean for investors? Businesses will need to practice an exceptionally high degree of due diligence. “Understanding and managing your customer, your customer’s customer, doing that deep dive to really separate risk from opportunities [is] very critical here," Nakhla said.

Rapid changes occurring on the risk landscape — whether compliance or political risks — also mean investors need to embrace a “live risk radar,” Nakhla added. This means that businesses should be on the lookout for day-to-day data on the latest “sanctions risks, security conditions, and political signals” to enable them to make quick and well-informed decisions.

Updates on trade, shipping, and last-mile from Egypt, Oman, and UAE

TRADE-

#1-The first of three additional regasification units made port in Egypt, with Energos Power, owned by the US-based New Fortress Energy, arriving at Alexandria Port’s Tahya Misr terminal yesterday, according to a statement from the Oil Ministry. The unit will regasify imported LNG for injection into the national gas grid during the upcoming high-demand season in summer.

Next step: The unit will head to Damietta Port for prep work before being deployed at Ain Sokhna. The unit will go online by 22 June, with plans to inject some 600 mn cf/d of regasified LNG into the grid, three sources told Asharq Business.

Boosting capacity: Energos Power will soon join the already docked 750 mcf/d-Hoegh Galleon in Ain Sokhna, and will be followed soon by the 750 mcf/d-Energos Eskimo, currently in Jordan’s Aqaba, and a floating storage regasification unit from Turkish state-owned energy firm BOTAS.

REMEMBER- The Egyptian government is preparing for a surge in demand over the summer months, which has led the country to target importing 155-160 shipments of LNG this year to close the gap between demand and supply.

#2- Oman rolls out anti-dumping tax on porcelain, ceramic: Oman's Commerce, Industry, and Investment Promotion Ministry will impose anti-dumping levies on ceramic and porcelain tile imports originating or exported from China and India, the Oman News Agency reported last week. The decision is effective 29 May 2025.

SHIPPING + MARITIME -

Evergreen links Dammam to nine key ports: The Saudi Port Authority (Mawani) added Evergreen’s shipping service ARPG to Dammam’s King Abdulaziz Port, connecting it to nine ports, according to a statement from Mawani. The new service, which boasts a capacity of 9.5k TEUs, will connect King Abdulaziz Port to the ports of Klang in Malaysia, Laem Chabang in Thailand, Vung Tau in Vietnam, Kaohsiung in Taiwan, Yantian, Ningbo, and Shanghai in China, Umm Qasr in Iraq, and Jebel Ali in the UAE.

ICYMI- Mawani added AP Line’s shipping service Al Pakistan Gulf to King Abdulaziz Port last month, connecting it to the ports of Karachi in Pakistan and Jebel Ali in the UAE, with a capacity of 2.9k TEUs. Mawani also inked a contract with Dammam-based Sultan Logistics Company last month to develop a SAR 200 mn, 197k sqm logistics zone in the port.

LAST-MILE-

#1- Lalamove sets up shop in Dubai: Hong Kong-based delivery service provider Lalamove has started operating in Dubai, its 14th global market, as part of a push to expand across the Middle East, Europe, and Africa, according to a press release. The delivery service will cover Dubai, Sharjah, and Abu Dhabi, with COO Paul Loo identifying the UAE as a trading and logistics hub.

About Lalamove: Founded in 2013, Lalamove provides logistics solutions for SMEs, connecting users with drivers and vehicles suited for small to large shipments, including 1-ton and 3-ton trucks. The company provides real-time tracking and aims to reduce costs for smaller businesses.

#2- Emirates Post, Aramex launch retail logistics partnership: Emirates Post, the postal arm of 7X and the UAE's official postal service, has partnered with UAE-based logistics provider Aramex to offer its domestic and international shipping services through select Emirates Post branches, according to a post on LinkedIn picked up by Gulf News. The pilot phase includes support for specialized shipments, including hazardous goods, as well as parcel pickups and returns. The rollout will expand nationwide, with no timeline disclosed.

The bigger picture: This comes amid an Emirates Post push to transform its branches into multi-service logistics hubs and follows a similar tie-up with FedEx, which earlier this month opened 68 authorized shipping centers at Emirates Post branches to provide walk-in international shipping services.

EU port congestion to persist until mid-July, spurred on by tariff pause

EU port overcrowding worsens amid trade threats: Congestion at key ports across the EU — triggered by labor shortages and low water levels in the Rhine river — may disrupt supply chains across the US and Asia and drive up shipping expenses, Bloomberg reports, citing a report by research and consulting outfit Drewry. Waiting times have been exacerbated by a surge in shipping orders driven by US President Donald Trump’s pause on a 145% tariff on Chinese goods — and temporarily trimming them down to 30%.

The end in sight? Shipping giant Hapag-Lloyd has noted signs of the congestion relenting, but said it will take some six to eight weeks before the issue can be remedied, CEO Rolf Habben Jansen reportedly said during a webinar last week.

In numbers: Germany’s Bremerhaven has seen a 77% surge in waiting periods between late March and mid-May, while delays rose 37% in Antwerp and 49% in Hamburg in the same period, the report found. Rotterdam and the UK’s Felixstowe have also recorded increased portside delays.

US-EU trade blows: Donald Trump announced plans this week to slap a 50% tariff on all goods imported from the EU into the US starting 9 July. This is a postponement from an earlier announcement that tariffs would be coming on 1 June, after European Commission President Ursula von der Leyen requested an extension.

Calendar

MAY

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 Jun (Sunday): Flynas IPO retail subscription period ends.

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.

17-18 June (Tuesday-Wednesday): Abu Dhabi Infrastructure Summit, Abu Dhabi Energy Centre.

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

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

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-Friday): 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.

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.

7-8 October (Tuesday-Wednesday): Global EV & Mobility Technology (GEMTECH) Forum, Riyadh.

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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