DP World seals joint development agreement for Montreal port expansion

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What we're tracking today

TODAY: DP World secures another Canada project + Mubadala to trime its du stake

Good morning, friends. The news cycle has slightly slowed down after a busy start this week. Still, we have important ports, capital markets, and data center updates from the UAE and Saudi Arabia. But first, an update on Spain’s trade embargo on Israel…

THE BIG LOGISTICS STORY- Spain announces arms embargo, partial trade ban on Israel: Spain will ban ships and aircraft carrying arms and military-grade fuel to Israel from entering its ports and airspace, in a move aiming at raising pressure against Israel to end its genocidal war in Gaza. Madrid will also place an embargo on goods hailing from Israeli settlements and bar any individual linked to Israel's ongoing aggression from entering the country.

Spain’s not alone: Last week, the Turkish government said it shut down Israel’s access to its ports and airspace over its actions in Gaza, after demanding written pledges from shipping agents to ensure their vessels are not linked to Israel.

The story received some of ink in the int’l media: Reuters | Politico | CNN | Washington Post | The Guardian

WATCH THIS SPACE-

#1- The Iraqi gov’t is looking to set up a crude oil pipeline bound for Oman’s Ras Markaz terminal, Zawya reports, citing remarks made by Iraqi Oil Marketing Co. (Somo) Director General Ali Nazar. A tentative agreement is in place, with the pipeline's route and capacity still subject to further talks. A feasibility study will help determine whether the pipeline will pass overland or through the Arabian Gulf, Nazar reportedly said.

Baghdad’s geographical pivot: The slated pipeline is expected to supply Iraq’s future storage facility in Oman’s Ras Markaz, for which Somo inked an MoU this week. As per the MoU, Iraq will store its crude in the Ras Markaz terminal — part of Oman’s Special Economic Zone at Duqm — at an initial capacity of 10 mn barrels.

Bypassing Hormuz: An Iraq-Oman pipeline would circumvent the Strait of Hormuz, a supply bottleneck that moves about a third of the world’s crude volumes. Iran has threatened to close earlier this year amid its conflict with Israel — rattling the global oil markets and regional crude producers. The waterway is essential for Iraq’s crude exports — with some 83% of the country’s oil exports passing through it.

#2- Qatar + India may wrap up FTA next month: Qatar and India are expected to finalize the terms of reference for a freetrade agreement (FTA) by early October, Reuters reports, citing an unnamed Indian government source. Indian Trade Minister Piyush Goyal will possibly visit Qatar on 6 October to close the agreement, the source told the newswire.

IN CONTEXT- The FTW comes as India ramps up efforts to diversify its trading partners amid the trade standoff with the US, with the country reportedly eying freetrade agreements with Oman, Peru, and Chile this year, Reuters reports. India currently has an active Comprehensive Economic Partnership Agreement with the UAE, and is reportedly pursuing a wider agreement with the GCC as bloc.

Doha’s big India push: Qatar earmarked USD 10 bn for investments across India’s logistics, infrastructure, technology, manufacturing, food security, and hospitality sectors — among others, Reuters reported last February. The announcement followed a high-level sit-down between Qatar's Emir Tamim bin Hamad Al Thani and India’s premier Narendra Modi.

#3- Saudi players mull logistics hub in Jordan: Unnamed Saudi firms are exploring setting up a 50k sqm logistics hub in Jordan’s Queen Alia International Airport Freezone, Jordanian Free and Development Zones (JFDZ) Director Abdulhamid Gharaibeh told AlMamlaka TV (watch, runtime: 06:22). JFDZ met with a Saudi Chambers delegation to discuss leasing land for a regional base to support Saudi exports to Iraq, Syria, and potentially Palestine, JDFZ said in a statement.

#4- Adnoc Gas will be added to the FTSE Emerging Index on Monday, 22 September — a move market analysts say could channel more than USD 250 mn in passive inflows into the stock, according to a press release (pdf). The upgrade comes a little under four months after Adnoc Gas was included in the MSCI Emerging Markets Index.

REFRESHER- Adnoc Gas raised USD 2.5 bn in its ADX IPO in 2023 before its parent company Adnoc sold down an additional part of its interest in a USD 2.8 bn follow-on offering back in February.

MARKET WATCH-

#1- Oil prices went up this morning on the back of a lower-than-expected Opec+ production hike and concerns over tight supplies due to possible Russia sanctions, Reuters reports. Brent crude futures increased by USD 0.35 to reach USD 66.37 / bbl by 03.35 GMT, while US West Texas Intermediate (WTI) gained USD 0.32 to trade at USD 62.58 / bbl.

Over in our region: Saudi cut official selling prices for October crude deliveries to Asia, with Arab Light reduced by USD 1 per barrel to a USD 2.2 premium over the Oman/Dubai average, Reuters reported, citing a document it says it had seen. Prices for Arab Extra Light, Arab Medium, and Arab Heavy were also lowered by USD 0.9-1.0 per barrel.

Meanwhile, Goldman Sachs is expecting a slightly larger oil surplus in 2026, revising its estimate to 1.9 mn bbl/d, up from 1.7 mn bbl / d, with the change tied to faster expected OECD stock builds between late 2025 and late 2026, Reuters reports.

Price forecasts: The investment bank left its 2025 Brent and WTI price forecasts unchanged, and now sees 2026 averages at USD 56 and USD 52, Reuters said. Goldman linked Opec+’s decision to begin unwinding 1.65 mn bbl / d of cuts to still-low OECD commercial stocks, but stressed that the group is likely to retain flexibility and could pause quota increases from early 2026 if inventories begin to rise.

S&P Global is also projecting weaker crude prices by year-end, with dated Brent seen falling toward USD 55 a barrel as Opec+ continues to release additional supply, Reuters reports separately, citing co-president Dave Ernsberger of S&P Global Commodity Insights. Dated Brent under pins more than 60% of global oil trade and serves as a key benchmark for futures pricing.

Prices could dip below that level if surpluses deepen, Russian flows remain steady, and commercial stock-building slows, Ernesberger said. Under such conditions, futures markets could swing into wider contango, with prompt crude priced below forward contracts — a signal of ample supply.

ICYMI- Opec+ will raise output again next month, approving an additional 137k bbl/d from October as part of its accelerated rollback supply cuts. The cartel said that it will continue monthly hikes through September 2026, fast-tracking the return of 1.65 mn bbl/d that was previously set to stay offline until the end of 2026.

DATA POINT-

State-owned OQ Gas Networks (OQGN) expects Oman’s national gas network to grow by 9% — based on our own calculations — to 4.6k km in 2027, up from 4.2k km in December 2024 — on the back of new projects in the works, Oman Daily Observer reports. The gas provider also expects capacity to jump by 6% to 74.5 bn cubic meters (bcm), compared to its current 70.3 bcm capacity. Oman’s total gas supply is expected to reach 44 bcm in 2025.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Smart Ports and Logistics Transformation Summit on Monday, 15 September and Tuesday, 16 September in Jeddah. The summit will host over 40 global and local speakers, industry experts, and policymakers to explore smart port solutions, port operations, and logistics within Saudi Arabia.

The UAE will host the Syria Recovery and Investment Forum on Wednesday, 24 September in Abu Dhabi. The forum will host leaders in business, regional investors, policymakers, and advisory experts to develop practical solutions for Syria’s road to recovery and economic revival.

Turkey will host the Global Freight Summit on Sunday, 28 September until Wednesday, 1 October in Istanbul. The summit will host over 330 attendees and over 250 firms for policy and knowledge and strategies exchange between forwarding partners.

The UAE will host the African & Middle East & Islamic Finance Aviation 100 Awards on Monday, 29 September until Wednesday, 1 October in Dubai. The event aims to highlight and reward the most remarkable transactions closed by airlines and aviation manufacturing and leasing firms.

The UAE will host the Global Rail Transport Infrastructure Exhibition and Conference on Tuesday, 30 September until Thursday, 2 October in Abu Dhabi. The event will be hosted by Etihad Rail and is set to welcome over 200 global speakers and upwards of 20k industry attendees to share innovative solutions and develop partnerships.

Saudi Arabia will host the Saudi Maritime and Logistics Congress on Wednesday, 1 October and Thursday, 2 October in Dammam. It will host over 200 registered exhibitors and some 15k attendees from over 90 countries to discuss AI-powered fleet optimization, shifts in global trade, and intelligence-driven infrastructure.

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

DP World Canada seals development agreement for Montreal port expansion

DP World’s JV puts pen to paper for Montreal port expansion: The Montreal Port Authority (MPA) and DP World Canada signed a joint development agreement covering the design and construction of land works at the planned container terminal in Canada’s Contrecœur, according to a statement. DP World will build the terminal yard, buildings, utilities, and rail link, and operate the facility for 40 years once completed.

What’s next? MPA and DP World Canada will work on finalizing the design and the operation contract within the next months. Site prep for construction will start before the end of this year, with the project to be ready for operation by 2030.

We had an idea this was in the works: DP World was reported to be in advanced talks to take control of the USD 1.2 bn project, which is set to feature two berths, a 1.2 mn TEU container yard, and an intermodal link. The expansion is expected to raise Montreal’s handling capacity by over 50% to 2.1 mn TEUs annually.

REMEMBER- The project matters a lot to Canada: Expanding Montréal Port’s capacity is critical to Canada’s supply chain resilience amid trade volatility with the US. Without expansion, the port could quickly reach its full handling capacity if only 6% of US-bound exports are diverted elsewhere. Expanding port infrastructure in Eastern Canada would therefore help the country stay ahead of future congestion while cutting costs for regional businesses — which would otherwise have to transport their goods to be handled elsewhere.

The Contrecœur terminal will be DP World’s sixth port facility in its Canada portfolio, which also includes assets in Vancouver, Nanaimo, Prince Rupert, and Fraser Surrey. The company operates in Canada through its JV — DP World Canada — in which Canadian investment group Caisse de Dépôt et Placement du Québec holds a 45% stake, with DP World retaining the remaining shares.

Du kicks off follow-on offering as Mubadala’s Mamoura cuts stake

Mubadala trims du stake in follow-on offering: Mamoura Diversified Global Holding — Mubadala’s debt issuing arm — is floating an additional 7.6% stake in DFM-listed telco Emirates Integrated Telecommunications (du) on the Dubai bourse, according to a bourse disclosure (pdf). Some 342.1 mn shares are up for grabs by both retail and institutional investors here at home and abroad. Mamoura currently holds a 10% interest in du. The story was also picked up by Reuters.

ICYMI- News of Mubadala’s plans to pare down its stake in du first surfaced in March, when Bloomberg reported the fund was weighing a sell-down of its USD 1 bn holding. Mubadala last offloaded a 10% stake in 2019 to Emirates Investment Authority (EIA) for USD 630 mn, retaining a minority stake through Mamoura.

Proceeds + market cap: Du is guiding on a price range of AED 9-9.90 per share, which could see Mamoura raise up to AED 3.4 bn in proceeds, implying a market cap of AED 44.9 bn at listing, according to our calculations. Du will not receive any proceeds from the share sale.

What’s next: The bookbuilding process, which kicked off yesterday, ends this Friday, 12 September. The final offer price will be announced on Monday, 15 September with new shares set to start trading on 16 September, according to du’s offering webpage and prospectus (pdf). Institutional investors can place orders starting from AED 5 mn with no upper cap, while retail investors can book subscriptions with a minimum of AED 5k each.

EIA gets first dibs: As du’s largest shareholder, EIA — currently holding over 50% of the company — has a preferential right to take up to 5% of the offered shares, to be carved out of the institutional tranche. The bulk of the offering (95%) is reserved for institutions in the UAE, international markets under Regulation S, and under Rule 144A in the US — with the remaining 5% open to retail investors.

Market reax: Du’s stock closed down 3% at AED 9.60 yesterday.

IN CONTEXT- Secondary share sales are starting to eclipse new listings, with The UAE logging only two IPOs this year (Alpha Data on the ADX and Dubai Residential REIT on the DFM), while secondary sales have already pulled in nearly USD 3.8 bn through transactions from two Adnoc units, and First Abu Dhabi Bank (FAB), according to Bloomberg.

Boasting healthy financials: Du saw its net income jump 22.4% y-o-y to AED 1.4 bn in 1H 2025, while its top line rose 8% y-o-y to AED 7.8 bn. The board approved an interim dividend of AED 0.24 per share for the first half of the year, representing a 20% increase y-o-y. The firm now sees revenues growing 6-8% this year, upgrading its guidance for 2025 on the back of the strong growth in 1H.

ADVISORS- First Abu Dhabi Bank, Emirates NBD Capital, Goldman Sachs, and Abu Dhabi Commercial Bank are acting as joint lead managers, with Linklaters, Clifford Chance, White and Case, and Al Tamimi and Co providing counsel.

Receiving agents: Emirates NBD is the lead receiving bank. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Maryah Bank Community Bank, Dubai Islamic Bank, Emirates Islamic Bank, FAB, and Wio Bank have also been appointed as receiving banks.

Du is active in data centers + AI projects: Du, which raised AED 2.4 bn in a 2006 IPO, unveiled a string of tech milestones last month. The state-owned telco announced plans to build the first Arabic large language model tailored for the telecoms industry with partners including Microsoft and Khalifa University. The firm also tapped Turner and Townsend to manage its planned AED 2 bn hyperscale data center in Dubai, which will host Microsoft as an anchor tenant.

MIS snaps up SAR 228 mn to expand Naqaa data center in Riyadh

Saudi plugs funding into its data center scene: Saudi Arabia’s Authority for Data and Artificial Intelligence (Sdaia) has inked a SAR 228 mn contract with Al Moammar Information Systems Company (MIS) to expand Riyadh’s Naqaa data center, according to a Tadawul statement. The expansion is slated to address Sdaia’s escalating demand for data center capacity.

MIS has been active: MIS sealed a framework agreement in July to add up to 112 MW of capacity to Saudi Data Center Fund 1’s existing data centers. The 36-month agreement could also see MIS establish new data centers for the fund.

MIS + Saudi Data Center Fund 1 go way back: The fund was established in 2021 when MIS and Saudi Fransi Capital inked a SAR 1.2 bn agreement to develop, design, and manage data centers through the private investment fund. The agreement laid out plans for six data centers with a combined 24 MW capacity.

REMEMBER- Saudi Arabia is expected to spearhead MENA’s data center growth over the next three years, with a compound annual growth rate of 37% through 2027. This rate is forecasted to be almost double that of Dubai and Abu Dhabi, and well above the global average of 15%. The Kingdom’s drive to become an AI hub — fueled by government policies, tax incentives, and economic freezones — has attracted major firms like Microsoft, Amazon Web Services, and Equinix to invest in data center capacity.

Updates on startups, investments, logistics handling, and aviation from across the region

INVESTMENT WATCH-

Pakistani textile giant Interloop Group launched a USD 35.2 mn clothes factory in Egypt’s Qantara West Industrial Zone, marking the first Pakistani industrial investment in the Suez Canal Economic Zone (SCZone), according to an SCZone statement.

All eyes on exports. The 60 sqm facility is set to export 100% of its output to international markets. The factory is slated to produce socks for global brands, denim, and sportswear.

DATA POINT- Qantara West now hosts 39 projects worth a combined USD 1 bn, covering 2.4 mn sqm and set to generate c. 55.7k jobs, SCZone’s head Walid Gamal El Din said.

STARTUP WATCH-

Saudi construction supply chain startup Fitting raised USD 500k in a pre-seed funding round from an undisclosed strategic angel investor, it said on LinkedIn on Saturday. Fitting will allocate the fresh funds to expanding operations, building partnerships, and developing its platform in the Kingdom, Jawlah reported yesterday.

About Fitting: Founded in 2025 by Abdulaziz Al Mubayad (LinkedIn), Fitting’s platform connects wholesale suppliers of raw materials, like concrete foundations and building supplies, with retailers and real estate developers. It offers integrated customer support, instant supplier payments, flexible payment options for buyers, and order bundling.

LOGISTICS HANDLING-

DP World to manage Atlantis Dubai’s hospitality logistics: State-owned logistics giant DP World is partnering with Atlantis Dubai Resorts to manage hospitality logistics at two of its luxury resorts — Atlantis, The Palm and Atlantis The Royal, according to Dubai Media Office. DP World will manage the resorts’ daily operations and work to optimize their supply chain of nearly 60k products including perishables, dry goods, and specialty items.

AVIATION-

Qatar + China extend aviation cooperation: Qatar Airways and China Southern Airlines will increase their bilateral direct service between Doha and Beijing to three weekly flights — slated to begin on 16 October, according to a statement. The partnership falls under a 2024 MoU to expand the airlines’ existing codeshare agreement. China Southern will also extend its codeshare with Qatar Airways to 15 other destinations — including routes linking Doha to China’s Chengdu Tianfu, Chongqing, Hangzhou, and Shanghai.

China imports more US-sanctioned Russian LNG + de minimis exemptions affect US shipments

China has been importing LNG from the US-sanctioned Russian Arctic LNG 2 project into its Beihai terminal — a small southern port with little international connections — since August, people familiar with the matter told Bloomberg. The move is an attempt to bypass retaliations similar to those imposed on India by the US last month. The acquisition is done through an undisclosed small firm, making the end consumer harder to track, the sources told the outlet. A third Russian fuel shipment was reportedly scheduled to arrive in China yesterday — with more four more vessels currently en route to Beihai.

Not everyone’s on board: China National Offshore Oil Corporation and other unnamed Chinese importers and foreign traders are steering clear of Beihai — rerouting normal shipments elsewhere to avoid US sanctions, according to the news outlet.

This has been going on for a while: Chinese refiners have increased purchases of Russian crude, taking advantage of reduced-price cargoes dropped by India due to US tariff pressures. The US imposed a 50% tariff on India as punishment for its Russian crude imports late last month.

That’s not all: The EU is mulling over a new sanctions package to possibly impose sanctions on China and other countries if they purchase Russian oil and gas, Financial Times reports. A delegation from the bloc was also expected to travel to the US yesterday, to discuss sanctions on Russia with US Treasury Department officials.

Parcel shipments to the US fell by over 80% since de minimis duty exemptions were suspended last month — affecting small packages worth USD 800 or less entering the country, AP News reported on Saturday, citing the United Nations’ Universal Postal Union (UPU). The drop prompted the UPU to implement solutions to help postal operators resume normal service, including calculating and collecting duties from customers. So far, at least 30 countries have suspended their parcel shipments to the US since exemptions were scrapped.

REFRESHER- De minimis is a term referring to matters too small to concern the courts and whose impact is arguably negligible. The Latin phrase directly translates to "the law does not concern itself with trifles.”

Calendar

SEPTEMBER

4-10 September (Thursday-Wednesday): Intra-African Trade Fair, Algiers, Algeria.

7-10 September (Sunday-Wednesday): Comex Global Technology Show, Muscat, Oman.

15 September (Monday): Logistics Leaders Saudi, Riyadh, KSA.

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

23 September (Tuesday): TradeWinds Shipowners Forum Greece, Athens, Greece.

24 September (Wednesday): Syria Recovery and Investment Forum, Abu Dhabi, UAE.

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

25 September (Thursday): World Maritime Day..

28 September-1 October (Sunday-Wednesday): Global Freight Summit, Istanbul, Turkey.

29 September-1 October (Monday-Wednesday): African, Middle East, and Islamic Finance Aviation 100 Awards, Dubai, UAE.

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

OCTOBER

The International Maritime Organization 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 and Logistics Congress, Dammam, Saudi Arabia.

6-8 October (Monday-Wednesday): Maritime Cyprus Conference, Limassol, Cyprus.

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

7-9 October (Wednesday-Thursday): World Aviation Festival, Lisbon, Portugal.

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.

14-16 October (Tuesday-Thursday): AntwerpXL, Antwerp, Belgium.

15 October (Wednesday): Global Trade Review, Cairo, Egypt

28-30 October (Tuesday-Thursday): Borneo International Maritime Week, Sarawak, Malaysia.

NOVEMBER

3-6 November (Monday-Thursday): Adipec Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

4-6 November (Tuesday-Thursday): Air Cargo Forum, Abu Dhabi, UAE.

9-11 November (Sunday-Tuesday): TransMea Expo, Cairo, Egypt.

11-13 November (Tuesday-Thursday): Freightcamp, Bangkok, Thailand.

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

18 November (Tuesday): ShipTek International Conference and Awards, Al Khobar, Saudi Arabia.

24-26 November (Monday-Wednesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

DECEMBER

9-10 December (Tuesday-Wednesday): Rail Industry Summit, El Jadida, Morocco.

16-17 December (Tuesday-Wednesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

JANUARY 2026

19-23 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

27-28 January (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh, Saudi Arabia.

27-28 January (Tuesday-Wednesday): Middle East ProcureTech Summit, Dubai, UAE.

FEBRUARY 2026

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

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

25-27 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

MARCH 2026

10-12 March (Tuesday-Thursday): World Cargo Symposium, Lima, Peru.

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