DP World to invest USD 800 mn in Tartus Port under 30-year concession

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What we're tracking today

TODAY: DP World lands Tartus concession + Polaris Parks to invest in Sadat City

Good morning, friends. It is a brisk read this morning, with important investment updates from zones and ports across the region. We also have the latest on the region’s M&A moves and Egypt's SAF ambitions. Let’s dive right in.

WATCH THIS SPACE-

#1- Egypt’s government is gearing up to set up a nationwide used oil collection system to feed the country’s first sustainable aviation fuel (SAF) plant, a senior government source told EnterpriseAM. Under the decision that will soon be announced in the Official Gazette, the waste oil will be collected from 24 governorates and fed into a network of 30 collection and processing plants before sending everything off for conversion into SAF, the source added. The project is part of the plan to meet international aviation goals by introducing green jet fuel by 2030.

The collection network will feed a planned USD 530 mn SAF production complex in Alexandria, which has been set up by the Sustainable Aviation Fuel Production Company, which was set up by the Oil Ministry in November of last year. Five ministries are jointly overseeing the project and developing incentives and investment options, according to our source. Construction and financing arrangements are currently underway through several international entities.

The launch of locally made SAF is now pencilled in for 2028, with a targeted 160k liters a year under the project’s first phase, according to our source. The government had initially been targeting a 2025 launch for the 100 sq km plant as recently as last year.

Driving demand: EgyptAir’s SAF targets will also drive demand, with the national flag carrier already aiming to have SAF represent a 2% share in its fuel mix this year, which can currently only be achieved through imports. Fast forward to 2030, and EgyptAir is looking to increase that further to 6%. The plant could also serve European markets, as the EU rolls out its ReFuelEU’s aggressive targets, aiming for SAF to represent a 6% of the aviation fuel mix by 2030, 20% by 2025, 42% by 2045, and 70% by 2050.

#2- GulfNav wraps bond sale to fund Brooge M&A play: Maritime shipping company Gulf Navigation (GulfNav) closed its AED 500 mn mandatory convertible bond (MCB) issuance, which was oversubscribed by shareholders, it said in a filing (pdf) to the Dubai bourse. This comes nearly one month after subscriptions kicked off. The fresh paper, which will be converted into equity by Wednesday, 29 October, will help fund the banknote portion of GulfNav’s AED 3.2 bn acquisition of Nasdaq-listed Brooge Energy’s Fujairah-based oil storage businesses. The notes were priced at AED 1.1 each.

The oversubscription signals solid shareholder backing for GulfNav’s pivot beyond maritime transport and into energy infrastructure. This is part of a broader cash-and-share swap that will eventually give Brooge shareholders a 63% stake in GulfNav, while handing the shipping company exposure to sectors that are more insulated from freight market cycles — namely oil storage and midstream logistics.

What’s next? The firm plans to settle the rest of the transaction through the issuance of 359 mn new shares at a discounted AED 1.25 a piece, and AED 2.3 bn worth of convertible bonds to Brooge converted at the same rate, both subject to one-year lockups, according to the bourse filing. No second tranche will be opened, given as the full amount was raised in the first round, with final allocations due Tuesday, 22 July. GulfNav’s shares closed up 1.5% at AED 6.04 yesterday.

ADVISORS- Gulf Navigation appointed Truss Bridge Advisory (DIFC) as its exclusive financial advisor, and Pinsent Masons as its lead counsel. Ibrahim & Partners Law Firm provided advice on the transaction structuring and related regulatory aspects. Emirates NBD was the lead receiving bank.

#3- Emirates Road gets AED 750 mn expansion: The Energy and Infrastructure Ministry has earmarked AED 750 mn to widen Emirates Road and improve traffic between the emirates, Wam reports. Construction is set to begin this September and will take two years to complete. It aims to reduce travel time on routes between Ras Al Khaimah, Umm Al Quwain, Sharjah, and Dubai by 45%.

The details: The work will start by expanding a 25 km section between Sharjah's Al Badee Interchange and Umm Al Quwain to increase capacity to 9k vehicles per hour, up 65% from current levels. The road’s Interchange No. 7 is also set to be upgraded with six directional bridges — totaling 12.6 km.

MARKET WATCH-

#1- Oil prices fell this morning after the US decision to extend the deadline for the floated Russia tariff eased out supply concerns, Reuters reports. Brent crude futures dipped by USD 0.29 to USD 68.92 a barrel by 03.42 GMT, while US West Texas Intermediate (WTI) futures dropped USD 0.35 to trade at USD 66.63 a barrel.

#2- Baltic index on an upwards trajectory: once again: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 7.2% to 1,783 points on Monday, driven by gains across all segments. The capesize climbed 2.5% to 2,367 points, while the panamax index increased 4.8% to 1,949 points. The smaller supramax index inched up 2.1% to 1,244 points.

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CIRCLE YOUR CALENDAR-

Mozambique will host Intermodal Africa on Tuesday, 22 July and run till Thursday, 24 July in Beira. The forum will host over 300 senior government officials, industry leaders, academics, senior executives, and harbor masters in the ports, shipping, and logistics sector. Attendees and speakers will be coming from countries across the Middle East, Africa, and Europe.

Oman will host Transport Middle East on Monday, 1 September and run till Wednesday, 3 September in Salalah. The conference will host 35 international speakers and over 50 exhibitors from the maritime sector to discuss global transportation and logistics.

Saudi Arabia will host the Sustainable Maritime Industry Conference on 3-4 September at the Ritz-Carlton Hotel in Jeddah. The event is set to gather over 60 speakers and more than 3k participants to discuss maritime decarbonization, digital transformation, regulatory frameworks, capacity building, and sustainable practices.

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

DP World to invest in Tartus Port under 30-year agreement

DP World has inked a 30-year concession agreement with Syria's General Authority for Land and Sea Ports (GALSP) to develop and operate Tartus Port, according to a statement. Under the agreement, DP World will invest USD 800 mn to redevelop the port under a build-operate-transfer (BOT) model and turn it into a trade node linking Europe, the Middle East, and North Africa, the statement reads.

Where will the investments go? DP World will invest in adding enhanced cargo-handling equipment, advanced infrastructure, and integrated digital systems to boost efficiency across the port’s container and general cargo terminals. The port operator will also explore setting up industrial zones, freezones, dry ports, and freight transit stations in strategic areas across Syria.

Background: The concession agreement formalizes the port operator’s earlier commitment from May to invest USD 800 mn in the port’s infrastructure. The agreement is the biggest investment agreement yet for the new Syrian government, after it signed a USD 260 mn new berth agreement for Latakia port with French shipping giant CMA CGM also in May.

About the port: Tartus is Syria’s second largest port, with an annual handling capacity of about 20k containers and about 4 mn tons of cargo, Al-Monitor reported. The port boasts 24 berths with depths ranging from 4 to 14.5 m, according to data from the UN-backed coordination mechanism Logistics Cluster.

Belle of the ball: Situated on Syria’s Mediterranean coast, Tartus serve as a maritime gateway to trade routes across Europe, the Levant, and North Africa and influencing existing routes through the Bosporus and Suez. The project will increase the port’s capacity to handle general cargo, containers, breakbulk, and RoRo handling, strengthening Syria’s trade objectives.

The ex is out of the picture: To facilitate a new agreement with DP World, Syria’s newly established government reportedly terminated its contract with Russia's STG Stroytransgaz earlier this year after the Russian construction firm failed to fulfil its terms, including infrastructure developments and investments in the port. The Russian firm was tasked with overhauling the port for at least USD 500 mn in 2019, according to the International Institute for Strategic Studies.

Polaris Parks to develop an EGP 2.5 bn industrial zone in Sadat City

Industrial real estate developer Polaris Parks is set to establish a new EGP 2.5 bn (USD 50 mn) industrial zone in Sadat City, General Manager Bassel Shoirah told EnterpriseAM. The development is expected to attract around USD 1 bn in investments and will be delivered over three years.

The details: The 1.1 mn sqm zone in Sadat City — to be allocated by the General Authority for Industrial Development — will offer some ready-built units, a warehousing and logistics hub, and facility management and operational services. The zone will cater to a mix of industries including, engineering, medical, and food processing. In line with sustainability goals, part of the project’s electricity needs will be supplied via solar power.

No surprise here: The project is part of Polaris Parks’ broader strategy to develop 3.5 mn sqm across two sites — one in Sadat City and another in the New Administrative Capital. Shoirah previously told us that the company expects these new zones to collectively attract over USD 5 bn in investments in the local market to set up five industrial complexes in Obour, Tenth of Ramadan, Badr City, New Cairo, and Sadat City, Shoirah told Al Arabiya last year.

Polaris Parks is no stranger to Sadat City, with prior experience developing there, Shoirah said, adding that the developer sees this project as an expansion.

We have an idea who could be interested: The developer has recently seen increased interest from Chinese and Turkish manufacturers seeking to de-risk their supply chains by establishing a presence in Egypt, especially as geopolitical tensions and US tariffs push companies to relocate from China, Shoirah previously told us. Polaris is currently working with the government to direct investment to priority sectors, particularly those that contribute to import substitution.

SOUNDS FAMILIAR? Polaris Parks was set on committing EGP 10.5 bn (c. USD 217 mn) to develop two major industrial parks in Egypt’s New Administrative Capital and New October City back in September 2024.

Wizz Air Abu Dhabi to shut down operations by September

Wizz Air exits Abu Dhabi: Low-budget airline Wizz Air has shuttered its Abu Dhabi operations, citing unpalatable costs amid engine issues, unfavorable weather conditions, and geopolitical turmoil, CEO Jozsef Varadi told Bloomberg. The decision to phase out Abu Dhabi flights will take effect on 1 September 2025.

What happened? Wizz Air fell under pressure to review its cost structure after its stock plummeted — as much as 29% — following an earnings report last month that revealed unusually high expenses. In June, the budget airline said it anticipates slightly increased costs for fiscal year 2026. This rise was attributed to grounded jets, the retirement of older aircraft, and a slower-than-expected improvement in airport costs.

Too hot to fly: Wizz Air has faced protracted maintenance problems with Pratt & Whitney engines, which wear out easily or run into crippling issues in hot environments, therefore grounding the airline’s aircraft. “The more we operate in Abu Dhabi, the more engines we have to ground” thanks to hot weather conditions, Varadi is quoted as saying. The company will redeploy aircraft in more suitable markets in order to raise profitability.

Costs associated with suspended operations during temporary airspace closures amid heightened geopolitical tensions did not help with rising costs, Varadi said. This is in addition to an inability to use its Abu Dhabi base to break into India and Pakistan due to a lack of regulatory approvals from Abu Dhabi, he added.

Abu Dhabi made up about 5% of the airline’s operations, while Central and Eastern Europe accounts for roughly two thirds.

What now? The airline will shift its focus to the Central and Eastern European markets, where Wizz Air has under-invested on the back of its prolonged pre-occupation with Abu Dhabi. It is currently “very carefully reviewing” any further services for its long-range A321 jets in the region, and is amending an order of 47 jets, he said. Staff based in Abu Dhabi will also be offered roles in Europe.

There were signs this was coming: Wizz Air Abu Dhabi announced last week the discontinuation of flights to Sarajevo, Varna, Tirana, Kutaisi, and Belgrade due in July and August, which followed the termination of flights to Sofia and Cluj. The move followed a 20% y-o-y surge in seat capacity and passenger numbers in 2024, offering over 4.4 mn seats and flying over 3.5 mn passengers.

Updates on rail, trade and zones from across the region

RAIL-

#3- Jordan-based Arab Center for Engineering Studies (Aces) has been awarded a specialized pile testing contract for the UAE-Oman Railway link, according to a statement published last week. The route — the region’s first cross-border rail network — reportedly spans 238 km, connecting Oman’s Sohar Port to Abu Dhabi, at an investment ticket of USD 2.5 bn, Trade Arabia reports.

On the railway link: The project is spearheaded by Hafeet Rail, a JV comprising Etihad Rail, Oman Rail, and Mubadala Investment. It aims to connect five ports, more than 15 integrated freight facilities, and upwards of 12 passenger stations and cities across Oman and the UAE, according to its website.

Part of a larger GCC link: The Oman-UAE link is part of a GCC rail project extending to Kuwait, which has recently advanced its portion of the project by awarding the Turkish engineering and consulting firm Proyapi the design contract for the first phase of an 111 km railway linking Kuwait City to the Saudi border. The GCC rail initiative is projected to cost about USD 200 bn.

TRADE-

Oman, Turkey partner on energy trade: Oman has inked an MoU with Turkey to partner up on projects across several logistics sectors, Times of Oman reports. The sectors include oil and gas, LNG trade, renewable energy, green hydrogen, and alternative fuel trade. The agreement will also see the two cooperate on implementing regulatory policies — and expanding knowledge-sharing — in a bid to improve energy efficiency and adopt innovative tech for the storage, production, and supply of green hydrogen.

ZONES-

Hong Kong-based manufacturer Crystal Martin Group is planning to build a ready-made garments and textile factory in Egypt, according to a statement from the General Authority for Investment and Freezones. A timeline or investment value of the planned 1.5 sq km factory was not given. The new plant would be established in an undisclosed freezone, with production to be earmarked for export to the European Union and US market.

EU prepares tariff countermeasures, plans to increase engagements with Japan + Canada

EU to partner with tariff-affected countries: The European Union (EU) is reportedly preparing to cooperate with several countries hit by US President Donald Trump’s tariffs, including Japan and Canada, Bloomberg reports, citing an unnamed source. The EU will also bolster trade agreements with India and other unnamed countries in the Asia-Pacific region. The move comes as the bloc faces US trade talk hold-ups over car and agriculture tariff rates.

The EU will also prepare countermeasures against the US in case no trade agreement is secured, the news outlet reports, quoting EU Commission chief Ursula von der Leyen. Up to EUR 21 bn (USD 24.5 bn) in US goods could be hit in these retaliatory measures.

The sticking points: While the EU is hoping for tariffs no higher than 10% on agricultural exports, it is now reportedly focused on car tariffs instead, as trade talks between the EU and the US continue into the rest of the week, according to the news report.

REMEMBER- The European Commission said it would extend its tariff suspension on the US until early August to allow for a negotiated solution to Trump’s latest protectionist threats. Trump is pushing a 30% blanket tariff on EU imports starting 1 August unless better offers are made, while the EU would “likely retaliate to a 30% across-the-board tariff in a gradual way starting on the day new US tariffs are implemented,” the news outlet says, citing Goldman Sachs economists.

Calendar

JULY

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

AUGUST

25-29 August (Monday-Friday): Africa Procurement & Supply Chain Leaders’ Conference (APSC), Dubai, UAE

SEPTEMBER

1-3 September (Monday-Wednesday): Transport Middle East 2025, Salalah, Oman.

3-4 September (Wednesday-Thursday): Sustainable Maritime Industry Conference, Jeddah, Saudi Arabia.

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

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

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

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

25 September (Thursday): World Maritime Day 2025.

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

OCTOBER

The International Maritime Organization (IMO) is set to formally adopt the Net-zero Framework this month, stipulating new fuel standards for ships and a global pricing mechanism for emissions.

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

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

13-17 October (Monday-Friday): The Marine Environment Protection Committee’s second extraordinary session, London, UK.

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

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

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

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

DECEMBER

1-3 December (Monday-Wednesday): INTRALOGISTICS Powered by CeMAT, Riyadh, KSA

15-16 December (Monday-Tuesday): Supply Chain And Logistics Conference 2025, Riyadh, KSA.

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.

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

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

12-13 May (Tuesday-Wednesday): IntraLogistex, Abu Dhabi, UAE

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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