Dubai South’s aerospace hub expands line maintenance + Qatar Airways to launch specialized MRO zone

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What we're tracking today

TODAY: MRO updates from UAE, Qatar + shipowners rally for the Net-Zero push

Good morning, folks. We’re heading into the weekend with a balanced read, led by MRO projects updates from Qatar and the UAE. We also have the latest on freezones regulations from UAE, as well as updates on divisions within the maritime industry over the imminent vote on global decarbonization rules. But first, a ceasefire agreement update that can hopefully put an end to Israel’s genocide in Gaza…

THE BIG STORY TODAY- Israel and Hamas have reached an agreement on the first phase of US President Donald Trump’s peace plan, paving the way for a ceasefire and for hostages and prisoners to be exchanged within 72 hours. The breakthrough in talks — which took place over three days in Sharm El Sheikh in Egypt, and was brokered by the US and Qatar — should also see Israel withdraw its troops to an “agreed upon area,” and the resumption of humanitarian aid to Gaza.

Hamas confirmed the agreement had taken place, and thanked the brokers, including Trump, in a massive shift in tone, while Israel is set to convene its government today to ratify the agreement. Trump could also be coming to the region to celebrate the breakthrough, sources said.

The caveats are still there: Earlier ceasefires have broken down due to Israel’s ongoing attacks in Gaza, so Hamas will be looking for clearer timelines and assurances of Israel’s withdrawal. The question of Hamas’ disarmament — which was one key point in Trump’s plan — and the interim government of technocrats, chaired by Trump, are still contentious, and will likely need more time to iron out.

REMEMBER- Maritime and air movements have been repeatedly disrupted in our region since Israel began its aggression almost two years ago, largely due to repeated Israeli aggression across the region and the Houthis’ attacks in the Red Sea. The Houthis, which have previously halted their attacks during ceasefires, have pledged to continue their attacks on ships and operators with perceived Israeli links as long as the genocide in Gaza is still ongoing.

HAPPENING TODAY-

The Quantum Maritime Conference 2025 is on its last day in Abu Dhabi, the UAE. The conference will discuss how quantum tech can be leveraged in the maritime sector to reduce vessel turnaround times, improve fuel efficiency, and enhance overall navigation.

WATCH THIS SPACE-

#1- Riyadh Air to hit the skies this month: Saudi’s highly-anticipated PIF-backed airline Riyadh Air is on track to launch its first regular flight effective 26 October — landing first in London Heathrow Airport, CEO Tony Douglas told the Financial Times (FT). The carrier will debut tickets to airline and PIF staff members’ families — using the airline's technical spare jets for the first flight as it awaits the delivery of its first fully commissioned Boeing aircraft. Once the new aircraft is integrated into the London route, a second route to Dubai is slated to launch about a month later, Douglas said.

REMEMBER- Despite global supply chain snags, the airline “remains confident that [its] launch will stay on schedule, with aircraft deliveries and operations progressing as planned,” the airline told EnterpriseAM last month. The airline expects to uptake one new plane from Boeing each month over the next year, with some 182 aircraft on order from Boeing and Airbus.

Big plans ahead: The airline voiced plans back in June to serve 100 cities by 2030, aiming to add a new destination every two months once operational. “Our connectivity today isn’t good enough,” Douglas told the news outlet. “If you look at Tokyo, Seoul, Shanghai, Sydney, those global cities aren’t directly connected” to Saudi Arabia. “That’s simply unacceptable.” The new route order hasn’t been published yet, but the carrier will need to wait until it uptakes Airbus A350 — due for delivery in 2027 — to launch its longest flights.

#2- Iraq seeks US greenlight for Turkmen gas: Iraq is waiting for the US to greenlight its gas import agreement with Turkmenistan, which has been held up since last October due to US objections, Iraq’s Electricity Ministry spokesman Ahmed Mousa told Shafaq News. The agreement’s execution “remains pending because of US concerns related to the transit mechanism through Iran,” Mousa said, emphasizing that the gas is for domestic use and does not violate international sanctions.

About the agreement: The tripartite import agreement — inked a year ago — would see Iraq uptake 20 mn cbm of Turkmen gas per day through a swap arrangement with Iran, overseen by Switzerland-based Loxstone Energy.

ICYMI- The US abrogated a waiver in March that allowed Iraq to import Iranian electricity, undermining Iraq’s power output, which relies on electricity and natural gas imports. Iraq produces 27 GW — which sometimes drops to 17 GW — while they need 40 GW to keep the lights on throughout the day.

#3- MMC Port Holdings defers IPO to 2026: Malaysia’s largest port operator MMC Port Holdings has reportedly postponed its IPO until next year, opting to wait until full-year earnings results are published to maximize its valuation, Bloomberg reports, citing unnamed sources. The port operator expects its FY 2025 earnings to show robust results due to tariff hikes on most of the ports run by MMC Port Holdings, the sources added.

Malaysia’s biggest IPO in 13 years: MMC Port Holdings received regulatory approval last month for what is set to be Malaysia's largest IPO in over a decade — previously expected to take place by as early as 2H 2025. The listing will float some 30% of the firm’s issued capital — roughly 4.3 bn shares — most of which are earmarked for Malaysian and foreign institutional investors.

MARKET WATCH-

#1- Oil prices dipped this morning amid hopes for reduced geopolitical tensions in our region on the back of the ceasefire agreement in Gaza, Reuters reports. Brent crude futures fell by USD 0.34 to USD 65.91 / bbl as of 04.13 GMT, while US West Texas Intermediate (WTI) decreased USD 0.38 to trade at USD 62.17 / bbl.

Over in our region, Adnoc raised the November selling price of its flagship Murban crude to USD 70.22 / bbl, up from October’s price of USD 70.10 / bbl, Reuters reports. The company also disclosed the prices of its other crude grades per bbl, including Umm Lulu (USD 70.22), Das (USD 69.67), and Upper Zakum (USD 69.92), the outlet reported elsewhere.

#2- Baltic index continues to rise: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — gained 16 points to 1,963 on Wednesday. The capesize climbed 39 points to 2,924, while the panamax index increased 30 points to 1,695. The smaller supramax index eased 14 points to 1,41.

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CIRCLE YOUR CALENDAR-

The UK will host the Marine Environment Protection Committee Extraordinary Session from Tuesday, 14 October until Friday, 17 October at the International Maritime Organization’s (IMO) HQ in London. The session is set to see the intergovernmental body formally adopt its Net-Zero Framework — rolling out new fuel standards for ships and a global pricing mechanism for emissions.

Belgium will host the AntwerpXL on Tuesday, 14 October until Thursday, 16 October in Antwerp. The expo will host 3.8k project cargo, break bulk, RoRo, heavy lift, and industry experts to expand collaborations. It will co-locate with the Transport and Logistics conference and exhibition.

Iraq will host the Iraq International Transportation & Airports & Logistics Expo & Conference on Wednesday, 15 October until Friday, 17 October in Baghdad. The expo — Iraq’s first platform focused exclusively on transport and logistics services — is expected to feature over 100 exhibitors, including ports, aviation, road, and rail players as well as logistics tech firms.

Morocco will host the International Forum and Expo on Mobility, Transport, and Logistics (Logiterre) on Thursday, 16 October until Saturday, 18 October in Casablanca. Logiterre will host main operators within the industry from West and Central Africa.

The UAE will host the Adipec Maritime and Logistics Exhibition and Conference on Monday, 3 November until Thursday, 6 November in Abu Dhabi. The conference will host over 250k attendees working in government entities, finance, and tech.

The UAE will host the Air Cargo Forum on Tuesday, 4 November until Thursday, 6 November in Abu Dhabi. The forum — hosted by Etihad Cargo — will bring together air freight industry leaders, policymakers, innovators, and stakeholders to discuss industry solutions, tech, strategies, and collaborative initiatives for global air logistics.

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

MBRAH’s maintenance unit expansion underway, to launch by 2026

Dubai South’s aerospace hub expands services facilities: The Mohammed bin Rashid Aerospace Hub (MBRAH) in Dubai South is expanding its line maintenance units (LMUs) infrastructure, bringing up the total number of units to 11 and expanding the covered area to 76k sq ft, according to a press release. Construction on the expansion has already begun and is slated for completion in 3Q 2026.

Why? The new units will enable LMUs to provide services like storage and maintenance warehouses, tooling, engineering support, and a pilot rest area. LMUs give airside operators — including Fixed Base Operators (FBOs) — direct access to their clients and plenty of space for workshops and storage, according to Dubai South’s website.

SOUND SMART- Line maintenance is used to refer to routine maintenance checks performed between flights on an aircraft while operational.” It usually involves rapid checks and fixes, and stands in contrast to base maintenance, which is more comprehensive and time-intensive.

REMEMBER- Aviation players are increasingly investing in MRO as supply chain disruptions have resulted in a proliferation of unforeseen durability and reliability issues, inflation in labor and material costs, according to consulting firm Oliver Wyman. MRO is now predicted to grow by an annual rate of 2.7% through 2035, to USD 156 bn.

Latest aerospace moves: MBRAH launched the first phase of its Aerospace Supply Chain zone in April, featuring separate facilities tailored to support engine shops, solution workshops, and landing gear MRO services. Dubai South is also set to serve as a hub for aviation services, with a USD 190 mn MRO facility under construction for Flydubai.

!_! SubHed_! IN OTHER AVIATION NEWS-

MRO center in the works at QFZA’s Ras Bufontas: Qatar Freezones Authority (QFZA) and Qatar Airways have signed an agreement to establish a maintenance, repair, and overhaul (MRO) complex in Ras Bufontas Freezone, the Qatar News Agency reports. Under the agreement, the pair would also work on establishing a duty-exempt corridor linking the zone to Hamad International Airport and Hamad Port, and Qatar Airways will work on attracting air cargo operators into Qatar’s freezones.

Shipowner coalition comes together in support of IMO Net-Zero Framework, ahead of next week's vote

Shipowners coalition supports IMO amid growing division over decarbonization rules: Leading shipowner associations — representing a quarter of the world’s tonnage — came together to back the industry’s Net-Zero Framework (NZF), which is set for a vote at the International Maritime Organization (IMO) next week, according to a statement seen by Lloyd’s List. Backers include shipping associations from Japan, Belgium, the Netherlands, Singapore, the UK, Norway, and Denmark.

The pitch: The group endorsed the NZF, describing the global regulation as the industry’s best chance at decarbonization, adding that the new policy would “strengthen the business case for cutting emissions and investing in sustainable energy, fuels and technology.” The group warned that the alternative to a unified global policy would be a “complicated and inefficient patchwork of national and regional regulatory frameworks.”

The endorsement comes in response to growing public opposition to the NZF from a separate group of shipowners, which formally expressed its opposition last month. The opposition bloc said they believe the NZF will not ensure effective decarbonization or “a level-playing field,” arguing that it fails to “incentivise investment in known and available transition technologies” and favors “unproven tech and fuels.” Opponents include Saudi’s Bahri, Greece’s Angelicoussis Group and GasLog, US-based Capital Group, South Korea’s Hanwha Shipping, and Norway-based Stolt Tankers.

REMEMBER- Our region is heavily featured in the bloc of member states opposing the IMO rules, with Iraq being the latest to join a list of eight other IMO members back in August — including Bahrain, Kuwait, Iran, Saudi Arabia, the UAE, Yemen, Venezuela, and the US — in opposing the framework ahead of the October vote.

On the cards: The framework will introduce a credit trading scheme for low-emission vessels, as well as two escalating emissions targets requiring gradual cuts to ships’ fuel carbon intensity. In turn, progressive levies will be imposed on those who fail to meet either of the targets, with the proceeds funneled into the IMO’s Net-Zero Fund to support investments in decarbonization technologies and initiatives. If ratified, these changes will take effect by 2027 and will apply to ships over 5k gross tons, covering 85% of international shipping emissions.

New permit allows Dubai freezone firms to expand to the mainland

Dubai Department of Economy and Tourism (DET) has launched a freezone mainland operating permit, allowing freezone companies to directly conduct business in mainland Dubai under a unified regulatory framework, according to Dubai Media Office. DET expects more than 10k freezone firms to apply for the license — in turn leading to a 15-20% increase in cross-jurisdiction activity within the first year of the initiative.

How it works: Freezone firms holding a Dubai Unified License can apply for the permit via the Invest in Dubai platform. The permit costs AED 5k, renewable every six months for another AED 5k. Freezone firms that choose to expand into the mainland will be subject to 9% corporate tax on their mainland activities, and will have to keep separate financial records under Federal Tax Authority rules. The new permit also grants access to government tenders and contracts.

In its first phase, the permit will only apply to non-regulated sectors, such as technology, professional services, consultancy, design, and trading. Regulated sectors are set to fall under the permit’s extended scope later on.

We knew this was coming: In March, Dubai Crown Prince Hamdan bin Mohammed bin Rashid Al Maktoum approved a resolution allowing all freezone companies — except those in Dubai International Financial Center (DIFC) — to expand beyond their zones into mainland Dubai and to other emirates. The move extended earlier dual-licensing models at Dubai Airport Freezone, Dubai Design District, and DIFC to all 26 freezones in Dubai.

DHL Global Forwarding names Cathy Lee as country head of Road Freight

#1- DHL appoints new KSA Road Freight head: DHL Global Forwarding has appointed Cathy Lee (LinkedIn) as the new head of Road Freight Saudi Arabia — a move that aims to bolster the regional logistics capability, according to a statement. Lee will also oversee the company’s China Business Development initiative in the Kingdom, with the new role based in Al Khobar.

Cathy Lee has over eight years of experience in full-mile logistics handling, holding senior leadership roles in KSA, the UAE, and China. Lee previously served as general manager of logistics at Indonesia-based global delivery company J&T Express’s KSA division and also worked as product manager for the company’s UAE-based unit, according to her LinkedIn.

What they said: “Cathy’s cross-market experience and customer-centric approach will support our efforts to deliver even more agile, scalable, and reliable road freight solutions in line with the growing demand,” DHL Global Forwarding KSA CEO Sue Donoghue said.

REMEMBER- DHL Group plans to invest over EUR 500 mn in the Middle East between 2024 and 2030, with a focus on Saudi Arabia and the UAE. The investment spans the company’s four divisions — DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce.

#2- GME names new executives: Middle East-based international commodities exchange Gulf Mercantile Exchange (GME) has appointed James Martin (LinkedIn) as chief growth officer and Kevin O’Reilly (LinkedIn) as head of commodities, as part of wider push to expand its footprint across regional and global markets, according to a press release.

Martin has over 25 years of experience in capital market development spanning the Middle East, Asia, and Europe. He previously served as chief development and investment officer at the Astana International Financial Center as well as general manager for Nasdaq in Europe, the Middle East, and Africa.

Meanwhile, O’Reilly joins GME with two decades of experience in energy, carbon, and commodities trading, having held senior roles at Morgan Stanley and Goldman Sachs. His background includes managing trading desks and structuring complex finance products.

Ports, aviation, and trade updates from Algeria and UAE

PORTS-

Port of Algiers adds new dock: Algeria’s Transport Ministry inaugurated Port of Algiers Dock No. 18, according to a statement. The dock measures 265 meters in length and 9.5 meters in depth. The Ministry also approved the rehabilitation of Dock No. 17, the statement said. The developments will increase the port’s handling capacity by 1 km of new dock space and more than 5 hectares of floor space, the Director General of the Port of Algiers Abdelhamid Boualam was quoted as saying.

On the port: Algeria’s main seaport, the Port of Algiers, is operated by Epal Port d'Alger and boasts a storage capacity of 282k cbm, according to its website. It comprises 34 docking platforms and can accommodate ships of up to 25k tons of cargo.

AVIATION-

Air Arabia Abu Dhabi is launching a new route to Damascus, with three direct flights weekly between Abu Dhabi’s Zayed International Airport and Damascus International Airport, according to a press release. The low-cost carrier will start the route on 28 October, operating on Tuesdays, Thursdays, and Saturdays. Earlier in the summer, it had restarted its route between Sharjah and Damascus.

ICYMI- Other airlines have been restarting operations to Syria after the ousting of former President Bashar Al Assad. Etihad Airways plans to start flights to Damascus next year, and Emirates and flydubai have already resumed routes to the capital.

TRADE-

AD Ports, UNDP sign pact on digital trade and smart logistics: AD Ports Group will work with the United Nations Development Program (UNDP) to develop digital platforms using AI to improve supply chain operations, customs activities, trade finance, and port operations, according to a press release. The partnership also includes joint research and policy work to boost efficiency and sustainability in global supply chains.

Over a third of world’s shipping fleet could be hit by imminent US port fees

Upcoming US port fees could hit about 35% of world’s fleet: Incoming levies by the United States Trade Representative (USTR) intended to challenge Chinese sea power are expected to cost additional fees for 35% of vessels in the combined bulk, crude tanker, product tanker, and container fleet when calling on US ports, Splash247 reports, citing a report by Bimco. The duties are set to come into effect on 14 October.

What is the fee? Chinese entities will be obligated to pay a flat fee of USD 80 per net tonnage when calling on US ports, Reuters reports. Non-Chinese operators of China-made ships will pay either USD 23 per net tonnage or USD 154 per 20-ft equivalent unit capacity — whichever is higher. A ship will be charged its respective fee a maximum of five times annually, according to maritime data provider Alphaliner.

Who will be hit hardest? “Bulk carriers are more exposed to the increasing costs,” with 45% of the world’s fleet exposed to the fees, Bimco’s Chief Shipping Analyst Niels Rasmussen reportedly said. Meanwhile, about one-third of crude tankers and containerships, as well as 19% of product tankers, are also exposed, the report said. Notably, LNG tankers are exempt from the fines. Almost two-thirds of those who will be impacted will be China-operated vessels, with the rest comprising China-built ships managed by non-Chinese entities, the report said.

Obviously, China’s Cosco is the most vulnerable to the looming fees, facing as much as USD 1.53 bn as of next year, Alphaliner found. This accounts for nearly half of the USD 3.2 bn projected to be levied from the top 10 cargo carriers.

US firms pounce on nat gas boom with USD 50 bn in pipeline plans

US gas boom heralds USD 50 bn in pipeline investments: US energy firms are plugging some USD 50 bn in new pipeline infrastructure over the next five years, amid favorable Trump-era regulatory changes and booming demand, the Financial Times (FT) reported on Tuesday. Midstream players are looking at laying down 8.8k miles of pipelines to alleviate existing supply bottlenecks, FT reported, citing energy consultancy Wood Mackenzie.

Demand for US nat gas at peak high: US natural gas consumption is expected to rise 1% in 2025 to reach an all-time peak of 91.4 bn cf/d, according to the US Energy Information Administration. US LNG exports reached a record 9.4 mn tons in September.

Concerns mount over the risks of an AI bubble amid spending spree by OpenAI, Nvidia: The bns of USD invested in AI so far, marked by OpenAI topping USD 1 tn in commitments and Nvidia’s spending spree, are based on a “circular,” “interconnected” web of business transactions involving only a handful of firms that cast doubt over the sector’s sustainability, Bloomberg writes in this morning’s big read. Meanwhile, the Financial Times similarly spotlights OpenAI’s recent transactions, including those with Oracle, AMD, and Nvidia, highlighting the “fake it till you make it” approach that has powered the sector so far, which could backfire if OpenAI is unable to honor its funding commitments.

Calendar

OCTOBER

8-9 October (Wednesday-Thursday): Quantum Maritime Conference 2025, Abu Dhabi, UAE.

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.

15-17 October (Wednesday-Friday): Iraq Transport, Logistics & Airports Exhibition & Conference, Baghdad, Iraq

16-18 October (Thursday-Saturday): International Forum and Expo on Mobility, Transport and Logistics (Logiterre), Casablanca, Morocco.

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

6 December (Saturday): International Procurement Supply Chain Conference, Cairo, Egypt.

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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