Egypt’s EIM to put USD 100 mn into localizing car industry

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What we're tracking today

TODAY: A big day for Egyptian exports + SCZone set to launch digital operations

Good morning, ladies and gents. We have an accidental Egypt issue on our hands this morning, with lots of news flowing in from Om el Donia. Imports, exports, digitalization and fresh manufacturing agreements are all on the cards, so let’s jump right in.

WATCH THIS SPACE-

#1- Egyptian state grain buyer GASC has reportedly secured 3.12 mn metric tons of wheat to be supplied monthly between November and April, Reuters reports, citing two sources familiar with the matter. The purchase — one of GASC’s largest — will see a monthly 510k metric tons of wheat sourced from the Black Sea region.

The details are fuzzy: The wheat will reportedly be supplied by a JV between an Egyptian company and a major global supplier. The price for each month’s supply will be assessed based on market price for the month, one source told the newswire.

Remember: The government has been looking to capitalize on a global dip in prices in efforts to bolster strategic wheat reserves amid geopolitical tension. President Abdel Fattah El Sisi reportedly personally ordered GASC's biggest ever tender in August after he received an intelligence briefing that raised concerns over our food security. The massive tender fell short of its target, with GASC purchasing 280k tons of the 3.8 mn tons it aimed to buy.

Question marks remain: According to Reuters, traders have expressed doubts that the order will be fulfilled, with one person “saying that it could be conditional on whether the company will be able to fulfill its October shipment” — GASC purchased 430k tons of Russian wheat in September for delivery this month.

#2- Adnoc-backed energy storage company VTTI is planning to invest in LNG import terminals across Asia to meet the growing demand for liquefied natural gas (LNG) in the region, the company’s CEO Guy Moeyens told Bloomberg. The Rotterdam-based company has recently acquired a 50% stake in Dragon LNG, one of the UK's three LNG import terminals, in August. Adnoc acquired a 10% stake in VTTI in 2019.

Did someone say LNG? VTTI previously acquired a 50% stake in Dragon LNG — one of the UK’s three LNG import terminals — back in August and is set on buying a stake in Italy’s Adriatic LNG, Bloomberg writes. It also has an agreement with the Bermudian Hoegh LNG to jointly establish an energy terminal in the Dutch province of Zeeland. Adnoc has also approved the construction of a new LNG export terminal earlier this year and acquired stakes in projects across the US and Africa.

#3- Agility invests in Global Ventures fund: ADX-listed global logistics provider and Kuwait’s Agility subsidiary Agility Global is investing in Global Ventures’s third fund — a new Dubai-based investment fund — which aims to provide capital to early-stage MENA firms operating in the supply chain, energy, and agri-tech industries, Wamda reports. No financial details or timeline for the investment have been disclosed.

MARKET WATCH-

#1- Oil prices continued to rise this morning in response to rising Middle East conflict potentially disrupting crude oil flows, Reuters reports. Brent crude futures gained USD 0.80, or 1.08%, to USD 74.70 a barrel by 04.05 GMT, while US West Texas Intermediate crude gained USD 0.85 trading at USD 70.95 a barrel. "The question for oil now is whether Iran's energy infrastructure will be in Israel's crosshairs," IG market strategist Yeap Jun Rong told the newswire.

Israel could attempt to hinder Iran’s ability to export oil if the ongoing conflict escalates, GeoQuant Research Head Ross Schapp told CNBC (watch, runtime, 01:48). The current state of the conflict has spiked the deviation of risk above five to six deviation points, leading experts to think Israel will try to change the equilibrium from what it has been for over a decade. This would “dramatically increase the price of oil,” Schaapp expects. At present, however, Israel is expected to focus more on military targets, rather than economic ones. Iran fired some 200 missiles at Israel on Tuesday night, most of which the Israeli army says were intercepted. If Iran persists in retaliatory strikes, Israel could expand beyond military targets, Schapp told CNBC.

#2- Opec+ keeps output policy unchanged, says December phaseout hinges on compliance: Opec+ has opted to stay the course on its planned oil production target, including plans to phase out supply cuts by December, putting it on course for a 180k barrels per day (bbl / d) hike by the end of the year, it said in a statement following a meeting yesterday. The oil cartel is also keeping a sharp eye on the compliance and compensatory plans of Iraq, Kazakhstan and Russia, who have been under scrutiny for producing beyond their quotas. The trio pledged 123k bbl / d of compensation cuts beginning in September and continuing into later months to make up for overproduction.

And if they didn’t? Further lack of compliance could push Saudi Arabia and other Opec+ members to boost production at a quicker rate, Reuters said. “If they fail to comply, we can envision a swifter sunsetting of the voluntary cuts,” Reuters quotes RBC Capital’s Helima Croft as saying.

The next checkpoint? The group is scheduled to reconvene on Sunday, 1 December to decide whether to hold steady or adjust according to market conditions.

#3- Baltic maintains a downward trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — slipped another 2.6% to 1,978 points on Wednesday, its lowest point since 20 September. The capesize index dipped over 3% to 3,399 points, while the panamax index declined another 22 points to 1,364 points. The smaller supramax index fell 11 points at 1,272 points.

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CIRCLE YOUR CALENDAR-

Bahrain will host the Routes World forum from Sunday, 6 October to Tuesday, 8 October. The event will bring together VPs and network planning heads from some 250 carriers to discuss global air route networks.

Saudi Arabia will host the Global Logistics Forum from Saturday, 12 October to Monday, 14 October in Riyadh. The forum will gather key industry players, government officials, and industry experts to discuss optimizing operations and driving growth in the logistics sector. The event will take a specific look at how the sector can adapt with regards to global climate change and incorporate sustainability into their supply-chain operations.

Saudi Arabia will host the Global Airport & Aviation Forum from Wednesday, 16 October to Thursday, 17 October in Jeddah. The forum will bring together aviation leaders and experts to discuss future projects in the aviation industry, including new airport developments, capacity upgrades and expansions, new aircraft orders, and important airport services.

Saudi Arabia will host the Smart Ports & Logistics Transformation Summit on Monday, 21 October and Tuesday, 22 October in Riyadh. The two-day conference aims to discuss strategies, innovation, and technologies in line with Saudi Arabia’s Vision 2030, which aims to position KSA as a logistics hub in the MENA region.

The UAE will host the International Conference on Tourism, Transport, andLogistics on Saturday, 26 October and Sunday, 27 October in Dubai. The event will gather scientists, scholars, and engineers from around the world to discuss new ideas and research development projects in the industry.

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

Egypt’s EIM earmarks USD 100 mn to boost exports

EIM eyes auto exports from Egypt: Egyptian International Motors (EIM Group), the sole agent of Kia Motors and Renault in Egypt, plans to invest some USD 100 mn to build a factory in Egypt to assemble, market, and export vehicles as part of a broader push to position the country as a vehicle export hub, according to a statement.

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What’s the plan? The firm aims to export some 105k cars valued at USD 1.25 bn over the next five years, in addition to expanding the presence of Egyptian exports in Arab and African markets, the statement notes. EIM also aims to increase its percentage of local components to 58% from the previous 48% within a year from the start of the project.

Background: Egyptian International Motors inked an MoU back in 2022 with the Suez Canal Economic Zone, the Sovereign Fund of Egypt, and the East Port Said Development Company to explore building a factory with a production capacity of 75k cars per year.

IN OTHER EGYPT INVESTMENT UPDATES-

Padma is heading to New Alamein: Polish home furniture company Padma will invest some EUR 70 mn into setting up a new industrial complex in Egypt’s New Alamein City to boost exports to the European and US markets, according to a statement.

What we know: Padma will explore the feasibility of establishing the 400k meter industrial complex, the statement said. The Polish firm aims to achieve over EUR 200 mn in exports to Europe, America, and Arab countries per year.

The ministry is on board: Egypt’s Industry Ministry will facilitate issuing industrial licenses as well as coordinate with Egypt’s General Authority for Investments and Freezones (GAFI) to expedite the procedures needed to establish the company under the special freezones system. The ministry will also conduct an inventory of MDF wood production facilities in Egypt to provide wood and raw materials needed for furniture production.

New Alamein City is a hotspot for investments: The government has offered to grant Teda Investment Holding — the company behind the China-Egypt TEDA trade zone — land on the Mediterranean coast in New Alamein City to help it expand and attract new manufacturers. GAFI Head Hossam Heiba sat down with a delegation from the Chinese government back in April to discuss ways to bring in more Chinese investments into the planned freezone in the New Alamein City.

Egypt’s SCZone to launch new digital operations platform

Agility subsidiary to boost digitalization at SCZone: The European Bank for Reconstruction and Development (EBRD) has chosen Kuwait-based Agility’s automation solutions subsidiary Transfora to develop a digital operations platform for Egypt’s Suez Canal Economic Zone (SCZone), according to a statement. The EBRD is funding the project, which looks to boost the zone’s digital capacity and network to improve trade flows.

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How will it help? Transfora’s comprehensive enterprise management platform will enable the SCZone to handle inquiries from potential investors and manage essential investor documentation, the statement says.

More details: Transfora will facilitate report generation and analytics, as well as oversee the implementation of more than 60 e-services available at the SCZone’s one-stop shop for both new and current investors. Agility Economic Zones will link SCZone authorities, customs officials, and regulators with investors, carriers, logistics providers, shippers, and businesses involved in manufacturing, assembly, and processing within the zone.

What they said: The project represents “a key milestone in enhancing the investment climate and competitiveness of both the Zone and Egypt leading to attracting high-quality foreign direct investment and job creation,” EBRD Director of Egypt Khalid Hamza said in the statement.

IN OTHER SCZONE UPDATES-

Brazilian investors eye setting up SCZone logistics zone: Seven Brazilian investors are currently conducting studies to establish a logistics zone in the Suez Canal Economic Zone (SCZone), Chief Director of the Arab-Brazilian Chamber of Commerce in Cairo Michael Gamal told Al Borsa.The zone would act as a hub to import corn, soybeans, sugar, and other products that would then be re-exported to other Arab and African nations. More details should be unveiled at some point in 2025, he added.

Remember: Brazil has been showing interest in investing in logistics and green energy projects in the SCzone for some time — the country has stepped up its interest in the region in general over the last year, exporting more beef and chicken to Egypt and upping its business with Saudi Arabia.

Maldives + Saudi Arabia sign a trade agreement

Maldives + Saudi Arabia strengthen trade relations: Saudi Arabia’s Commerce Minister and Chairman of the board of Directors of the General Authority for Foreign Trade Majid bin Abdullah Al-Kassabi signed an MoU with the Maldives’ Economic Development and Trade Minister Mohamed Saeed to improve trade relations and foreign investments between the two countries, according to a statement. The MoU aims to enhance the trade in goods and services between Saudi Arabia and the Maldives, and also covers the exchange of expertise, information, digital platforms, and drafting relevant legislation.

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Swissport KSA appoints Hamad Alhemede as CEO

#1- Swissport KSA appoints new CEO: Swiss aviation services company Swissport has appointed Hamad Alhemede (LinkedIn) as its new Saudi Arabian division CEO, according to a statement. Alhemede joins the firm with extensive experience in the aviation industry, having served as Commercial VP at Saudi Ground Services and holding various positions at the company for over 17 years. Swissport is looking to boost its presence in the Kingdom’s air cargo handling and ground services industry, with a focus on servicing national carriers, the statement says.

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#2- Kuwait-based logistics giant Agility has appointed Ehab Fikry Aziz (LinkedIn) as the new CFO of Agility Global PLC, according to a DFM disclosure. Aziz comes to the position with 25 years of experience at Agility. He is moving from his previous role as CFO in the company’s warehousing arm, Agility Public Warehousing Company.

Khadija Obla (LinkedIn) will succeed Aziz as the new CFO of Agility Public Warehousing. Obla is currently a board member at Sultan Center, after serving as chief financial officer, then as chief executive officer.

Updates in aviation, ports, data centers, equipment, and manufacturing from Iraq, the UAE, KSA, Oman, and Egypt

DATA CENTERS-

US-based financial management solutions firm Kyriba is opening a data center in Saudi Arabia in 1Q 2025, according to a statement. This data center will improve the performance and reliability of Kyriba's solutions, minimizing latency and ensuring that data stays secure within the region, the statement said. Neither the investment ticket nor the size of the data center have been disclosed.

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What does Kyriba do? The firm offers intelligent financial automation that helps companies and banks of all sizes enhance their financial performance and boost operational efficiency, according to the statement. With real-time data and AI-driven tools, Kyriba enables nearly 3k customers globally to assess risks, forecast cash and liquidity, and implement strategies to safeguard their balance sheets, income statements, and cash flows.

ZONES-

#1- Leoni Egypt to build EUR 40 mn cable factory in Robbiki City: Cairo Development Investment Company (CDICO) has inked a EUR 40 mn agreement with Wire systems manufacturer Leoni Egypt for the development of a 13k sqm factory for electrical cable production in Robbiki Industrial City, according to a statement. The factory, which will produce for export as well as the local market, is forecasted to be completed and operational within one year. Leoni Egypt initially announced plans to open the cable manufacturing factory in Robbiki back in July.

Boosting trade: Leoni looks to use the new facility to increase its export volumes from Egypt by some 50%, amounting to EUR 240 mn annually. The facility is expected to generate around 3k direct and indirect jobs.

#2- Egypt to build USD 60 mn freezone for linen and textile production: The Egyptian cabinet approved a decision to set up a USD 60 mn freezone for the production of linen in Sadat City — dubbed Kingdom Linen, according to a statement. The entirety of the zone’s production will be exported and products will have a local component of no less than 30%.

AVIATION-

Dnata makes moves to reduce carbon footprint at Heathrow: Dubai-based air services provider Dnata’s heavy goods vehicle (HGV) fleet at London Heathrow Airport, comprising 70 trucks, is now operating on hydrotreated vegetable oil (HVO), according to a statement. The initiative — which is in line with the Dubai-based group’s plan to cut its carbon footprint by 50% by 2030 — is expected to reduce the fleet’s carbon footprint by 77% and cut CO2 emissions by over 2.4k tonnes a year.

EQUIPMENT-

Oman’s Salalah Port buys four new cranes: APM Terminals-operated Salalah Port in Oman has received four new hybrid rubber tyred gantry (hRTG) cranes equipped with regenerative energy systems to boost cargo handling capacity at the port, according to a statement. The cranes consume less fuel than conventionally powered RTGs, while still offering full lifting and driving power with quicker turnaround times for container handling. Eight more cranes are slated for delivery.

OTHER STORIES WORTH KNOWING THIS MORNING-

Emirates serves Riyadh with refurbished Boeing 777: Emirates has launched a daily flight route using a refurbished Boeing 777 from Dubai, the UAE to Riydah, KSA. (Statement)
DP World expands fleet: DP World has added two new container vessels, the Navios Utmost and the Navios Unite, to its subsidiary Unifeeder’s short-sea shipping service. (Port News)
Port Tawfik welcomes tugboat: Port Tawfik has welcomed the New Safaga1 marine tugboat to its fleet on Wednesday. The vessel was built by the Egyptian Ship Repairs and Building company. (Al Mal)

Santos + TotalEnergies ink supply agreement for 500k tons of LNG annually

Santos + TotalEnergies ink LNG supply agreement: Australian oil and gas firm Santos has inked a mid-term agreement with French oil giant TotalEnergies to supply 20 liquefied natural gas (LNG) cargoes — 500k tons of LNG per annum — starting 4Q 2025, according to a statement. The Australian firm will supply the LNG on a delivered ex-ship (DES) basis to TotalEnergies Gas and Power Asia. “There continues to be extremely strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG as countries focus on reducing their carbon emissions. Santos is committed to supporting the energy security of our valued customers across Asia, where gas will play an essential role in decarbonisation efforts across the region,” CEO Kevin Gallagher said.

Santos and TotalEnergies are doubling-down on LNG supplies: Santos inked a mid-term LNG supply contract with Glencore Singapore in early September, and a 10-year deal to supply Japan's Hokkaido Gas from 2027, Reuters reports. TotalEnergies inked a 10-year heads of agreement with Turkey’s Botas Petroleum Pipeline Corporation (Botas) to supply the country with 1.1 mn tons of LNG per year starting 2027.

MISC to acquire new LNG carriers: Malaysia’s MISC Group has placed an order from South Korean Shipbuilder Samsung Heavy Industries for two new LNG carriers, Splash News reports. The vessels will be delivered in 2027 and go on a 15-year charter with Malaysia’s state oil and gas company Petronas. The two firms have also chosen to terminate charters for three existing steam LNG carriers, scheduled for redelivery in 2027 and 2028. They have also agreed to extend the charters for two additional carriers until the end of March 2028.

Calendar

OCTOBER

6-8 October (Sunday-Tuesday): Routes World 2024, Bahrain.

8-10 October (Tuesday-Thursday): The Global Rail Transport Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi, UAE.

7-9 October (Monday-Wednesday): AFSIC – Investing in Africa, London, UK.

8-10 October (Tuesday-Thursday): AntwerpXL Expo, Antwerp, Belgium.

12-14 October (Saturday-Monday): Global Logistics Forum, Riyadh, Saudi Arabia.

13 October (Sunday): International Transport Workers’ Federation (ITF) Congress, Marrakesh, Morocco.

16-17 October (Monday-Tuesday): Global Airport & Aviation Forum, Jeddah, Saudi Arabia.

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh, Saudi Arabia.

22-24 October (Tuesday-Thursday): Asean Ports and Logistics, Johor, Malaysia.

22-24 October (Tuesday-Thursday): Global Ports Forum, Singapore.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai, UAE.

NOVEMBER

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh, Saudi Arabia.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

11-14 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

13-15 November (Wednesday-Friday): The Bahrain International Airshow, Sakhir Airbase, Bahrain.

13-15 November (Wednesday-Friday): ITC North-South - New Horizons, Astrakhan, Russia

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Damman, Saudi Arabia.

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam, Saudi Arabia.

18-19 November (Monday-Tuesday): G20 Summit, Rio de Janeiro, Brazil.

20-21 November (Wednesday-Thursday): Saudi Rail Exhibition, Riyadh, Saudi Arabia.

DECEMBER

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh, Saudi Arabia.

10-11 December (Tuesday-Wednesday): Rail Industry Summit, Casablanca, Morocco.

10-12 December (Tuesday-Thursday): Middle East Business Aviation, Dubai, UAE.

20 December (Wednesday): The Iran-Senegal Joint Economic Cooperation Commission, Dakar, Senegal.

EVENTS WITH NO SET DATE

IATA Annual General Meeting (AGM) and World Air Transport Summit, New Delhi, India.

1H 2024: Civil Construction subcontracts for construction firms in Oman for implementation of the Abu Dhabi - Suhar rail link to be announced.

2H 2024: Bahri’s barges for Saline Water Conversion Corporation (SWCC) to begin initial and commercial operation.

King Salman Energy Park is set to become operational.

The Cross-Border Digital Trade Forum, Dubai.

2025

FEBRUARY

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

APRIL

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

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 twoof Jafza Logistics Park to be completed.

NOVEMBER

4-6 November: The International Air Cargo Association TIACA’s Air Cargo Forum 2025, Abu Dhabi, UAE.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

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