GFH Partners acquires Dubai-based logistics fund for USD 75.5 mn

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What we're tracking today

TODAY: Bahrain’s GFH snaps up logistics fund Manrre Reit + PMI reports are in for KSA, UAE and Egypt

Good morning, folks, and hope you had a lovely New Year’s Eve. We are kicking off our first issue in 2025 with some M&A news from Bahrain and Turkey. PMI figures for December are also in from Saudi Arabia, the UAE, and Egypt. Shall we?

WATCH THIS SPACE-

#1- Turkish consortium bids for Islamabad Airport: A Turkish consortium — comprising Terminal Yapi, ERG Insaat, and ERG UK — was the only bidder to take over the operations of Pakistan’s Islamabad Airport, Reuters reported on Thursday. The consortium bid to pay the South Asian country 47% of its revenue from operations as a concession fee, this is below the minimum fee set by Pakistan’s government at 56%.

The International Finance Corporation will review the bid for further evaluation, then advise Pakistan if it should go through with the offer, chairman of the bid evaluation committee and deputy general of Pakistan Airports Authority Saduq ur Rehman told Reuters.

ICYMI- The Pakistani government reportedly planned to sell a majority stake in Pakistan International Airlines to the government of Abu Dhabi or Qatar in November 2024, as it attempts to offload the debt-ridden flag carrier. The government-to-government sale received only a single bid of PKR 10 bn (USD 36 mn) for a 60% stake in the bidding process in October last year from a consortium led by Pakistani real estate developer Blue World.

#2- Israel's Ashdod Port to initiate IPO for up to 49% of shares: Israel’s Ashdod Port Company plans to float up to 49% of its shares in a bid to strengthen the company’s capital base and boost future profitability, Reuters reported last week. The firm has issued a public tender to choose an issuance advisor for the listing. Ashdod is Israel’s last-remaining state-owned port, through which the country imports a large portion of its oil.

#3- Spain + Morocco make progress in customs operations talks: Spain and Morocco have made significant progress during talks regarding customs operations to allow more exports between Morocco and the Spanish enclaves of Melilla and Ceuta, Morocco World N ews reported last week. At present, one lorry a day will be permitted to complete a round-trip journey into Melilla and Ceuta, Atalayar reports. Morocco suspended commercial customs between the two Spanish enclaves back in 2018.

What we know: Under the potential new customs framework, Morocco will be permitted to export aggregates and food goods to Melilla, according to Melilla Mayor-President Juan José Imbroda. Spain will export cleaning products, household appliances, and electronics, according to Atalayar.

MARKET WATCH-

#1- Oil rebounds due to cold weather snap: Oil prices reached their highest level since October in early morning trading as investors assess the impact of demand due to winter weather and Chinese stimulus measures, Reuters reports. Brent crude futures gained USD 0.15 to USD 76.66 a barrel by GMT 01.25 while US West Texas Intermediate (WTI) rose USD 0.22 to USD 74.18 a barrel. Both benchmarks closed at their highest levels since October on Friday.

#2- Baltic index on an upward trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 4.2% to 1,072 points on Friday. The capesize index surged 114 points to 1,375, while the panamax index increased 40 points to 1,040. The smaller supramax index shed 15 points to 884.

#3- The Drewry World Container Index increased 3% to USD 3,905 per 40-ft container on Thursday, according to the latest index readings. Spot rates for 40-ft containers are now 62% below the previous pandemic peak, but remain 175% above the pre-pandemic rate of USD 1.4k. The average composite index YTD is USD 3,905 per 40ft container, which is USD 1,040 higher than the 10-year average rate of USD 2,865.

DATA POINT-

#1- Egypt’s food industry exports surged to USD 5.5 bn from January to November, Wam reports. This is a 17% increase compared to USD 4.7 bn recorded in the same period in 2023, amounting to an additional USD 813 mn. Total exports during this period exceeded the full-year figure for 2023, which stood at almost USD 5.1 bn.

#2-Qatar’s merchandise trade balance surplus stood at QAR 57.7 bn in 3Q 2024, down from QAR 60.9 bn in 2023, Wam reports. The country’s total exports, including domestic goods and re-exports, reached QAR 87.8 bn during the quarter, a decline of QAR 2 bn, or 2.2% from 3Q 2023, which recorded QAR 89.8 bn.

#3- Iran’s ports handled 175 mn tons of cargo in the first nine months of the Iranian calendar year (20 March to 21 December 21), Tehran Times reports. The ports’ combined loading and unloading operations numbered 174.9 mn tons, with 79.67 mn tons of oil goods and 95.32 mn tons of non-oil goods. Iran’s ports also handled 2.33 mn TEUs of containers, up 14% y-o-y.

PSA-

Hapag-Lloyd implementing GRI: Hapag-Lloyd is implementing a General Rate Increase (GRI) to USD 1k per container shipped between the Indian Subcontinent, the Middle East, and North America starting 1 February 2025, Hapag-Lloyd reports. This should be applied to the 20-ft, 40-ft, and high-cube equipment used for dry cargo, refrigerated goods, and special containers, and will remain in effect until further notice.

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CIRCLE YOUR CALENDAR-

Belgium will host the World Cargo Summit from Monday, 27 January to Wednesday, 29 January in Ostend. The event will focus on air cargo economics, strategy, and market trends with a specific focus on how the industry will tackle disruptions and how firms can adapt their business models.

The UAE will host the ShipTek International Conference from Wednesday, 29 January to Thursday 30 January in Dubai. The two-day conference will gather industry experts, including managing director at Hapag-Lloyd Carolin Stumm, CEO Adani Ports Nicolai Friis, VP International Maritime Industries Justin Taylor, CEO Tristra Tim Coffin, and others to discuss new tech and developments in the maritime industry.

The UAE will host the Middle East Bunkering Convention from Monday, 3 February to Wednesday, 5 February in Dubai. The event will focus on the marine fuels sector to address the future of the industry in light of geopolitical issues, environmental regulation, and the future of artificial intelligence and digitalization.

Saudi Arabia will host the Airport Expansion Conference from Tuesday, 4 February to Wednesday, 5 February in Riyadh. The two-day conference will feature over 30 speakers to discuss challenges faced by Saudi Airports and highlight Saudi Arabia’s Vision 2030 with a clear focus on expansion, tech, and strategic partnerships.

The UAE will host the Middle East Breakbulk Conference from Monday, 10 February to Tuesday, 11 February in Dubai. The event gathers giant manufacturers, EPCs, and service providers to discuss the latest solutions in breakbulk and heavy-lift logistics across the Middle East and Africa. The two-day event features an artificial intelligence (AI) seminar, heavy lift workshop, chartering workshop, and a women in breakbulk panel.

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

Bahrain’s GFH Partners acquires UAE-based logistics fund of AED 500 mn

GFH Partners acquires Manrre REIT: GFH Partners, the Dubai-based global asset management arm of Bahraini GFH Financial Group, acquired Manrre REIT, a logistics and industrial assets fund registered with Nasdaq Dubai’s share depository, for USD 75.5 mn, becoming its sole fund manager, according to a DFM disclosure (pdf). The transaction is part of GFH Partner’s global expansion strategy. The company already operates in the US, UK, and GCC region.

What’s in the cards: GFH will absorb Manrre’s portfolio, valued at some AED 500 mn, which includes 26 diversified industrial and logistics properties primarily in the UAE. Under the agreement, GFH Partners is now Manrre’s fund manager, after gaining approval from the Dubai Financial Services Authority.

About Manrre Reit: The logistics fund was founded in 2018 by logistics developer and owner Palmon Group, one of the longest-operating firms in the UAE’s Jafza freezone. It is registered with Nasdaq Dubai’s share depository. The fund focuses its investments on industrial, warehouse and logistics assets, looking to support the growing e-commerce industry in the GCC region. Manrre Reit was previously managed by UAE-based fund manager and accelerator Dalma Capital.

GFH has been on a roll: The asset manager closed a USD 300 mn logistics and industrial fund in the United States last July. The fund — the firm’s seventh of its kind — includes industrial and transportation logistics assets, with a portfolio of 25 properties and sites across seven locations. The firm acquired more than 50 logistics assets across six countries in three continents. These transactions have poured some USD 4 bn into the logistics real estate sector by leasing units to Amazon, FedEx, and DHL.

Not the first regional acquisition: GFH acquired a USD 150 mn portfolio of logistics and industrial zone real estate assets in Saudi Arabia and the UAE back in 2023. The portfolio included light industrial and cold storage facilities as well as distribution and warehousing assets that are leased to regional and international tenants across logistics zones and industrial areas in Riyadh and Dubai.

UAE non-oil sectors continue to see growth, while KSA dips and Egypt remains in contraction

How non-oil private sectors in Saudi Arabia + Egypt + UAE performed in December: Purchasing manager indices (PMI) tracking non-energy sectors in the three countries told a mixed tale in December. As the year came to a close, Saudi Arabia and the UAE held well above the 50.0 mark threshold, buoyed by healthy customer demand, while Egypt witnessed a moderate slip in its headline PMI amid subdued demand and softened output rates.

REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.

First up, Saudi Arabia: Non-oil sector growth slowed in December for the first time since August, despite a record pick-up in sales and new orders, according to the Riyad Bank Saudi Arabia PMI (pdf). The seasonally adjusted headline figure came in at 58.4 in December, coming in just slightly below November’s 17-month high of 59.0, while remaining well above the 50.0 mark that separates growth from contraction.

New orders hit full speed in December: The new orders subindex climbed to 65.5 in December up from 63.4 the previous month, with new export order growth hitting a 17-month high on the back of product innovations and solid ties with international clients. “This surge is supported by elevated domestic demand and strengthening exports, which have propelled total sales volumes to their highest levels in a year,” Riyad Bank Chief Economist Naif Al Ghaith said.

Purchasing was also up: Firms’ purchasing activity rose to a nine-month high, with companies confident that demand volumes will continue to grow. The rate of employment softened from last month, easing salary pressures.

Input costs rose sharply, driven by higher material prices, but wage inflation kept overall costs in check. Some companies slashed output prices to get ahead of competitors and offload inventory. Average lead times on inputs were shortened in December to cause the swiftest rise in input holdings since May.

Over in the UAE: The UAE’s non-oil activity rose at its fastest pace in nine months in December, buoyed by strong demand which expanded new orders and output, according to S&P Global UAE PMI (pdf). The headline figure expanded to 55.4 in December, up from 54.2 in November, indicating the third consecutive monthly increase.

New orders spiked in December: The new orders subindex grew to 59.3 in December up from 58.0 the previous month, rising at the sharpest pace recorded in nine months and driven up by robust demand. Output rates also rose, with firms attributing the combined growth to ongoing projects in progress, discounted prices and favourable weather conditions. However, new export orders growth eased, with the subindex dropping to a seven-month low.

Hiring was sluggish: Employment grew at one of its slowest rates in over two-and-a-half years, due in part to margin pressure. Consequently, backlogs persisted to build up at one of the fastest paces since 2009. “While margin constraints appear to be holding some firms back from recruiting more staff … there is certainly a need to boost resources to ensure firms capitalize on demand in the new year,” S&P Global senior economist David Owen said.

Purchasing sharply rose to a 13-month high December, as firms addressed high turnover rates in materials and key components. The rate of input price inflation eased for the fourth time in five months, increasing at the weakest pace since April. Input costs rose moderately for raw materials, shipping, food goods and tech. Firms continued to discount prices amid strong competition, causing output prices to fall for the third month running.

In Egypt, non-oil business conditions slumped in December amid contracting output and muted client demand, according to S&P Global Egypt PMI (pdf). Egypt’s headline figure fell to 48.1 in December, down from 49.2 in November. Rising price pressures, driven by a weakening exchange rate to USD, eased market conditions and forced firms to carry a larger share of their cost load.

New orders and outputs dropped at their sharpest pace in eight months. Easing private sector activity was most noticeable across the construction, wholesale and retail sectors, while the service sector remained the most stable.

Input costs spiked upwards at the fastest pace in three months, driving up material costs. “Firms were less keen to raise their own charges in the face of accelerating cost burdens, instead tightening their margins in a bid to salvage orders,” Owen said. Output costs rose at the slowest pace since last May, while firms grappled to grow sales.

Total inventories dropped for the first time in six months, as firms withdrew from their stocks to combat rising purchasing costs. Purchasing expanded, albeit this rise was concentrated to the manufacturing and services sectors.

Hiring slipped marginally dropping for the second consecutive month, with companies opting to not replace departing staff to reduce hiring costs. Wage inflation surged to a four-month high in December, with the uptick linked to cost-of-living challenges.

Sentiment remains somewhat optimistic: Easing rates of inflation growth and hopes of strengthening geopolitical conditions in 2025 led to a spike in optimism, as sentiment recovered from a near-record low last month. Egyptian firms verged on meekly positive regarding output and profit expectations for the coming year, with sentiment dragged down by concerns over exchange rate movements.

Ending 2024 on a high note: KSA firms remain confident, with expectations reaching a nine-month high in December, banking on robust sales growth to boost activity levels in the next year. In the UAE companies similarly expressed optimism towards the next year ahead, yet business outlook was slightly subdued and eased for the second consecutive month.

UAE explores trade cooperation with Paraguay and Pakistan

UAE eyes cooperation with Paraguay ahead of Mercosur trade agreement: UAE Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nayhan met with his Paraguayan counterpart Rubén Ramírez Lezcano in Abu Dhabi, where they discussed ways to increase economic, trade and investment cooperation between the two countries, Wam reported on Thursday.

ICYMI- The UAE inked an MoU with Paraguay last year focusing on bilateral partnerships in transportation, logistics, sustainability, the economy and infrastructure development.

This comes as discussions for a UAE-Mercosur trade agreement are ongoing, with Brazilian President Luiz Inacio Lula da Silva telling UAE President Sheikh Mohamed bin Zayed Al Nahyan during a phone call that Brazil will push to finalize the agreement in the next few months, Reuters reports, citing a statement by Brazil’s presidency. International Cooperation Minister Reem bint Ebrahim Al Hashimy visited Uruguay in July to review the progress of the negotiations for the agreement.

ALSO- UAE eyes economic and trade cooperation with Pakistan: UAE President Sheikh Mohamed bin Zayed Al Nahyan met with Pakistani Prime Minister Muhammad Shehbaz Sharif yesterday to discuss ramping up bilateral cooperation, focusing on economic, trade, investment, and developmental fields, Wam reports. The leaders also exchanged views on “regional and international issues of common interest,” the statement reads.

Etihad Cargo wins two global brand frontier awards

Etihad Cargo wins two global brand frontier awards: Etihad Cargo won two accolades at the Boston Brand Research & Media Global Brand Frontier Awards, according to a company LinkedIn post. Etihad Cargo was awarded for Excellence in Air Cargo Services - Middle East, 2024, and Best Specialized Logistics Solutions Provider - MEA, 2024.

M&A, cargo, storage, and shipping updates from Iraq, KSA, and the UAE

STORAGE + WAREHOUSES-

Iraq expands grain storage with regional agreement: Iraq has signed an agreement with two companies — Swiss-based Bühler and Egypt’s Samco — to build five modern grain silos with a total storage capacity of 60k, according to the National Iraq New Agency. The silos will be distributed across the Kirkuk, Anbar, Wasit, Najaf, and Muthanna provinces. Iraq has also prepared warehouses with a 1 mn ton capacity for the upcoming harvest season and plans to construct 20 additional silos as part of future projects.

SHIPPING + MARITIME-

Mawani adds new shipping service to King Abdulaziz Port: The Saudi Ports Authority (Mawani) has added Milaha’s MIX 2 shipping service to King Abdulaziz Port in Dammam, SPA reported last week. The new service, which has a 1.7k standard container capacity, will link Dammam port with the ports of Umm Qasr in Iraq as well as Nhava Sheva and Mundra in India.

M&A WATCH-

Taqat extends Bayan Transport’s acquisition MoU: Saudi scrap metal recycling firm Taqat Mineral Trading has extended a non-binding MoU to fully acquire Bayan Transport Trading Company (Bayan Al Naql), which was set to expire on 31 December 2024, until 31 March 2025, according to a disclosure to Tadawul. No further details were disclosed.

CARGO-

Emirates SkyCargo is deploying a weekly Boeing 777 freighter to Copenhagen Airport, with a capacity for 85 tons of cargo to cope with a recent 20% increase in shipping volume from Denmark, according to a statement. The freighter will also cater to neighboring countries like Norway and Sweden.

OTHER STORIES WORTH KNOWING THIS MORNING-

Emirates’ Airbus A350 enters service: Emirates’ first Airbus A350 has entered commercial service with its inaugural flight from Dubai to Edinburgh. The aircraft is the first of 65 A350s set to join the airline’s fleet over the next few years. (Wam)
Flights to resume at Damascus Airport: International flights are set to resume at Damascus International Airport on Tuesday, 7 January, after they had been suspended following the collapse of the Syrian government last month. (Wam)
Qatar to resume Syria flights: Qatar Airways will resume services to Syria’s Damascus with three weekly flights starting 7 January 2025. (Statement)
Emirates expands Sri Lanka-UAE route: Emirates has added six weekly flights connecting Colombo’s Bandaranaike International Airport in Sri Lanka and Dubai International Airport starting 2 January. A seventh weekly flight will be added on 1 April 2025. (Dubai Media Office)
Qatar Airways back in Abha: Qatar Airways landed its first flight at Abha International Airport (AHB) on 2 January after a hiatus of several years. The flight will operate twice weekly. (Statement)
Egypt’s Arish Port gets first breakbulk shipment: Egypt’s Arish Port in North Sinai has received its first ever breakbulk shipment. The shipment included five wind turbines and their accessories for use at a wind power plant in North Sinai. (Statement)

! US East Coast dockworkers resuming contract talks

New year, new union talks: The United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) are set to resume contract negotiations on 7 January over increasing automation at ports, which the union says puts jobs in jeopardy, Reuters reported on Friday, citing a source familiar with the matter. The ILA has pushed for a rollback of the language on automation, while the USMX argues that modernization at ports is crucial to keep US ports competitive.

What if no agreement is reached? Another dockworker strike is on the horizon if the labor union does not land a new contract by 15 January. Shippers already started bypassing ports on the US East Coast and Gulf of Mexico last October over fears of another strike, which would impact bns in trade, increase inflationary pressures, and threaten supply chains.

IN OTHER NEWS- Airbus reports more share buybacks: Airbus has launched another part of the second tranche of its share buyback program, uptaking 161k shares between 23 December 24 and 2 January 2025, according to a statement. The initiative, announced in September, looks to provide for future equity-based compensation plans and employee share ownership plan activities. The firm plans to repurchase a maximum of 10% of its issued share capital, with an end date set at 31 May 2025.

Calendar

JANUARY 2025

20-24 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

27-29 January (Monday-Wednesday): World Cargo Summit, Ostend, Belgium.

28-29 January (Tuesday-Wednesday): Green Shipping Summit, Rotterdam, The Netherlands.

29-30 January (Wednesday-Thursday): ShipTek International Conference, Dubai, UAE.

FEBRUARY

3-5 February (Monday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

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

4-5 February (Tuesday-Wednesday): Airport Expansion Conference, Riyadh, Saudi Arabia.

10-11 February (Monday-Tuesday): Middle East Breakbulk conference, Dubai, UAE.

10-11 February (Monday-Tuesday): MRO Middle East, Dubai, UAE.

10-12 February (Monday-Wednesday): Sustainable Aviation Futures MENA, Abu Dhabi, UAE.

10-12 February (Monday-Wednesday): Japan Kyoto Trade Exhibition, Dubai, UAE.

10-13 February (Monday-Thursday): Future Warehouses & Logistics, Dubai, UAE.

18-19 February (Tuesday-Wednesday): Argus Green Marina Fuels Asia Conference, Singapore.

18-19 February (Tuesday-Wednesday): Middle East Procuretech Summit, Dubai, UAE.

19-21 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

20-22 February (Thursday-Saturday): Dubai Freight Camp, Dubai, UAE.

25 February - 1 March (Tuesday-Saturday): WCA Worldwide Conference, Dubai, UAE.

MARCH

No events announced at the moment.

APRIL

2-4 April (Wednesday-Friday): Global Supply Chain and Logistics Summit, Amsterdam, The Netherlands.

3-4 April (Thursday-Friday): Africa Supply Chain Optimization, Johannesburg, South Africa

10 April (Thursday): Gulf Ship Fiance Forum, Dubai, UAE.

14 April (Monday): CargoIS Forum, Dubai, UAE.

15-17 April (Tuesday-Thursday): Transport Middle East 2025, Aqaba, Jordan.

15-17 April (Tuesday-Thursday): IATA World Cargo Symposium, Dubai, UAE.

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

MAY

6-8 May (Tuesday-Thursday): Airport Show, Dubai, UAE.

12-15 May (Monday-Thursday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

13-14 May (Tuesday-Wednesday): Global Ports Forum, Dubai, UAE.

20-22 May (Tuesday-Thursday): Seamless Middle East, Dubai, UAE.

27-29 May (Tuesday-Thursday): Saudi Warehousing & Logistics Expo, Riyadh, Saudi Arabia.

JUNE

1-3 June (Sunday-Tuesday): Annual General Meeting & World Air Transport Summit 2025, Delhi, India.

2-4 June (Monday-Wednesday): Propak MENA, Cairo, Egypt.

5-6 June (Thursday-Friday): Supply Chain & Logistics Innovation Summit, Amsterdam, Netherlands.

11-13 June (Wednesday-Friday): Sustainability World Summit, Frankfurt, Germany.

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

19 June (Thursday): East Med Maritime Conference, Athens, Greece.

25-26 June (Wednesday-Friday): Decarbonizing Shipping Forum, Hambury, Germany.

JULY

1-3 July (Tuesday-Thursday): ASEAN Ports and Logistics, Jakarta, Indonesia.

SEPTEMBER

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

OCTOBER

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

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

NOVEMBER

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

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

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

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 twoof Jafza Logistics Park to be completed.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

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

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