KDL Logistics gears up to float a 20% stake on Nomu in November

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TODAY: KDL Logistics set for 20% Nomu listing next month

Good morning, nice people. It’s a brisk read today led by IPO and investment updates from Saudi and the UAE, as KDL Logistics advances its Nomu public offering and Mubadala Capital backs the USA-based AI infrastructure outfit Crusoe. PLUS: Egyptian-made goods could begin accessing the Chinese markets dutyfree as soon as next month.

HAPPENING TODAY-

The US Federal Reserve is expected to cut interest rates for the second time after its September cut at its Federal Open Market Committee today. Softer US inflation figures that came out last week put the Fed on course to make another small 25 basis point cut, analysts say.

Speaking of the Fed, Treasury Secretary Scott Bessent said the Fed’s next heir will likely be named by the end of the year, after whittling down the shortlist of candidates to just five, CNBC reports. The names potentially replacing current Fed chair Jerome Powell are: Fed Governors Christopher Waller and Michelle Bowman, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock executive Rick Rieder.

WATCH THIS SPACE-

#1- Is UAE’s Fujairah gearing up to invest USD 500 mn into Egypt’s Hamra port? UAE’s Fujairah is reportedly working to funnel USD 500 mn into the initial phase of its planned USD 3 bn oil logistics zone at Egypt’s Al Hamra Port on the Mediterranean coast, an unnamed government official told Asharq Business. The agreement comes after Fujairah and Egypt inked an agreement earlier this month to set up a joint-stock company to advance the project.

REMEMBER- Fujairah inked an MoU last year with Egypt to build a USD 3 bn petroleum logistics zone at Al Hamra Port. Construction on the zone was reportedly planned to take off in 1H 2025, with a government official telling Asharq Business then that it could take three years to complete.

That’s not all: Fujairah also inked a contract with the Western Desert Petroleum Company (Wepco), operator of Al Hamra oil port and pipelines, to store some 150k tons of oil and petroleum goods per month at the port’s storage facilities. The tons could potentially increase if the UAE firm requests it in the coming period.

REMEMBER- Wepco is expanding its oil storage capacity: Petrojet is currently working on expansions in Al Hamra port, including four new warehouses in the northern section that would raise total handling capacity from 2.8 mn barrels to 5.3 mn barrels — two are scheduled to enter service before year-end, and the remaining two will launch in 1Q 2026. Petroject is also working on expansions in the southern section of the port to add storage capacity of up to 130k tons to serve the western north coast and Al Almien areas, the company said last month.

DATA POINT- Wepco handled some 74 mn barrels of oil at Al Hamra port during FY 2024-25.

#2- Qatar Airways is expecting the delivery of seven new freighter jets in 2026 — five converted passenger jets from Mammoth Freighters and two freighters directly from Boeing, Qatar Airways’ Chief Cargo Officer Mark Drusch told Bloomberg. The deliveries are part of some 28 freighter jets already on order, Drusch added.

New ventures ahead: The regional airliner is also looking into new market expansions ahead of the expected launch of a joint cargo business venture with the Malaysia-based MASkargo and IAG Cargo next year. The joint venture has received most regulatory approvals, except for the Malaysian government green light, which is expected by the end of this year or early next year, Drusch said.

In numbers: The airline boasts a total tonnage capacity of 1.6 mn tons through 28 Boeing freighters and belly capacity from more than 230 passenger jets.

IN OTHER FLEET UPDATES- Riyadh Air adds a leased jet to fleet: PIF-owned jet lessor AviLease signed its first leasing agreement with the Kingdom’s newest national carrier Riyadh Air for a Boeing 787-9 Dreamliner, the airline said in a press release yesterday. The aircraft is scheduled for delivery before year-end, supporting Riyadh Air’s preparations for its full operational launch — a rollout that began with daily flights to London Heathrow launched last Sunday.

IN CONTEXT- The initial flights operated on a Boeing 787-9 aircraft named Jamila ahead of new aircraft deliveries from Boeing. The Kingdom’s new airline voiced plans back in June to serve 100 cities by 2030, aiming to add a destination every two months once it’s operational. Meanwhile, Avilease’s fleet now stands at 192 owned and managed aircraft leased to 48 carriers across 29 countries as of 3Q 2025.

#3- Damascus’ freezone back in action: The freezone at Syria’s Damascus International Airport has relaunched operations, handling its first commercial shipment following a 14-year hiatus, Sana reports. The move marks the reactivation of trade movements in the zone, and Syria aims to funnel investments into supporting the growth of its logistics sector.

MEANWHILE- Syrian-Saudi investment ties are advancing from MoUs to implementation, with some USD 6.4 bn in agreements activated during a joint investment roundtable held yesterday in Damascus, Asharq Business reported. The roundtable focused on exploring new potential investments in priority sectors, including energy, communications, banking, real estate development, mining, and digital transformation.

ICYMI: The Saudi-Syrian Investment Forum held in July in Damascus put forth 47 agreements worth over SAR 24 bn. The Kingdom also granted Syria 1.65 mn barrels of crude oil earlier last month to back the operational and financial stability of Syrian refineries.

High-level support: Syrian President Ahmad Al Sharaa is expected to land in Riyadh today and address the FII9 forum in Riyadh, as well as meet Crown Prince Mohammed bin Salman to discuss investment in Syria’s infrastructure, housing, energy, health, technology, and sustainability sectors.

MARKET WATCH-

#1- Oil prices dipped slightly this morning amid news of a possible Opec+ production hike in response to a US-China trade pact, Reuters reports. Brent crude futures were down USD 0.03 to USD 65.59 / bbl as of 03:59 GMT, while US West Texas Intermediate (WTI) decreased USD 0.05 to trade at USD 61.26 / bbl.

Meanwhile, IEA’s head sees oil prices easing on surplus supply: The oil market is heading for a soft patch as output growth outstrips demand, International Energy Agency’s (IEA) Executive Director Fatih Birol told Bloomberg. Rising production from the Americas, Opec+ signaling higher supply, and slower consumption growth will be key drivers behind what he expects will be “moderate” prices over the coming days and weeks. Any US-China trade agreement this week would give oil prices only a “slight” lift unless a major geopolitical event intervenes, he added.

REMEMBER- The IEA is signaling a growing supply glut, with global output in September already up by 5.6 mn bbl / d from a year ago — 3.1 mn bbl / d of which came from Opec+. Global supply is estimated to exceed demand by some 4 mn bbl / d next year, compared to around 3.3 mn bbl / d last month, if current trends hold.

#2- Baltic still on its downward trend: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — eased 0.8% to 1,976 on Monday, its lowest since 10 October. The capesize fell 1.2% to 2,838, while the panamax index dropped 0.2% to 1,921 points. The smaller supramax index shed 8 points to 1,361.

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CIRCLE YOUR CALENDAR-

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.

Egypt will host the TransMea Expo on Sunday, 9 November until Tuesday, 11 November in Cairo. The expo will host regional and international players in the transport industry to explore tech, new smart solutions and products for transport and logistics services.

The UAE will host the Dubai Airshow on Monday, 17 November until Friday, 21 November in Dubai. The event will host over 1.5k exhibitors and 148k industry experts from over 150 countries, to discuss air mobility, new MRO breakthroughs, sustainable aviation, startups and new tech for aircraft simulations.

Saudi Arabia will host the ShipTek International Conference and Awards on Tuesday, 18 November in Al Khobar. The conference will host policy makers, organizations, suppliers and experts on maritime, offshore and oil and gas.

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

KDL Logistics kicks off Nomu IPO, amid a period of increased investor selectivity

Khaled Dhafer & Brothers Logistics Services Company (KDL Logistics) is floating a 20% stake on Tadawul’s parallel market Nomu through a secondary offering of 700k shares, it said in its prospectus (pdf). The move — a month after the firm secured Capital Market Authority (CMA) approval for the debut — will see the firm’s founding family members sell down their position to a combined 80% stake, thereby raking in all the proceeds from the sale.

Subscriptions open next month: The offering will be limited to qualified investors, with subscriptions running from Sunday, 30 November, to Wednesday, 3 December. A given qualified investor can apply for a maximum of 175k shares, with the lower pricing limit set at SAR 10 per share. Final allocations are due Monday, 8 December, with the shares to be on lockup for a period of 12 months from the first day of trading.

Breaking a dry spell for logistics IPOs? KDL Logistics will be the first pure-play logistics player to go public in the Kingdom since SAL Saudi Logistics Services’ 2023 main market debut, and the first in the segment to list on Nomu since fast delivery app Jahez’s 2022 offering. Other Nomu entrants, such as Al Ashghal Almoysra and Alshehili Company, which both went public through an IPO last year, operate in contracting and industrial manufacturing, and only provide logistics support services as part of broader business lines.

IN CONTEXT- The offering lands in a market that’s showing increased selectivity and uneven appetite, with Al Khaldi Logistics scrapping its planned offering in June, the second Nomu withdrawal that month after Dome International shelved its 14.5% stake sale. Meanwhile, Jahez, which debuted on Nomu before moving to the main market last year, saw 1Q net income surge 185% y-o-y to SAR 33.3 mn, showing investor preference for profitable, tech-led logistics plays.

Earnings snapshot: KDL Logistics’ net income fell 13.5% y-o-y to SAR 1.9 mn in 1Q 2025, while revenue increased 18.4% y-o-y to SAR 17.1 mn.

ADVISORS- Arbah Capital is quarterbacking the IPO as financial advisor and bookrunner, with Maham signing off as external auditor. Receiving agents include Al Rajhi Capital, SNB Capital, Alinma Capital, Riyad Capital, Anb Capital, BSF Capital, and Albilad Capital, among others.

About KDL: Founded in 1980, the Riyadh-based company provides end-to-end logistics, transport, and supply-chain services. Its core operations span land freight, warehousing, customs clearance, container handling, and project logistics across industrial zones and ports in the Kingdom. The company operates a fleet of trucks and storage facilities for clients in manufacturing, construction, and trade.

Mubadala Capital leads a USD 1.4 bn Series E funding round in Crusoe

Mubadala Capital led a USD 1.4 bn Series E funding round in US-based AI infrastructure company Crusoe, alongside US tech investor Valor Equity Partners, according to a press release. The oversubscribed round pushed the company’s valuation to over USD 10 bn, up from USD 2.8 bn last year. Nvidia also took part in the funding round, alongside Franklin Templeton, Fidelity Management, SuperMicro, T. Rowe Price, and others.

The wealth fund is already heavily invested in the clean computing startup: The sovereign entity previously participated in Crusoe’s USD 350 mn series C round in 2022 and its USD 600 mn series D round in 2024. The company used the funds to invest in data centers and its cloud platform, Crusoe Cloud.

Where will the money go? The funding will enable Crusoe to expand its vertically integrated approach to delivering AI factories at the required scale and timeframe, Crusoe’s CEO Chase Lochmiller said. This plan involves buying new hardware and hiring more employees, Bloomberg reports.

About Crusoe: Founded in 2018, the company is an AI infrastructure developer that adopts a vertically-integrated model, spanning energy sourcing, hyperscale data-centre development, and its cloud platform, Crusoe Cloud. It is currently working on several data center development projects in the US, including a Texas-based 1.2 GW project and a 1.8 GW campus in Wyoming.

It’s also a Stargate player, with the Texan data center complex it operates for Oracle and OpenAI being the first installation in the USD 500 bn US Stargate initiative backed by Abu Dhabi investor MGX.

Madbouly inaugurates over USD 47 mn-worth of projects in Sokhna

Some USD 47 mn-worth of new projects in Egypt’s Sokhna Industrial Zone kicked off operations yesterday in the presence of Prime Minister Moustafa Madbouly.

#1- Turkish building materials manufacturer Ado Group inaugurated its USD 15mn PVC window and door manufacturing factory. Trial operations kicked off in August. Output will serve both local and regional markets.

The details: The 55.1k sqm factory has an annual production capacity of 15k tons of PVC windows — door production will launch in January with an annual capacity of 75k doors. The first phase of production will create around 100 direct jobs. Local components will make up 90% of the input.

It might be the first time we hear Ado’s name in the local market, but we don’t think it will be the last, with company CEO Emre Aksoy describing the plant as “the first step in the group’s long-term investment plan in Egypt.”

READ MORE- We dive deeper into the influx of Turkish investments coming our way in an Inside Industry published earlier this year. Check it out here.

#2- Homegrown Punalu for Plastic and Wood Industries inaugurated its USD 12 mnfactory for the production of artificial marble, eco-friendly wood-plastic composite panels, and UPVC doors and windows. The 20k sqm facility has a production capacity of 14 tons per day, capacity will expand to 56 tons per day once all production lines are fully operational. The project will create over 100 jobs in its first phase.

We knew this was coming: General manager and co-founder Zaher Gamal over the summer told EnterpriseAM that the company is investing USD 10 mn to set up its factory. At the time, he told us that the company aims to scale up its production capacity to 90 tons per day by adding new product lines and around 20 production lines by the end of 2026, bringing total investments to USD 200 mn amid rising local and regional demand.

#3- Local manufacturer Prime Verde for Bags and Paper Industries has opened the doors to its USD 7.5 mn paper sacks production factory. The 10.5k sqm facility’s output will be used in packaging cement and other building materials locally. It has a production capacity of 140 mn bags a year and will create 120 jobs once fully operational later this month. It kicked off trial operations in May.

#4- A Chinese metalworks manufacturer inaugurated its USD 4.5 mn steel pipes andmetal furniture production factory. The 25k sqm facility has an annual output of 100k tons of stainless steel pipes, 4.8k tons of stainless steel sheets, and 2.4k tons of metal furniture.

#5- Kemet Industries launched a USD 4 mn ethanol plant, which produces high-purity ethanol using locally-sourced sugarcane and beet molasses. The 1.6k sqm facility has an annual capacity of 2 mn liters and targets unmet local demand for pharma- and lab-grade ethanol.

#6- Sinai Medical Supply opened a USD 4 mn nitrile glove factory with an annual production capacity of 60 mn gloves. The 1.2k sqm facility employs 100 workers and aims to localize medical glove manufacturing, reduce imports, and boost exports.

It wasn’t just new factories opening their doors and kicking off production; yesterday also saw Egypt Anode’s Ain Sokhna plant resume production after a two-year hiatus. The Egyptian Anode Blocks Company (Egypt Anode), a subsidiary of state-owned Metallurgical Industries Holding, has reopened its Ain Sokhna plant as it undergoes a five-year USD 20 mn rehabilitation under an agreement with global oil and gas giant BP.

The plant had halted operations in July 2023 due to technical issues. The factory restarted production with a single production line — with a capacity of 150k tons — the second line will be ready early next year and will double production.

The move is part of a government initiative to revive and restructure idle factories. A government source told us in December that the government is mulling reopening 12k stalled factories, approving immediate reopenings, and waiving accumulated penalties for previously operational facilities, as part of an initiative to streamline administrative hurdles in the industry and support the sector.

China eyes duties exemption for Egyptian exports

Egyptian goods could be entering China dutyfree as early as the end of November, as China continues to boost diplomatic and economic relations with African nations, unnamed government sources told Al Borsa. The news follows Chinese Ambassador Liao Liqiang’s comments on Thursday that the world’s second most populous nation was studying exempting Egyptian exports from import duties, according to a Trade Ministry statement.

The move will play a big role in rebalancing Egypt’s trade relationship with the world’s factory, along with bolstering exports and supporting USD investment flows, Cairo Chamber of Commerce’s Exporters Division head Ahmed Zaki told EnterpriseAM. Chinese exports to Egypt outnumbered those going the other way by 29x, with Egypt exporting only USD 578 mn worth of goods last year, compared to China’s USD 16.8 bn, according to the Chinese Foreign Affairs Ministry. State statistics agency Capmas’ count has Chinese imports at a slightly smaller USD 15.7 bn and Egyptian exports roughly the same.

China is working to give no-tariff access to all of the 53 African nations it has diplomatic relations with, Chinese Foreign Minister Wang Yi said at the opening of the China-Africa Economic and Trade Expo back in June. The scrapping of tariffs across the whole continent extends its existing policy for least developed countries to include middle-income nations, including Egypt, while adding additional support to the least developed countries.

We already know that Chinese companies like Egypt, with over 200 players present in the China-Egypt Teda industrial zone investing a combined USD 3 bn and creating over 70k direct and indirect jobs. The Chinese side has expressed interest in expanding the area allocated for the zone to house more projects.

Egypt needs to set a clear plan to increase exports over the coming five years, Zaki said, adding that this should happen as the country expands industrial investments and pushes Chinese factories to relocate to Egypt to take advantage of trade agreements with Africa, Arab, and European countries.

REMEMBER- Egypt wants to double Chinese investment to USD 16 bn over the next four years.

Noatum Logistics to operate Hafeet Rail’s UAE-Oman service

RAIL-

#1- Noatum Logistics tapped to run UAE-Oman rail service: AD Ports’ subsidiary Noatum Logistics inked a preliminary agreement with Hafeet Rail to run a new freight rail service connecting Oman’s Sohar to Abu Dhabi, according to a press release. The service will operate daily, running seven shipping container trains per week, each with a 276-TEU capacity. The containers will move general cargo, manufactured goods, food products, pharma products, and agrifoods between the two countries.

ICYMI- The UAE-Oman Hafeet Rail connection is a USD 2.5 bn project announced in 2022 and backed by Mubadala, Etihad Rail, and Oman’s Asyad Group. The project has already secured contractors for the establishment of new rail logistics facilities and the supply of high-performance freight wagons earlier this year, as well as freight uptake agreements for the transportation of raw materials.

#2- Iran tapped Turkey + Afghanistan to develop railway lines: Iran, Turkey, and Afghanistan have inked a new agreement to explore the development of joint railway lines and bolster trilateral cargo transits, Iranian news outlet Mehr reported on Saturday. Under the agreement, technical and financial support will be plugged into revamping the Khaf–Herat railway line up to Mazar-i-Sharif.

AVIATION-

Kuwait International Airport gets a new runway: Kuwait’s Civil Aviation Authority has launched operations for a new control tower and third runway at Kuwait International Airport, Kuna reports. Kuwait completed construction on the two facilities last March, alongside a new air cargo city with the capacity to accommodate more than 77 cargo carriers. The new facilities come as part of a larger development plan to update the airport’s infrastructure and operational capacity to facilitate increased commercial aviation activity in the country.

ICYMI- Dubai-based engineering consultancy Dar Al Handasah nabbed a five-year contract with Kuwait’s DGCA to supervise construction and design for several facilities in the development project back in June 2024, with all the developments scheduled to be inaugurated by 4Q 2026.

SHIPPING + MARITIME-

The Saudi Ports Authority (Mawani) added Culines’ SJA shipping service to Jeddah Islamic Port, linking it to two regional ports, it said in a statement yesterday. The new route — with a capacity of 900 TEUs — will connect Jeddah with Sokhna in Egypt and Aden in Yemen.

Calendar

OCTOBER

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.

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.

15-17 February (Sunday-Tuesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

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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