KKR to acquire undisclosed stake in UAE’s Gulf Data Hub

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What we're tracking today

TODAY: KKR to acquire stake, invest in Gulf Data Hub + Oman’s Madayn’s infrastructure project

Good morning, folks. We have a packed issue today to kick off the week with updates rolling in from across the region and beyond, but first an international trade update ahead of Trump’s inauguration later today….

THE BIG LOGISTICS STORY- The EU and Mexico have reached a political agreement to expand their 25-year-old trade accord after nine years of stalled negotiations. The agreement — catapulted by the looming threat of US tariffs with Trump’s inauguration — will reduce barriers for EU companies wishing to operate in Mexico and remove or lower barriers on new sectors, such as services and agricultural products, according to a statement.

What’s in the cards? Mexican EVs will also be exported to the EU duty-free, given they contain 60% European or Mexican components. The EU will also lower its quotas on Mexican beef, poultry, and ethanol exports. The EU is also set to benefit, with Mexico granting its companies the same treatment as Mexican firms and its agricultural products — such as milk powder, cheese, pasta, jams, and pork — getting zero tariffs with some quotas applied.

In context: Mexico is especially vulnerable to tariffs from the US, its biggest trading partner, given that it sends 80% of its exports to the US. Both countries’ trade volume stood at over USD 800 bn in 2023, way above the EU-Mexico trade volume of USD 84 bn. While some analysts — including Gabriela Siller of Banco Base — believe the agreement would help the country diversify its partners and reduce US “hegemonic power” in trade, the country would still be hard hit when Trump rolls out the planned 25% tariffs.

^^ We have more int’l trade updates in the wake of Trump’s threats in the news well, below.

AK-SHIPS IS LINING UP NEW PARTNERSHIPS- Our friends at AK-Ships are lining up a partnership agreement with Polish ship building firm Rivan Engineering next month. The company intends to capitalize on Rivan’s integration of advanced tech, including nanotech. Rivan offers several services including consultancy, repairs, and project management. EnterpriseAM Logistics will have all the details on the new partnership next month.

HAPPENING TODAY-

The five-day World Economic Forum (WEF) Annual Meeting will kick off today in Davos, Switzerland. The event will bring together about 3k leaders from over 130 countries to address global challenges, including geopolitical tensions, economic growth, technological advancements, and energy transitions.

Who’s there from the region? KSA and UAE are sending big delegations. The Saudi Foreign Minister Prince Faisal bin Farhan will lead a delegation including ministers of tourism, investment, finance, economy and planning, industry and mineral resources, and communications and information technology, SPA reports. The UAE is also sending a big delegation of 100 leaders from the government and the private sector led by the Chairperson of Dubai Culture and Arts Authority (Dubai Culture) Sheikha Latifa bint Mohammed bin Rashid Al Maktoum, Wam reports. The GCC’s Secretary General Jasem Mohamed AlBudaiwi is also going, according to a statement.

The forum will also include President-elect Donald Trump joining via a live video, European Commission President Ursula von der Leyen and Chinese Vice Premier Ding Xuexiang, WAM reports. It will also feature 350 government leaders and 60 heads of state and government.

WATCH THIS SPACE-

#1- Mubadala gets the greenlight to restructure Getir: Abu Dhabi sovereign wealth fund Mubadala is set to restructure Turkish delivery startup Getir after receiving the green light from the company’s shareholders at an extraordinary general meeting (EGM) on Sunday, Bloomberg reports, citing an emailed statement. The wealth fund applied for sole ownership of Getir’s grocery and food delivery businesses with Turkish antitrust authorities back in September, after acquiring a controlling stake in the company back in June, leading a USD 250 mn funding round tied to the company’s restructuring.

Under Mubadala’s restructuring plan, Getir's profitable local grocery delivery operations would be separated from the company’s noncore businesses. The Abu Dhabi fund says the move is necessary to stabilize the company, whose valuation fell to USD 2.5 bn in 2023 from USD 11.8 bn in 2022 amid cashburn and exits from key markets, including the UK, Germany, the Netherlands, and the US.

REFRESHER- Getir founder Nazim Salur initiated legal action to challenge Mubadala’s move to seek full control of Getir last week, which he described as an “illegal coup” aimed at reducing the founders’ stake to zero, urging Mubadala to uphold the June agreement to split Getir into two entities. Though the company’s other co-founders, Serkan Borancili and Tuncay Tutek, have not commented publicly, a source with direct knowledge of the planned lawsuit told Reuters that the founders claimed Mubadala “intentionally delayed” transferring units to them and reneged on the agreement at the end of last year.

Salur is not backing down: In an X post, the company’s founder labeled the EGM as “unlawful,” pointing out that only two out of nine board members participated in the resolution to call the meeting. Sulur plans to challenge the decision in courts in the Netherlands, Turkey, and England, with a hearing on the matter scheduled for 24 January at the Enterprise Chamber of the Amsterdam Court of Appeal.

#2- Egypt may be getting a new USD 1.5 bn textile freezone: Egypt’s General Authority for Investment and Freezones (GAFI) is looking into setting up a freezone in Minya governorate to house textile projects from a Chinese investment alliance eyeing USD 1.5 bn in initial investments, GAFI head Hossam Heiba told Hapi Journal. The authority is mulling allocating 1 mn sqm for the project, down from the alliance’s ask of 2-3 mn sqm, Heiba added.

Chinese investor appetite for Egypt seems to already be emerging as a trend in 2025, with the just few weeks of the year bring news of an up to USD 10 bn — not a typo — phosphate fertilizer complex planned for Upper Egypt, a USD 60 mn textiles factory in Sadat City’s Industria Sadat zone, and a USD 135 mn auto factory expansion, to name but a few.

#3- Libya has plans for boosting oil production: Libya needs USD 3 bn to USD 4 bn to boost oil production to 1.6 mn barrels per day (bpd), up from the latest figure of 1.4 mn, interim Oil and Gas Minister Khalifa Abdulsadek told Reuters in a report published on Sunday.

Libya plans first oil exploration bidding round after over a 17-year hiatus, with the Cabinet expected to approve the round before the end of this month, Abdulsadek said. The licenses will cover three sedimentary basins — Sirte, Murzuq, and Ghadames — and feature 15 to 21 blocks. The move comes as the country — whose economic output is 95% from oil — pushes for reconstruction after over a decade of conflict.

There is potential: Around 70% of the country’s total land area and over 65% of its territorial waters are yet to be explored, former chief of National Oil Farhat Bengdara said.

#4- UAE + Russia step closer to sign double taxation avoidance agreement: The UAE’s Finance Ministry has finalized the final round of negotiations for a dual taxation avoidance agreement on income and capital with Russia, with the two sides completing the initial signing of a draft agreement in the matter, Wam reported on Friday. The agreement aims to protect taxpayers’ rights, prevent double taxation, and promote investment and the seamless flow of trade, according to the news agency.

This isn’t the first such agreement to be signed by UAE recently: A mutual taxation agreement between the UAE and Bahrain received unanimous approval from the Bahraini Shura Council, last week, with the aim of protecting individuals and companies from double taxation. The Finance Ministry also previously signed agreements with Bahrain, Egypt, and Kuwait at the World Government Summit last year to eliminate dual taxation, with an eye to crack down on tax evasion.

IN OTHER EMIRATI TRADE NEWS- UAE + Kenya to triple meat and horticultural trade: A CEPA agreement signed by the UAE and Kenya last week could triple the African country’s meat and horticultural exports to the Emirates, a top trade ministry official in the African nation told Bloomberg on Friday. Kenya exported some USD 80 mn worth of meat and horticulture products to the UAE in 2024.

And there’s more: The economic partnership is also expected to facilitate oil trade by simplifying export procedures and providing a framework for investment and dispute resolution, principal secretary for trade of Kenya Alfred K’Ombudo told Bloomberg.

#5- A GCC-UK freetrade agreement (FTA) could be finalized within a week in London, Aleqtisadiah reported on Friday, citing a UK government spokesman. A delegation from the six GCC states will finalize the FTA, which could add GBP 8.6 bn annually to the trade balance between the UK and the GCC, up 16%, with a focus on technology, AI, and renewable energy.

We knew this was coming: The talks reportedly entered their final stages in November. GCC nations have been working on the draft agreement since 2022, which could be followed by individual trade pacts between the UK and GCC countries.

AND- Saudi and Thai Trade officials talk freetrade: Saudi Commerce Minister Majed Al Qasabi and Thai Trade representative Nalinee Thavisi discussed a potential FTA between Thailand and the GCC, according to Thailand’s The Nation. No further details on the meeting were provided.

#6- Riyadh Air delays launch to 3Q 2025 amid Boeing delivery setbacks: PIF-owned Riyadh Air opted to push back its launch to 3Q 2025 from early this year after facing delays in its Boeing aircraft order, Bloomberg reported on Thursday, citing sources with knowledge of the matter. The delivery delay is expected to see the airline receive as many as four Boeing 787 Dreamliners this year — half of the original delivery.

REMEMBER- Riyadh Air also placed an order of 60 Airbus A321neos in October which are scheduled to arrive between 2H 2026 and 2030. The startup airline is also to place a new wide-body jet order by 1H 2025 to further expand its fleet, eyeing the Boeing 777X and Airbus A350-1000.

Turbulence in the aviation sector: Boeing’s 2024 was marred by delivery delays and general supply chain disruptions, which are set to persist well into 2025. Lags in the aviation supply chain are impacting the sector at a global scale amid shortages of spare parts and issues with engine maintenance. Analysts expect the aviation sector’s challenges will persist for years with no quick resolution in sight.

ON A RELATED NOTE- Morgan Stanley boosted its outlook for Airbus last week raising its share price target to EUR 200 from EUR 160 while retaining an overweight rating on the stock, Investing reported on Thursday. Morgan Stanely labeled the company its Top Pick in the aviation sector in 2025, boosting market confidence in the company’s medium-term delivery capacity and potentially resulting in a reassessment of the stock's value.

However, Airbus’ narrowbody aircraft deliveries in 1H 2025 will still be constrained by engine supply chain problems, Airbus CEO Guillaume Faury told Bloomberg.

On the flip side, market confidence in Boeing took a dip, as the firm fell short of its delivery targets for 2024. Boeing recorded 348 commercial aircraft deliveries in 2024, slightly above the expected 340 jets and down from 480 the year prior. The planemaker is not expected to make significant improvements in delivery results before the end of 2025

REMEMBER- Airbus delivered 766 commercial aircraft in 2024. The Commercial Aircraft division secured 878 new gross orders, bringing its year-end backlog for 2024 to 8.6k aircraft.

#7- Maersk + Hapag-Lloyd do not see immediate return to Red Sea despite Gaza ceasefire: Shipping giants Hapag Lloyd and Maersk are not likely to immediately return to the Red Sea following the ceasefire announcement between Hamas and Israel, Reuters reported on Thursday. “The agreement has only just been reached. We will closely analyze the latest developments and their impact on the security situation in the Red Sea,” a Hapag-Lloyd spokesperson told the newswire.

But would the Houthi attacks continue now that there is a ceasefire? Maritime security officials are expecting Yemen’s Houthis to announce a halt in their attacks on ships in the Red Sea following the commencement of the Hamas-Israel ceasefire, Reuters reported on Thursday. The experts highlighted an email — reviewed by Reuters — in which the group delayed an upcoming first-of-its-kind security briefing targeting the maritime and shipping sector scheduled for the next few days, suggesting it could be a possible indication. The webinar has now been rescheduled for February 10.

REMEMBER- The two companies started last year a joint alliance — the Gemini Cooperation — that planned phasing in the Cape of Good Hope Network in February 2025 in a bid to avoid disruptions in the Red Sea. Both companies have largely steered away from the Red Sea, opting for the longer alternative route around the Cape of Good Hope.

MARKET WATCH-

#1- Oil prices fell in early morning trading on the back of expectations US President-elect Trump will relax Russian energy curbs, Reuters reports. Brent crude futures were down USD 0.16 to USD 80.63 a barrel by GMT 04.53, while the more active US West Texas Intermediate (WTI) April contract dropped USD 0.06 to USD 77.33 a barrel. Both benchmarks gained over 1% last week in their fourth successive weekly rise after the Biden administration sanctioned over 100 tankers and two Russian oil producers.

#2- China and India are looking to the Middle East for oil supplies in Russia’s stead after the US Treasury Department’s recent package of sanctions on Russia from the US, estimated to be the toughest since the start of the war in Ukraine in 2022, Bloomberg reported on Friday. The sanctions were imposed on some 161 Russian oil tankers, with analysts like Macquarie Group estimating that the move could cause a loss of as many as 2.15 mn bbl / d in exports.

The details: Chinese and Indian buyers reportedly asked Saudi Arabia, Iraq, the UAE, and Kuwait for more oil, which might prove difficult to provide given their commitments to Opec+ — where Moscow is a leading force — to keep supply short, writes the business information service. Aramco already turned down requests for February-loading cargos from some Chinese buyers, Reuters reported on Thursday, citing sources it says are familiar with the matter.

REMEMBER- China and India took over Europe’s share of Russian oil imports after the continent cut down its imports of Russian oil products in 2023, NPR reported in 2023.

Shipping rates are also being driven up by the sanctions and higher demand for vessels to transport Middle Eastern crude to Asia, Reuters reported last week. The charter cost of a supertanker from the Middle East to China rose 15% to reach USD 4.1 mn, with tankers on other routes seeing similar hikes, shipbrokers told the news agency.

#3- Increased demand for quick parcel delivery will push air freight to grow by 10% in 2025, Qatar Airways Cargo Chief Cargo Officer Mark Drusch told Bloomberg on Saturday. The firm’s e-commerce sector increased by 25% last year, and another “double-digit expansion” is expected in 2025, Drusch said.

Expectations: Semiconductors and consumer goods in major economies are also expected to be strong areas for the sector in the coming year, with the carrier forecasting a 5% to 10% increase in total freight capacity, Drusch said. “We’ve all become so accustomed to buying things online and expecting them very quickly,” he told Bloomberg Television. “We don’t expect that to slow down, and neither do our partners.”

REMEMBER- The trend may be here to stay: Growth in the e-commerce sector is expected to lead to express carrier demand growing faster than the industry average, with express carriers forecasted to serve 25% of the air cargo market by 2043.

#4- The global sugar market is set to get a supply boost as India expects to ramp up exports to 1 mn metric tons of sugar this season, government sources told Reuters on Sunday. The move aims to allow mills to export their surplus stock and support local prices. India’s most prominent sugar export markets include the UAE, Bangladesh, and Indonesia. The South Asian country was the second biggest sugar exporter in the world in the five years leading up to 2022/23.

#5- Baltic index maintains upward trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — plummeted 36 to 987 points on Friday. The capesize index dropped 89 points to 1,393, while the panamax index fell 18 points to 747. The smaller supramax index increased by 1 point to 897.

#6- The Drewry World Container Index fell 3% to USD 3,855 per 40-ft container on Thursday, according to the latest index readings. Spot rates for 40-ft containers are now 63% below the previous pandemic peak but remain 171% above the pre-pandemic rate of USD 1.4k. The average composite index YTD is USD 3,915 per 40ft container, which is USD 1,045 higher than the 10-year average rate of USD 2,871.

DATA POINTS-

A record year for Egyptian imports of Israeli gas: Egypt imported a record 981 mn cfd of natural gas from Israel last year, up 18.2% y-o-y, according to a report from industry publication Mees. The increase was driven by a growing gas deficit thanks to a dip in local gas production that saw production fall to a seven-year low of 4.5 bn cfd in October.

Egypt’s imports of Israeli gas have been steadily increasing for years now, with Israeli gas imports rising to their current level from just 202 mn cfd in 2020. Israel’s NewMed Energy — which owns 45.3% of the Leviathan gas field — also recently floated the prospect of doubling Egypt-bound shipments to more than 2 bn cfd by 2030. On the other hand, the report says Egypt’s only alternative is LNG imports — whose spot prices currently sit at around USD 14 per mn BTU, significantly costlier than Israel’s USD 6.5 per mn BTU imports.

The Saudi Port Authority (Mawani) has recorded 320 mn tons of containers handled in 2024, a 14.45% increase y-o-y, according to a statement released last week. Saudi ports saw a 13.79% increase in incoming containers and 8.86% increase in outgoing containers. The port authority handled 7.5 mn containers and 11.5k vessels in 2024.

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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, a heavy lift workshop, a 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.

Global PE firm KKR to acquire undisclosed stake in Dubai’s Gulf Data Hub

KKR makes its first investment in MENA data centers: Global investment firm KKR & Co. has signed a strategic partnership agreement with Dubai-based data center operator Gulf Data Hub (GDH) to acquire an undisclosed stake in GDH, according to a joint statement. The transaction, which marks KKR’s first data center investment in the Middle East, is pending regulatory approval. While the size of KKR’s potential investment wasn’t disclosed, both plan to commit a combined USD 5 bn to support GDH’s regional and international growth plans.

Where are GDH operating? GDH currently operates a total of seven data centers across the UAE and Saudi Arabia, with additional facilities planned in Kuwait, Qatar, Bahrain, and Oman, according to the statement.

KKR’s interest lies in other logistics partnerships: KKR has maintained a strong presence in the Middle East for over 15 years, with offices in Dubai and Riyadh, and a track record of strategic investments in infrastructure and aviation, including partnerships with Adnoc and Etihad Airways, the statement notes. KKR has emerged as a leading investor, managing USD 77 bn in assets (AUM) and committing over USD 29 bn to digital infrastructure and USD 15 bn to energy. Its expansive data center portfolio comprises more than 100 facilities worldwide, with investments in renewable energy projects exceeding 50 GW.

IN CONTEXT- GCC countries’ abundant low-cost energy, vast capital reserves, and aggressive AI-driven ambitions have fueled a competitive race between the UAE and Saudi Arabia to expand data center infrastructure. As a result, financial hubs like Abu Dhabi and Riyadh are attracting increasing interest from global funds and private equity firms.

Saudi Arabia signs investment agreements for export-oriented ventures during Future Minerals Forum

Saudi Arabia signed a few agreements focusing on export-oriented mining and metal production ventures last week, as part of around 126 mining and metal production agreements with possible investments worth over SAR 107 bn (c. USD 28.5 bn) delivered during the Future Minerals Forum last week, SPA reported on Friday.

Here is what we know about the export-oriented production ventures:

#1- An iron ore production hub by Vale + RCJY: Royal Commission for Jubail & Yanbu (RCJY) and Brazilian miner Vale signed a land reservation agreement for a multi-phase Mega Hub at Ras Al-Khair to produce up to 12 mn tons annually of cold-briquetted iron ore for domestic and global markets, according to a press release on Thursday.

#2- Export-oriented steel production plant by RCJY + Tosyali Holding: RCJY and Turkish steelmaker Tosyali Holding signed an agreement to establish an integrated flat steel production plant in Ras Al-Khair Industrial City, targeting value-added steel production and increased exports.

#3- A SAR 125 mn agreement with Energy Projects Company for a car battery manufacturing plant in Shaqraa Industrial City, spanning 69k sqm, with production planned for local market and exports.

ICYMI- The Kingdom — sitting on an estimated USD 2.5 tn of untapped mineral resources — is advancing a massive USD 100 bn investment in its mining sector, including USD 20 bn already in progress, as part of a “fast and furious” push to deepen the Kingdom’s mining footprint and position itself as a global mining powerhouse.

Oman’s Madayn inaugurates OMR 35 mn project at Samail Industrial City

Madayn launches project at Samail Industrial City: Oman’s Public Establishment for Industrial Estates (Madayn) has inaugurated a project to build infrastructure for Samail Industrial City with an investment of over OMR 35 mn (c. USD 90 mn), according to a statement published on Thursday. The project — which prioritizes manufacturing industries — aims to boost Oman’s industrial capacity and is in line with Oman Vision 2040 to diversify its economy, the statement said.

What we know: The project — which covers 753 hectares — involves two phases, the first covering 548 hectares and the second 205 hectares, ONA reported last week. The industrial city includes a 16k sqm facility building, which will offer 12k sqm of leasable space to provide facilities for employees. Situated 60k southwest of Muscat, Samail Industrial City is an extension of Rusayl Industrial City, which is almost at full capacity with investment projects, Oman Observer reported last week.

Madayn has been busy: Madayn issued a tender for the establishment of Al Mudhaibi Industrial City in North Al Sharqiyah governorate back in October. It also inked an agreement back in April with Al Munasiq customs services company to improve added value for investors in Madayn industrial cities by adding 11 new customs services in industrial cities. It also launched two RO 9.5 mn projects at Al Mazunah freezone and completed OMR 5 mn of construction work on Nizwa Industrial City in 2023.

IN OTHER OMAN NEWS- Oman greenlights new project at Sohar Industrial City: Oman’s Public Establishment For Industrial Estates (Madayn) has inked an OMR 1.2 mn agreement with building material manufacturer Saveto Group’s Vetonit for a project at Sohar Industrial City, covering 11.2k sqm, according to a statement released on Thursday. No other details or a timeline for the project have been revealed.

Noatum Maritime + Kazakhstan’s KMTF to boost cooperation in the Caspian Sea

AD Ports boosts its ties with Kazakhstan: AD Ports Group’s shipping arm Noatum Maritime has inked a heads of terms agreement with Kazakhstan’s national shipping company KazMorTransFlot (KMTF) to build two container vessels tailor-made for operation in the Caspian Sea, according to a statement released on Thursday. Each vessel will have a capacity of over 500 TEUs.

There’s more: The two firms will also work together to develop an intermodal system utilizing high-capacity ferries in the Caspian Sea and the corresponding terminal infrastructure. They will also collaborate to expand their tanker fleet for crude oil transportation.

ICYMI- AD Ports said last week that it is investing some USD 30 mn into the development of Kazakhstan’s Kuryk Port’s Sarzha Grain Terminal gain terminal, in which it will hold a majority stake of 51%. The UAE-based firm first partnered with the Kazakh company in August 2023, announcing plans to potentially invest in a Kazakh grain terminal.

AD Ports has been active in Kazakhstan: AD Ports inked a head of terms agreement with KMG in December 2023 to develop a multifaceted maritime construction and repair facility in the Mangistau region of Kazakhstan. The agreement was part of a JV — Caspian Integrated Maritime Solutions — the two parties formed back in 2022, offering integrated offshore solutions and shipping services in the Caspian Sea.

KSA’s Zatca rolls out new regulations for customs clearance procedures at ports

KSA’s Zakat, Tax, and Customs Authority (Zatca) introduced new regulations (pdf) for data pre-submission of cargo goods entering the Kingdom through maritime ports. The rules aim to streamline customs clearance procedures and boost port operational efficiency.

Background: The rules have been put up for public consultation on Istitlaa until 2 February. Once approved, the rules will take effect 30 days after their publication in the Official Gazette.

Who is affected? Shipping agents must submit shipping manifests and data for goods at least 24 to 72 hours before the ship’s arrival, depending on the port's distance. Importers must also submit customs declarations, including detailed information about the goods, and attach required documents.

A streamlined process: The new rules introduce pre-clearance procedures, which involve fulfilling all necessary import restrictions and paying customs duties, taxes, and other fees either before or after the goods arrive at customs, ensuring that all regulatory requirements are met in advance. Once the goods arrive at the customs department, post-arrival clearance allows for their automatic release, providing compliance with the pre-submitted data and verification of import restrictions.

Non-compliance and penalties: Non-compliance may result in fines ranging from SAR 500 to SAR 1k with certain exceptions.

IN OTHER REGIONAL CUSTOMS UPDATES-

Abu Dhabi Customs and the trade tech firm CrimsonLogic are working on integrating AI and predictive analytics into the Emirate’s customs operations, according to a press release released last week. The new customs system — the Integrated Customs Operations System (ICOS) — will leverage AI-powered advanced predictive analytics to provide an integrated infrastructure that delivers 24/7 customs services, improving operational efficiency through automated customs and trade operations.

About CrimsonLogic: The tech company — a subsidiary of the Singaporean port operator PSA International — specializes in trade facilitation and compliance, port operations, government services and logistics, with over 36 years of global experience, according to its website.

Saudi Arabia signs several MoUs to boost mining + mineral trade

KSA inks multiple bilateral mining + mineral MoUs, including with UK: The Saudi Industry and Mineral Resources Ministry signed six mining and critical minerals bilateral cooperation MoUs with Djibouti, the UK, Jordan, Austria, Zambia, and France, the Saudi Gazette reported on Tuesday. Details on the cooperation ventures — signed during the Future Minerals Forum in Riyadh — were not disclosed.

The UK hopes cooperation with KSA would strengthen the island nation’s critical minerals supply chains, which are essential for its tech and clean energy sectors, Reuters reported on Tuesday, citing the British Government.

The rationale: The UK is racing to secure long-term access to critical minerals like copper, lithium, and nickel — key materials for EVs, data centers, and other tech. “The quantity of critical minerals we’re going to need in the future is significantly bigger than we have today,” UK Industry Minister Sarah Jones told Arab News last week. Saudi Arabia, meanwhile, is looking to leverage its estimated USD 2.5 tn untapped mineral resources to establish itself as a global hub for critical minerals trade.

IN OTHER TRADE DIPLOMACY NEWS-

#1- Iran + Russia ink trade agreement: Iran has signed a 20-year strategic partnership with Russia to boost bilateral trade and enhance cooperation in the energy sector, tech, and transport, the BBC reported on Friday.

Bolstering ties: Iran’s exports to Russia were up 14% y-o-y to USD 803 mn in the first 9M 2024, while imports from Russia totaled USD 1.099 bn during the same period, Tehran Times reported last week.

#2- Saudi Arabia and Singapore have inked an MoU to bolster trade, investment, and defense ties, according to a statement released last week. Under the agreement, first announced in 2023, the two sides will establish the Saudi-Singapore Strategic Partnership Council, which would host regular meetings to determine avenues for growing their cooperation. The total trade value between the two countries reached USD 10.6 bn in 2023.

Aviation, trade, and ports updates from Egypt, Jordan, Qatar and the UAE

MARITIME-

OOMCO + TFG Marine launch bunker fuel JV in Oman: The Oman Oil Marketing Company (OOMCO) has established a bunker fuel joint venture (JV) with Singapore-based TFG Marine to supply vessels visiting Oman’s ports of Duqm, Muscat and Sohar, according to a statement published on Thursday.

REFRESHER- Oman’s Sohar Port and Freezone and TFG inked an MoU in March 2024 to establish an international bunker fuel supply vessel to supply vessels at the Omani port.

ROADS-

Dubai's Road and Transport Authority (RTA) awarded a contract valued at AED 1.5 bn for the Al Fay Street Development Project, according to a statement from the authority. The project will extend from the intersection with Sheikh Mohammed bin Zayed Road, through Sheikh Zayed bin Hamdan Al Nahyan Street, and continue to Emirates Road. The scope of the project includes the construction of five key intersections, with 13.5k meters of bridges and 12.9k meters of new roads.

Upon completion, Al Fay Street is expected to accommodate 64.4k vehicles per hour and serve an estimated population and visitor base of 600k individuals in nearby residential and developmental areas.

DECARBONIZATION-

UAE’s Etihad rail launches region’s “first” CO2 reduction certificates: UAE’s Etihad Rail has launched the region’s first “CO2 Emission Avoidance and Reduction Certificates,” aimed at quantifying the environmental benefits of rail transport, according to a statement released last week. The certificates will provide businesses with tangible data on the amount of carbon offset achieved by shifting to rail.

UAE is banking on rails for transport sector’s emission reductions: Etihad Rail’s operations are projected to cut the UAE’s road transport CO2 emissions by 21% annually by 2050 by shifting freight transport to rail. The plan aims to reduce emissions by 8.2 mn tons of CO2 annually, taking 300 trucks off roads for every train journey.

How it measures CO2 savings: The certificates — powered by the globally recognized EcoTransIT tool — calculate CO2 equivalents by factoring in direct emissions from diesel and indirect emissions from biofuels. Using Well-to-Wheel analysis, the process covers the full lifecycle of fuel use — from extraction to combustion — and accounts for shipment-specific data such as cargo weight, distance, and geocoordinates. Rail freight emissions are benchmarked against truck emissions.

TRADE-

French yeast producer Lesaffre Egypt will receive the golden license for its EUR 120 mn Egyptian yeast production and packaging facility to be set up in Beheria, according to last week’s weekly Cabinet meeting. The project will have an annual production capacity of 22.6k tons of instant and active dry yeast — the first phase will come online in August 2026 and the second phase will follow in August 2028. Over 90% of the project’s output will be earmarked for exports and the local component ratio will exceed 50%.

ALSO- Finnish food packaging manufacturer Huhtamaki secured the golden license for its EGP 1.5 bn factory — EUR 24 mn of which will come in the form of FDI, representing over 80% of the price tag — for the production and distribution of food packaging in Sadat City. The project will rely heavily on local materials, with its local component ratio expected to reach 70%, and intends to export 70% of its production.

AVIATION-

Qatar signs air service agreements with Cameroon + Antigua and Barbuda: Qatar has inked two air service agreements with Antigua and Barbuda and Cameroon to operate unlimited cargo and passenger flights, according to statements released on Thursday here and here.

Qatar has been on a roll with air service agreements: Qatar has secured 178 bilateral air service agreements with 193 member states of the International Civil Aviation Organization (ICAO) as of last November, the Peninsula Qatar said in November, citing the head of Agreements at Qatar’s Civil Aviation Authority Hassan Al Tamimi. Qatar signed similar agreements with Cuba, Malawi, and Suriname, and the country Al Sharq reported in October.

More is planned: The Gulf country is planning to expand its agreements to cover all members of the ICAO and will focus on reaching island nations in the South Pacific and Caribbean countries in Central America, Tamimi said.

PORTS-

Egypt’s Alexandria port to develop dry bulk goods logistics station: Egypt’s Alexandria Port Authority has inked a contract with Holland Stevedoring Services Company to develop an integrated logistics station at the port of Alexandria for handling and storing dry bulk goods, according to a statement released on Thursday. Holland Stevedoring will oversee the development of the superstructure as well as manage, operate, maintain, and redeliver the station. The project aims to increase the handling and storage capacity for grain and crops by 5 mn tons annually.

OTHER STORIES WORTH KNOWING THIS MORNING-

Qatar Airways to resume Doha-Malta flights: Qatar Airways will resume flights to Malta on 2 July 2025, operating four weekly flights. (Statement)
Turkish Airlines launching Damascus flights: Turkish Airlines will commence three weekly flights to Damascus starting 23 January, ending a 14-year-long hiatus (Statement).
Qatar Cargo joins cargo services platform Unisys: Qatar Airways Cargo is now available for booking at the Unisys cargo portal services platform. The update will see the Qatari flag freight carrier join more than 33,000 freight forwarders to offer 24/7 access to capacity data and enhanced operational agility and decision-making. (PR Newswire)
DHL Express HQ lands at MCT: DHL Express opened its headquarters at Muscat International Airport last week. (Oman Observer)
Aramex KSA launches automated shipment sorting: Aramex Saudi Arabia has launched a new system for automated shipment sorting at its facility in Jeddah Islamic Port. The move is to improve the logistics player’s capacity to handle shipments by up to 100%. (Statement)

Canada floats tariffs on up to CAD 150 bn-worth of US goods

Canada floats tariffs on up to CAD 150 bn-worth of US goods: Canada could impose retaliatory tariffs on a list composed of up to CAD 150 bn (c. USD 105 bn) US-manufactured goods if incoming President Donald Trump proceeds with his pledged 25% levy on Canadian goods, Bloomberg reported last week, citing an official familiar with the matter. The list would come into play only if Trump’s administration moves first, the source said, adding that more tariffs could come later.

What does Canada stand to lose? Canada imported CAD 487 bn worth of US goods in the year leading up to November, meaning the retaliatory tariffs would affect almost a third of the value of the products Canada purchases from the US.

Deutsche Energy Terminal to auction regasification slots in February: Germany’s state-owned Deutsche Energy Terminal (DET) will auction short-term slots next month for services including regasification, LNG storage, and send-out to the gas grid, the company said in a statement released last week. The auctions for obligation-to-deliver (OTD) slots will take place on 4 February, and no-obligation-to-deliver (NOTD) slots will be auctioned on 5 February at Wilhelmshaven terminal and 6 February at Brunsbüttel terminal.

Europe is in the market for new LNG suppliers: Europe is no longer the top importer of Russian oil and natural gas, being overtaken by China and India. Importing has become increasingly difficult amid increased US sanctions targeting dozens of oil traders and more than 180 tankers involved in shipping Russian oil. A ban on Russian transshipments of Russian LNG cargoes in EU ports is expected to be rolled out in March 2025.

OTHER STORIES WORTH KNOWING THIS MORNING-

China to impose anti-dumping duties on US + EU: China will apply provisional anti-dumping duties on imports of industrial plastics from the US, EU, Japan, and Taiwan, ranging from 3.8% to 74.9%, starting 24 January. (Reuters)

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 Finance 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, Hamburg, 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 two of 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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