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KSA to launch new real estate logistics city in Khuzam

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What we're tracking today

TODAY: Saudi and China’s CITIC launch real estate logistics city + Jordan lands EUR 3 bn partnership agreement

Good morning, ladies and gents. We’re ending the week with a brisk read this morning, with news emerging from Saudi’s new logistics city and updates trickling in from Egypt on export-bound projects and plans. Let’s dive right in.

WATCH THIS SPACE-

#1- Egypt’s AOI eyes solar panel exports to Gulf in new facility plans: The Arab Organization for Industrialization (AOI) is in discussions with Omani investors to establish a solar panel factory that could see most of its exports go to the GCC area, Al Mal reported on Tuesday, citing government officials. The proposed USD 100 mn facility will have a production capacity of 300 MW and is planned to be built on AOI-owned land, though the final location has not yet been disclosed.

To be exported on a condition: Most of the production will be allocated for export to Gulf countries, providing foreign currency needed to import raw materials for local production, with a portion reserved for the local market to support domestic renewable energy projects, Al-Mal reported.

On a roll: AOI inked an agreement with Sweden’s Sunshine Pro last month to establish a joint solar panel manufacturing project with a USD 200-300 mn investment, planned to kick off operations in July this year, and set to reach full capacity of 1 GW of solar panels annually by July 2026.

#2- Iraq-Egypt agreements likely incoming today: The Egyptian-Iraqi Joint High Committee is expected to sign several cooperation agreements in the oil, housing, taxes, customs, and transportation sectors at a meeting that concludes today in Baghdad, Asharq Business reports, citing four government sources. Egypt is also in talks to purchase Iraqi diesel with easy facilities to secure the Egyptian electricity companies’ needs in the summer in a bid to prevent a return of last year’s power outages, a source said.

Egypt has its eyes on Iraqi markets: Egypt's exports to Iraq saw a y-o-y increase of 12% for the first 10M of 2024 and is targeting a 41% increase in trade volume this year, Asharq reported, citing a government official.

#3- Saudi is getting a new drone delivery operator: US-based delivery drone developer Matternet received regulatory approval from the Saudi General Authority for Civil Aviation to operate its flagship M2 drone in Saudi Arabia, according to a press release.

About Matternet: The US-based company specializes in designing, building, and operating autonomous drone delivery networks, with delivery operations in the healthcare and commerce sectors in the US and Europe, according to its website. The company is also eyeing entering developing markets, boasting the drone delivery system potential for areas with under-developed road infrastructure.

#4- US + UK vessels cautiously sail back to the Red Sea: Six ships linked to the US and UK have transited the Red Sea unscathed since 19 January after a vow by Yemen’s Houthis that they will halt attacks on non-Israeli-linked shipping vessels, Bloomberg reports. “The peace agreement progresses and vessels and infrastructure remain untargeted, improved stability is expected,” but risks in the maritime corridor are still “elevated,” the Joint Maritime Information Center noted.

All eyes on the ceasefire: The secure passage of the UK and US ships could give more shipping firms confidence to return to the Red Sea, but all eyes are on the progression of the ceasefire in Gaza.

REMEMBER- Some industry players — including Egypt’s Suez and Red Sea Navigation Chamber head Abdel Qader Gaballa and DP World’s deputy chief executive Yuvraj Narayan — expect that more shipping lines could return within two to three weeks, but shipping giants like Maersk, CMA CGM, MSC and Adnoc indicated they would continue to stay away from the Red Sea for the near term despite the Gaza ceasefire and Houthi agreement.

MARKET WATCH-

#1- Oil prices saw minor changes as the market continued to wait for clarity on possible US tariffs on Mexico and Canada, Reuters reports. Brent crude futures were down USD 0.07 to USD 76.51 a barrel by GMT 04.11, while the more active US West Texas Intermediate (WTI) futures went up by USD 0.02 to USD 72.64 a barrel.

#2- Baltic index continues to plummet: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 20 points to 726 on Wednesday, its lowest reading since February 2023. The capesize index dropped 55 points to 876, while the smaller supramax index dipped 7 points to 612 — its lowest since June 2020. The panamax index rose by 3 points to 751.

DATA POINT-

#1- The GCC’s total trade volume is projected to reach USD 2.3 tn by 2033, growing at an average annual rate of 5.5%, Boston Consulting Group (BCG) estimates, according to a press release. Meanwhile, the bloc’s non-oil trade is expected to expand at 3.5% annually, backed by strong economic diversification efforts, the US consulting firm added.

China + Japan main forces behind GCC trade growth: BCG puts China as the biggest trading partner at an estimated USD 88 bn, a 5.7% CAGR, right above Japan at an estimated USD 46 bn (9.4% CAGR). The GCC is also well-positioned to capitalize on the rising influence of the Global South as trade between developing nations is projected to grow by USD 673 bn by 2033, the group said.

#2- Cargo operations at the Ras Al Khaimah International Airport (RAK) in the UAE increased nearly 97% y-o-y in 2024, with 6.7k tons of cargo handled, Wam reports, citing Salem Al Qasimi, head of the Civil Aviation Department in Ras Al Khaimah. Aircraft movements also increased by over 21% y-o-y to 7.4k flights.

PSA-

Hapag-Lloyd to roll out new GRI…: Shipping giant Hapag-Lloyd will implement a general rate increase (GRI) to USD 500 per container shipped to North America from the Indian Subcontinent and the Middle East starting 1 March 2025, according to a statement. The new rate will be applied to all cargo transported in 20 and 40 foot dry, reefer, and special containers and high cube equipment, and will be valid until further notice.

… and new SCCT shipment surcharges: New surcharges will also be rolled out for shipments to and from the Suez Canal Container Terminal (SCCT) in Egypt effective 23 February 2025, according to a statement.

Updated rates for Turkey’s Mersin: Hapag-Lloyd will change its terminal handling charge origin (THO) and terminal handling charge destination (THD) rates for shipping to and from Mersin in Turkey starting 10 February for all non-FMC trades, and from 20 February for all FMC trades, according to a statement.

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CIRCLE YOUR CALENDAR-

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.

The UAE will host the MRO Middle East and Aircraft Interiors from Monday, 10 February to Tuesday, 11 February in Dubai. MRO Middle East will host leaders in aircraft maintenance, repair, and operations to explore the latest technologies and strategies in the industry.

The UAE will host the Sustainable Aviation Futures MENA forum from Monday, 10 February to Wednesday, 12 February in Abu Dhabi. The event aims to promote SAF partnerships, raise awareness, and support the integration of clean energy and sustainability in the aviation sector. The two-day forum will host key figures in the aviation industry, including notable speakers from Lufthansa Group, ACI World, Saudia Group, Arab Air Carriers’ Organization (AACO), and DHL Express.

The UAE will host the WCA Worldwide Conference from Tuesday, 25 February to Saturday, 1 March in Dubai. The event — set to bring together over 4.5k freight forwarders from 179 countries — will host several workshops and courses over one week.

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

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Projects

KSA’s National Housing Company launches new logistics city, inks MoUs worth SAR 30 bn

Saudi’s National Housing Company (NHC) signed multiple logistics and supply chain agreements, which came as part of a flurry of SAR 30-bn-worth agreements it signed during the Real Estate Future Forum that concluded on Tuesday, 28 January, in Riyadh, Asharq Business reports.

Here is what we know:

#1- NHC signed an agreement to launch a logistics city in the Khuzam development with the Chinese state-owned firm CITIC and Al Rawaf Contracting Company, Asharq Business reported. The project targets optimizing the supply chains in the country’s real estate sector, SPA reported.

SOUNDS FAMILIAR? Over SAR 3 bn in initial investments were pledged in May 2024 to build an industrial city and logistics zone for building materials under a partnership agreement between CITIC and NHC. The project will be home to 12 Chinese factories and a number of local factories.

#2- An MoU to cooperate on supply chains and industrial linkage programs was signed with the Ministry of Industry and Mineral Resources, with the aim to support and lead local content in the real estate development sector. No further details were disclosed.

#3- NHC also signed several open purchase agreements (OPA) to secure supply chains for real estate development, including an OPA with Zamil Air Conditioners Factory to secure air conditioning works supply chains. No further details were made available on these agreements.

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Investment Watch

EU to invest EUR 3 bn in Jordan under new partnership agreement

The EU is backing Jordan with a EUR 3 bn financial and investment package, according to a statement. The package — earmarked for 2025 to 2027 — will support structural economic reforms and trade flow between the two parties, and aims to boost the potential of Jordan’s freetrade area. The signed agreement will also look to encourage investment in digital technology, green energy, fertilizers, and pharma goods.

Background: Talks between the two sides have been advancing since earlier this month, with EU Startups and Innovation Commissioner Ekaterina Zaharieva discussing ways to boost cooperation and the EU expressing eagerness to finalize the partnership.

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Trade

Egypt eyes CNG Cylinders’ local production + export with new facility

Egypt eyes CNG Cylinders’ local production and export with new facility: The Egyptian arm of India’s Everest Kanto Cylinder is working on establishing the country’s and Africa’s first factory producing compressed natural gas (CNG) cylinders, according to a statement (pdf) from financial backer National Bank of Egypt (NBE). NBE is backing the full cost of the project via an EGP 954 mn loan.

What we know: Production at the facility is set to kick off at the end of the year, with 40% of the facility’s products earmarked for exports and the remaining 60% pegged to meet local market demand, according to the statement. The factory is planned to be located in the Suez Canal Economic Zone and will produce a range of cylinders, including those for vehicles, medical uses, and various industrial and energy uses.

The rationale: The project will help support nationwide localization efforts, cut down on imports, and bolster energy security. It is also expected to support the government’s efforts to convert 1.5 mn cars to run on natural gas, especially with a recent pledge from the Finance Ministry that it will soon cover 70% of the conversion cost, which currently stands at roughly EGP 17-17.5k using an imported cylinder.

Tags:

5

Earnings Watch

FY 2024 earnings from Al Seer Marine and Nakilat

FY 2024 results are trickling in: We have a mixed bag of earnings reports from two regional players this morning, as UAE-based marine services company Al Seer Marine and Qatari shipping and maritime company Nakilat post their FY 2024 earnings results.

AL SEER MARINE-

The UAE’s Al Seer Marine recorded losses of AED 1.47 bn in 2024, an almost 43% wider loss than the previousyear by our calculation, according to an earnings release (pdf). The UAE-based maritime player's topline, however, increased 4% y-o-y to AED 1.28 bn during the same period, driven by operational expansions and growth.

Behind the numbers: The firm attributed the boost in revenues to its diversification strategy across several sectors, including operating four new MR tankers in the commercial sector, an increase in services demand in the yacht management sector, and the development of new maintenance and technical support contracts in the tech and defense sectors.

As for the drop in income, the company said it came mainly from a dip in the fair value through profit or loss (FVTPL) of shares in leading companies listed on ADX due to market fluctuations.

ICYMI- Al Seer Marine received last month two new MR tankers from K Shipbuilding Korea — the second pair out of six total newbuilds on order — with the remaining two tankers slated for delivery this month.

NAKILAT-

Qatar Gas Transport Company’s (Nakilat) bottomline increased 5.1% y-o-y to QAR 1.64 bn in 2024, up from QAR 1.56 bn the year prior, according to its earnings release (pdf). Its top line dipped about 2.6% y-o-y to 4.53 bn, down from 4.65 bn the prior year.

Behind the numbers: The firm attributes its topline slight decrease to a fall in income from joint ventures in LNG and LPG, as well as reduced shipyard activity, but that was offset by raised revenue from vessels it wholly owns and lower financing costs for its newbuild program, resulting in a positive bottomline.

Fleet expansion was a top priority in 2024: The company attributes its success to a program to acquire newbuilds, including an order announced back in January 2024 for six advanced gas carriers, including two LNG carriers and four LPG/Ammonia carriers, from Hyundai Samho Heavy Industries. Nakilat also entered into long-term contracts with QatarEnergy to operate and charter nine QC-Max LNG carriers in May and to charter 25 conventional LNG carriers back in March.

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Also on Our Radar

Updates on shipping, e-commerce and customs from KSA, UAE and Oman

SHIPPING + MARITIME-

Bahri + Petredec to meet KSA’s demand for LPG and ammonia shipping: Saudi national shipping company Bahri has inked an agreement with LPG player Petredec to establish a joint strategic partnership to address Saudi Arabia’s increasing demand for LPG and ammonia shipping, according to a statement. The two companies will form a specialized joint commercial team, and Bahri will create an internal LPG team within its arm Bahri Oil to handle all upcoming shipping needs for LPG and ammonia in Saudi Arabia.

CUSTOMS-

#1- Egypt’s gov’t to release all cars held at ports over ACI violations: The Egyptian Customs Authority is releasing vehicles that have been held at ports for violating the registration rules of the Advanced Cargo Information (ACI) system, according to a decision by the authority on Tuesday, seen by EnterpriseAM. Owners of the cars must pay owed customs and fees plus up to EGP 10k in fines per vehicle to take advantage of the new policy.

Background: Cars had been piling up in Egypt’s ports over the past few months after the authorities refused to release cars whose owners had tried to dodge the ACI’s passenger car registration restrictions by registering their passenger cars under other categories.

This newest wave of car releases comes as the government seeks to limit personal car imports in a bid to support auto industry localization. In December, the Investment Ministry issued a decision introducing new restrictions on personal car imports to limit USD outflows and support the localization of the auto industry, capping personal imports at one car every five years.

#2- Oman launches tender for inspection and clearance station: Oman has launched a tender for the development, management, and operation of a one-stop inspection and clearance station covering 60k sqm in Al Hafeet Square in Al Buraimi. The tender calls for local and global logistics firms to apply. (Statement)

E-COMMERCE-

EMX + Temu to enhance e-commerce fulfillment in the UAE: EMX — the logistics arm of the UAE’s 7X — has signed a partnership agreement with Chinese e-commerce giant Temu to expand e-commerce fulfillment in the UAE and across the region, according to a statement. The pair will boost maritime shipping capacity and introduce pick-up and drop-off services for customers. Temu first launched in the UAE in late 2023, and is currently also operating in Saudi Arabia, Kuwait, Qatar, Bahrain, Oman and Jordan, according to the statement.

TRADE-

Iran’s non-oil trade with West Asian countries grew in 9M 2024, Tehran Times reports, citing Director General for West Asia at Iran's Trade Promotion Organization (TPO) Abdolamir Rabihavi. The country’s non-oil trade with Iraq grew by 35% y-o-y, with the UAE by 11%, with Turkey by 59%, with Kuwait by 31%, with Syria by 21%, with Qatar by 14%, with Oman by 15%, and with Lebanon by 30%. The highest increase was with Jordan at 508% and Saudi Arabia at 9.8k%.

Behind some of the data: The staggering 9.8k% trade growth with Saudi is attributed mainly to the fact that trade between the two nations is just starting to pick up, leading to an increase in non-oil trade’s value from a mere USD 200k to USD 23 mn. Turkey is also the largest trading partner among the bunch, with Iranian-Turkish trade growing by around USD 2 bn.

OTHER STORIES WORTH KNOWING THIS MORNING-

  • BAS implements RMS system: Bahrain Airport Services (BAS) has implemented IT provider SITA’s Resource Management System (RMS) to optimize workforce allocations, equipment utilization, and give real-time insights to its ground operations. (Times Aerospace)
  • Etihad Airways adding more flights to Milan: Etihad Airways is introducing a third daily flight between Abu Dhabi and Milan starting 1 November 2025. (Statement)
7

Logistics in the News

Maersk + MSC vie for market dominance with diverging strategies after breakup

Maersk and the Mediterranean Shipping Company (MSC) are embracing diverging strategies after breaking up a decade-long 2M alliance, Bloomberg reports.

MSC is going solo: MSC is adopting a traditional approach as it goes solo in the sector. This approach will see the company — which controls over 20% of the world’s container capacity — adopt more direct port calls as it serves major trade routes, with 12 port calls earmarked for its solo network. The company has been on a shopping spree since 2021, purchasing 405 vessels, Bloomberg reported, citing data from Alphaliner. This brings its fleet to 886 vessels, with another 132 on order.

Maersk has a new partner and approach: Maersk — with 14% of world’s container capacity — formed the Gemini Alliance with the Hamburg-based giant Hapag-Lloyd AG, which will focus on boosting schedule reliability by 90%. Maersk hopes that focusing on being on time will free up some capacity, allowing the company to move more tonnages each ear and clinch a bigger market share as a result. However, the success of the new approach — which will focus less on direct port calls and more on hubs controlled by the two companies — depends on the alliance’s ability to manage more, shorter trips smoothly.

Targeting terminal investments: Maersk funneled about USD 3 bn investments into expanding several port terminals that would act as hubs in its new approach, such as Netherlands’ Rotterdam and Morocco’s Tangier. It hopes that the investments and the new operational strategy will allow the alliance to increase containers’ movement in several of these hubs by 30%, Maersk Chief Product Officer Johan Sigsgaard told journalists in a webinar, according to Seatrade Maritime. “We’ve expanded in Port Said, Tangiers, we’re expanding in Rotterdam, Salalah is getting new cranes and bigger capacity,” Sigsgaard said.

Inspired by Amazon: The model adopted by the Gemini Alliance is similar to a delivery distribution model popularized by Amazon called the “hub-and-spoke” model. In this model, a distributor would place warehouses, or ports in this case, in strategic locations to act as a central node for multiple end-delivery locations, allowing for more flexibility and efficiency.

Looking forward: MSC has “a very good shot at being successful in operating their own line the traditional way,” especially because cargo owners have traditionally preferred direct routes with fewer stops, the global co-leader of logistics and transportation at AlixPartners Brian Nemeth told Bloomberg. On the other hand, Gemini faces the challenge of proving a new concept in a commoditized service industry. “History will be the witness,” Hapag-Lloyd’s senior managing director of network Anders Boenaes told Bloomberg.

8

Around the World

German demand for Russia LNG rises despite direct shipment ban

German demand for Russian LNG rises: Germany continues to purchase large quantities of Russian liquefied natural gas (LNG) through other EU countries, even though it has stopped accepting direct shipments of Russian fuel in November 2024, the Financial Times writes, citing a report by a consortium of European NGOs.

How is it happening? Germany’s LNG imports from France and Belgium are “in fact partly composed of Russian LNG, effectively whitewashing the gas,” Belgian think-tank Bond Beter Leefmilieu’s energy policy officer Angelos Koutsis told Financial Times. “The end result is that all countries involved can claim not to be responsible for the still increasing demand for Russian LNG,” Koutsis said.

REMEMBER- France’s LNG imports from Russia hit a new record in 2024, with deliveries exceeding any prior annual tallies since shipments began in 2018. Several EU member states, including France, are stressing the need for better tracking of Russian LNG imports.

ICYMI- Europe is no longer the top importer of Russian oil and natural gas, being overtaken byChina 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.

ALSO- The EU backs away from banning Russian LNG: The European Commission will not ban Russian LNG in its latest sanctions package after some member states raised concerns about securing alternatives, EU diplomats told Reuters.


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.

24 February (Monday): AD Ports Group Capital Markets Day, Abu Dhabi, 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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