Menzies Aviation fully acquires US-based aviation services firm G2 in

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What we're tracking today

TODAY: Menzies acquires US’ G2 + dnata is investing USD 110 mn into three global projects

Good morning, friends. The aviation industry is topping the newscycle today, with investment, M&A, and project updates from Turkey, UAE, and Kuwait. But first, another update on the US tariff circle-raven moves…

THE BIG LOGISTICS STORY- US launches trade probe into chips and pharma: The US President Donald Trump ordered the Commerce Department to launch a trade probe into the chips and pharma, laying down the foundation for a levy on the industries imports.

The timeline is hazy: The probe began at the start of the month and could take months to conclude, though Trump and other officials have said it could end quickly, with Trump even suggesting tariffs on imported chips could come as soon as next week.

PLUS- Trump also signaled he could modify the 25% tax on foreign auto parts, saying he’s a “flexible guy” and that automakers need some time, the Associated Press reports.

Market reax: Auto shares rose on the news, with General Motors closing 3.5% higher and Ford closing 4.1% higher. Big Tech also seems to still be cheering the temporary reprieve from the tariffs, with Apple now up 2.2% after losing more than 9% over the past two weeks.

HAPPENING TODAY-

The IATA World Cargo Symposium will kick off today and will run through Thursday, 17 April in Dubai. The event will host sessions, specialized streams, workshops, and summits related to technology, security, customs, cargo operations, and sustainability for over 1.4k industry leaders.

WATCH THIS SPACE-

#1- Sohar earmarks USD 23 mn for expansion: Oman’s Sohar Port and Freezone will invest upwards of USD 23 mn (OMR 8.9 mn) to add 500 hectares of leasable land to the zone, capitalizing on surging demand from interested businesses, according to a press release. The added area would include a 15-km road network, a 7.5-km flood protection facility, and 30 km of stormwater drainage. Local contractors and suppliers are earmarked to provide 85% of the needed components.

Sohar’s latest: Sohar Port and Freezone began dredging operations for the Marsa LNG project in February. Dredging works are slated to wrap up by September 2025, with LNG production at the plant set to kick off in 1Q 2028.

Omani zones are getting attention: Cumulative investment in Oman’s economic, industrial, and freezones rose 10% y-o-y in 2024 to reach around OMR 21 bn, Times of Oman reports, citing data from Oman’s Public Authority for Special Economic Zones and Freezones. Freezones themselves saw an increase of investments to OMR 6.6 bn.

#2- Quiqup touches down in KSA: UAE-based e-commerce logistics provider Quiqup has expanded into Saudi Arabia, launching its core fulfillment and delivery services in the Kingdom, according to a statement. The firm is backed by the Mohammed bin Rashid Innovation Fund (MBRIF) under its Guarantee Scheme loan program, which has supported Quiqup’s operational expansion to double its business over the past two years and grow its customer base by 77% y-o-y between 2023 and 2024.

Part of expansion plans: The firm is looking to further expand into the GCC as it views the region “as a connected e-commerce ecosystem where operational efficiencies in one market enhance the overall regional performance,” CEO Bassel El Koussa said.

About Quiqup: The company — founded in 2017 — offers comprehensive logistics solutions, with a focus on small and medium-sized enterprises (SMEs). Quiqup provides storage, sorting, packaging and delivery services.

E-commerce is booming in Saudi: The Kingdom’s growing e-commerce industry — spurred by covid-era boom — was ranked in 2024 as the second-highest VC funded sector in the country in a report by the London-based real estate consultant Knight Frank. Earlier last week, Egypt-born e-commerce platform Rabbit officially set up shop in Saudi Arabia by establishing its regional headquarters in Riyadh last week. Alshaya Group’s brands joined the GCC marketplace of the Turkish e-commerce platform Trendyol last month. American Eagle, Bath & Body Works, and H&M are now available on Trendyol for shoppers in Saudi Arabia, with more brands to come. Saudi-based e-commerce platform Aya also closed a USD 1.6 mn seed funding round.

#3- Vodacom International and others in the South African business delegation are working on upping their Egypt investments, especially in data centres, according to a statement. Vodacom CEO Shameel Joosub pointed to improvements in the investment climate, availability of digital transformation projects, and government support as reasons behind the company’s decision to increase its investments through its local arm Vodafone Egypt.

MARKET WATCH-

#1- Oil prices rose this morning on the heels of a hike in China’s crude imports and Trump floating tariff exemptions, Reuters reports. Brent crude futures surged by USD 0.25 to USD 65.13 a barrel, while the US West Texas Intermediate (WTI) increased by USD 0.28 to reach USD 61.81 a barrel by 06.30 GMT.

Goldman Sachs has slashed its oil prices forecast for 2025 and 2026, citing a risk of recession and higher supply from Opec+, Reuters reports. The bank predicts Brent and US WTI oil prices will decline to an average of USD 63-59 per barrel throughout the rest of 2025 and to USD 58-55 in 2026. The bank’s previous 2025 forecast in back March set a rate of USD 69-66 per barrel for Brent and WTI.

Emirates NBD follows suit: Emirates NBD has adjusted its price forecast for Brent futures down to USD 68 per barrel from USD 73, and WTI futures down to USD 65 from USD 71 in its latest market report (pdf). The forecast comes as oil markets are being hit with increased supply from Opec+ production hikes and amid the threat of decreased demand following US President Donald Trump’s tariff agenda. A breakdown in Opec+ cooperation could be in the cards, after some national oil companies — including Aramco — cut selling prices, which could lead to a further decline in prices, the report said.

Oil surplus is coming…: The global oil market is forecasted to see a surplus in oil supply of 800k bpd in 2025 and a surplus of 1.4 mn bpd in 2026, Goldman Sachs Analysts wrote in a note seen by Asharq Business.

…and demand growth to slow down: Opec cut its global oil demand forecast for 2025 by 150k barrels a day (bbl / d) to 1.3 mn bbl /d in its latest Monthly Oil Market Report (MOMR) (pdf), citing the impact of the US tariffs. Demand in Organization for Economic Co-operation and Development (OECD) countries is projected to rise by just 0.04 mn bbl / d, while non-OECD demand is forecast to grow by 1.25 mn bbl / d. The outlook for 2026 was also revised down to 1.3 mn bbl / d, with OECD demand expected to increase by 0.1 mb/d and non-OECD demand by 1.2 mn bbl / d.

#2- Baltic index continues upwards trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 0.6% to 1,282 points on Monday. The capesize grew 1.3% to 1,827 points, while the panamax index gained four points to 1,190. The smaller supramax index slipped 0.3% points to 936.

DATA POINT-

Global air cargo volumes are estimated to have increased 8.4% y-o-y to over 124 mn metric tonnes in 2024, according to an Airports Council International (ACI) statement cited by Bloomberg. Air cargo volumes at the top 10 airports represented a 26% share of global volumes last year — around 32.3 mn metric tonnes — up some 9.3% y-o-y.

What’s behind the numbers: The increase in air cargo volumes is due to stable e-commerce demand and maritime shipping disruptions due to geopolitical uncertainty and a fall in the price of jet fuel.

The rankings: Qatar’s Doha International Airport has ranked among the top 10 busiest cargo airports globally, settling in at eighth place. Hong Kong International Airport ranked first place at 4.9 mn metric tonnes, while China’s Shanghai followed closely at 3.7 mn metric tonnes.

PSA-

CMA CGM increases freight rates to Middle East and Red Sea Ports: Shipping giant CMA CGM has launched new freight shipping rates on all kinds of dry cargo from all North European ports to all Middle East Gulf and Red Sea ports, according to a statement. The rates — effective 1 May — will be increased to USD 1,150 per 20 ft container and USD 1,350 per 40 ft container for Middle East Gulf ports, while Red Sea ports will see rates increased to USD 1,950 per 20 ft container and USD 2,150 per 40 ft container.

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CIRCLE YOUR CALENDAR-

The UAE will host the Airport Show on Tuesday, 6 May to Thursday, 8 May in Dubai. The event will show products and technology for the airport industry from over 160 international suppliers and manufacturers across 20 countries. It will also provide a platform for networking with key players across seven airport sectors.

Saudi Arabia will host the Saudi Smart Logistics trade fair on Monday, 12 May to Thursday, 15 May in Riyadh. The event will provide insights into the latest international and local technology, solutions, equipment providers, and sustainable workflow practices within the logistics industry in the country.

The UAE will host the Global Ports Forum on Tuesday, 13 May to Wednesday, 14 May in Dubai. The forum will cover topics such as port strategy and development, port automation, finance and efficiency.

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

Menzies Aviation fully acquires US-based G2

Menzies Aviation takes over G2: Ground handling firm Menzies Aviation — a subsidiary of Kuwait’s Agility — signed an agreement to fully acquire US-based aviation services firm G2 in a USD 305 mn transaction, according to a statement. The transaction is still subject to regulatory approvals — is slated to be completed in June.

What’s in it for Menzies? G2 has a client list of major US airlines, and the company operates in more than 340 airports in 65 countries. The agreement is expected to bolster Menzies Group's topline by 20% to over USD 3.1 bn compared to FY 2024 revenue figures. The agreement “enhances our presence in the United States – the largest and most dynamic aviation market worldwide,” Menzies VP John Redmond said.

Menzies ? USA: The Kuwaiti firm entered into the US market in 200 and provides air cargo, ground, as well as fuel services to several airports. In April 2024, Menzies inked an agreement to manage and operate a fuel farm and hydrant fueling system at Texas’s Houston George Bush InterContinental Airport, solidifying the firm’s position as the largest fuel farm operator in North America with 56 facilities across the US and Canada.

About G2: Established in 2005, the firm offers ground and air cargo handling services, as well as passenger assistance to airports across the US.

Dnata is investing USD 110 mn into three air cargo infrastructure projects

dnata invests USD 110 mn in cargo projects: UAE-based air services provider Dnata announced it has plugged USD 110 mn into three major cargo projects in the UAE, Iraq, and the Netherlands, according to a statement made on the sidelines of Dubai’s IATA World Air Cargo Symposium.

#1- The Netherlands lands USD 70 mn: dnata is pouring over USD 70 mn into its 61k sqm Cargo City at Amsterdam Schiphol Airport — slated to launch operations this July. Once operational, the facility is expected to handle over 85k tons of cargo annually. The facility will boast innovative tech, including automated storage and retrieval systems (ASRS) and automated guided vehicles (AGVs).

#2- UAE nabs USD 27 mn: The company is investing USD 27 mn into developing a 57k sqm cargo center in Dubai South — scheduled to be completed by the end of the year. The facility will have a handling capacity of 400k tons annually and will feature a temperature-controlled warehouse. Dnata broke ground on the project back in December 2024.

#3- Iraq snags USD 15 mn: The firm has also earmarked USD 15 mn to develop a 20k sqm cargo facility in Iraq’s Erbil province. The facility — scheduled to be operational in July — will boost the firm’s local handling capacity by 300% to reach 66k tons per year. It will feature dnata’s automated operations system OneCargo.

ADEX-led consortium to support trading firm Trafigura with AED 863 mn loan

ADEX receives financing from CBD + SMBC: The Abu Dhabi Exports Office (ADEX) has inked an AED 863 mn (USD 235 mn) syndicated loan agreement with the Commercial Bank of Dubai (CBD) and Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to support Singapore-based trading firm Trafigura, according to a statement. The financing will support Trafigura’s acquisition of UAE-sourced commodities across several industries, including energy, metals, and minerals, facilitating the integration of UAE products into the international supply chain.

A breakdown of the funds: ADEX — the export financing arm of Abu Dhabi Fund for Development — is allocating USD 150 mn, while CBD and SMBC are contributing USD 65 mn and USD 20 mn, respectively.

ICYMI: Trafigura inked a two-year agreement for a USD 150 mn revolving credit facility with Etihad Credit Ins. and multiple UAE-based banks to boost UAE exports back in September 2024.

IN OTHER DEBT NEWS-

Arab lenders pledge USD 76 mn for Liberian road project: The Liberian government has signed an agreement with a group of institutions led by the Kuwait Fund for Arab Economic Development (KFAED) to provide USD 76 mn for the country’s Gbarnga-Mendikorma Highway project, according to a statement. About USD 65 mn of the financing will go toward paving 50 km of road between the districts of Konia and Voinjama, while the remaining USD 11 mn is earmarked for re-layering asphalt for an 81 km stretch.

That’s not all: KFAED also signed off on restructuring a USD 6.7 mn facility incurred by the Liberian government. The consortium also rescinded a suspension on the government’s borrowing, which took effect when Liberia’s National Port Authority failed to repay a USD 14 mn loan in 2023.

Meet the consortium: Among the Arab lenders are the Saudi Fund for Development, the Arab Bank for Economic Development in Africa (BADEA), the OPEC Fund for International Development (OFID), and the Abu Dhabi Fund.

Turkey completes first phase of Antalya Airport’s USD 1 bn expansion

Turkey completed the first phase of a EUR 927 mn (USD 1.1 bn) expansion project at Antalya Airport on Saturday, Turkish newspaper the Daily Sabah reports, quoting Turkish President Recep Tayyip Erdoğan as saying during the airport’s inauguration. The airport expansion project was executed through a public-private partnership (PPP), incurring no government expenditure.

The first phase’s details:

A new cargo terminal over an area of 13k sqm;
Expansions of apron space, hangar area, and taxiways totaling over 1.4 mn sqm;
A new maintenance hangar area and its infrastructure works;
A new fuel farm over a 80k sqm area;
Expansions of the international terminal from 90k sqm to 224k sqm;
Almost doubling the domestic terminal’s area to reach 75k sqm.

More about the project: The long-term expansion project is planned in three phases. The second phase — planned for completion by 2029 — will see investments of EUR 15 mn to construct a new air traffic control tower, while the third phase is expected to add another 70k sqm international terminal and expand the fuel farm to reach 150k sqm. The third phase will take place between 2038 and 2039, and is expected to cost EUR 125 mn.

Coming next in Turkey: Two more airports are also currently under construction in Turkey’s central Yozgat and northeastern Bayburt-Gumushane — which would raise the number of active airports in the country to 60.

Updates on investments, last-mile, e-commerce, and aviation from Oman, UAE, and Saudi Arabia

AVIATION-

#1- Etihad Cargo boosts China capacity: Abu Dhabi-based Etihad Cargo has boosted its main deck capacity by 18% to address growing customer demand in China, according to a statement. Etihad Airway’s cargo arm will now operate a planned total of 18 flights to and from China in 2025 — up from 11 flights in 2024. The airline will also add three additional weekly freighter flights to Shenzhen and will wet-lease a 747-F carrier to support its bolstered freight operations.

Europe’s also on the cards: Etihad Cargo plans to add two additional weekly flights to London Stansted Airport in effort to boost Abu Dhabi’s links to Europe. “By strengthening its presence in China and increasing links to Europe, Etihad Cargo is providing additional capacity to facilitate the movement of goods across international markets,” Chief Cargo Officer Stanislas Brun said.

#2- Flights between the UAE and Syria are set to resume, with coordination currently underway, the General Civil Aviation Authority said, according to state news agency Wam. Most countries had suspended flights to Syria, but many have resumed them after the ouster of former president Bashar Al Assad. A Syrian Airlines flight to Sharjah was the first to take off from Damascus International Airport in January. This comes following Syrian President Ahmed Al Sharaa’s visit to the UAE, where he aimed to boost ties in a meeting with President Sheikh Mohamed bin Zayed Al Nahyan.

#3- Saudi airlines vie for national non-scheduled air carrier license: Saudi Arabia’s General Authority of Civil Aviation (Gaca) launched a tender to offer a national air charter service license, according to a statement (pdf). The deadline for submitting proposals is 21 May, with bids set to be opened the following day.

LAST MILE-

Aramex + Shipsy collaborate to streamline operations: UAE-based last-mile logistics provider Aramex has inked a Master Services Agreement (MSA) with leading software platform Shipsy to integrate AI to boost supply chain efficiency, according to a statement. The pair aim to minimize costs and emissions by using Shipsy’s AI-powered logistics management platform to interlink and monitor supply chains, Chief Digital and Technology Officer Francoise Russo said.

ROADS-

UAE has a 2030 Roads and Transport Plan: UAE’s Roads and Transportation Authority (RTA) rolled out its 2030 Roads and Transport Plan, outlining a four-pillar framework to enhance roads and public transportation, improve transport policy, and launch smart traffic systems, according to its press release. The strategy expands on the previously approved AED 16 bn infrastructure investment plan for 2024-2027.

The plan’s first pillar will focus on developing road infrastructure through 39 projects that aim to improve key corridors, according to the press release. These upgrades include enhancing Latifa bint Hamdan Street, Hessa Street, Al Meydan Street, Al Mustaqbal Street, and the Trade Center Roundabout. Further improvements are planned for Al Wasl, Jumeirah, Umm Suqeim, Al Qudra, Al Fay, and Al Safa Roads, with a particular focus on the stretch between Sheikh Zayed Road and Al Wasl Road.

REMEMBER- The RTA inked a AED 6 bn agreement with Dubai Holding last month to expand internal roads and access points across the emirate. The move looks to cut down travel time and boost the capacity of key entryways to communities and residential areas by 30-70%.

OTHER STORIES WORTH KNOWING THIS MORNING-

Ethiopian Airlines flies to Sharjah: Ethiopian Airlines is set to launch four new weekly passenger services to Sharjah effective 1 June 2025. (Statement)

LNG, trade, M&A, shipping, and ports updates from around the world

US natural gas player NextDecade Corporation has inked a 20-year LNG agreement with French oil giant TotalEnergies to provide 1.5 mn mtpa, Reuters reports. The LNG will be supplied from the fourth planned liquefaction facility — Train 4 — at NextDecade’s Rio Grande facility, which is expected to be completed in 2027. The transaction size of the agreement has not been disclosed.

ICYMI: Saudi Aramco recently signed a 20-year LNG sale and purchase agreement with NextDecade for the offtake of Rio Grande LNG facility’s Train 4 output. NextDecade Corporation will supply Aramco with some 1.2 mn mtpa of LNG over 20 years on an FOB basis.

More details emerge on Panama Canal proposed transaction: Italian family-run terminal operator Terminal Investment Ltd (TiL) is emerging as the lead investor in the BlackRock-led group of investors vying to acquire a majority stake in CK Hutchinsons from its owner the Hong Kong b’naire Li Ka-shing, Bloomberg reports, citing people familiar with the matter.

The details: TiL will be the sole owner of most of CK Hutchinson’s assets of 43 ports, excluding two ports of Panama, which will see their ownership divided between TiL and Global Infrastructure Partners (GIP) — an investment firm and subsidiary of Blackrock. TiL is expected to retain 49%, while GIP is aiming for a 51% majority.

REFRESHER- An audit last week by Panama's comptroller authority into Hong Kong-based CK Hutchinson has found the company has made “many breaches” of its 25-year ports concessions This comes after China’s top antitrust watchdog blocked Hong Kong-based conglomerate CK Hutchison from selling its two ports in the canal — Balboa and Cristobal ports — to Blackrock.

Big polluters at sea to face new fees: The UN’s International Maritime Organization (IMO) has approved draft amendments to the MARPOL pollution treaty that would — for the first time — force the global shipping industry to reduce and pay for a portion of its GHG emissions, according to a statement issued last week. The new rules — to be adopted in October — will take effect by 2027 and apply to ships over 5k gross tonnes, covering 85% of international shipping’s emissions.

The details: The draft sets two escalating emissions targets, requiring gradual cuts to ships’ GHG fuel intensity. The stricter standard mandates a 17% cut by 2028 from 2008 levels, increasing to 21% by 2030 and 43% by 2035, the Financial Times reported on Friday. Ships that fail to meet this strict target would pay USD 100 per excess tonne of CO2 equivalent. A softer target would see cuts by 4% by 2028 and 8% by 2030, increasing to 30% by 2035, but failure to meet this level would result in steeper fees of up to USD 380 per excess tonne. The system also allows for credit trading, with compliant vessels able to sell credits to those that fall short.

The possible gains: The levies could generate USD 11-13 bn, which would go to a newly proposed net-zero fund aimed at supporting clean fuel adoption, rewarding low-emission ships, and helping developing states decarbonize high-emission fleets, AP reported on Friday, while some delegates told Reuters that the expected revenues by 2030 could be upwards of USD 40 bn.

Some Gulf states opposed the proposal: The draft was passed with support from 63 countries with 16 countries voting against, including Saudi Arabia and the UAE.

ICYMI- The US exited the negotiations over decarbonising global shipping last week, and threatened to take countermeasures to nullify any GHG tax on US-flagged vessels.

Calendar

APRIL

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

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

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

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

28 April-2 May: 7th Export Capabilities Exhibition (Iran Expo), Tehran, Iran.

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

4-10 September (Thursday-Wednesday): Intra-African Trade Fair, Algiers, Algeria.

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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