Microsoft to invest USD 5.5 bn in UAE’s AI infrastructure over the next four years

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WHAT WE’RE TRACKING TODAY

TODAY: Microsoft goes big on UAE AI infrastructure

Good morning, folks. It’s an another busy issue this morning, led by big investment updates from across the region, with Microsoft announcing a major AI infrastructure push in UAE and GFH expanding its logistics portfolio in Saudi. Arcapita, another Bahraini player, is also eyeing a USD 1 bn overseas push, eying the UK and USA logistics sector. PLUS: Budget carrier AirAsia to land an operations base in Bahrain soon.

HAPPENING TODAY-

The ADIPEC Maritime and Logistics Exhibition and Conference is on its second day and will run until Thursday, 6 November in Abu Dhabi. The event is part of the larger ADIPEC Exhibition and Conference, featuring 10 parallel conferences. The event brings together over 250k attendees, including high-level officials and executives from governments and the private sector, representing multiple industries like energy and logistics.

The Air Cargo Forum will open its doors today and run until Thursday, 6 November in Abu Dhabi. The forum — hosted by Etihad Cargo — will bring together air freight industry leaders, policymakers, innovators, and stakeholders to discuss industry solutions, tech, strategies, and collaborative initiatives for global air logistics.

WATCH THIS SPACE-

#1- NBE tees up financing for Egypt-Israel gas link: State-owned lender the National Bank of Egypt (NBE) is reportedly arranging a USD 300 mn loan for East Mediterranean Gas Company (EMG) to help finance what Asharq Business reports is a new Egypt-Israel gas pipeline running through Sinai. The funds will start flowing once construction work kicks off on the Egyptian end of the pipeline, which is expected before year-end. NBE declined to comment on the story when we reached out.

The project likely refers to the planned Nitzana pipeline, which is a key onshore connector between the two countries and the main missing technical link needed for Egypt to double gas imports under the USD 35 bn supply agreement signed with Israel in August. Earlier this week, Israel put the agreement on hold “until [its] interests are secured and a fair domestic price is agreed.”

#2- Arcapita earmarks over USD 1 bn for UK + US logistics markets: Bahrain-based alternative asset management firm Arcapita Group Holdings is planning to invest over USD 1 bn in logistics infrastructure in the US and UK, according to a statement. The initiative — to be enacted over the next year — will see investments being funneled into warehousing and data centers to meet the rise of AI, cloud computing, and e-commerce,” Arcapita CEO Hisham Al Raee said. The Bahraini investor will focus on industrial real estate holdings in the UK, while also acquiring and expanding its portfolio of high-quality data centers in the US.

#3- Iran to renew gas export pact with Turkey: Iran will extend its natural gas export contract with Turkey, with negotiations regarding gas volumes currently underway, Iran’s Mehr News reports, citing the National Iranian Gas Company’s Managing Director Saeed Tavakoli. The parties reportedly plan on renewing the current agreement for several years beyond 2026, Tavakoli said.

Turkey’s expiring gas contracts: Ankara’s existing gas pact with Iran provides the country with 10 bn cbm of gas annually and is set to expire in mid-2026, Reuters reported last month. Turkey’s supplies from Russia — its biggest supplier of natural gas with some 22 bn cbm annually — are also set to stop flowing soon, and the country has begun securing alternative flows in response to the US’ heightened crackdown on Russia’s energy imports.

IN OTHER GAS TRADE UPDATES- Azerbaijan has started exporting gas to Syria, Reuters reports, citing comments made by Azerbaijan’s Deputy Energy Minister Orkhan Zeynalov at the Abu Dhabi ADIPEC energy conference. The exact volume of the exports was not disclosed.

We knew this was coming: Syria’s Energy Ministry inked an MoU with the State Oil Company of the Azerbaijan Republic to export Azerbaijani natural gas to Syria through Turkey. Details on the volume of natural gas to be delivered were not disclosed at the time.

MARKET WATCH-

#1- Oil prices fell this morning amid market concerns of possible oversupply after Opec+ decision to halt hikes throughout 1Q 2026, Reuters reports. Brent crude futures decreased by USD 0.15 to USD 64.74 / bbl as of 04:05 GMT, while US West Texas Intermediate (WTI) dropped by USD 0.14 to trade at USD 60.91 / bbl.

But Morgan Stanley may be interpreting Opec+ decision differently, turning more bullish and bumping its Brent forecast for 1H 2026 to USD 60/bbl from USD 57.50, arguing that the group’s move helps stabilize the market outlook even if it does not materially alter supply expectations, Bloomberg reports, citing a note from the bank.

The quota system and reality on the ground are diverging: Morgan Stanley estimates Opec+ output only rose around 500k bbl / d between March and October, well below the 2.6 mn bbl / d quota increase announced for that period.

Supporting the view: Opec+’s latest signal is giving the market some confidence that producers remain focused on managing supply through a softer demand season, reinforcing expectations of a steady path toward balance, Vijay Valecha, CIO of Century Financial said in a note seen by EnterpriseAM.

The outlook is further buoyed by geopolitical tensions, following reports of a Ukrainian drone strike on a Russian Black Sea oil port that raised concerns over potential supply disruptions, Valecha said.

#2- Baltic index continues to ease: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 1.1% to 1,945, driven by declining rates across all vessel segments. The capesize declined by 1.4% to 2,888, while the panamax index shed 1.1% to 1,801. The smaller supramax index fell 0.5% to 1,320.

#3- The Egyptian gov’t is working on a new natural gas pricing formula for industry, starting with energy-intensive sectors, three government sources told EnterpriseAM. The plan aims to gradually transition to a freemarket price aligned with global benchmarks as part of efforts to establish a liberalized natural gas market, attract foreign investment, and strengthen the competitiveness of local products by properly pricing key inputs, including energy.

The details: The new pricing mechanism will be based on the average cost of domestic gas production, in addition to the contracted price of gas supplied through pipelines and imported cargoes, ± USD 1, the sources said. The policy will first be applied to fertilizer players, one of the sources told us.

A monthly gas price review is being considered, the sources said. The review may keep prices as is, raise them, or lower them, giving industries a chance to benefit if global prices decline.

Policy objective: Reducing subsidies and strengthening the Egyptian General Petroleum Corporation’s financial position as an independent entity sits at the core of the plan, sources said, adding that ensuring fair pricing for high-quality local industrial output is a key target.

ICYMI- The government raised natural gas supply prices for the industrial sector by 28%, or USD 1 per mn British thermal units (BTU), starting 15 September, in a bid to balance local market needs and secure gas supplies for factories.

REMEMBER- The government raised the tariff for transporting natural gas through the national grid a few months back.

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CIRCLE YOUR CALENDAR-

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

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

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

Egypt will host the International Procurement Supply Chain Conference on Saturday, 6 December in Cairo. The event will gather over 1k delegates, more than 400 organizations, and over 30 global speakers to discuss the future of trade through keynotes and panel discussions. The discussions will center on Egypt’s transformation in the logistics sector, the future of smart ports and supply chains, as well as digital ecosystems.

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

Microsoft to invest USD 5.5 bn in the UAE’s AI infrastructure as part of its 2026-29 plan

Microsoft is planning to invest over USD 5.5 bn in advanced AI and cloud data centers in the UAE, as part of its broader USD 7.9 bn investment plan for 2026-29, according to a statement. The USD 5.5 bn investment will go towards capital expenses for its AI and cloud infrastructure projects in the country, with more details expected to be announced this week in Abu Dhabi after talks with officials.

This is part of a broader plan to invest USD 15.2 bn in the UAE between 2023 and 2029, as part of its AI initiative launched in 2023. The company has already invested USD 7.3 bn in the country between 2023 and 2025, including USD 4.6 bn in AI infrastructure and its USD 1.5 bn investment in state AI firm G42.

We knew this was coming: Microsoft and its partners previously announced their intention to invest USD 5.1 bn in the UAE’s data center regions over the next four years, in agreement that built on its earlier USD 1.5 bn investment in G42. The company said that its activities will add USD 74.4 bn to the UAE economy over the next four years and help create 41.8k jobs through 2028.

There’s more: Microsoft secured approval from the Trump administration in September to ship to the UAE the equivalent of 60.4k A100 chips, including Nvidia’s advanced GB300 GPUs, the statement said. This is in addition to some 21.5k Nvidia A100 GPUs it has already supplied the country after approvals from the Biden administration.

REMEMBER- The US gave the greenlight to export several USD bns worth of Nvidia chips to the UAE in October. The agreement came on the back of bilateral AI negotiations in May, as well as definitive plans from the UAE to invest in US AI infrastructure. Early reports expected the Emirates to see up to 500k annually of the US tech giant’s most advanced chips up until 2027.

How did Microsoft secure the approvals? By meeting “updated stringent technology safeguards” required by the Trump administration, the statement said. These range from cyber security to physical security and other security requirements, Smith told the Financial Times.

We don’t know exactly where the chips are heading, but Microsoft is heavily invested in the UAE’s AI sector. Besides its partnership with G42, which also saw them agree to open two AI centers in Abu Dhabi, the firm partnered with du to establish an AED 2 bn hyperscale data center in the UAE. It inked an agreement as well with Abu Dhabi to accelerate its AI-driven government transformation. Stargate UAE, a 5 GW Stargate AI campus which is driven by Microsoft’s key partner OpenAI, along with partners like Nvidia, Cisco, Oracle, and SoftBank is also expected to open in 2026, with final agreements on the remaining 4 GW still under negotiation amid continued US security scrutiny.

GFH expands Saudi logistics portfolio with new SAR 200 mn facility in Riyadh’s Industrial District

GFH expands its logistics portfolio in KSA: GFH Partners — the Dubai-based global asset management arm of Bahraini GFH Financial Group — has acquired a fully leased, high-spec logistics facility in Riyadh’s industrial district at a SAR 200 mn (USD 53 mn) investment ticket, according to a press release. The acquisition marks the asset manager’s fourth logistics asset in the Kingdom.

Built different: The facility — spanning over 40k sqm — includes multiple truck docking bays, robust electric capacity, and 12-meter clear heights within its operational space. The hub’s location next to Riyadh’s Eastern and Southern ring roads is set to boost its connectivity to multimodal transport corridors — positioning it as a gateway for major logistics firms, Gulf News reports.

A boon for GFH: Following the acquisition, GFH’s total logistics and industrial assets in the GCC are set to reach nearly SAR 1.5 bn — with its global portfolio currently exceeding SAR 26 bn in managed assets. The firm’s logistics platform now has the capacity to host over 120 tenants across the Kingdom and the UAE — with facilities in Dubai South, Dammam, Riyadh, and Jafza.

A long-time coming: GFH Financial Group inked a partnership agreement last year with European real estate developer Panattoni’s Saudi arm to develop premium logistics facilities worth SAR 2 bn (USD 500 mn) in Riyadh, Jeddah, and Dammam over a five-year timeframe.

GFH’s been making logistics moves: GFH Partners acquired Manrre REIT, a logistics and industrial assets fund registered with Nasdaq Dubai’s share depository, for USD 75.5 mn, becoming its sole fund manager in January. The asset manager closed a USD 300 mn logistics and industrial fund in the United States last July.

XRG wants a piece of Azerbaijan’s energy firm Southern Gas Corridor

XRG buys into Azerbaijani state-owned energy player SGC: Adnoc’s global investment arm XRG inked a non-binding preliminary agreement to purchase an undisclosed stake in Azerbaijani energy holding company Southern Gas Corridor (SGC) from Azerbaijan’s Economy Ministry for an undisclosed amount, state news agency Wam reports.

SGC’s assets include operating gas fields and a 3.5k-km pipeline network running from the Caspian through Turkey to southern Europe, with a capacity to deliver up to 26 bcm a year.

The agreement would deepen XRG’s presence in the Caspian region, where it already holds a 30% stake in the Absheron gas field alongside the State Oil Company of Azerbaijan (Socar) and a 38% interest in Turkmenistan’s offshore Block I concession. Socar, in turn, owns a 3% stake in Abu Dhabi’s SARB and Umm Lulu concessions, acquired from Adnoc in 2024.

Expanding east and west: XRG is also said to be in early talks to invest in Argentine energy firm YPF’s LNG project, which aims to produce 28 mn tons a year. The discussions are part of XRG’s broader push into LNG across the US, Latin America, and Asia.

Malaysia’s AirAsia chooses Bahrain for Middle East hub

Asia’s largest budget carrier AirAsia is looking to establish a Middle East hub in Bahrain to shore up its international scope, Bloomberg reports, citing sources it says are in the know. The carrier’s CEO Tony Fernandes is reportedly set to go public with the move in an investor forum in Bahrain, the sources said.

Setting up a base in Bahrain could help the country tap into the booming budget flyingmarket in the region. While low-cost carriers’ (LCCs) share of the regional aviation market has doubled over the past decade, largely driven by growth and market maturation in KSA, the UAE, and Egypt, Bahrain has lagged in LCC market growth, and AirAsia’s possible hub could help it seize on unrealized growth potential, according to an OAG Aviation report (pdf). The LCC market grew at an annual growth rate of 11.5% during that period.

REMEMBER- AirAsia plans to soar far and high: The Malaysian-based airline is angling to use long-range aircraft to launch flights to North America and Europe with budget prices, Fernandes reportedly said earlier this year. The carrier signed an MoU with Airbus to purchase 50 long-range A321XLR planes with conversion rights for another 20 of the single-aisle jets earlier this year. It was reportedly eyeing locations in the Gulf to set up hub airports, including in Saudi Arabia, Bahrain, and the UAE’s Ras Al Khaimah.

But expect some competition: Bahrain could serve as a key transit hub for the LCC carrier, connecting Asia to Europe and North America. On that basis, Flydubai and Air Arabia — whose business model is primarily backed by its Asia connection — would likely be AirAsia’s main competitors. Some 70% of flydubai’s capacity is Asia-bound, whereas UAE’s Air Arabia’s Asia destinations take up 81% of its capacity, according to OAG Aviation’s report.

REFRESHER- PIF is all in on AirAsia: Saudi’s PIF invested USD 100 mn in AirAsia in March, becoming the biggest contributor to the carrier’s USD 226 mn fundraising target. A key draw behind PIF’s interest at the time was AirAsia’s backlog of over 350 Airbus narrowbody aircraft. PIF’s Riyadh Air secured a number of these delivery slots, alleviating AirAsia’s financing strain while securing planes needed for Riyadh Air’s 3Q 2025 launch.

Bahrain’s aviation ambitions: The Gulf state is said to be competing with other regional players — namely, the UAE and Qatar — in the aviation sector, with its flag carrier Gulf Air inking a USD 4.6 bn agreement with Boeing last July to purchase up to 18 787 Dreamliners. The move is expected to expand Gulf Air’s international network and increase passenger capacity by 20%.

Omani-Algerian JV to set up meds plant in Oman’s Sohar Freezone

ZONES-

Sohar earmarks land plot for meds factory: Oman’s Sohar Port and Freezone has inked a land lease agreement with Omani-Algerian JV Pharma Investment Group to establish a USD 20 mn (c. OMR 7.7 mn) pharma plant, according to a press release. Construction on the facility — set to span 40k sqm — will begin in 2027, featuring sterile and non-sterile production lines, quality control labs, and R&D capabilities, the press release said.

The latest developments from Sohar: The freezone signed an agreement with MoonRock R&D and PowerCon to establish an electricity power connection for ships docked at the port’s container terminal. Known as shore power or onshore power supply (OPS), the connection capacity allows berthed vessels to switch off auxiliary power and connect to the onshore electricity grid, thereby lowering emissions in compliance with International Maritime Organization guidelines.

CARGO-

#1- Emirates SkyCargo starts weekly freight service to Bangkok: Dubai-based Emirates SkyCargo has introduced a new weekly freight route to Bangkok’s Suvarnabhumi Airport, according to a press release. The new route brings its East and Southeast Asia freight network to 11 destinations, and its overall global network to 43.

Behind the move: Emirates SkyCargo aims to tap into Thailand’s current focus on importing and exporting tech products, as the country looks to develop its advanced manufacturing sectors. The UAE is a key global trade connector to China and ASEAN markets, with the area forming a central part of SkyCargo’s 2026 expansion plan, according to the statement.

AND- Etihad Cargo boosts its Southeast Asia cargo network: Abu Dhabi-based Etihad Cargo has partnered with Malaysian logistics provider Teleport to deploy a new freighter service between Abu Dhabi and Cambodia’s Phnom Penh — effective in winter 2025, according to a statement, without clarifying an official date. The new service — operating two weekly Airbus A321F flights — will boost the airline’s cargo capacity by some 50 tons per week on its Southeast Asia network.

ICYMI- Etihad Cargo partnered with Teleport to add freighter services to Vietnam’s Ho Chi Minh City and Malaysia’s Kuala Lumpur last year.

SHIPPING + MARITIME-

Gulftainer launches India-Gulf maritime service: Emirati ports operator Gulftainer has kicked off its India-Gulf Express (GIX) service connecting West India to Gulf states, according to a press release. The GIX service will link Indian ports — Nhava Sheva and Mundra — with major Gulf gateways, namely Sharjah, Sohar, Hamad Port, and Jebel Ali via direct weekly departures.

TRADE-

Turkish flights resume at Iraq’s Sulaymaniyah Airport: Flights between Turkey and Iraq’s Sulaymaniyah International Airport have reportedly resumed, with a Turkish aircraft landing at the airport on Sunday, Shafaq News reports. This marks a step towards the return of regular weekly flights between the countries, the airport’s Director of Media and Public Relations Dana Mohammed told the news outlet.

This development follows Turkey’s lifting of the 2023 ban on the airport last month, which had been imposed due to security concerns over the use of the airport by the Kurdistan Workers’ Party.

Calendar

NOVEMBER

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

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

9-11 November (Sunday-Tuesday): TransMea Expo, Cairo, Egypt.

11-13 November (Tuesday-Thursday): Freightcamp, Bangkok, Thailand.

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

18 November (Tuesday): ShipTek International Conference and Awards, Al Khobar, Saudi Arabia.

DECEMBER

6 December (Saturday): International Procurement Supply Chain Conference, Cairo, Egypt.

9-10 December (Tuesday-Wednesday): Rail Industry Summit, El Jadida, Morocco.

16-17 December (Tuesday-Wednesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

JANUARY 2026

19-23 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

27-28 January (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh, Saudi Arabia.

27-28 January (Tuesday-Wednesday): Middle East ProcureTech Summit, Dubai, UAE.

FEBRUARY 2026

4-5 February (Wednesday-Thursday): Breakbulk Middle East, Dubai, UAE.

4-5 February (Wednesday-Thursday): MRO Middle East, Dubai, UAE.

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

25-27 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

MARCH 2026

10-12 March (Tuesday-Thursday): World Cargo Symposium, Lima, Peru.

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