Good morning, lovely people. We wrap up the week with another busy issue, packed with updates from across the region and continuing a trend of dispute- and finance-related news.

THE BIG LOGISTICS STORY- DP World is planning to issue its maiden USD 1 bn green sukuk issuance. Meanwhile, UAE-based fashion budget retailer Brands for Less plans to open a logistics distribution center in Riyadh.

^^ We have everything on these stories and more in the news well, below.

COUNTDOWN- There are just 11 days until the Enterprise Finance Forum, which takes place 18-19 September (Monday and Tuesday) at the St. Regis Hotel on the Nile Corniche. This flagship forum is the latest in our must-attend series of invitation-only events, where CEOs, bankers, investors, founders, and corporate leaders will meet to discuss the trends shaping the future of banking, finance, NBFIs, and fintech — and of their clients.

You won’t want to miss this one: Join Karim Awad (CEO,EFG Holding), Hassan Allam (CEO, Hassan Allam Holding), Yasmine El Hini (country officer, IFC), Hazem Moussa (chairman, Contact Financial Holding), Tamer El Emary (group CEO, GB Capital), Hoda Kassem (Cairo global services center director, HSBC Egypt) and many others for talks on everything from investing in uncertain times, to whether NBFIs are a bubble. Stay tuned for the unveiling of our full list of speakers in the coming days.

Tap or click here to REQUEST AN INVITATION or view the FULL AGENDA.

We are honored to count some of the region’s most important financial institutions as our partners for this special event. The Enterprise Finance Forum could not take place without the support of our partners including Banque Misr, Al Baraka Bank, FAB Misr, HSBC, Mashreq, CI Capital, Global Corp, Visa, Hassan Allam Utilities, and the IFC.

A Russian drone strike on Ukraine’s Izmail port, the second such attack in a span of days, has left one person dead, Reuters reports. The victim was an employee of an agricultural enterprise. The attack also caused damage to infrastructure and several agricultural and port facilities, Reuters quotes the region’s governor Oleh Kiper as saying.

REMEMBER- Ukraine had partially restricted railway cargo shipments to Izmail port on the Danube river as of Sunday following the initial attack. The Danube has become Ukraine’s principal gateway for grain exports after the collapse of the UN-brokered Black Sea grain agreement with Russia.

HAPPENING THIS WEEK-

Egyptian national carrier EgyptAir resumed commercial flights to Sudan for the first time since the country’s civil war erupted, operating two flights to and from the Sudanese coastal city of Port Sudan — a largely secure entry point, the Associated Press reports.

DATA POINT- Air cargo volumes continued to decline in July, albeit at a slower pace: Global demand for air freight measured in cargo tonne-kilometers (CTK) dropped 0.8% y-o-y July, a notable improvement from the previous month’s 3.4% y-o-y decline, according to an International Air Transport Association (IATA) statement. Capacity, which is measured in available cargo tonne-kilometers (ACTK), rose 11.2% y-o-y, as airlines added belly capacity due to the busy summer season, the statement said.

Middle Eastern carriers saw cargo volumes grow 1.5% y-o-y in July, the statement added. Greater demand on Middle East-Asia routes were among the drivers for the increase. Capacity also grew 17.1% y-o-y for the same period. In terms of CTK, the Middle East’s share of global air cargo traffic stood at 13%.

WATCH THIS SPACE #1- Vale could be laying the foundation for Middle East’s iron ore “mega hubs” next year: Brazilian miner Vale said it expects construction of planned low-carbon iron ore “mega hubs” in the Middle East to begin next year, with the first plant set to be operational in 2027, Reuters reports, citing a presentation by the company. It is set to build and operate iron ore concentration and briquetting facilities at the hubs, with local partners providing necessary logistics infrastructure, it said, without disclosing details on the planned investments or which facility would be built first.

What mega hubs? Vale signed three agreements last year to examine the feasibility of developing mega hubs in Saudi Arabia, the UAE, and Oman to supply low carbon products to the steelmaking industry both locally and internationally. The UAE’s AD Ports Group also inked an MoU with Vale back in May to develop a mega steelmaking hub in Khalifa Economic Zones Abu Dhabi(KEZAD) and a handling facility in Abu Dhabi’s Khalifa port that can accommodate Valemax vessels.

WATCH THIS SPACE #2- Oil flows from Iraq to Turkey are not expected to resume before October, when Turkish President Recep Tayyip Erdogan is scheduled to visit Baghdad, sources told Reuters. Erdogan’s trip was originally slated for August but was put off due to slow progress on efforts to reach a compromise on damages Turkey has been ordered to pay Baghdad, the newswire wrote.

REMEMBER- Turkey halted exports from northern Iraq’s Kurdistan Regional Government (KRG) after a 25 March landmark decision by the International Chamber of Commerce (ICC) deemed the transfers illegal and ordered Turkey to shell out USD 1.5 bn in compensations to Baghdad.

Turkey and Iraq are not seeing eye-to-eye on damages: Officials from both countries are “having complicated discussions” on the question of resuming flows, an Iraqi official told Reuters. Turkey is trying to reach a consensus on a reduction to damages it was ordered to pay Iraq and for Iraq to drop a second arbitration case, other Iraqi officials told the newswire. Erdogan is, however, keen to visit Baghdad and “wants an agreement to be signed,” a Turkish official reportedly said.

WATCH THIS SPACE #3- Hungary’s government has submitted a formal bid to acquire Budapest Airport, deciding to enter formal discussions with majority shareholder AviAlliance, which owns a 55.44% stake, according to Reuters. The discussions are expected to last several months, AviAlliance told Reuters in an email, with the government expected to pick up a 51% stake. The government's bid comes after a non-binding offer to buy the airport was submitted back in 2021, but the process was disrupted amid high inflation and volatility of global financial markets, the outlet writes.

REMEMBER- A Qatari player could go in as a “co-investor” in the airport: Hungary is looking for a “friendly” co-investor to acquire the airport, and has previously said that an airport operator in Qatar is among several potential partners Hungary is in discussions with.

MARKET WATCH-

Russia’s oil exports hit an 11-month low in August due to slowdowns in refinery operations ahead of planned maintenance, Bloomberg reports. Petroleum product shipments, including diesel and fuel oil, reached 2.28 mn barrels a day during the month, down 9% q-o-q and the lowest level since September 2022.

The market is closely monitoring Russia's oil flows to determine the nation's crude production, given Moscow’s pledge to reduce production and its move to restrict access to official output data. In late August, Russia's seaborne crude exports surged to an eight-week high, while this week the country extended its supply cuts to the end of the year in alignment with Saudi Arabia.

Mixed economic outlook in China weighs on shipping trends: Dry bulk cargo volumes are projected to increase by 1.5%-2.5% in 2023 and between 1% and 2% in 2024, according to forecasts published in a recent 3Q 2023 report (pdf) by leading merchant shipowners association BIMCO. Sluggish global economic growth, persistent inflation, higher interest rates, and a slowdown in China’s economy were all cited as the reasons behind marginal growth in global cargo volumes. Average haul distances are also expected to increase by 0.5% to 1.5% in 2023 on the back of sanctions on Russian trade and a surge in shipments from Brazil, the report noted.

The c rude tanker market could witness increases of 2-3% in cargo volume growth during 2023, and 3.5-4.5% growth next year, according to BIMCO data cited by Hellenic Shipping News. BIMCO also expects 5-6% of tonne miles growth during the year on the back of increased average sailing distances. The product tanker market is set to see cargo volume growth rise 3-4% in 2023 and 2024, with tonne miles growth estimated at 5.5-6.5% for 2023 and 5-6% for 2024.

In context: China has, despite indicators of slower economic growth, continued being the driver for rising global oil demand. The extended oil cuts by Russia and Saudi Arabia have pushed prices upwards, potentially resulting in production becoming 500k bbl / d lower than consumption during 3Q 2023. Refineries are expanding in Asia, the Middle East, and Africa to match rising demand, while oil production is expected to rise primarily in the Americas, where refinery capacity remains unchanged.

NON-LOGISTICS REGIONAL HEADLINES-

• EGYPT: Japan is looking to invest in Egypt, following a visit by Foreign Minister Hayashi Yoshimasa with Egyptian Foreign Minister Sameh Shoukry aimed at boosting cooperation in political, security, economy and development assistance. (Statement)
• UAE: Adnoc has reached a final investment decision to develop one of the largest carbon capture projects in the Middle East and North Africa, which is set to capture and store 1.5 mn tonnes of CO2 a year. (Press release)
• KSA: The IMF expects Saudi Arabia’s GDP growth to slow further than the current forecast of 1.9% amid the latest extension of oil production cuts.(Reuters)

CIRCLE YOUR CALENDAR-

The Logistics and Transport Management conference continues today and wraps tomorrow in Dubai, UAE. The event, hosted by EuroMaTech, will teach attendees how to utilize modern purchasing management techniques, enhance their negotiation skills, manage inventories more efficiently, and improve control over warehouse and transportation operations.

The Belt and Road Summit will be taking place on 13-14 September at the Hong Kong Convention and Exhibition Centre, Emirati news agency WAM reports. The event, hosted by the Government of the Hong Kong Special Administrative Region and Hong Kong Trade Development Council, will bring together government officials and business leaders from countries and regions along, and beyond, the Belt and Road to cooperate and explore potential business avenues. The summit will have Middle East-focused sessions with the aim of exploring cooperation in urban transport, infrastructure projects, renewable energy, logistics, and technology.

The Sustainable Transportation and Legacy for Generations Conference and Exhibition, which is organized by Qatar’s Transport Ministry and sponsored by Qatar Airways Group, Mwani Qatar, and QNB, will take place on 17-18 September at the Doha Exhibition and Convention Centre, Gulf Times reports. The event will cover transportation sector trends, strategies for eco-friendly transit systems, and Qatar's role in global aviation. The conference will include six panel discussions featuring over 20 speakers from various transportation entities.

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