Good morning, nice people. We’re back from the Eid holiday with a balanced read, covering important debt and M&A news from Qatar and the UAE. But first, an update on the US-China trade talks in London…
THE BIG LOGISTICS STORY- All eyes on US, China talks in London: The US and China will resume talks today in London after they agreed to extend their high-level negotiations that began yesterday. The extension comes amid hopes for at least a provisional deal extending the trade truce that began last month. The US high-level delegation is led by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, whereas China is represented by Vice Premier He Lifeng and Commerce Minister Wang Wentao.
The sticking point: Export controls were high on the meeting’s agenda, with China hoping for relief for restrictions on US-made microchips essential for AI development, and the US eying a steady flow of Chinese critical minerals critical for industries, like electronics and EVs. However, the US is expected to keep controls on advanced Nvidia chips despite China’s attempts to leverage its rare earth minerals to negotiate down the restriction.
This story grabbed a lot of ink in the int’l press: Reuters | Associated Press | Wall Street Journal | Bloomberg | CNN | BBC | The Guardian
WATCH THIS SPACE-
#1- Security concerns stall UAE-US AI megaproject: Ongoing security concerns over how to prevent the diversion of advanced American technology mean a USD multi bn agreement to build one of the world’s largest AI data center hubs in Abu Dhabi is still “far from” being finalized, Reuters reported on Friday, citing unnamed sources. There is still no clear enforcement framework in place to restrict Chinese tech or personnel at the site, and the US has yet to define the conditions under which the chips can be exported, the sources say.
ICYMI- The 5 GW project is the centerpiece of a USD 200 bn US-UAE investment pact — spanning AI, critical minerals, and energy — signed during Trump’s visit to the UAE last month. The facility — dubbed Stargate UAE — is designed to be the largest data infrastructure site outside the US, and will host American-managed services and serve as a regional AI hub if the remaining hurdles can be cleared. The first phase of the complex is set to come online in 2026.
REMEMBER- Security talks have dragged on: Both the Biden and Trump administrations have voiced persistent concerns over the UAE’s historic ties to China. In response, G42 divested all its holdings in Chinese firms last year to “reassure” US partners. The move helped unlock access to US tech, including via Microsoft’s USD 1.5 bn investment in G42.
What now? Four sources told Reuters that there is currently no timeline for concluding the agreement, and that final terms could still evolve, with expected provisions likely to require strict bans on Chinese nationals and technologies, and full alignment with US security protocols.
ON A RELATED NOTE- The US and UAE are preparing to launch talks on a potential bilateral trade agreement that could ease tariffs on Emirati steel and aluminum exports, Reuters reported last week, citing sources familiar with the matter. The discussions took place during US President Donald Trump’s visit to Abu Dhabi last month, as Emirati officials sought relief from mounting trade pressures, including tariffs on aluminum and steel which were recently doubled to 50%. The UAE was the second-largest exporter of steel and aluminum to the US in 2024, supplying 8% of total US consumption.
What to expect: While a full-fledged freetrade agreement appears unlikely at this stage, sources said Washington is open to a limited pact that could still be framed as a Comprehensive Economic Partnership Agreement (Cepa) — the UAE’s preferred format. UAE officials stressed their ability to move quickly on trade negotiations.
#2- Another Nomu IPO gets canceled: Khobar-based freight transportation company Al Khaldi Logistics pulled the plug on its Nomu offering last week, according to a disclosure to Tadawul published last week. The decision comes a little under a month after it set its IPO price range at SAR 44-47 per share. Refunds have been made.
Nomu’s IPO party just lost its second guest this month: School operator Dome International also scrapped plans to sell a 14.53% post-IPO stake on the parallel market.
REMEMBER- Most of the recent Nomu debuts are still trading below their IPO price: AxeleratedSolutions saw its share price fall 3% on its first trading day, while Dkhoun National also dropped 19.8% at debut and Service Equipment Company declined 10%. Future Vision for Health Training also shed 5.3% on its first trading day. All of these companies are still trading below their IPO price.
#3- DP World is looking to expand in Turkey and Eastern Europe via new acquisitions, the region’s executive VP Kris Adams told The National last week. The move could see the global player seize on the “fragmented nature” of the region’s market and its need for “some consolidation,” Adams added.
DP World has an established presence in Eastern and Southern Europe, operating logistics centers and port terminals in Romania, Bulgaria, Moldova, Albania, Montenegro, Serbia, Cyprus, and Greece, The National reported. The company’s revenues from its Eastern Europe operation have also been on the up despite geopolitical tensions in the Black Sea and Red Sea, rising 28.1% y-o-y during the first four months of 2025.
#4- China firm eyes Oman lithium battery plant: Chinese metallurgical industry player Zhongke Electric is looking to establish a CNY 8 bn (c. USD 1.1 bn) lithium-ion battery anode factory in Oman’s Sohar Port and Freezone, Chinese state-affiliated news outlet Yicai reported last week, citing a company statement. The project will be developed in two phases — each expected to take 36 months to set up. While Zhonghke anticipates each phase to produce 100k tons of lithium battery anode materials annually, a final decision will depend on market conditions and customer demand, with the firm looking into strategic investors for the project, the news outlet reports.
#5- Morocco’s ONDA is set to conduct a feasibility study for the development of a new airport in the disputed region of Western Sahara, AGBI reported last week, quoting Transport Minister Abdessamad Qaiouh as saying. The project — set to be launched after the study is completed and financial commitments are secured — is set to expand Morocco’s air transport network as well as foster local and foreign investments as the country ramps up logistics expansion programs ahead of the Fifa World Cup in 2030. No official timeline or investment ticket was disclosed.
All eyes on Western Sahara: The move comes after the UK’s Foreign Secretary David Lammy expressed support for Morocco’s plan to bring autonomy to the Western Sahara, Reuters reported last week. The UK has also inked agreements with Morocco for cooperation in port and water infrastructure projects and procurement.
Part of a bigger picture: Morocco is planning to mobilize USD 34 bn over the next five years for a set of projects spanning 35 cities in the rail, road, air, and infrastructure sectors ahead of the World Cup in 2030, AGBI adds, citing a report from the country’s government. About MAD 42 bn (USD 4.2 bn) of these investments are earmarked for airport expansions in Casablanca, Rabat, Tangier, Marrakesh, Fez, Tetouan, and Agadir. The government said in April it was planning to invest MAD 28 bn in Casablanca airport expansion.
#6- Egyptian gov’t is reportedly looking to finalize long-term LNG supply agreements with up to six companies this week for deliveries through June 2026, Bloomberg reports, citing unnamed sources. The agreements would secure more than 160 shipments of LNG and could be followed by additional contracts covering 2027–2028 to reduce reliance on the spot market, which has been both volatile and often expensive, the sources said. The companies include Saudi Aramco, Trafigura Group, Vitol Group, Hartree Partners LP, and BGN, according to the sources.
REMEMBER- The government is preparing for a surge in demand over the summer months by booking in LNG shipments — and the necessary infrastructure to process the deliveries — to close the gap between demand and supply. Adding pressure to keep the lights on — and for Egypt to potentially overprepare — are repeated pledges from the government that the dreaded days of blackouts won’t return.
In preparation for the uptick in LNG deliveries, the 750 mcf/d-Energos Eskimo has now arrived in Egypt, according to shipping data. The vessel will join the recently received Energos Power, the soon-to-be-replaced 750 mcf/d-Hoegh Galleon in Ain Sokhna and be followed soon by a unit from Turkish state-owned energy firm BOTAS.
DATA POINT- Egypt needs around 6.2 bn cubic feet per day (bcf/d), but domestic production only contributes roughly 4.4 bcf/d.
MARKET WATCH-
#1- Oil prices surged this morning in the wake of extended US-China trade talks as hopes for a deal revive optimism for future demand for the fuel, Reuters reports. Brent crude futures went up by USD 0.28 to reach USD 67.32 a barrel, while the US West Texas Intermediate (WTI) increased by USD 0.23 to USD 65.52 a barrel by 03.30 GMT.
#2- Baltic index on the up and up: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 3.6% to 1,691 points on Monday on the back of heightened demand for bigger vessels. The capesize index climbed up 5.9% to f 3,010 points — a seven-month high, while the panamax index gained 1.5% to 1,264 points. The supramax index shed seven points to settle at 926.
#3- The Drewry World Container Index increased by 41% to USD 3,527 per 40-ft container last week, according to the latest index readings. The increase comes on the back of heightened supply-demand equilibrium in global container shipping — a reversal of previous declining rates since January.
DATA POINT-
Red Sea traffic has climbed up 60% to about 36-37 ships per day since August 2024, a bump in numbers compared to a low of 20 to 23 recorded by August last year, Reuters reported last week, citing the EU’s Red Sea Aspides naval mission’s Rear Admiral Vasileios Gryparis. The improvement is still below the daily traffic rates that preceded the beginning of the Houthi attacks in November 2023, which stood at around 72 to 75 vessels.
Where things stand: The increase comes on the back of merchant vessels utilizing the Bab Al Mandab strait on the heels of reduced missile and drone strikes in the region. However, several shipping firms are still wary of sailing through the Red Sea because of the mission’s shortage of protective ships — which could cause week-long delays for firms that require protective escort through the area.
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CIRCLE YOUR CALENDAR-
France will host the International Paris Air Show from Monday, 16 June to Sunday, 22 June in Paris. The event will host 300k visitors to view some 2.5k exhibitors from 48 countries, 300 start-ups and 150 air carriers on display – all showcasing cutting-edge tech in the aviation field.
Turkey will host the Eurasia Rail from Wednesday, 18 June to Thursday, 19 June in Istanbul. The event will host 7.7k visitors interested in Turkey’s railway sector or are railway technology buyers, and will feature engineering, products and services from both private and public sectors.
Greece will host the East Med Maritime Conference on Thursday, 19 June in Athens. The event will showcase new developments and tech in the shipping, logistics and offshore field – hosting an array of key leaders, exports, port operators and shippers in the maritime industry.
The UAE will host Middle East Rail from Tuesday, 24 June to Thursday, 25 June in Dubai. The conference at Dubai World Trade
Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.




