Qatar Freezones Authority, DHL debut new logistics facility at Ras Bufontas

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TODAY: New QFZ + DHL logistics facility at Ras Bufontas

Good morning, friends. It’s a rather brisk read today, led by some news on QFZ and DHL launching a new logistics facility at Ras Bufontas zone and an influx of investors landing in Egypt’s zones. We also have an interesting big read on how low-lying ports are facing a climate adaptation imperative.

WATCH THIS SPACE-

#1- California-based AI chipmaker Cerebras Systems is expanding its operations in Abu Dhabi and Dubai, Cerebras CEO Andrew Feldman told Semafor. Cerebras plans to increase its 18-strong UAE headcount to around 50 engineers by next year, with new hires focused on systems and hardware integration. The company is also eyeing 40 MW of computing power in the capital — enough to power some of the world’s fastest supercomputers.

ICYMI- Just last week, Cerebras CEO Andrew Feldman said the firm was planning to deploy its infrastructure in the UAE, beginning with “megawatts worth of equipment” for the Stargate UAE campus. Cerebras was also reported to be in talks with G42 about computing capacity for its 5 GW UAE-US AI Campus.

Still, Washington’s export controls linger: Feldman told Semafor he expects the Trump administration to eventually finalize a framework to approve AI chip exports to allies like the UAE, calling it “very much in the US interest” to deploy American computing infrastructure across the Gulf and Asia.

REMEMBER- Abu Dhabi AI giant G42 has held a 1% stake in Cerebras since 2021 and also agreed to buy USD 335 mn worth of non-voting shares in the chipmaker earlier this year. The UAE firm accounted for 87% of Cerebras’ revenues in 1H 2024 through USD multi-bn contracts for data center and computing services.

#2- Saudi Arabia plans to restructure railway projects into smaller fragments to attract private funding, Transport Minister Saleh Al Jasser told Asharq Business on the sidelines of the Saudi International Railway Exhibition and Conference. The government is seeking to boost local components in the railway industry from 52% to 60% by the end of the decade.

What’s in store for Saudi rail? Saudi Arabia is currently working on its Riyadh-Jeddah land bridge megaproject, whose project management contract was awarded to a consortium comprising US-based construction management firm Hill International, Italian consulting firm Italferr, and Spanish engineering firm Sener. Also in the works is the GCC railway project, a 2.1k km railway linking the six GCC member states.

#3- Cargo plane mishap claims two lives in Hong Kong Airport: A Boeing 747 cargo plane — operated by Turkey’s ACT Airlines on behalf of Emirates — slid off the runway in Hong Kong Airport, killing two airport security staff members, Reuters reports. The plane coming from Dubai slid into the sea and was partially submerged, but all four crew members survived. Authorities are investigating the cause of the accident.

The story is everywhere in the foreign press: Reuters | BBC | CNN

#4- EU agrees to phase out Russian oil and gas imports by January 2028, on the back of Russia’s war on Ukraine, according to a statement. The plan — first suggested earlier this month — will phase out new Russian gas import contracts starting January 2026, pre-existing short-term contracts starting June 2026, and long-term contracts starting January 2028. Regulations for the plan are yet to be finalized through negotiations between EU countries and bloc parliament.

MARKET WATCH-

#1- Oil prices declined this morning as fears of oversupply stem from US-China trade tensions, Reuters reports. Brent crude futures slipped by USD 0.14 to USD 60.87 / bbl as of 00:05 GMT, while US West Texas Intermediate (WTI) eased 0.1% to trade at USD 57.45 / bbl.

#2- Baltic index stabilized: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — stayed steady at 2,069 points on Monday. The capesize gained 0.2% to 3,128, while the panamax index climbed up 2 points to 1,829. The smaller supramax index eased 6 points to 1,422.

DATA POINT-

#1- Egypt has overtaken Kuwait to become the Middle East’s biggest importer of liquified natural gas (LNG), bringing in 6.46 mn tons so far this year, compared to Kuwait’s 6.44 mn tons, Bloomberg reports, citing ship-tracking data.

ALSO- Egypt’s production fell to its lowest level in 47 years, coming in at 507k barrels a day during 1H 2025, Asharq Business reports citing data from the US Energy Information Administration.

#2- Restoring Syria’s railway network will require upwards of USD 5.5 bn in investments — including the rehabilitation of railway tracks, trains, as well as the communication and signaling networks, Syrian Transport Minister Yarub Suleiman told Asharq Business on Sunday.

REMEMBER- Syria is on a rail-revival kick: Turkish, Syrian, and Jordanian transport ministers agreed on a draft MoU to restore the Hejaz Railway after a 13-year hiatus. The Turkish side is set to build 30 km of missing infrastructure within Syrian territory to bolster Ankara’s connection to the Red Sea via the Port of Aqaba.

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CIRCLE YOUR CALENDAR-

The UAE will host the Adipec Maritime and Logistics Exhibition and Conference on Monday, 3 November until Thursday, 6 November in Abu Dhabi. The conference will host over 250k attendees working in government entities, finance, and tech.

The UAE will host the Air Cargo Forum on Tuesday, 4 November 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.

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 policy makers, organizations, suppliers and experts on maritime, offshore and oil and gas.

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

DHL, QFZ inaugurate logistics facility at Ras Bufontas

DHL + QFZ launch distribution facility: Qatar Freezones Authority (QFZ) and logistics giant DHL’s forwarding arm DHL Global Forwarding have inaugurated a new 1.2k sqm logistics facility at Ras Bufontas Freezone, according to a statement. The facility, near Hamad International Airport, aims to enhance operational efficiency and multimodal transport. The investment ticket has not been disclosed.

What’s in store? The facility will function as a distribution warehouse for consolidation services within regional and global distribution networks for the GCC-Africa corridors. It aims to provide air freight, sea, and land logistics services as well as marine shipping agent operations, warehousing, and customs clearance.

Recent moves in Ras Bufontas: QFZ inked an agreement with Qatar Airways earlier this month to establish a maintenance, repair, and overhaul (MRO) complex in Ras Bufontas Freezone and a duty-exempt corridor linking the zone to Hamad International Airport and Hamad Port. QFZ and FedEx launched a 1.2k sqm logistics facility at Ras Bufontas in September that includes warehousing, storage, and office spaces. QFZ and logistics solutions provider Bin Yousef Cargo inaugurated a storage facility at Ras Bufontas Freezone in September.

REMEMBER- DHL is expanding its footprint: The firm is looking to invest upwards of EUR 300 mn (c. USD 349 mn) in warehouses and infrastructure within the continent. The goal is to capitalize on rising demand across the e-commerce and renewable energy sectors in Africa. A DHL and Saudi Aramco JV is also reportedly shopping for investors to back a USD 267 mn distribution center project in the Kingdom.

Chinese and local firms launch new industrial projects in the textile, food, and pharma sectors in Egypt

Four Chinese textile companies will invest USD 65 mn to set up factories in ElSewedy Industrial Development’s Sokhna 360 industrial city, according to a Suez Canal Economic Zone (SCZone) statement. The four factories will cover 238k sqm and create over 3k direct jobs. No further details were provided regarding the projects.

About the zone: Sokhna 360 is a 10 mn sqm integrated industrial city in the Ain Sokhna industrial zone, offering industrial, residential, educational, and commercial areas, according to the company’s website. The project targets USD 3 bn in total investments and offers a range of incentives to foreign investors, including 100% ownership, full control of import and export activities, and exemptions from customs duties and sales tax.

Chinese textile firms ❤️ SCZone: The SCZone has seen a surge in Chinese textile investments in 2H 2025. So far during the second half of the year we’ve seen Hengsheng inaugurate its USD 70 mn textile technology plant in Qantara West, Everfar Textile Egypt ink an agreement to invest USD 130 mn in a new facility, and Changzhou Ramada sign an agreement to set up a USD 22.6 mn textile manufacturing facility also in Qantara.

PLUS- Agro Green For Exporting Agriculture Crops inaugurated its EGP 300 mn agricultural products factory in Dakahlia’s Gamasa Industrial Zone, according to an Industry Ministry statement. The new 11k sqm facility has an annual production capacity of 30k tons of packaged fresh vegetables. The factory will export its entire output to markets including the UK, the Netherlands, and France.

AND- The Egyptian Company For Cosmetics also inaugurated three new pharma production lines in its EGP 200 mn cosmetics factory in Gamasa, producing tablets, capsules, and powders. The 4k sqm facility has an annual capacity of 650 tons, 40% of which is exported.

What’s next? The government is planning to set up two new industrial zones in Dakahlia, covering 141 feddans and 93.5 feddans, as extensions of the Gamasa Industrial Zone, Industry Minister Kamel El Wazir said. The new areas aim to meet growing demand for industrial land, with priority given to existing manufacturers seeking expansion.

Also in the pipeline: El Wazir added that work is underway to develop a logistics zone at Damietta Port to speed up cargo handling and export operations.

Our region’s low-lying ports face a climate adaptation imperative

The big climate problem facing ports: Many of the world’s oil ports are threatened with flooding with as much as a meter rise in sea level. At risk is major infrastructure damage due to rising sea levels, leading to flooding, storm surges, increased waves and wind intensity, and increased precipitation, according to a 2020 report (pdf) by the World Association for Waterborne Transport Infrastructure.

The risk is real: At least 13 ports — out of the top 15 ports in terms of super tanker traffic — are at risk of major infrastructure damage from a one-meter rise in sea levels, according to analysis by Zero Carbon Analytics seen by The Guardian. In our region, four low-lying ports fall in this category: KSA’s Yanbu and Ras Tanura, along with UAE’s Khor Fakkan and Fujairah ports.

What timeline are we talking about? A one-meter sea level rise is now inevitable within a century, and it could happen as early as 2070 if ice sheets continue to collapse at predicted rates and emissions remain on the same trajectory, according to a 2024 report (pdf) by the International Cryosphere Climate Initiative.

Core port functions could be undermined: Various processes at the ports could be impacted by the forecasted infrastructure damage. Navigation and berthing are set to become more challenging due to changes in wind patterns, water agitation, and increased water depth. Loading equipment, storage, and hinterland connectivity are also set to be disrupted by flooding, rising heat levels, irregular wind, lower visibility, and overtopping.

What can be done? Owners and operators need to embrace a two-pronged approach to adaptation for what’s yet to come — “soft” and “hard” adaptation, according to a 2022 report (pdf) by the Environmental Defense Fund (EDF). The report puts adaptation costs for all ports at-risk of rising sea levels at USD 4-6.8 bn per year.

“Soft” adaptational measures for ports focus on the administrative, policy, and organizational changes. For port operators, this includes evacuation plans for personnel or the relocation of goods during flooding or storm events. Governments may consider zoning or restricting areas prone to sea level rise, and providing financial grants or subsidies to support resilience investments.

Meanwhile, “hard” adaptation measures comprising structural modification to ports should also be on the table, the EDF said, adding that these measures can usually be summarized as adopting one or more of these three tactics: Elevate, defend, or retreat.

#1- Elevating port infrastructure: This strategy of “elevate” prescribes raising port surfaces and infrastructure, implementing fill materials, and reconstructing facilities at a higher elevation. A number of infrastructural components are raised, including piers, yard areas, roads, and warehouses.

Some issues to expect: Environmental compliance as well as demolition costs, erosion control, and reconnecting electricity and rail infrastructure are likely to drive up the cost of this type of adaptation measures, the report says. For example, some ports may not possess locally available fill material needed for elevation, in which case, trucking the materials would inflate the bill considerably.

A case in point: A study into the cost of elevation in the Los Angeles Port revealed that elevation measures would require an annual investment of USD 100 mn per year.

#2- Raising defenses against rising water levels: Measures of “defending” ports include establishing dikes, seawalls, floodgates, breakwaters, and drainage systems, among other defenses. These systems aim to bolster a port’s formidability against rising storm surges that are caused by the combined effect of rising heat and sea levels.

The drawbacks: In addition to their high cost of construction, similar defense structures may disrupt surrounding marine ecosystems, which may in turn create new problems for a port’s infrastructure through increased erosion or altered soil salinity. Storm-surge barriers and similar defenses can also restrict ship traffic, leading to delays and reduced operational efficiency.

#3- Strategically retreating: Relocating ports away from possible danger zones may ostensibly be less cost-intensive than other “hard” adaptation measures, but no existing studies have established definitive cost estimates, the EDF report says.

Mexico’s mas taps Joramco for maintenance operations

AVIATION-

Mexico’s mas taps Joramco for maintenance: Dubai Aerospace Enterprise’s engineering arm Joramco has inked a maintenance agreement with Mexican cargo airline mas, according to a press release. Starting next December, Joramco will provide heavy base maintenance checks on mas’ fleet of A330 jets.

Joramco’s latest maintenance moves: Joramco inked a maintenance agreement with aircraft and engine lessor World Star Aviation last week. Joramco is set to offer heavy base maintenance on World Star Aviation’s fleet over 10 weeks. This includes C-checks, painting, lease transition, and re-delivery services primarily for Boeing 737-8 jets.

TRADE-

#1- Dubai International Chamber opens first Eastern Europe office in Warsaw: Dubai International Chamber opened a representative office in Warsaw, Poland — its first in Eastern Europe, state news agency Wam reports. The new office looks to work with key public and private sector entities in Poland and provide networking and business support to encourage them to set up shop in Dubai. It is part of the Dubai Global initiative targeting 50 international representative offices by 2030.

#2- Dubai-based Superior Technology Systems and GE Vernova secured a contract for a 3 GW gas-fired power plant and LNG import terminal at Iraq’s Grand Faw Port, Mees reported. The project is set to be finished by 2030. The contract’s value was not disclosed.

About the project: The plant operators will be responsible for securing gas, with Iraq paying only for delivered electricity under Take and Pay terms. Excess output will feed into Iraq’s national grid.

REGULATION WATCH-

RTA regulates delivery bikes movement: Dubai’s Roads and Transport Authority (RTA) and Dubai Police General Headquarters launched new regulations governing the mobility of delivery bikes on high-speed lanes, effective 1 November, according to a press release. The decision comes as part of the RTA’s broader regulatory framework to protect the safety of delivery riders and manage road traffic.

The new regulations: Delivery riders are banned from using the two leftmost lanes on roads with five or more lanes and the leftmost lane on roads with three or four lanes. Roads with two or fewer lanes will have no restrictions.

What is the world doing to decarbonize maritime shipping?

Decarbonization is gathering pace, DNV report shows: Shipowners continue to order larger vessels with dual-fuel engines, indicating that the shift toward alternative fuel technologies is progressing at about the same pace as last year, according to DNV ’s Maritime Forecast to 2050 (pdf). By gross tonnage, 8.9% of the global fleet can currently operate on alternative fuels, while 51.1% of ships on order are designed for such fuels — both slightly higher than last year’s 7.4% for operational ships and 49.5% for ships on order.

A problem of conversion: As of the report’s release, some 91% of the world’s operating tonnage can only run on conventional oil fuels and can fully decarbonize with oil fuel sourced from biomass or green hydrogen — bio-MGO and e-MGO — the global supply of which remains uncertain. Another alternative is to convert to alternative fuels or adopt onboard carbon capture. Among vessels on order, 48.9% of total tonnage and 73.5% of ships face the same limitation.

Decarbonization trends vary, from ship to ship: Shipping decarbonization seems to vary according to whether the ship in question is a bulker, tanker, or containership, according to the report. Bulk carriers usually have lower asset values and less predictable routes, making it hard to justify the extra cost of conversion. In turn, only 0.6% of existing bulkers can run on alternative fuels compared to 5.2% of those on order. Containerships — which have more predictable routes — show 4.7% of them having alternative fuel systems, compared to 76% of those on order. The stark difference is owed to a higher willingness from freight buyers in this segment to pay a premium to reduce their greenhouse gas emissions (GHG).

Shipping needs access to low-GHG fuels…: Maritime players will have to seek out low-GHG fuels — such as biofuels — as regulations like the International Maritime Organization’s (IMO) Net-Zero Framework (NZF) come into effect, the report finds. There are also major headwinds facing low-GHG adoption, evidenced by the fact that DV found only 4% of hydrogen-derived low-GHG fuel project pipelines successfully reached their Final Investment Decision, with around 1% reaching operational status. The challenge is that suppliers are seeing higher cost pressures, uncertain market demand, and industry-wide economic hurdles.

… as well as carbon storage infrastructure: While global carbon dioxide storage is projected to grow by 25% by 2030, available capacity remains quite limited, as it is reserved in advance. Most of the available capacity is being booked by large industrial emitters, with whom it is easier for operators to secure steady carbon dioxide emissions from — compared to many individual ships with small, irregular amounts.

IndiGo finalizes order for 30 Airbus A350 jets

IndiGo finalizes jet order: India’s largest air carrier, IndiGo, has finalized an order for an additional 30 Airbus A350-900 jets, according to a statement released last week. This brings the airline’s total order of the aircraft to 60 jets — based on a previous MoU inked in June. No investment ticket or delivery timeline was disclosed.

REMEMBER- IndiGo has been expanding in Europe, Central Asia, and Southeast Asia, with a focus on the long-haul market. It has launched flights to Manchester and Amsterdam, and has lined up launches for six other destinations across these geographies. The airline is also considering a large order of 30-50 ATR 72-600 planes.

Calendar

OCTOBER

28-30 October (Tuesday-Thursday): Borneo International Maritime Week, Sarawak, Malaysia.

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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