SAL to develop and operate SAR 4 bn logistics zone in Riyadh

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TODAY: SAL’s new logistics zone in Riyadh + Emirates taps HSBC for Airbus order

Good morning, folks. The news cycle slowdown continues as we inch closer to the weekend. In today’s brisk read, an announcement of a big logistics city project from KSA takes the front seat, followed by aviation industry updates from Kuwait and UAE. Shall we?

WATCH THIS SPACE-

#1- China’s SBH Kibing Solar New Energy is looking to set up an export-bound USD 700 mn solar panel glass manufacturing facility in Egypt’s Suez Canal Economic Zone, according to a statement. The plant would be built over two phases and is expected to annually produce 1.5 mn tons of solar panel glass and 1.1 mn tons of high-purity silica sand — a component used in the production of solar glass. The majority of output will be exported.

On the fast track: Prime Minister Moustafa Madbouly voiced his support for the expedited construction of the project, directing the relevant authorities to provide the needed utilities and supplies for the project to go live “as soon as possible.” The company is currently working to secure the necessary approvals for the project.

Localizing the production of solar power components is a top priority, with the government naming solar cells in October as among 12 products that it wants to begin manufacturing locally.

#2- The Iraqi gov’t is in talks to import one mn tons of Algerian LNG per year through a medium-term agreement expected to close in two months, sources familiar with the matter told Attaqa. The Algerian imports are expected to begin upon the completion of a pipeline linking Khor Al-Zubair port’s floating LNG terminal to the national pipeline near Shatt al-Basra.

Iraq is exploring its options: Iraq is under US pressure to limit its Iran-sourced natural gas imports, which is responsible for a third of the country’s generated electricity. The country — with a power output standing at 27 GW — already suffers from an electricity shortage of about 13 GW that intensifies during the summer. The country has also been exploring LNG imports from Oman and Qatar.

#3- UK-based Zapp to set up shop in Dubai: British rapid-delivery startup Zapp plans to enter Dubai’s competitive quick-commerce market as early as this year, Bloomberg reports, citing a statement received from a company spokesperson. While specific details remain undisclosed, Zapp has hired staff in Dubai and held partnership talks with Talabat and Careem, according to another source familiar with its operations.

The expansion comes as competition heats up in the Middle East. Talabat recently debuted in Dubai after listing a 20% stake in the DFM in a USD 2 bn IPO last December, and China’s Keeta launched in Saudi Arabia in October. Talabat also recently acquired 100% of Dubai-based on-demand grocery delivery marketplace Instashop from both companies’ parent firm Delivery Hero — the most recent in a series of acquisitions in the industry.

About Zapp: The company currently operates exclusively in the UK, generating over USD 100 mn in sales in 2024, driven by partnerships with high-margin premium brands such as LVMH and Fortnum & Mason, Bloomberg reports, citing company documents it has seen. Zapp has also teamed up with Deliveroo and Uber Eats to streamline order fulfillment.

#4- US-Houthi conflict keeps Red Sea ins. high: War risk premiums for Red Sea voyages are expected to remain elevated and may rise in the coming days, Reuters reports, citing industry sources. Rates for US and UK-affiliated ships increased by up to 2% in recent weeks, and the steep ins. is expected to continue due to the US aerial attacks on targets throughout Yemen earlier this week. US President Donald Trump has promised to continue the onslaught until the Houthis completely halt their attacks on US and US-allied vessels in the waterway. The development is expected to provoke retaliation from the Houthis.

#5- Tunisia eyes grain storage capacity expansion: The Tunisian government is looking to establish new grain silos at a cost of TND 205 mn (c. USD 66.5) to store soft wheat, durum wheat, and barley at a maximum capacity of 120k tons, the country’s Grain Office chief Salwa Benhadid Zouari said (watch, runtime 00:59). The new silos — expected to launch in 2027 — will ensure the availability of sufficient stock and bolster storage capacity.

MARKET WATCH-

#1- Oil prices went down this morning amid predictions of rising Russian oil supplies in the global market as a result of Russia’s acceptance of a US-brokered proposal to halt energy infrastructure attacks in the Ukraine war, Reuters reports. Brent crude futures dipped by USD 0.19 to USD 70.37 a barrel, while the US West Texas Intermediate (WTI) went down by USD 0.20 to USD 66.70 a barrel by 04.20 GMT.

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CIRCLE YOUR CALENDAR-

The UAE will host the Gulf Ship Finance Forum on Thursday, 10 April in Dubai. The forum will host shipping and finance executives from around the region and the world to host presentations, interviews, and panel discussions on ownership, management, chartering, legal, and trading in shipping.

The UAE will host the CargoIS Forum on Monday, 14 April in Dubai. The event will discuss industry insights and strategies from leading logistics players, including Emirates SkyCargo and Lufthansa Cargo.

The UAE will host the IATA World Cargo Symposium from Tuesday, 15 April to 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.

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

SAL to develop SAR 4 bn logistics zone in Riyadh

SAL to build a SAR 4 bn logistics zone in Riyadh: SAL Saudi Logistics Services announced plans to construct, develop, and operate a new logistics zone in Riyadh’s Falcon City at an investment of SAR 4 bn, according to a statement (pdf). The logistics player also inked a preliminary agreement to lease a 1.5 mn sqm plot of land from PIF’s entertainment and investments arm Sela to develop the logistics zone in Falcon City, according to a Tadawul disclosure.

The lease breakdown: Under the lease agreement, SAL will lease the land for a period of 30 years — with the possibility to extend an additional 15 years and a grace period of three years. SAL will pay Sela SAR 25 mn to front electricity, access roads, and infrastructure costs. SAL is uptaking the land at a lease rate of SAR 16 per sqm, with an annual inflation rate set at 1.5% following the grace period. The two parties are scheduled to complete the final leasing agreement within 6 months.

Who’s involved: Sal also separately inked a framework agreement with the government initiative Shareek program to support the project, according to a Tadawul disclosure and a statement (pdf). Under the agreement, Sal will be able to discuss its eligibility for and request empowerment programs from the government body. Shareek’s eligibility obligation is in effect until 31 December 2030. Further details regarding the partnership were not disclosed.

REMEMBER- SAL just had a good year: SAL logged a net income of SAR 661 mn in 2024, up 30% y-o-y. The improved performance came on the back of growth in volumes and cost savings. Meanwhile, revenues were up 12% at SAR 1.6 bn on the back of solid results across the firm’s divisions despite geopolitical challenges.

About the facility: The facility will include state-of-the-art Class A warehouses, operational facilities, multimodal connectivity, and smart tech. The project looks to boost the Kingdom’s supply chain efficiency and operational logistics environment. The zone comes as a new revenue segment for Sal, which is forecast to reflect on the firm’s earnings upon the project’s completion.

About Falcon City: The 14.4 mn-sqm city project is a next-generation city under the ownership of Sela and home to the Saudi Falcons Club, a cultural and heritage landmark in the Kingdom. The club boosts tourism and cultural engagement by hosting local and international events, as well as programs and activities.

Emirates taps HSBC to finance four Airbus A350-900 aircraft

Dubai’s flagship carrier Emirates tapped HSBC as its sole senior arranger and original lender to finance the purchase of four additional Airbus A350-900 jets, the leading lender said in a post on LinkedIn. This marks the airline’s return to the Japanese operating lease with call option (Jolco) market — in which the firm was very active between 2014 and 2019, raising over AED 28 bn. The exact size of the facility was not disclosed.

Edging away from Boeing? Emirates’ embrace of Airbus vessels comes months after the airline’s President Tim Clark slammed rival planemaker Boeing in October for its 777x delivery delays, indicating that the airline “had to make significant and highly expensive amendments to [its] fleet programmes as a result of Boeing’s multiple contractual shortfalls.” Clark told Bloomberg last July that he does not expect Boeing’s 777X aircraft to enter commercial services before 2026.

REFRESHER- Emirates to expand cargo fleet: The airline ordered five Boeing 777 freighters last October to be delivered in 2025 and 2026, in addition to extending the leases for four Boeing 777s in its current fleet with aviation services firm Dubai Aerospace Enterprise. Emirates Skycargo — the airline’s cargo arm — is slated to double its existing fleet of 11 units to 21 Boeing 777s by December 2026.

Fleet expansion matches network growth targets: Emirates serves 148 destinations — including 140 for passengers and eight for cargo — and aims to exceed 170 by 2030, Chief Commercial Officer Adnan Kazim told EnterpriseAM at the opening ceremony of Emirates World’s store in Egypt last month.

REMEMBER- The airline is coping with industry-wide supply chain disruptions by earmarking USD 5 bn toward retrofitting its existing aircraft, the company announced earlier this month. Emirates is upgrading aircraft and equipping them with new tech upgrades to extend the life span of some models — including Airbus A380 jumbo and Boeing’s 777— at its engineering complexes in Dubai in lieu of dealing with overburdened backlogs.

Construction of new air cargo city at Kuwait International Airport is complete

Kuwait makes headway on major airport upgrades: Kuwait has completed construction on its new air cargo city at Kuwait International Airport as part of its larger expansion project, head of Directorate General of Civil Aviation (DGCA) Daji Al Otaibi told the Kuwait-based news outlet Alseyassah. The cargo city boasts a capacity to accommodate more than 77 cargo carriers, Otaibi said. Work was also completed on a third runway and a new control tower at the airport — both now ready for operation.

Part of bigger plans: The cargo city is part of an airport development project with multiple components and phases. Dubai-based engineering consultancy Dar Al Handasah nabbed the five-year contract with Kuwait’s DGCA to supervise construction and design for several facilities in the development project back in June. The developments are scheduled to be inaugurated by 4Q 2026, Al Otaibi adds.

SOUNDS FAMILIAR? We first heard of the air cargo city project back in 2023 when Kuwait planned to launch a limited international tender for its building and operation. The investment ticket for the cargo city was not disclosed.

A boon for Kuwaiti aviation: The developments are set to expand the airport’s handling capacity and aim to bolster Kuwait’s aviation sector to make up 25% of the country’s national income within the next ten years.

Other related moves: Kuwait’s Civil Aviation Authority also inked an agreement with German company Leonardoto to carry out three projects at Kuwait International Airport last year. The projects, with a combined cost of USD 26 mn, involve providing training, warranty, maintenance, and technical support services at the airport.

IN OTHER AVIATION NEWS FROM KUWAIT-

Things aren’t looking so good for Kuwait Airways: State-owned Kuwait Airways does not expect to generate solid net income for at least another two years due to losses accumulated during the pandemic, chairman Abdulmoshen Alfagaan told Alseyassah. The carrier aims to cap spending and grow revenues from its new services, he added, without providing further details.

Expansion plans ahead: The airline operates 23 aircraft at present and aims to add seven additional carriers by the end of the year — with forecasts to receive three to four new aircraft before the summer, Alfagaan added. The new carriers will support the launch of new service routes, including Russia’s Moscow, Malaysia’s Kuala Lumpur, and Luxor and Alexandria in Egypt.

Updates on ports, maritime, and aviation from UAE and KSA

PORTS-

DP World + Maersk boost maritime services at Brazilian port: Dubai-based port operator DP World has inked an eight-year strategic agreement with shipping line giant Maersk to launch new maritime services at Brazil’s Port Santos, according to a press release. Maersk will roll out six services with eight weekly calls in 2025. This will increase to seven services to reach a total of 10 weekly calls by 2026.

DP World is all in on Port Santos: DP World operates one of Brazil’s largest private-use terminals at Port Santos. The terminal — which currently boasts an annual handling capacity of 1.4 mn TEUs — is slated to see DP World invest a total of BRL 2.1 bn (c. USD 369 mn) to expand its annual capacity to 2.1 mn TEUs by the end of 2027. The UAE major and Brazil’s leading railway operator Rumo are also co-developing the port’s new grain and fertilizers terminal. The new terminal is expected to expand the port’s grain and fertilizer handling capacity by some 12.5 mn tons per year.

AVIATION-

AviLease offloads three planes to its JV with China: PIF-owned aircraft lessor AviLease has delivered three Airbus A320neo aircraft to SDH Wings International Leasing Limited — its JV with Chinese sovereign fund Sichuan Development Holding (SDH), according to a press release. The three jets — which boosted the JV’s fleet to a total of 25 carriers — are currently on long-term lease to an undisclosed Saudi-based airline. AviLease holds a 10% stake in SDH.

Background: The move comes as part of AviLease’s MoU with SDH for the supply of up to 20 new technology aircraft, which was inked back in December 2023.

REFRESHER- AviLease acquired Standard Chartered’s aviation finance business in 2023 in a USD 700 mn transaction that saw it assume control of the division’s owned and managed portfolio of 120 aircraft.

SHIPPING + MARITIME-

Mawani boosts links between Jubail and Asia: Saudi Ports Authority (Mawani) has added shipping giant MSC’s new shipping service — dubbed Clanga — to Jubail Commercial Port to boost the Kingdom’s connectivity to Asia, according to a statement. The new service will have a capacity of up to 6k standard containers and will call at Jubail Commercial Port, King Abdulaziz Port, Singapore Port, China’s Shanghai Port, and Sri Lanka’s Colombo Port.

OTHER STORIES WORTH KNOWING THIS MORNING-

Air Arabia flies to Armenia: Air Arabia is launching six direct flights between Abu Dhabi’s Zayed International Airport (AUH) and Armenia’s Yerevan Zvartnots International Airport. (Statement)
SalamAir adds new Kenya service: Omani low-budget airline SalamAir launched direct flight services between Muscat and Nairobi’s Jomo Kenyatta International Airport. (Statement)

US LNG exports to China stall after 15% tariff

China’s US LNG imports stall: Chinese imports of US LNG have stalled for 40 days — its longest pause in almost two years — as energy traders divert shipments to other buyers to avoid China’s 15% duty on US LNG, Bloomberg reports, citing ship-tracking data. Chinese LNG buyers in long-term contracts with US projects are reselling shipments to Europe, and there are no US shipments currently en route to China.

Shifting focus: Chinese firms are looking towards the Middle East and Asia-Pacific for LNG supplies rather than making new commitments with US facilities, Bloomberg reports. China’s Resources Gas International inked a 15-year contract earlier this week with Australia’s Woodside Energy Group Ltd to supply LNG starting in 2027. China is also aiming to boost its local energy production, with output growing 3.7% y-o-y in the first two months of this year.

Calendar

MARCH

24-25 March (Monday-Tuesday): Airbus Summit, Toulouse, France.

APRIL

2-4 April (Wednesday-Friday): Global Supply Chain and Logistics Summit, Amsterdam, The Netherlands.

3-4 April (Thursday-Friday): Africa Supply Chain Optimization, Johannesburg, South Africa

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.

16-17 April: Global Ports Forum, 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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