SAL to raise USD 678 mn in IPO

1

What we're tracking today

TODAY: Russia exempts bunker fuel from export ban + AIIB meeting, Global Sustainable Transport Forum wrap today

Good morning, friends. We have a nice, light issue for you today, as conference season continues with multiple infrastructure- and transport-related forums to keep an eye on.

THE BIG LOGISTICS STORY- Saudi Arabia’s S AL Saudi Logistics Services’ IPO subscription cou ld raise some USD 627-678 mn in its upcoming IPO, after it set its indicative price yesterday. Over in Qatar, GWC has inaugurated the second phase of its Al Wukair Logistics Park.

^^ We have everything on this story and more in the news well, below.

THE BIG LOGISTICS STORY OUTSIDE THE REGION- Russia has tweaked its fuel export ban: Russia has quickly tweaked a temporary ban on its exports of gasoline and diesel that it introduced on Thursday to exempt bunker fuel used for some vessels, as well as diesel with high sulfur content, according to a government decree. The initial ban came in a bid to stabilize its domestic market, after suffering from shortages of gas and diesel in the past few months, and is expected to be “short-lived and completely lifted once the harvest is over next month,” Reuters cited analysts as saying.

The news got a lot of ink in the foreign press: Bloomberg | Economic Times | Marine Link .

Iraq’s central bank will restrict all internal commercial transactions to the IQD as of next year in a bid to curb usage of the USD outside Iraq’s banking sector, it said in a statement yesterday. The central bank will also stop providing money for foreign trade and restrict its role to “supervision and monitoring,” according to the statement. It also said it’s working on opening transfer channels in various currencies, including the AED, TRY, INR and EUR, as it weans itself off of reliance on the USD.

HAPPENING TODAY-

AIIB meeting wraps today: Delegations from member states of the Asian Infrastructure Investment Bank (AIIB) are in Sharm El Sheikh today for the second and final day of the China-led multilateral lender’s annual board meeting. The two-day meeting features discussions on infrastructure connectivity across Asia and beyond, as well as multilateral cooperation and sustainable growth in the infrastructure sector.

Egyptian, Iranian finance ministers talk boosting trade ties at the AIIB meeting: The meeting saw Iran’s Economic Affairs and Finance Minister Seyed Ehsan Khandouzi discuss bolstering trade with Egypt’s Finance Minister Mohamed Maait, semi-official Iranian news agency Tasnim reports. Iran is ready to develop its bilateral cooperation with Egypt through the AIIB, the Islamic Development Bank, Misr Iran Development Bank (MIDB), as well as joint companies in the textile and shipping sectors, Khandouzi added. They also agreed to increase the capital of MIDB, according to an Iranian relations office in Cairo statement, without clarifying the targeted size of the capital increase.

China’s Global Sustainable Transport Forum kicked off yesterday and wraps today in Beijing. The two-day event brings together high-level officials and representatives from international organizations to help boost international transport cooperation and achieve sustainable development. The forum saw Omani Transport, Communications, and IT Minister Saeed al Mawali and Saudi Transport and Logistics Services Minister Saleh Al Jasser, meet to discuss boosting transport and logistics ties between the two countries, Oman News reports.

NON-LOGISTICS REGIONAL HEADLINES- It’s all about IPOs in the Gulf this morning:

UAE: Emirati supermarket franchise Spinneys is planning to IPO up to a 30% stake in 2Q 2024, and has reportedly hired Rothschild & Co as its advisor. (Reuters)
KSA: A unit of Saudi travel company Seera, Lumi, debuted on the Saudi Tadawul exchange, with shares soaring 30%. (CNBC)

CIRCLE YOUR CALENDAR-

The Engineering Export Council of Egypt (EEC) will lead a trade mission consisting of 22 Egyptian companies to Iraq from 23 to 29 September. The delegation will tour Erbil and Baghdad. The participating companies, which operate across various sectors of the engineering industry, will be looking to secure export agreements with the Iraqi market.

The TMS Transportation and Climate Change Conference (TACCC) will kick off tomorrow in Abu Dhabi. The one-day event will gather industry leaders, experts, policymakers, and innovators together to discuss the climate-related challenges and actionable solutions that can guide us towards a sustainable future in the transport sector.

The Gulf-Iraq Business Forum is set to take place in the UAE on 26 and 27 September. The forum will bring together key stakeholders, opinion leaders, and economic drivers to discuss bilateral cooperation and investment plans in the private and public sectors, as well as ways to enhance economic relations across several fields. The forum will also discuss economic obstacles and potential areas for development in Iraq and GCC countries, including potential areas for trade and investment.

A Saudi-Turkish Summit is scheduled to take place in Istanbul, Turkey on 8-12 October. Organized by the Türkiye Exporters Assembly in coordination with the Turkish Commerce Ministry, the summit will be attended by Turkish exporters and 70 members of Saudi Arabia’s Riyadh Chamber of Commerce. The participants will also include representatives from an array of sectors including food, non-ferrous metals, textiles, ready-made garments, chemicals, and furniture.

Shaping the Future of Shipping Summit , organized by the International Chamber of Shipping, will take place on 9 December in the UAE. The event will bring together government officials and leaders in energy, maritime, and all parts of the supply chain to discuss plans to address climate change and help transition the industry towards sustainability.

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

Saudi Arabia’s SAL could raise some USD 678 mn from IPO

Saudi Arabia’s SAL sets price range for IPO: SAL Saudi Logistics Services’ IPO subscription could raise some USD 627-678 mn in its upcoming IPO, after it set its indicative price yesterday, according to a disclosure (pdf) on Tadawul. SAL set an indicative price range of USD 26.13-28.28 per share, according to the disclosure, potentially putting the offering size somewhere between USD 626.5 mn and USD 677.1 mn. This would value the company at between USD 2.09-2.26 bn, according to our math.

REMEMBER- Saudia Arabian Airlines and Tarabot Air Cargo services are jointly listing a 30% stake in their subsidiary SAL on the Saudi Tadawul Exchange, with both shareholders offering 24 mn shares.

The timeline: The subscription period for institutional investors to subscribe to 90% of the 30% stake of SAL kicked off yesterday and will run until 1 October. Retail investors’ subscription period will kick off on 11 October and run until 13 October.

Backgroun d: SAL has been planning an IPO since at least 2021, but the company got the greenlight to list a 30% stake in Tadawul from Saudi Arabia’s Capital Market Authority back in June.

Advisors: HSBC Saudi Arabia was tapped as the sole bookrunner, underwriter, financial advisor, global coordinator and lead manager for the IPO.

GWC rolls out second phase of Al Wukair Logistics Park

Qatar-based logistics and warehousing solutions provider GWC has launched the second phase of its Al Wukair Logistics Park , according to a company statement. Expansions at phase 2 will see the addition of upwards of 500 retail, warehousing, and light industry units at “competitive leasing rates,” the statement added.

The details: The units are geared towards small and medium-sized enterprises (SMEs) with “plug and play solutions” for customers choosing to move in, GWC Group CEO Ranjeev Menon said (watch, runtime: 1:00).

Phase 3 is already in the works: “Given the growth of Qatar’s economy we are already planning for phase three,” Menon added.

About Al Wukair Logistics Park: GWC launched the first phase of Al Wukair Logistics Park in 2022, Menon said, adding that it now houses more than 700 customers. The 1.5 mn square meter (sqm) hub cost some USD 410 mn in investments, Trade Arabia reported. Units at the logistics hub offer 250 sqm of space, with 220 sqm slated for operations and the rest earmarked for offices and utilities. Clients moving into units at the park benefit from a range of services powered by GWC’s end-to-end logistics solutions, including customs clearance, transport, tracking, supply chain consulting, freight, distribution and other services. Utilities and IT infrastructure are also provided on-site, Trade Arabia added.

The global trade finance gap widened to a record USD 2.5 tn in 2022, according to ADB

The global trade finance gap widened to USD 2.5 tn in 2022, which accounts for 10% of global merchandise trade,according to an Asian Development Bank (ADB) survey (pdf). The gap — which jumped 47% from its 2020 level of USD 1.7 tn — came off the back of post-pandemic macro headwinds, increased rates of rejection of trade financing requests, as well as the Russia-Ukraine war.

The trade finance gap posed a major supply chain issue for companies: Inadequate funding and elevated transportation costs were voted as the two biggest supply chain challenges faced by firms in 2022, the survey added. Around 34% saw insufficient funding as a barrier to efficient supply chains, with 27% voting high transport costs as a reason and 12% raising concerns around the lack of visibility into supply chain operations.

Reliable logistics needs sufficient funding, firms say: Some 21% of firms highlighted access to sufficient funding as a solution to boost supply chain resilience and reliability of logistics providers, whilst 16% of firms see digitization as a fix.

Some of it is technical: Some 20% of banks said they rejected requests from companies for financial support to help sustain their import and export operations. They cited problems concerning know-your-customer compliance, inadequately presented documentation, and outlooks on high country risk. Some 54% of banks agreed that low company credit ratings were another major reason behind rejections, while 11% said they had limited risk tolerance, and 10% rejected applications from SMEs who lacked valuable assets.

But a lot of it is macro: Some 64% of banks cited the higher interest rate environment as a key barrier to providing trade finance, while 60% of banks voted economic uncertainty on the back of the war in Ukraine as another significant obstacle funding trade.

SMEs had it hard: The rejected applications had a bigger impact on SMEs as opposed to larger companies, the survey found. SMEs accounted for 38% of applications submitted to banks in 2022, and for 45% of the rejections.

And the outlook for 2023 + 2024 isn’t great: Some 23% of firms agree that economic uncertainty is set to worsen the gap in 2023 and 2024, according to the survey. Meanwhile, some 22% cited a lack of access to finance as another potential reason for the widening of the gap, and 16% cited changes in trade policies.

Narrowing the gap: Banks need to introduce additional capacity to further enhance trade finance as an investable asset class, through more SME-targeted credit programs, deep-tier supply chain finance, and attracting new pools of capital, ADB says.

Companies + banks both think digitization is also key: More than 63% of banks agreed that boosting digitization streamlines regulatory compliance checks while promoting enhanced client profiling and risk management for SMEs. Companies agree, with some73% of surveyed firms pointing out the substantial efficiency enhancements experienced due to digitization, including the standardization of digital trade documentation processes.

The caveats: A major obstacle to digitizing business and trade portfolios is attributed to the high costs associated with the process. Further cost-related issues include understanding and implementing technology, insufficiency of globally established laws and standards, as well as a lack of interoperability of existing platforms.

One silver lining: More banks are leaning towards sustainable trade financing. Around70% of banks claimed to have established a definition for climate and green trade finance transactions, with 74% of banks planning to shift towards sustainable and ESG-aligned financing. 82% of banks believe the shift to be a strategic priority, according to the survey.

But standardization is still needed: ADB highlighted the need to harmonize sustainability standards and enhance sustainability-related data collection and reporting mechanisms in order to boost sustainable trade finance.

Qatar inks air services agreement with the Bahamas + Egypt, China discuss BRI, trade ties

Qatar, Bahamas ink air services agreeme nt + discuss boosting transport ties: Qatari Transport Minister Jassim Al Sulaiti and Bahamian Deputy Prime Minister Isaac Chester Cooper have inked an air services agreement between the two countries, according to a statement. The agreement aims to expand airspace access for the national carrier and increase its global destination network. The ceremony followed high-level talks on strengthening bilateral cooperation in transport, civil aviation, marine navigation, and ports.

Egypt, China talk Belt and Road + boosting trade ties: President Abdel Fattah El Sisi met with a high-level Chinese delegation for economic ties and political talks in Cairo yesterday, Ittihadiya said in a statement. The two sides discussed Egypt’s position in Beijing’s Belt and Road Initiative, with the Chinese delegation expressing their interest in the Suez Canal Economic Zone (SCZone) as a strategic route linking East to West, according to the readout. Trade ties, industry localization, and climate action, as well as undisclosed regional issues, were also discussed.

FYI- The delegation is being led by Li Xi, one of the most senior figures in the Chinese Communist Party. Li serves on the party’s seven-member Standing Committee, its most powerful decision-making body.

Half of the global order book is currently dominated by container ships + LNG carriers

LNG carriers + container ships dominate global orderbook : Some 50% of the global ship orderbook is contracted for LNG carriers and container ships , Splash reports,citing recent data by Clarkson Research. The amount of LNG orders alone are equivalent to 53% of the world’s existing fleet, while tanker orders are equivalent to just 5% of the existing fleet. Not helping things is the lack of shipyard capacity, which is still 35% lower than its peak in 2011 — despite the orderbook standing at 3.5x last year’s output, according to the data. This presents a huge challenge for tanker and dry bulk vessel owners with fleet replacement programs as they face lengthy wait times and elevated prices.

FedEx Express debuts EVs in the UAE, rolls out digital platform updates + OPAZ floats design consultancy tender for economic zone. PLUS: More from Agility and Royal Jordanian Airlines

FREIGHT FORWARDING-

FedEx Express debuts electric vehicles (EVs) in the UAE: FedEx Express has added its first three EVs to its delivery fleet in the UAE, according to a company statement. The move is part of a drive to cut back emissions, with the company angling to have all new vehicle purchases electric by 2030, the statement added. The first phase of the initiative will see the EVs deployed for parcel pickup and delivery operations in high-traffic zones. A fully-charged EV has a 280 km operational range, meaning that it can “easily cover a full day’s route,” the statement explained. The outfit’s decision to deploy EVs to the UAE follows the successful conclusion of trials earlier this year.

E-COMMERCE-

FedEx subsidiary and express courier FedEx Express has rolled out improvements to its FedEx Ship Manager (FSM) platform to customers across Asia, the Middle East and Africa, according to a statement. New features will allow users to generate shipments from online orders, create and print shipping labels, synchronize order status updates and tracking, and notify buyers that orders have been shipped. The updates will also allow integration of the platform with stores on big ecommerce platforms like Shopify, BigCommerce, WooCommerce, and PrestaShop, with more e-commerce platforms to follow, the statement said.

ZONES-

OPAZ floats tender for Al Dhahirah economic zone consultancy services: Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) plans to issue a tender for the consultancy services of Al Dhahirah economic zone’s infrastructure, according to a statement.The contract will also include overseeing the implementation of the first phase of infrastructure projects within the economic zone in Al Dhahirah Governorate. The invitation extends to Omani and Saudi companies, with the deadline for purchasing the tender documents set at 2 October for purchasing the tender documents and participating in it, and 26 October for submissions.

AVIATION-

Dnata’s Airport Handling to operate ground handling at MXP for Hainan Airlines: Air and travel service provider Dnata’s joint venture Airport Handling has been awarded a multi-year contract by China’s Hainan Airlines to manage its ground handling operations at Italy’s Milan Malpensa Airport (MXP), according to a press release. Airport Handling will provide passenger, ramp, and baggage services to the airline, which operates three weekly Boeing 787-9 flights between China’s Shenzhen Bao’an International Airport and MXP, according to the release.

ALSO WORTH KNOWING-

Royal Jordanian Airlines launched a new direct route between Amman and Düsseldorf, with two flights per week every Saturday and Wednesday. (Statement)
Kuwaiti logistics outfit Agility has received the regulatory greenlight from Kuwait’s Capital MarketsAuthority (CMA) to trade up to 10% of its treasury shares for a period of six months. (Statement)

Calendar

25-27 September (Monday-Wednesday): Airline Economics Growth Frontiers Middle East & Africa, The Ritz-Carlton, Dubai, UAE.

25-27 September (Monday-Wednesday): Agriculture Horticulture Development Board’s trade mission to Kuwait.

26-27 September (Tuesday-Wednesday): Gulf-Iraq Business Forum, Sharjah Chamber of Commerce and Industry, UAE.

27 September (Wednesday): TMS Transportation and Climate Change Conference (TACCC), Saadiyat Rotana Resort, Abu Dhabi, UAE.

27-28 September (Wednesday-Thursday): MRO Asia-Pacific, Singapore Expo Convention and Exhibition Centre, Singapore.

26-28 September (Tuesday-Thursday): ProcureCon, Hyatt Regency Barcelona Tower, Spain.

26-28 September (Tuesday-Thursday): Breakbulk Americas, George R. Brown Convention Center, Houston, Texas.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

OCTOBER

Egypt’s Suez Canal Economic Zone (SCZone) goes on a roadshow to South Korea.

3-4 October (Tuesday-Wednesday): IATA World Sustainability Symposium, Madrid, Spain.

3-5 October (Tuesday-Thursday): Smarter Mobility Africa Summit, South Africa.

8-10 October (Sunday-Tuesday): Saudi-Turkish Trade Summit, Istanbul, Turkey.

9-15 October (Monday-Sunday): 2023 World Bank Group - IMF Annual Meetings, Marrakech, Morocco.

10-12 October (Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

10-12 October (Tuesday-Thursday): Intermodal Europe 2023, RAI Amsterdam, Netherlands.

10-12 October (Tuesday-Thursday): Cool Logistics Global 2023, Genoa Stock Exchange, Genoa, Italy.

16-17 October (Monday-Tuesday): Duqm Economic Forum, Crowne Plaza, Duqm, Oman.

24-25 October (Tuesday-Wednesday): Future Fuels Europe, Amsterdam, Netherlands.

26-29 October (Thursday-Sunday): ICASM 2023, Conrad, Etihad Towers, Abu Dhabi, UAE.

30 Oct-2 Nov (Monday-Thursday): XLP AGM 2023, Barcelona, Spain.

30-31 October (Monday-Tuesday): Gartner Supply Chain Planning Summit, London, UK.

31 Oct-2 Nov (Tuesday-Thursday): IAPH World Ports Conference, Abu Dhabi, UAE.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

NOVEMBER

November: Abu Dhabi Airports Terminal A set to become operational.

1 November (Wednesday): Smart Maritime Network Dubai Conference, Conrad Dubai, UAE.

9-15 November (Thursday-Wednesday): Intra-African Trade Fair, Cairo, Egypt.

15-17 November (Wednesday-Friday): Global Freight Summit 2023, Coca Cola Arena, Dubai, UAE.

13-17 November (Monday-Friday): Dubai Airshow, Dubai World Center, UAE.

14-15 November (Tuesday-Wednesday): Supply Chain & Logistics Arabia, Narcissus, Riyadh, Saudi Arabia.

14-17 November (Tuesday-Friday): IATA Slot Conference, Dubai World Trade Centre, Dubai, UAE.

15 November (Wednesday): Leaders in Logistics UAE Summit, Dubai, UAE.

21-23 November (Tuesday-Thursday): Intermobility Expo 2023, Dubai World Trade Center, Dubai, UAE.

21-23 November (Tuesday-Thursday): Touchdown Middle East, Gulf Hotel, Bahrain.

21-23 November (Tuesday-Thursday): ARABAL 2023 Conference, Hilton Riyadh Hotel & Residences, Riyadh, Saudi Arabia.

23 November (Thursday): Global Supply Chain and Logistics Summit, Grand Millennium Hotel Business Bay, Dubai, UAE.

30 November-3 December (Saturday-Tuesday): Handling Expo, Egypt International Exhibition Center, Cairo, Egypt.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

DECEMBER

10-11 December (Tuesday-Wednesday): Invest in Logistics, St.Regis Almasa Hotel, New Administrative Capital, Egypt.

EVENTS WITH NO SET DATE

2H 2023:Construction of Neom’s first hydrogen fueling station will kick off.

2H 2023: Expansion of Baghdad International Airport to begin.

3Q 2023: Design and supervision contract for Oman’s proposed Musandam Airport to be awarded.

Before the end of the year: The first phase of the Ain Sokhna port redevelopment will wrap.

2024

1Q 2024: Construction of phase 3 of Agility’s logistic park in Abidjan, Côte d'Ivoire to be completed.

1Q 2024: Egypt’s Transport Ministry to launch pre-qualification tender for Cairo-Alex freight railway.

King Salman Energy Park is set to become operational in 2024

FEBRUARY 2024

13th World Trade Organization Ministerial Conference, Abu Dhabi, UAE.

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai Trade Centre, UAE.

12-15 February (Monday-Thursday): African Air Expo, Cape Town, South Africa.

28 February-1 March (Wednesday-Friday): MENA Transport Congress and Exhibition 2024, Dubai, UAE.

MARCH 2024

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Center, Dubai, UAE.

12-14 March (Tuesday- Thursday): IATA World Cargo Symposium, Hong Kong International Airport, Hong Kong.

20 March (Wednesday): Construction work scheduled to begin on the 162 km Rasht-Astara Railway in Iran.

MAY 2024

2-3 May (Thursday-Friday): Geneva Dry, Hotel President Wilson, Geneva, Switzerland.

21-23 May (Tuesday-Thursday): WAGA 2024, Riyadh, Saudi Arabia.

JUNE 2024

19-21 June (Wednesday-Friday): World Freezones Organization’s Annual International Conference and Exhibition, Bari, Italy.

NOVEMBER 2024

13-15 November (Wednesday-Friday): The Bahrain International Airshow, Sakhir Airbase, Bahrain.

DECEMBER 2024

10-12 December (Tuesday-Thursday): Middle East Business Aviation, DWC, Dubai, UAE.

2025

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.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

Sections

About

Privacy & Support

Get EnterpriseAM daily