Sary merges with Bangladesh’s ShopUP to launch new B2B e-commerce firm

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TODAY: KSA’s Sary merges with Bangladesh’s ShopUP to launch new e-commerce firm

Good morning, wonderful people. The news cycle has slowed down a little after a busy week post-Eid. In today’s issue, we have M&A and zones updates from KSA and Egypt, as well as a review of Egypt’s cold storage sector potential. But first, and as usual, the latest on the world’s tariff tit-for-tat moves…

THE BIG LOGISTICS STORY ABROAD- Trump pauses most tariffs + raises focus on China: Trump paused (most of) his reciprocal tariffs on (most) countries and hiked China’s tariff to 125%, up from 104%, after Beijing had pushed ahead with a retaliatory tariff hike to 84% on US goods yesterday. The blanket 10% tariff on most countries still applies, as do steel and aluminum and automaker levies. The reprieve came in response to over 75 countries reaching out for negotiations with the US, Trump said.

There’s more from China: China also listed another 12 US entities to its Export Control list, and has added another six unname d firms to its Unreliable Entity list on top of the previous 15 — banning the companies from trading or making new investments in China.

The Nasdaq notched its best day in 24 years, while the S&P 500 soared nearly 10%. Trump had taken to Truth earlier in the day to say it’s “A GREAT TIME TO BUY,” in reference to the stock market. US Treasuries also gained more than 4% as traders pared expectations for US Federal Reserve rate cuts this year, after a pullback had sent longer-term yields soaring.

SETTING THE RECORD STRAIGHT-

Egypt has not yet inked a five-year agreement with Germany to lease an LNG regasification vessel, contrary to our report of yesterday. A source with first-hand knowledge of the transaction now tells us that while talks are very much still ongoing, they are yet to conclude. Other parties are in talks to lease the same vessel, we’re told. We’ll be keeping our eye on the story in the weeks to come and will report back with more.

Why it matters: Egypt is set to resume LNG imports as early as this month to ensure we have the feedstock we need to generate electricity during peak summertime demand.

WATCH THIS SPACE-

#1- Bahrain to welcome first LNG cargo: The Seapeak LNG terminal in Bahrain will receive the country’s first ever LNG shipment as early as this month, with French oil giant TotalEnergies supplying the commissioning cargo, Bloomberg reports, citing traders familiar with the transaction. Bahrain will reportedly see more incoming shipments this year once Seapeak’s import terminal completes tests and deploys workers this month.

IN CONTEXT- Bahrain is the latest GCC country to start importing LNG as the increasingly warmer summer spikes demand for the fuel in the region. Both Kuwait and Egypt has been ramping up their LNG imports amid warmer weather and declining national LNG production, Bloomberg reports.

On the terminal: International maritime transport player Seapeak operates the Bahrain LNG Terminal, which it jointly owns with Noga Holding and the Gulf Investment Corporation,, according to Seapeak website. The terminal consists of a floating storage unit, an offshore LNG receiving jetty, a nearby regasification platform, subsea gas pipelines, and an onshore gas receiving facility.

#2- Egypt, Morocco to resume trade talks amid anti-dumping probe: Egypt is preparing to receive a Moroccan government delegation in the coming weeks to continue talks on resolving a trade imbalance between the two countries, two government sources told EnterpriseAM. The talks would come after Moroccan authorities recently launched an anti-dumping investigation into imports of galvanized wire from Egypt and the UAE, following a complaint by four Moroccan companies — Somatref, Sicotrem, GalvaFil, and Sodefer.

About the probe: The Moroccan firms claimed that Egyptian and Emirati imports of galvanized wire are being dumped into the Moroccan market at unfair prices compared to their domestic counterparts. Egypt and the UAE have until 17 April to submit written comments, and Morocco has extended direct invitations to producers in both countries to participate in the probe. The Egyptian Chamber of Metallurgical Industries has yet to receive formal notice about the probe but plans to reach out to Moroccan authorities for clarity, the chamber’s head Mohamed Hanafy told EnterpriseAM.

Rabat already has anti-dumping measures on some Egyptian goods: Morocco already has restrictions on Egyptian air conditioning units due to a lack of local components, a 35% anti-dumping duty on Egyptian carpets, and a five-year 35% anti-dumping duty on canned tomatoes exported from Egypt.

REFRESHER- The talks come after Morocco raised objections earlier this year to a widening trade deficit in Egypt’s favor, which resulted in new restrictions holding up some 150 containers loaded with ceramics, food products, and insulation materials at Moroccan ports, according to a government official who previously spoke with EnterpriseAM. Investment Minister Hassan El Khatib was soon dispatched to Rabat and agreed with his Moroccan counterpart to establish a “direct line of communication” to address any trade issues that arise and fast tracking of Moroccan exports into Egypt.

#3- Boeing posts 1Q 2025 deliveries: Boeing delivered a total of 130 commercial units in 1Q 2025, according to a statement. The figure marks a 56.7% y-o-y increase, in our calculation, from the 83 jets the company delivered in 2024.

The breakdown: Boeing’s output increased by 41% y-o-y in March to deliver 41 aircraft, Reuters reports. However, March deliveries were still slightly lower than the two previous months — Boeing delivered 44 aircraft in February and 45 in January. The plane manufacturer delivered 105 jets of its 737 model,13 of the 787, seven of the 777, and five of the 767 commercial airplanes.

Still, Airbus is beating Boeing: Airbus delivered 71 jets in March, increasing total deliveries for 1Q 2025 to an estimated 136 jets. Airbus’ figures showcase that the planemaker has picked up the pace after a lackluster performance in the first two months of the year, which saw the company deliver just 65 jets — its slowest delivery rate since 2021.

MARKET WATCH-

#1- Oil prices fell this morning despite an earlier rally yesterday on the back of US announcement to put a 90-day pause on most of the declared tariffs, Reuters reports. Brent crude futures dipped by USD 0.77 to USD 64.71 a barrel, while the US West Texas Intermediate (WTI) decreased by USD 0.65 to reach USD 61.70 a barrel by 03.20 GMT.

#2- Baltic index on a downward spiral: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — slipped 6.2% to 1,359 points on Wednesday. The capesize fell 9% to 1,732 points, while the panamax index eased by 5.9% to reach 1,203 points. The smaller supramax index shed 0.6% points to 948.

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CIRCLE YOUR CALENDAR-

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.

The UAE will host the Airport Show on Tuesday, 6 May to Thursday, 8 May in Dubai. The event will show products and technology for the airport industry from over 160 international suppliers and manufacturers across 20 countries. It will also provide a platform for networking with key players across seven airport sectors.

Saudi Arabia will host the Saudi Smart Logistics trade fair on Monday, 12 May to Thursday, 15 May in Riyadh. The event will provide insights into the latest international and local technology, solutions, equipment providers, and sustainable workflow practices within the logistics industry in the country.

The UAE will host the Global Ports Forum on Tuesday, 13 May to Wednesday, 14 May in Dubai. The forum will cover topics such as port strategy and development, port automation, finance and efficiency.

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

Sary merges with Bangladesh’s ShopUp to launch new B2B platform

Sary, ShopUp merge to launch new B2B platform: Saudi e-commerce platform Sary and Bangladesh’s ShopUp merged to launch the Silq Group, a cross-border B2B platform targeting the Gulf and emerging Asian markets, according to a press release. The merger was backed by a USD 110 mn funding round led by PIF-backed Sanabil Investment and US-based Valar Ventures.

Who else participated? Other investors include Flourish Ventures, VSQ, MSA Capital, Rocketship VC, Saudi Tech Ventures, Wafra Investment, Peak XV, Prosus, Tiger Global, Endeavor Catalyst, and Raed Ventures, as well as new investor Qatar Development Bank.

The blueprint: The new entity will combine the infrastructure, logistics, and financial services of ShopUp and Sary under a joint operating model, while each brand continues to serve its local market. The group will also incorporate Silq Financial to offer embedded financial services, POS infrastructure, and cross-border trade enablement across the network.

The leadership: ShopUp’s founder and CEO Afeef Zaman (LinkedIn) will assume the role of Silq Group’s CEO, while Sary’s founder and CEO Mohammed Aldossary (LinkedIn) will serve as Silq Financial’s CEO.

Looking Forward: Silq aims to focus on raising income at the group level while trying to catch some wind from the impact of US tariffs as exporters seek out alternative markets, Aldossary told Bloomberg. The group also plans to set up presence in Qatar, broadening its offerings to Qatari SMEs, according to the press release.

An IPO in sight: “We think the Gulf market is very exciting when it comes to IPOs — especially the Saudi market,” Zaman told the financial publication, pointing to 2027 as a potential year for market debut.

Chinese players break ground on USD 58 mn worth of factories in Egypt’s SCZone

Two Chinese players kicked off construction on USD 58 mn worth of factories in the China-Egypt Teda trade zone in Ain Sokhna, according to a statement from the Suez Canal Economic Zone (SCZone). The two factories — courtesy of Kaks Investment and Dahui Glucose, alongside local producer Tiba Starch — are slated to go online in 2H 2026.

Right on cue: Agreements were inked with the companies back in September along with four other Chinese companies looking to set up shop in the China-Egypt Teda trade zone.

The first factory: Kaks Investment’s USD 50 mn plant will span some 40k sqm and target home appliance supply chains, including component manufacturing, customs storage, spare parts distribution, and assembly operations. It aims to deepen the local production of components for the home appliances industry and is forecast to generate some 300 direct jobs.

And the second: Dahui Glucose and Tiba Starch — with an initial USD 8 mn investment — are setting up a factory for the production of modified starch and vegetable protein. It is expected to have a production capacity of 30k tons annually. The project aims to meet demand for modified starch in Egypt, the Middle East, and East Africa, and is expected to create 150 direct jobs.

Could cold storage be the future of Egypt’s storage industry?

Enterprise Explains: Unlike dry storage, Egypt’s lesser-known cold storage sector is largely untapped — how lucrative is it, exactly? Cold storage involves warehousing any commodities that are temperature sensitive, such as meds and perishables. EnterpriseAM Logistics sat down with engineer Ibrahim Bakir (LinkedIn) to discuss his feasibility study comparing the prospects of cold and dry storage in Egypt.

What makes cold storage special? Cold storage affords investors something dry storage does not: mild competition, Bakir said. The steep costs associated with acquiring refrigerative and fire safety equipment act as a high barrier, in addition to the reliance on skilled labor and on-call maintenance duties — which sends prices soaring. These circumstances severely limit entrants into cold storage in any market, and Egypt is no exception.

Fewer competitors allow cold storage lessors to charge suitable rent premiums, sufficiently offsetting the prodigious costs involved as well as yielding attractive bottom lines. Multinational corporations are among the clientele in cold storage, and tend to prefer leasing over owning warehousing facilities in Egypt, Bakir said. The resulting tenant pool is more than sufficient to reward investment in cold storage.

One man’s hassle…: Investors looking at real estate often dismiss cold storage warehousing as a complex and daunting business—in other words, a “hassle,” Bakir said. Transforming an empty plot of land into a fully operational cold storage warehouse — and eventually into an Amazon-grade facility — could be accomplished in as little as two months with proper project management. Unlike other real estate options, cold storage need not be a long-term investment, yet retains its value.

….is another’s treasure: Egyptians tend to consider residential and commercial real estate the wiser gambit, but cold storage warehousing requires lower square footage, making it the more cost-effective solution.

Cold storage and Egypt’s export issue: The proliferation of cold storage facilities in Egypt is inextricably linked to the nation’s export ambitions in the meds and perishables. Even though Egypt’s exports in perishables are strong— growing 21% y-o-y in 2024 to a record USD 6.1 bn —it does not regularly welcome new players entering to the scene—ditto for meds exports. Established giants in Egyptian exports of perishables and meds are not expanding significantly enough annually to promote commensurate investment in cold storage, Bakir said. This state of affairs is consistent throughout the MENA region, with Egypt and Morocco being relatively ahead of the curve.

Where to invest? Bakir outlined that El Obour is by far the most suitable location, owing to its striking proximity to the fresh produce and fish retail market Souq el Obour — this facilitates connections between warehousing and clients. Other notable locations include Obour el Gedida, 10th of Ramadan, Belbes, Sixth of October’s Industrial Zone, and the New Cairo’s Industrial Zone.

Indian players eye the sector: India’s chemicals player TCI Sanmar Chemicals said last month that it is planning a USD 300 mn investment push in Egypt that will see the company invest in warehousing and cold storage projects among other things, according to a statement from the State Information Service. In the same month, India’s Lulu Group said it was planning an expansion of cold storage facilities during a meeting with the Investment Minister Hassan El Khatib, the Middle East Observer reported.

ICYMI- Egypt-based cold chain developer Sullex announced it would develop the country’s first integrated city for logistics, chilled, and frozen food industrial services back in February 2024. The smart temperature-controlled logistics city, dubbed Sullex-TRC, is set to have a USD 150 mn investment ticket and cover 510k sqm at a site in Egypt’s Giza Governorate.

More economists downplay the impacts of the tariffs on UAE

The UAE’s expanding trade relations, strong diplomatic relations with the US put it in a good spot amid tariff turmoil: US President Donald Trump’s recently announced tariff plan is set to have a less significant impact on GCC economies than it will on other economies in the MENAT region, with all six economies of the GCC set to face a tariff of 10% — however, the effects are expected to be more pronounced in select sectors across GCC economies, Emirates NBD Research said in a research note on its website.

Tariffs on UAE aluminium exports unlikely to have a significant impact: Aluminum — which accounts for 19% of the UAE’s total exports to the US — will be subject to the 25% tariff rate, Emirates NBD writes. However, aluminum exports to the US represented 14% of the UAE’s aluminum exports, and just 0.4% of total UAE exports as of 2023. Fitch Solutions’ research unit BMI agrees that the impact of higher aluminum tariffs on MENA economies will be limited, with global demand to remain strong, offsetting weaker US demand, facilitating export redirection to other markets, and incentivizing the US to reach an agreement with aluminum exporters in the region.

The UAE’s trade activity is set to minimize the fallout from the tariffs: “The UAE in particular has also actively pursued trading relationships with many economies around the world to reduce trade barriers to insulate itself from volatility in global trade flows,” the bank wrote.

Take it from the experts: Abu Dhabi Commercial Bank chief economist Monica Malik said in a report “the GCC should be in a relatively favourable position to withstand headwinds, especially the UAE,” adding that the US is not a key destination for Gulf exports, averaging just c.3.7% of the GCC’s total exports in 2024, according to CNBC. BlackRock’s Ben Powell echoed the region’s relative resilience: “The Middle East — maybe not today, but over time — should be a relative [champion] within that mix,” pointing to strong balance sheets and ongoing energy revenues.

Strong diplomatic relations with Trump will also help: “I do think the Middle East, with the deep relationship with the U.S. that they have, should come out okay,” Powell added, saying this could help with potential tariff negotiations.

Spillover risks: The UAE faces indirect risks from a potential tariff-triggered global recession or stagflation could reduce expat inflows, foreign investment, and consumption, Frontier View said in a note. S&P also warned that US tariffs could dampen growth, investment, and market sentiment, while rising borrowing costs and tighter access to funding may affect exposed sectors.

Malik also warned that a sharp, sustained drop in oil prices poses a more serious threat, potentially impacting spending plans, liquidity, and confidence. We’ve heard the same from EFG Hermes’ head of research Ahmed Shams El Din, though he posits the UAE as one of the least exposed markets in the GCC to oil prices, with Saudi Arabia and Kuwait being the most exposed.

Updates on manufacturing, roads, aviation, ports and debt from Oman, Jordan and Qatar

AVIATION-

Royal Jordanian + GE Aerospace to collaborate on operational data optimization: Jordan’s flagship carrier Royal Jordanian (RJ) has inked a five-year agreement with GE Aerospace to collaborate on digitization, Jordan Times reports, citing a statement it has seen. The agreement will see GE Aerospace provide RJ with a suite of Software as a Service (SaaS) that is set to optimize the airlines’ operational data analysis to support decision-making on fuel consumption, safety measures, and operational efficiency.

RJ and GE Aerospace are no strangers: Royal Jordanian inked an agreement in November 2024 with GE Aerospace for an order of GEnx-1B engines to power the airline’s fleet of Boeing 787-9s, according to a statement. The commitment includes 18 engines and their spares, as well as GE Aerospace’s TrueChoice services agreement to cover the maintenance, repair, and overhaul services for the engines.

ROADS-

Oman has launched a tender for the third and fourth phase of the Sinaw-Mahout-Duqm Road Upgrade Project, according to a statement. The third and fourth phases of the project — located in North Al Sharqiyah and Al Wusta governorates — have a combined length of nearly 132 km.

The breakdown: The third phase extends over 83 km from Al Jouba Roundabout in the Mahout Province towards Duqm Province. The road would be constructed as a single carriageway with two lanes — each 3.75 meters — and will include 2.5-meter asphalt shoulders and 2-meter gravel shoulders on each side. The fourth phase spans 49 km from an area near Sarab to the edge of the Special Economic Zone at Duqm near Nafun, with the same technical, lane, and shoulder specifications as the third phase.

DEBT WATCH-

Qatar’s GWC earns “stable” outlook in first-time credit rating: Qatari logistics firm Gulf Warehousing Company (GWC) has received its first credit evaluation from Capital Intelligence (CI) Ratings, with a long-term rating of qaA- and a short-term rating of qaA2 on the Qatar National Scale, according to a press release. The ratings outlook was evaluated as stable.

The rationale: The ratings were based on GWC’s dominant market position in Qatar, promising growth prospects for its subsidiary Flag Logistics, as well as its solid capital base. CI Ratings also attributed the rating in part to the QAR 2 bn sharia-compliant sukuk program greenlit by GWC shareholders last year.

Audit finds breaches in CK Hutchinson’s concession, Africa to get a Nvidia built USD 720 mn AI factory,

An audit by Panama's comptroller authority into Hong Kong-based CK Hutchinson has found the company has made “many breaches” of its 25-year ports concessions, Bloomberg reports, quoting Comptroller-General Aneel Flores. The audit accuses CK Hutchinson’s subsidiary — Panama Ports — of exploiting tax breaks to evade payments of hundred mns of greenback and failing to secure the needed approvals for its 2021 concession renewals.

What’s next? Flores will file a complaint with prosecutors in the upcoming days over the unpaid concession fees after sending the audit results to Panama’s Maritime Authority.

In context: Panama is under high pressure from the US to push out CK Hutchinson as the US pushes for control of the canal, previously alleging that Panama is permitting China to interfere in the canal. Earlier in February, the US Secretary of State Marco Rubio demanded that Panama curb China’s influence over the high-profile waterway or “ face immediate consequences ” in a sit-down with Panamanian President José Raúl Mulino.

REMEMBER- China’s top antitrust watchdog has blocked Hong Kong-based conglomerate CK Hutchison from selling its two ports in the canal — Balboa and Cristobal ports — to the US investment firm BlackRock. The regulator said it will investigate the transaction’s potential repercussions on fair competition and China’s public interests

The African continent is getting a USD 720 mn AI factory? Pan-African technology firm Cassava Technologies is planning on investing up to USD 720 mn in the continent’s first artificial intelligence (AI) factory — a high-tech data center designed for powering AI applications, Bloomberg reports. The AI factory — set to be built by US-based tech company Nvidia — aims to target university researchers, startups, and developers across several sectors, such as healthcare, fintech, and government.

Calendar

APRIL

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.

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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