Saudi’s Bahri secures USD 800 mn Murabaha credit facility

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What we're tracking today

TODAY: Saudi’s Bahri secures USD 800 mn in financing + UAE backs a new European interconnection project

Good morning, folks. It is a compact read this morning as we slide into the weekend, with financing updates from Saudi’s Bahri and all the details on UAE’s involvement in a new interconnection project hatching Europe.

WATCH THIS SPACE-

#1- Iraq + BP to sign oil, gas agreement for Kirkuk fields next month: Iraq and British oil giant BP are set to ink a major agreement for four Kirkuk oil and gas fields by the first week of February, potentially raising oil production to 15k bpd, Iraqi Oil Minister Hayan Abdel Ghani told Reuters. The agreement — which Ghani said would be bigger than TotalEnergies’s 2023 USD 27 bn agreement — would see oil go to refiners currently operating below capacity, boosting gas production in Iraq and eradicating flaring by 2028. In contrast to previous contracts that provided foreign companies with minimal margins, the new agreements are expected to feature a more favorable profit-sharing structure, sources tell the newswire. Iraq is second behind Saudi as the top oil producers in Opec with the capacity to produce nearly 5 mn bpd.

#2- Oman + India concludes fifth round of CEPA talks: Oman and India wrapped the fifth round of talks yesterday on signing a Comprehensive Economic Partnership Agreement (CEPA) to remove trade barriers between the two countries, Indian news outlet Business Standard reported here and here, citing sources including the Omani Commerce Minister Qais bin Mohammad Al-Yousef. Oman hopes that the CEPA — in the works since at least 2023 — will be finalized after one final round of negotiations later this year.

In numbers: India is a major destination of Omani exports, coming third for non-oil exports and fourth for Omani crude oil, Indian newspaper Millennium Post writes. Trade volumes between the countries saw a y-o-y dip in the 2023-24 fiscal year, dropping to USD 8.94 bn from USD 12.39 bn.

#3- Kenya is exploring a partnership agreement with the UAE to help extend its Standard Gauge Railway to connect with Uganda and South Sudan, Kenyan President William Ruto said on X. Both countries will conduct a feasibility study to evaluate the expansion's potential and economic impact. The railway project currently stretches over 468 km, just short of reaching Uganda, Reuters reports. China initially financed the project as part of the Belt and Road Initiative, but it pulled the plug after Kenya failed to meet debt obligations last November.

ICYMI- The UAE and Kenya signed an economic partnership agreement earlier this week aiming to deepen trade and investment ties, strengthen supply chains, and improve market access across the Middle East and Africa.

#4- Boeing releases official 2024 delivery figures: Boeing recorded 348 commercial aircraft deliveries in 2024, slightly above the expected 340 jets and down from 480 the year prior, according to a statement. The planemaker is not expected to make significant improvements in delivery results before the end of 2025, aviation intelligence firm OAG chief analyst John Grant told CNBC.

The planemaker’s woes are continuing into 2025: Boeing’s delivery delays and general supply chain disruptions are set to persist into 2025. “We don’t expect to get [new Boeing aircraft] until 2026,” Lufthansa Chief Executive Carsten Spohr told journalists in October. Emirates President Tim Clark slammed Boeing the same month for its 777x delivery delays, saying that the airline “had to make significant and highly expensive amendments to [its] fleet programmes as a result of Boeing’s multiple contractual shortfalls.”

MARKET WATCH-

#1- Oil prices rose for a second day in a row this morning sparked by a dip in US crude stockpiles compounding Russian sanction supply worries, Reuters reports. Brent crude futures were up USD 0.30 at USD 82.33 a barrel by GMT 01.20, while US West Texas Intermediate (WTI) gained USD 0.32 to USD 80.36 a barrel. The Brent benchmark rose 2.6% to its highest prices since late-July in the previous session, while WTI gained 3.3% yesterday in its highest price point since July 19.

#2- Baltic index snaps winning streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — f ell 17 points to 1,063 on Wednesday. The capesize index dipped 23 points to 1,581, while the panamax index decreased 12 points to 894. The smaller supramax index shed 15 points to 783, a 17-month low.

#3- Outlook for oil ‘improves marginally’ for 2024-25, says IEA: Annual growth for oil consumption is expected to rise to 1.05 mn barrels per day in 2025, and the estimate for 2024’s figure has been raised to 940k barrels per day, Reuters reports, citing the International Energy Agency’s (IEA) latest report.

Impact of US sanctions unclear: The IEA maintained the supply forecasts for Russia and Iran “until the full impact of sanctions becomes more apparent,” Reuters quoted the agency as saying. Price jumps provoked by sanctions — and higher energy demand during winter — could be offset by rising oil supply from non-OPEC+ nations. Oil shipping rates are rallying in anticipation of tightening supply brought on by sanctions on Russia’s fleet, Reuters reports.

Global oil consumption is set to rise by 1.4 mn barrels per day this year and into 2026, according to Opec’s January Oil Market Report (pdf). Indian and Chinese consumption is expected to expand by 270k barrels per day for each market. The rise will be driven by robust air travel demand, solid road mobility — including diesel usage and trucking — and strong industrial, construction, and agricultural activities in non-OECD markets.

Increased oil production from Opec, the US, Canada, and Guyana is expected to result in a surplus of 800k barrels per day in 2026, Bloomberg reports, citing data from the US Energy Information Administration (EIA) (pdf). The growth is expected to be driven by increased consumption in non-OECD markets, especially in Asia, where India is the leading source of global oil demand growth, the EIA finds.

DATA POINTS-

#1-Egypt’s foreign trade volume hit USD 104.7 bn last year, netting USD 32.6 bn in exports and importing USD 72.1 bn worth of goods, according to a Central Bank report (pdf). The UAE, the US, Italy, UK, KSA, Turkey, and Switzerland accounted for some 52.3% of total exports, while China, the UAE, KSA, the US, Germany, Russia, Brazil, Turkey, Italy, and the UK accounted for some 53.3% of total imports.

#2- Tunisia’s trade deficit rose by 11% y-o-y to TND 18.9 bn in 2024, according to the National Institute of Statistics (pdf). The year saw a 14.6% y-o-y rise in agro-food exports, a 0.5% increase in energy sector exports, and a 1.2% increase in industrial, mechanical, and electrical exports. The export of phosphates and its derivatives decreased by 26.3%, and textile, clothing, and leather exports declined by 4.8%.

Exports to Arab countries: Exports to Algeria increased by 37.6% and to Egypt by 8%, while exports to Libya fell by 7.5% and to Morocco by 5.9%.

Imports increased by 2.3% y-o-y in 2024 on the back of a 9.1% increase in the import of energy products, 5.6% in capital goods, and 6.3% in consumer goods. There was a 2.6% decrease in imports of raw materials and semi-finished products, and food product imports fell 6.1%.

PSA-

Oman launches online platform for approving maritime imports: Firms and individuals looking to import marine units into Oman must now obtain approval via a Maritime Affairs Services online portal, according to a statement by the Transport, Communications and Information Technology Ministry statement. The new regulation applies to various maritime units, including motor boats, buoys, and rowing equipment.

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CIRCLE YOUR CALENDAR-

Belgium will host the World Cargo Summit from Monday, 27 January to Wednesday, 29 January, in Ostend. The event will focus on air cargo economics, strategy, and market trends with a specific focus on how the industry will tackle disruptions and how firms can adapt their business models.

The UAE will host the ShipTek International Conference from Wednesday, 29 January to Thursday 30 January in Dubai. The two-day conference will gather industry experts, including managing director at Hapag-Lloyd Carolin Stumm, CEO Adani Ports Nicolai Friis, VP International Maritime Industries Justin Taylor, CEO Tristra Tim Coffin, and others to discuss new tech and developments in the maritime industry.

The UAE will host the Middle East Bunkering Convention from Monday, 3 February to Wednesday, 5 February in Dubai. The event will focus on the marine fuels sector to address the future of the industry in light of geopolitical issues, environmental regulation, and the future of artificial intelligence and digitalization.

Saudi Arabia will host the Airport Expansion Conference from Tuesday, 4 February to Wednesday, 5 February in Riyadh. The two-day conference will feature over 30 speakers to discuss challenges faced by Saudi Airports and highlight Saudi Arabia’s Vision 2030 with a clear focus on expansion, tech, and strategic partnerships.

The UAE will host the Middle East Breakbulk Conference from Monday, 10 February to Tuesday, 11 February in Dubai. The event gathers giant manufacturers, EPCs, and service providers to discuss the latest solutions in breakbulk and heavy-lift logistics across the Middle East and Africa. The two-day event features an artificial intelligence (AI) seminar, a heavy lift workshop, a chartering workshop, and a women in breakbulk panel.

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

KSA’s Bahri secures USD 800 mn Murabaha credit facility

The Saudi-based logistics and energy transportation company Bahri inked a 5-year USD 800 mn Murabaha revolving credit facility agreement with Al Rajhi Bank, according to a press release. The funding aims to support the company’s financial position and will go to its working capital and CAPEX requirements.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Not Bahri’s first Murabaha facility: Bahri secured a 10-year SAR 2.8 bn (USD 756 mn) Murahaba agreement from Alinma Bank by mortgaging a share of its fleet last October. The liquidity injection helped the company cover 70% of the costs for purchasing nine new, very large crude carriers (VLCCs).

REMEMBER- Bahri has major modernization plans: The company said in September that it was planning to build 20-30 new LNG tankers capable of hauling LNG, hydrogen, and ammonia through JVs with unnamed partners last September. In October, the company secured funding to buy nine VLCCs that would enable the energy carrier to phase out older vessels.

UAE inks a EUR 1 bn grid interconnection agreement with Italy and Albania

A new interconnector project is in the works: UAE, Italy, and Albania have inked a partnership agreement worth some EUR 1 bn to build a subsea interconnection to import renewable energy across the Adriatic Sea, Reuters reports.

About the project: The project — expected to be completed within three years — aims to enhance existing 430 km power links connecting Italy with Montenegro and other Balkan states and will link the Albanian port of Vlore with Italy’s southern Puglia region, Albanian Prime Minister Edi Rama said.

How is the UAE involved? Italian grid operator Terna and UAE’s Taqa will be involved in the project, Rama added. "By leveraging the UAE's world-class expertise in renewable energy, Albania's abundant natural resources, and Italy's sophisticated energy market, we are connecting nations in far-sighted collaboration," UAE Minister of Industry and Advanced Technology Sultan Al Jaber said.

A boost for Albania’s renewable energy market: The interconnector will allow Albania to sell locally produced renewable energy, Deputy Prime Minister and Infrastructure and Energy Minister Belinda Balluku said, adding that the country has increased its renewable energy capacity by 500 MW in two years.

Connecting left and right: Italy is also working on the EUR 1 bn Elmed subsea power link with Tunisia, which was greenlit by the country in May. The 600 MW interconnector is set to launch operations by 2028.

Egypt and Italy’s Salcef Group launch a JV for railway work

Egypt + Italian firm establish new railway company: Egypt’s National Railways Authority has inked a 25-year partnership agreement with Italy’s Salcef Group to establish a JV, named Salcef Track, to construct, renovate, and implement maintenance work for railways, according to a statement.

What’s on the agenda? Salcef Track will start by renewing a total of 2.5k km of track and 1.75k switches, the statement notes. The new company will also build new lines and expand its operations to include building railway lines across Africa and the Middle East. Salcef Group will provide machinery and equipment for constructing and renovating several railway lines.

We knew this was coming: Salcef Group discussed establishing a new company with Egyptian Railways back in December to renew some 2,000 km of railway tracks and provide railway renewal machinery and equipment.

Aviation, trade, maritime, and logistics handling updates from Qatar, the UAE, Jordan, and Egypt

AVIATION-

#1- Qatar Airways Cargo + Unilode form digitalization partnership: Qatar Airways Cargo is partnering with Switzerland-based unit load devices (ULD) management company Unilode Aviation Solutions for the digitalization of over 42k ULDs in its fleet, the airline said in a press release. Qatar Airways Cargo will leverage Unilode’s E-ULD mobile app, web portal, and Enterprise Data Warehouse, enabling real-time ULD tracking, enhanced data analytics, and cost reduction.

What are ULDs, exactly? ULDs are removable containers or aircraft pallets that restrain loads and protect aircraft systems and structures during flight, according to the International Air Transport Association. The devices are key for cargo flight safety but are difficult to regulate because they regularly pass through outsourced ground operators.

#2- Ajex Logistics + Chapman Freeborn to collaborate on cargo management: Saudi-based Ajex Logistics and UK-based aircraft charter and aviation support firm Chapman Freeborn have inked a strategic collaboration agreement to bolster aviation and cargo services across Saudi Arabia, according to a press release. The collaboration aims to commercialize aircraft charter services, provide airport ground and cargo handling, and manage special cargo projects.

#3- Emirates SkyCargo increases its main deck cargo capacity by 15% to meet surging global demand in 2025, according to a statement. To achieve this, the company said it wet-leased two more Boeing 747 freighters and received its first of 14 Boeing 777Fs. The company currently operates 16 aircraft and expects to reach 29 vessels by the end of 2026.

TRADE-

Jordan buys 60k tons of wheat, traders say: Jordan has reportedly purchased nearly 60k tons of wheat to be sourced from optional origins in an international tender on Tuesday, Reuters reports, citing traders familiar with the matter. The country bought the grain from trading house CHS at an estimated price of USD 267 a ton — including cost and freight — and is slated for shipment during the second half of March. Jordan will also reportedly issue a new tender soon to acquire 120k tons of wheat, with offers expected to be submitted on 21 January and shipments scheduled for April and May, traders added.

LOGISTICS HANDLING-

Ford lands PDC in Dubai South: Ford Motor Company, in partnership with DB Schenker, has inaugurated a parts distribution center (PDC) at Dubai South, which the company says should boost operational efficiency and foster tech innovation, Trade Arabia reported earlier this week. The 42k sqm facility will integrate material handling equipment (MHE) and a racking system designed to maximize storage capacity, including very narrow aisle (VNA) systems, multi-tier mezzanines (MTM), deep selective racking (DSR), and cantilever Racking (CR). The hub will also have 20 container docks — 10 for inbound and 10 for outbound — to enable simultaneous activities and accelerate delivery times.

SHIPPING + MARITIME-

Egypt’s SCA + Oman’s ILS partner up on maritime operations: Egypt’s Suez Canal Authority (SCA) has inked an MoU with Oman Integrated Logistics Services Company (ILS) to collaborate in maritime operations and logistics services, according to a statement. The agreement involves exploring cooperation in areas including training, ship repair, and maintenance.

ICYMI: Egypt’s cabinet approved a draft agreement last week to expand cooperation with Oman in maritime transportation and ports. The pair have also expressed interest in exploring potential cooperation between Oman’s Duqm and Salalah ports and Egypt’s Alexandria and Ain Sokhna ports.

OTHER STORIES WORTH KNOWING THIS MORNING-

Piracy down 3.3% in 2024: The incidents of maritime piracy fell 3.3% y-o-y to 116 last year, down from 120 the year prior and 115 in 2022. Some 94 ships were boarded, six vessels were hijacked, three were fired upon, and 13 attacks were attempted last year. (Statement)
Oman + Bahrain expand economic zones’ ties: Oman’s Public Authority for Special Economic Zones and the Bahraini Industry and Commerce Ministry have signed an agreement to increase cooperation in developing and managing economic and industrial zones in the two countries. The agreement was one of 25 spanning various sectors that both countries signed to enhance cooperation. (ONA)

Egypt’s wheat purchasing overhaul clouds data collection for traders

Egypt’s new wheat import system is taking the spotlight in a Bloomberg feature this week about the difficulties faced by traders attempting to access information on Egypt’s state-issued wheat tenders. Traders argue the lack of information is making it more challenging to gauge the volumes, prices, and origins of the wheat competitors are attempting to sell to Egypt, one of the world's biggest wheat importers. Up until late last year, valuable insights were drawn regarding trade flows, particularly from the Black Sea and European regions.

What happened? The General Authority for Supply Commodities (GASC) managed wheat imports until late last year. During tenders, GASC published final results, and traders gathered and shared details about offers and purchases, including the grain’s origin, price, the selling company, and cargo sizes. In early December, GASC said the Mostakbal Misr Agency for Sustainable Development would assume responsibility for this role. Since then, Mostakbal Misr has started securing wheat largely through direct purchases, and the company has yet to conduct a tender.

The impact: The “info was very useful as an insight into the export market and the competitiveness of various origins,” CRM AgriCommodities consultant Mike Verdin tells Bloomberg, “[the data] offered a guide, both through the list of offers as well as the cargoes actually purchased. The loss of this has made the market less transparent … with info on other tenders less complete and less frequent.”

Mexico wants to work with US + Canada on countering Chinese dominance

Mexico has revealed a new economic development plan with targets to restore its declining share of global trade alongside Canada and the US, Bloomberg reports. The plan highlights North American cooperation, casting the US-Mexico-Canada free trade agreement (USMCA) as the countries’ best bet to counter China’s dominance in global trade.

What we know: The new plan aims to raise FDI as a percentage of GDP by 25% and offer incentives to encourage investments from Mexico’s neighbors working on nearshoring their supply chains away from China. Export manufacturers would also benefit from speeding up permits and incentives for adopting higher percentages of local components, which the government hopes to reach 15% in its exported goods by 2030.

What the Mexicans are saying: If regionally produced goods replace 10% of Chinese imports, the GDP of Mexico, the US, and Canada would grow by 1.2%, 0.8%, and 0.2%, respectively, according to a government statement, citing Finance Secretary Rogelio Ramírez de la O. The USMCA is the “only way we can compete with Asian countries, particularly with China," he added.

OTHER STORIES WORTH KNOWING THIS MORNING-

US blacklists firm that ordered TSMC chip found in Huawei processor: The US placed 14 China-based and two Singapore-based companies on its restricted trade list, including a company whose TSMC-manufactured chip was unlawfully integrated into a Huawei artificial intelligence processor. Firms on the list cannot receive goods or technology exports without a license. (Reuters)

Calendar

JANUARY 2025

20-24 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

27-29 January (Monday-Wednesday): World Cargo Summit, Ostend, Belgium.

28-29 January (Tuesday-Wednesday): Green Shipping Summit, Rotterdam, The Netherlands.

29-30 January (Wednesday-Thursday): ShipTek International Conference, Dubai, UAE.

FEBRUARY

3-5 February (Monday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

4-5 February (Tuesday-Wednesday): Seatrade Maritime Qatar, Doha, Qatar.

4-5 February (Tuesday-Wednesday): Airport Expansion Conference, Riyadh, Saudi Arabia.

10-11 February (Monday-Tuesday): Middle East Breakbulk conference, Dubai, UAE.

10-11 February (Monday-Tuesday): MRO Middle East, Dubai, UAE.

10-12 February (Monday-Wednesday): Sustainable Aviation Futures MENA, Abu Dhabi, UAE.

10-12 February (Monday-Wednesday): Japan Kyoto Trade Exhibition, Dubai, UAE.

10-13 February (Monday-Thursday): Future Warehouses & Logistics, Dubai, UAE.

18-19 February (Tuesday-Wednesday): Argus Green Marina Fuels Asia Conference, Singapore.

18-19 February (Tuesday-Wednesday): Middle East Procuretech Summit, Dubai, UAE.

19-21 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

20-22 February (Thursday-Saturday): Dubai Freight Camp, Dubai, UAE.

25 February - 1 March (Tuesday-Saturday): WCA Worldwide Conference, Dubai, UAE.

MARCH

No events announced at the moment.

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 Fiance Forum, Dubai, UAE.

14 April (Monday): CargoIS Forum, Dubai, UAE.

15-17 April (Tuesday-Thursday): Transport Middle East 2025, Aqaba, Jordan.

15-17 April (Tuesday-Thursday): IATA World Cargo Symposium, Dubai, UAE.

16-17 April: Global Ports Forum, Dubai, UAE.

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, Hambury, Germany.

JULY

1-3 July (Tuesday-Thursday): ASEAN Ports and Logistics, Jakarta, Indonesia.

SEPTEMBER

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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