Saudi's Modon secures logistics, industrial agreements worth SAR 8.8 bn

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What we're tracking today

TODAY: Modon locks in SAR 8.8 bn in logistics pacts. PLUS: Emsteel, Adnoc bound for 20-year natgas agreement

Good morning, folks. The news cycle has slowed down a notch as we head into the weekend, leaving us with an issue led by big investment updates from Saudi and Egypt. PLUS: Data centers and industrial supply chain updates from Saudi and UAE. Shall we?

BUT FIRST- Stranger Things fans assemble: Whether you want to watch yourself or you’re forced to by your spawn: It’s Stranger Things day. The first four episodes of what its producers are calling Volume 1 of the final season dropped on Netflix earlier this morning. Three more (Volume 2) drop on 25 December, and the finale will stream on 31 December. Each episode will be well north of an hour long.

WATCH THIS SPACE-

#1- Egypt’s Sustainable Aviation Fuel Company is in negotiations for a USD 400 mn loan to fund its USD 530 mn project to produce sustainable aviation fuel (SAF), Asharq Business reports, citing unnamed government officials. The Oil Ministry-owned company is in discussions with local and international lenders, including the National Bank of Egypt, Banque Misr, CIB, Afreximbank, and the EBRD, according to the outlet’s sources.

Background: The Oil Ministry launched the company in 2024 to develop production facilities and integrate them with other petroleum companies in Alexandria governorate. The project aims to produce 120k tons of SAF and reduce carbon emissions by 400k tons a year, after production kicks off.

#2- Aramco reportedly tapped Citigroup to advise on its potential multi-bn USD asset sale, following a pitching process that involved several Wall Street names, Bloomberg reports, citing people it says are familiar with the matter. The state-owned oil giant was said to be mulling the sale of a range of its assets including its oil export and storage terminals along with parts of its real estate portfolio, which could fetch over USD 10 bn in proceeds. The moves come as Aramco looks to free up capital amid softer oil prices and project delays.

#3- DAE hands over 737-9s to United: Dubai Aerospace Enterprise (DAE) has delivered all 10 Boeing 737-9 jets to United Airlines under a sale-and-leaseback agreement inked back in July, according to a statement. The deliveries — completed in just six months from the order — bring DAE’s portfolio of owned, under-management, or committed jets to a total of 750 carriers valued at USD 22 bn, including 236 Boeing jets.

DAE has been working to upgrade its fleet: DAE is expanding its portfolio through a mix of firm acquisitions and purchases of used and new jets. The company finalized its full acquisition of Ireland-based Nordic Aviation Capital for an enterprise value of USD 2 bn earlier in May and has committed to acquiring a further 100 aircraft from Airbus, Boeing, and ATR. In March, the aircraft-leasing company acquired 17 used aircraft for USD 1 bn.

#4- Singapore tops new port index by DNV, Menon Economics: Norwegian advisories DNV and Menon Economics have launched a new port index — the Leading Container Ports of the World (LCP) report (pdf) — which placed Singapore as the world’s top port, according to a press release.

Who is leading in the region? Among the top 20 ports worldwide, only two regional ports made the cut: Dubai’s Jebel Ali in the eighth spot and Morocco’s Tanger Med in the 19th spot.

The LCP report will directly compete with the established Container Port PerformanceIndex (CPPI) (pdf) compiled by the World Bank and S&P Global, but there are key methodological differences. The LCP index adopts a holistic approach that includes subjective expert opinions — it compares 160 ports against 35 indicators organized into five equally weighted pillars: enablers, connectivity and customer value, productivity, sustainability, and overall impact. Meanwhile, the CPPI focuses mainly on port efficiency, taking into account quantitative data sourced from the Automatic Identification Systems and fuel consumption figures.

#5- Are Airbus deliveries accelerating, or maybe, steadying? EasyJet says yes. A steady delivery of nine jets from Airbus in 2025 — plus a projected 17-jet delivery in 2026 — has put the low-cost carrier (LLC) on a trajectory to increase its capacity by 7% by the end of 2026, EasyJet’s CEO Kenton Jarvis told Bloomberg. “We haven’t actually had a change in the delivery schedule… The production chain seems to be unlocking a bit,” Jarvis said.

This could be good news not just for EasyJet, as the industry grapples with multi-year supply chain disruptions and delays that have capped capacity growth and pushed airlines into expensive lease and retrofitting arrangements — forcing them to operate older, less fuel-efficient jets, which consume more fuel and incur higher financial burdens due to a maintenance loop.

MARKET WATCH-

#1- Oil prices took a dip this morning amid growing expectations for a Russia-Ukraine peace agreement, which could free up the Russian oil trade operations from the weight of Western sanctions, Reuters reports. Brent crude futures fell USD 0.33 to USD 62.80 / bbl as of 04:12 GMT, while US West Texas Intermediate (WTI) decreased USD 0.32 to USD 58.33 / bbl.

#2- Baltic index surges: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — inched up on Wednesday by 3.4% to 2,401, buoyed by the bigger vessel segment. The capesize increased 7.2% to 3,998, almost its highest in two years, while the panamax index inched up 0.4% to 1,965. The smaller supramax index gained 0.3% to 1,435.

DATA POINTS-

#1- Saudi’s non-oil exports inched down 0.4% to over SAR 57 bn in 3Q 2025, according to preliminary data (pdf) from the General Authority for Statistics (Gastat). Total non-oil merchandise exports, including re-exports, increased 19.4% y-o-y in the same period, as re-exports inched up 69.6% to hit SAR 38.5 bn.

The trade balance soared 17.2% y-o-y in 3Q into a surplus of SAR 66.1 bn. Total exports inched up 9.5% y-o-y to SAR 303.3 bn, while total imports increased 7.5% y-o-y to SAR 237.2 bn during the period.

Oil exports also surged 5.5% y-o-y in 3Q 2025 to SAR 207.8 bn. Meanwhile, the share of oil exports out of total exports decreased to 68.5% of total exports over the same period.

China remained the main trading partner for the Kingdom, receiving 14.9% of Saudi’s total exports at SAR 45.2 bn, a 6.7% y-o-y increase. The UAE came in second place with 10.8% of total exports, followed by India (9.5%). Meanwhile, China accounted for 27.6% of imports at SAR 65.5 bn, followed by the US (8.1%) and the UAE (5.6%).

The main ports: Dammam’s King Abdulaziz Port received 26.9% of the Kingdom’s total imports in 3Q, followed by Jeddah Islamic Port (21.5%) and Riyadh’s King Khalid International Airport (13.4%).

#2- Around 2 mn tons of cargo are targeted for freight transportation every year through the western route of the Russia-led North-South corridor — with plans to expand to 15 mn tons, Iran Deputy Minister of Roads and Urban Development told Trend News.

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DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the UAE ***

CIRCLE YOUR CALENDAR-

Egypt will host the International Procurement Supply Chain Conference on Saturday, 6 December in Cairo. The event will gather over 1k delegates, more than 400 organizations, and over 30 global speakers to discuss the future of trade through keynotes and panel discussions. The discussions will center on Egypt’s transformation in the logistics sector, the future of smart ports and supply chains, as well as digital ecosystems.

Morocco is hosting the Rail Industry Summit on Tuesday, 9 December until Wednesday, 10 December in El Jadida. The two-day event will gather 130 exhibitors, 250 companies, and over 900 participants from 15 countries. It will feature business meetings, high-level conferences, and workshops focused on new market trends and future strategies.

Saudi Arabia is hosting the Saudi Airport Exhibition on Tuesday, 16 December until Wednesday, 17 December in Riyadh. Upwards of 10k global attendees are expected to participate in the event from over 100 countries. The two-day event will focus on airport-related innovation, and will feature participation from Saudia, SolitAir, and Amadeus.

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

Modon signs SAR 8.8 bn in industrial, logistics agreements at Unido

Modon lands industrial + logistics MoUs worth USD bns: The Saudi Authority for Industrial Cities and Technology Zones (Modon) has inked SAR 8.8 bn (USD 2.3 bn) in agreements with Chinese firms to develop industrial and logistics projects across over 3.3 mn sqm of space, according to a statement. The contracts were inked during the United Nations Industrial Development Organization’s (Unido) General Conference in Riyadh.

The agreements include:

A SAR 100 mn agreement with Jingdong Property to develop warehouses on a 50k sqm area in the Modon Oasis in Jeddah;
A SAR 3.7 bn agreement with Jingdong Property to partner up in the study and operation of industrial and logistics projects spanning over 1.5 mn sqm across industrial cities in the Kingdom;
A SAR 5 bn agreement with Wangkang (Eternal Prosperity) to build an industrial complex in the Third Industrial City in Dammam over 1.8 mn sqm area.

Modon shows no signs of slowing down: Modon attracted over SAR 24 bn in new investments in 2024 — a 38% y-o-y surge — including SAR 18 bn in local and SAR 6 bn in foreign investments. The 2024 figures brought total investments across Modon’s portfolio of industrial cities to SAR 440 bn. Modon now has 40 industrial cities, with more than 240 mn sqm of developed areas, featuring over 9k industrial, logistical, and investment facilities.

Egypt to funnel USD 1 bn into Suez Canal bunkering stations

Egypt is gearing up for the return of ships through the Suez Canal with a USD 1 bn plan to build bunkering stations, two government sources told EnterpriseAM. The plan includes fixed stations along the canal, in addition to floating bunkering barges capable of refueling Suezmax vessels — the largest of vessels that can still make the transit — each of which will be developed in partnership with the private sector, we were told.

But this is just phase one of a wider USD 2 bn project to bring back major shipping lines through the canal — essentially shifting the canal from serving as a toll road to a service station pit stop. Alongside the additional bunkering stations, the plan will include providing new maintenance services, logistics services, and services to transiting crews.

Helping push vessels to refuel in Egypt will require a competitive price point, with a government committee currently in talks with interested companies on the matter to see how they can provide a more attractive price than other refueling points on the global trade map.

ICYMI- The Oil Ministry and the Suez Canal Authority (SCA) signed an MoU to develop a liquefied natural gas (LNG) station in Port Said earlier this week. The station will liquefy, store, and supply LNG to canal tugboats and ferries, replacing conventional fuels.

In numbers: With some 36.8% of vessels currently on order being LNG-ready, the demand for LNG bunkering could hit as much as 40 mn tons of oil equivalent (mtoe) by 2030, according to DNV’s Maritime Forecast 2050.

MIS to add 72 MW capacity to Saudi Data Center Fund 1 for SAR 3 bn

AlMoammarInformation Systems (MIS) is set to develop 72 MW in data center capacity at a cost of SAR 3 bn, after it received its first development commencement notice from the Saudi Data Center Fund 1, according to a Tadawul disclosure. The 72 MW development is part of a planned 112 MW project to expand the Saudi Data Center Fund 1’s existing infrastructure.

What else? MIS anticipates the financial impact of the first 24 MW of added capacity to be reflected in 1Q 2026 and last through 1Q 2027. No timeline or a contract cost was disclosed for the remaining 48 MW of the project.

REMEMBER- The Saudi Data Center Fund 1 was established in 2021 when MIS and Saudi Fransi Capital inked a SAR 1.2 bn agreement to develop, design, and manage data centers through the private investment fund. The agreement then laid out plans for six data centers with a combined 24 MW capacity.

Saudi is going all-in on data centers…: Saudi Arabia is reportedly looking to set up a new USD 100 bn AI project to turn the Kingdom into a “technological hub to rival the neighboring United Arab Emirates.” The Leap 25 conference saw a flurry of investments in data centers, including USD 1.4 bn investment from Alfanar for four data centers, as well as a USD 5 bn agreement between DataVolt and Neom.

… and paving the way for more: The Communications, Space, and Technology Commission proposed the Global AI Hub Law earlier this year, tailored to international clients and tech firms wanting to set up their data centers in the Kingdom. It aims to create secure sovereign data centers on Saudi soil, furthering the Kingdom’s goal of becoming a leading global digital hub.

Emsteel + Adnoc Gas sign 20-year gas supply agreement

Steelmaker Emsteel signed a USD 4 bn natural gas supply agreement with Adnoc Gas, according to a disclosure (pdf). The agreement will run for 20 years, starting January 2027.

On a green roll: The low-carbon gas supply comes as part of a larger decarbonization push, which saw Emsteel introduce TrueGreen, a sustainability platform consolidating its decarbonization efforts and setting global standards for low-carbon steel, according to its financials (pdf). The company also piloted the world’s first Electric Process Gas Heater at its Direct Reduced Iron plants, cutting over 2.2k tons of CO2 annually, and delivered the region’s first hydrogen-based rebar.

That’s not all: Emsteel, which secured its second consecutive Steel Sustainability Champion title from the World Steel Association, signed an MoU with Tadweer to manufacture sustainable building materials using alternative fuels and raw materials, and kickstarted a pilot program with Masdar to produce steel using green hydrogen last year.

Indu Kishore Logistics lands e-commerce facility in Dubai South

STORAGE + WAREHOUSES-

Indu Kishore Logistics opens e-commerce facility in Dubai South: UAE-based logistics provider Indu Kishore Logistics opened its new 23k sqm warehouse facility in Dubai South’s Logistics District, according to Dubai Media Office. The facility includes a storage capacity of 75k pallets and integrated data-driven automation to streamline shipment operations, and it will primarily serve e-commerce sector customers.

ICYMI- The two broke ground on the facility’s construction last year, as part of a broader investment plan to expand its operational capacity amid a surge in demand within the automotive and aerospace sectors.

EQUIPMENT-

Sokhna port lands new crane equipment: Egypt’s Suez Canal Economic Zone (SCZone) has received 24 container-handling units –– six ship-to-shore cranes and 18 rubber-tyred gantry cranes –– from Chinese state-owned Shanghai Zhenhua Heavy Industries, Al Mal reports. The gear is destined for Hutchison Ports’ Red Sea Container Terminal (RSCT) at Ain Sokhna port, and comes with automated truck-positioning, vessel-profile scanners, and hybrid power systems.

About RSCT: RSCT is Egypt’s first fully automated container terminal, covering 1.6 mn sqm — designed to handle ultra-large vessels up to 400 meters long, with a 2.6k meters quay and a capacity of about 3.5 mn TEUs.

TRADE-

Egyptian orange export season kicks off in December: The Customs Authority has notified agricultural exporters that orange exports will kick off on 15 December, according to a document seen by EnterpriseAM. The upcoming orange export season is expected to significantly boost the value of Egypt’s agricultural exports amid rising global demand for Egyptian citrus, a government source told EnterpriseAM.

The growing number of registered farms and stricter export requirements have helped enhance the quality of produce prepared for export, the source added. Egypt remains the world’s second-largest orange exporter, according to World Bank data.

DATA POINT- Egypt exported 1.9 mn tons of oranges last season, generating around USD 1.1 bn, according to data from the Central Administration of Plant Quarantine.

UK’s Heathrow expansion to cost GBP 49 bn, includes new runway, terminal

UK selects GBP 49 bn plan for Heathrow expansion: The UK government has approved PIF-backed Heathrow Airport’s GBP 49 bn expansion plan — turning down a less expensive bid from Arora Group, Reuters reports. The GBP 48 bn total includes GBP 15 bn for planned upgrade work, plus an additional GBP 33 bn for a new runway, motorway rerouting, and terminal construction.

The timeline: Flights departing from the proposed runway are scheduled to take place in 2035, with planning approval required by 2029. Heathrow — Europe’s busiest airport — has requested clarity on the regulatory framework from the government by mid-December to prevent any delays.

But British Airways is worried that the new project would raise costs to airlines, warning that rising landing fees and escalating infrastructure costs risk undermining Heathrow’s competitiveness, The National reported last week. The British flag carrier also said that it might consider redirecting future investment to another European hub if costs become too high on them.

Calendar

DECEMBER

6 December (Saturday): International Procurement Supply Chain Conference, Cairo, Egypt.

9-10 December (Tuesday-Wednesday): Rail Industry Summit, El Jadida, Morocco.

16-17 December (Tuesday-Wednesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

JANUARY 2026

19-23 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

27-28 January (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh, Saudi Arabia.

27-28 January (Tuesday-Wednesday): Middle East ProcureTech Summit, Dubai, UAE.

FEBRUARY 2026

3-4 February (Tuesday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

4-5 February (Wednesday-Thursday): Breakbulk Middle East, Dubai, UAE.

4-5 February (Wednesday-Thursday): MRO Middle East, Dubai, UAE.

9-11 February (Monday-Wednesday): Future Warehouses & Logistics, Dubai, UAE.

10-12 February (Tuesday-Thursday): Sustainable Aviation Future MENA, Dubai, UAE.

15-17 February (Sunday-Tuesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

20-22 February (Friday-Sunday): Dubai Freight Camp, Dubai, UAE.

24-25 February (Tuesday-Wednesday): Green Shipping Summit, Athens, Greece.

25-27 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

MARCH 2026

5-6 March (Thursday-Friday): CargoIS Forum, Miami, United States.

9-13 March (Monday-Friday): WCA Worldwide Conference, Singapore.

10-12 March (Tuesday-Thursday): World Cargo Symposium, Lima, Peru.

18-19 March (Wednesday-Thursday): IntraLogisteX, Birmingham, United Kingdom.

18-19 March (Wednesday-Thursday): Green Marine Transport Conference, Amsterdam, The Netherlands.

26 March (Thursday): Gulf Ship Finance Forum, Dubai, UAE.

APRIL 2026

12-15 April (Sunday-Wednesday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

16-17 April (Thursday-Friday): Global Supply Chain and Logistics Summit, Amsterdam, The Netherlands.

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