The new vanguards of the global economy

1

What we're tracking today

TODAY: Minerva Bunkering kicks off bunkering services in Suez Canal + 30 companies are eyeing Iraq-Turkey rail link

Good morning, nice people. The newsflow is picking up in the logistics world as we near the end of the week, with some updates on data centers and special economic zones from across the region.

THE BIG LOGISTICS STORIES- Saudi Arabia’s new special economic zones (SEZs) —launched last month — have secured USD 12.6 bn in investments from maritime, mining, manufacturing, logistics, and tech players. Over in Iraq, a Chinese firm was awarded the contract to construct its largest crude storage facility for export, capable of storing some 3.2 mn barrels of crude oil.

HAPPENING TODAY-

Mercuria Energy Group subsidiary Minerva Bunkering has begun ship fuel deliveries in Egypt’s Suez Canal, Bloombergreports. The company has completed deliveries to 10 bunker clients in Egypt and is using a 150k deadweight ton Suezmax tanker as floating storage, as well as five bunker tankers to provide refueling services to vessels in the area. Having a presence in Egypt allows Mercuriato sell fuel oil from its global network to some of the 23k vessels that pass through the Suez Canal, Bloomberg writes.

Background: We reportedearlier this month thatMinerva plans to attract 8k ships for bunkering in its first phase of operating in the Suez Canal, after being granted one-yearbunkering licenses through a tender last year, along with Coral Energy, Minerva Bunkering, and Peninsula. The SCZone first announced plans to launch the new marine services back in January 2022.

WATCH THIS SPACE #1-Iran plans to deploy trade attachés to 30 countries by the end of 2024, up from 17 currently, Trade Promotion Organization of Iran Chairman Mohammad Rajabnejad said, according to semi-official Mehr News Agency. An Iranian trade attache will be deployed to the UAE next week, with Brazil and Uzbekistan to follow soon, Rajabnejad added. Iran is also trying to send trade attaché’s to Indonesia, China, Nigeria, KSA, Poland and Serbia in the coming months, the news agency reports.

WATCH THIS SPACE #2- 30 foreign companies have submitted their bids to build Iraq’s USD 10.5 bn rail link with Turkey, Public Company for Rail Iraq Manager Yousuf Al Kaabi told Zawya. The project, which will link Iraq’s Southern Faw Port to Turkey, will have a capacity of 100 trains a day. A parallel motorway is set to be built by 2028, Al Kaabi added.

Background: The ambitious USD 17 bn rail-road project stands as a competitor to Egypt’s Suez Canal with its aim to significantly reduce travel time between Asia and Europe. Iraq aims to secure financing for the project, which will see high-speed trains transporting goods and people at 300km/h, from neighboring countries for the project. The project is expected to generate around USD 6 bn in annual revenue, and to be completed in three stages: The first is set to be completed in 2028, the second in 2038, and the third by 2050.

WATCH THIS SPACE #3- Oman expected to award USD 250 mn Ras Al Hadd Airport contract by August:Oman’s Civil Aviation Authority is expected to award a USD 250 mn consultancy contract for the feasibility study, masterplan, and concept design of the Ras Al Hadd Airport in Ash Sharqiyah region by 3Q 2023, Zawya reports, citing sources it says are in the know. Commercial bid submissions are set for 20 June and a contract award is expected by August this year, the sources said. The expansion project is slated for completion by 2027.

DATA POINT- E-commerce booming in Morocco: Morocco's e-commerce sales are expected to see an annual growth rate of 13.6%, with a projected market volume of USD 3.1 bn by 2027, according to a report by Statista-operated database ecommerceDB, picked up by Morocco World News. Morocco is currently the 69th largest e-commerce market globally, with an estimated market volume of USD 1.8 bn in 2023. Electronics and media accounted for some 48% of total e-commerce revenues in 2022, followed by fashion at 20%.

ENTERPRISE IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. Enterprise — the essential morning read on all the important news shaping business and the economy in Egypt and the region — is looking for writers, reporters and editors to help us build out new publications. Today, we run four daily Egypt and MENA-focused publications, five weekly industry verticals, and a weekend lifestyle edition designed to make our readers feel just a bit smarter.

We have tons more in the pipeline — come help us build new publications. We offer the chance to work in a fast-paced newsroom on a broad range of topics and in a variety of formats. Our goal is simple: To create value for our growing community of >250k daily readers by telling stories that matter.

Journalists looking to explore business, finance and economic stories are welcome. So are recent journalism school graduates.

That said, we're looking for gifted story-tellers from all walks of life and across all professions, as long as they show a keen interest in learning to write about the stories, topics, businesses, and figures moving markets. Egyptian and foreign nationals alike are welcome to apply. So are job-switchers: If you’re an equities analyst tired of the rat race, we’re a great place to come work.

NEVER WORKED IN A NEWSROOM BEFORE? We have the Enterprise Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the Enterprise Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors and entrepreneurs.

During the program you will learn:

The key news stories and trends shaping business and the economy in Egypt and the region, across various sectors;
Business and finance for non-finance people: Whether it's industry jargon or key concepts or simply how to read a balance sheet;
How to construct an Enterprise story: From idea formulation down to the structure, style and tone of writing;
How to develop sources that will give you the key insights needed to tell a complete story;
How to communicate these stories with the confidence and language of an insider.

Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists, while also working on and filing stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.

Apply directly to jobs@enterprisemea.com and mention “writing development program” in your subject line.

CIRCLE YOUR CALENDAR-

The Make it in the Emirates Forum kicks off today at the Abu Dhabi Energy Center, and will wrap tomorrow. Hosted by the UAE’s Industry and Advanced Technology Ministry, Abu Dhabi’s department of economic development and Adnoc, the forum will bring together the largest industrial companies across the UAE to share procurement, investment, and manufacturing chances to those in the sectors.

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

New Saudi SEZs attract USD 12.6 bn investments

Saudi special economic zones lure USD 12.6 bn in investments: Saudi Arabia’s new special economic zones (SEZs) — launched last month — have secured USD 12.6 bn in investments from maritime, mining, manufacturing, logistics, and tech players, a statement said, without disclosing the names of the companies. An additional USD 31 bn in investments is in the pipeline, according to the statement.

The King Abdullah Economic City, Ras Al Khair, Jazan, and Cloud Computing zones were also issued licensesat the Saudi Special Economic Zones Investment Forum in Riyadh, the statement added.

About the SEZs: The four new SEZs are distributed strategically throughout Saudi Arabia, and offer competitive tax rates, exemptions from customs duties for imports, production, inputs, machinery, and raw materials, 100% foreign ownership, and flexibility in terms of hiring international talents. Despite being exempt from Saudization requirements, businesses in the SEZs are also offered incentives for hiring locals, KSA’s Human Resources and Social Development Minister Ahmed Al-Rajhi said, according to Arab News.

Chinese company awarded project to build Iraq’s largest crude storage facility

Iraq has tapped China Petroleum Pipeline Engineering Company (CPP) to construct its largest crude storage facility for export, capable of storing some 3.2 mn barrels, Zawya reports. The storage facility, located in Nasiriyah city, is expected to be completed in 2Q 2025, Zawya quotes Project Manager Ali Ibrahim as saying.

The details: The facility will be built on 2.5 mn sqm and will consist of seven large storage tanks for storing both heavy and light crude oil, Ibrahim reportedly said.

The primary objective of the project is to transport the crude oil through a pipeline to Iraq’s SouthernFaw Port, which is currently under construction. From there, the crude will be exported via ports in the Arabian Gulf. There are also plans to transport crude from the storage tankers through pipelines to refineries and power plants in central and northern parts of Iraq.

Equinix will pour USD 100 mn into its third data center in Dubai

Digital infrastructure company Equinix plans to open a third data center in Dubai, according to a press release. The company will pour USD 100 mn in the data center, with some USD 60 mn going towards its initial phase, the press release said. The data center will be situated in Dubai Production City, where other companies in trade, logistics, and finance also operate, according to the statement, which did not disclose a timeline for the construction and operations of the center.

The details: Once fully built, the data center — dubbed DX3 — will provide 1.8k cabinets of capacity across two phases, with a total footprint of 12k sqm, making it Equinix’s largest data center. It will include networks, cloud, content distributions, enterprise and financial services.

What they said: “DX3 is poised to facilitate connectivity and accelerate digitalization across the region, and we will continue to play a role in enabling the country to achieve its digital potential and provide organizations in the Middle East with an all-new platform for digital transformation, innovation and growth,” Managing Director Said Kamel Al-Tawil said.

Background: Equinix already has data centers in Abu Dhabi and Dubai which act as digital hubs for domestic and international business in the MENA region.

The GCC can become the new “vanguard of the global economy” by strengthening + diversifying its supply chains

GCC countries could leverage the reconfiguration of global value chains — but they need to act fast: Global value chains (GVCs) across the globe are shifting away from being cost focused, and being reconfigured to be more resilient, agile, and sustainable. Consultancy firm Strategy&’s Reconfiguring Global Value Chains report (pdf) looks at how the GCC — made up of Qatar, Saudi Arabia, Bahrain, Oman, Kuwait and the UAE — can take advantage of this occurring shift and use it to boost their competitive “green advantage” and become a global GVCs hub, potentially generating an estimated USD 300 bn in foreign direct investment (FDI), creating 150k jobs, unlocking USD 25 bn in non-oil exports annually, and possibly offsetting 75 mn tons of CO2 emissions, according to the report.

But first, what are GVCs? A global value chain encompasses the different stages of the production processes across different locations and countries, according to the Organisation for Economic Development and Cooperation (OECD). Some 70% of global trade today involves GVCs, according to the OECD, as services, raw materials, and parts used to produce goods cross borders back and forth, and once put into a final product, is shipped to consumers all over the globe.

What’s changing about how GVCs work today? GVCs in the past have tended to focus on cost reduction — no matter how complex the supply chain could become to accommodate that — with “little end-to-end oversight or management,” the report says. The problem with this type of GVC is it’s prone to disruption from exogenous factors such as pandemics, supply constraints, energy price volatility, and logistics bottlenecks, according to the report.

The last few years have shown that the cost-focused GVC model is not sustainable: The covid-19 pandemic drastically impacted trade, and the Ever Given which blocked Egypt’s Suez Canal cost some USD 57 bn halt in trade, are prime examples of those disruptions. The shift has caused “companies to relocate key elements of their GVCs,” the report writes. This leaves the chance to attract these relocating companies up for grabs.

The GCC has it all — but the window “could be fleeting”: The GCC benefits from plenty of competitive advantages, including an abundant and cost-competitive supply of green energy, its geographic location, robust industrial and logistics infrastructure, greenfield megaprojects, talent, research and education, the report lists. But these all need to be leveraged quickly, because other countries are “competing vigorously” to attract relocating GVCs, the report states. If GCC governments and their stakeholders act collaboratively — and fast — they can position the GCC as the “vanguard of the new global economy.”

So what needs to be done? Start by improving “backward GVC participation.” GCC countries are strong on “forward GVC participation,” which involves exporting basic resource-based goods such as oil and basic chemicals, the report writes. Backward participation, on the other hand, involves importing raw materials to produce complex components or finished products such as semiconductors or electronics, it adds. Saudi Arabia’s current backward participation rate is just 4%, falling comparably low next to the top 15 exporting countries in the world. Improving its rate would “bring GVCs to the region and boost domestic productivity,” the report says.

GCC countries should focus on attracting downstream manufacturing “to develop high-value-added end products,” such as exporting hydrogen, the report says. Diversifying from oil and gas exports to green energy can also help GCC countries develop localized industries for competitive products like green steel, ammonia, glass manufacturing, according to Strategy&. By capitalizing on the GCC’s expected hydrogen production is predicted to attract USD 200 bn in FDI by 2030, with USD 45 bn potentially coming from ammonia consumption, and USD 155 bn from steel consumption.

More potentially attractive industries for GCC countries includesynthetic pesticides, steel automotive parts, cotton yarn, carbon fiber, alternative proteins, titanium aerostructures, graphene, polysilicon, recycled plastics and silicon wafers. All of these industries are energy-intensive — making the oil-rich GCC countries a suitable candidate — and have their raw materials readily available across the GCC, according to the report. Attracting companies to produce these products can create 150k jobs across the GCC and generate USD 300 bn in FDI, and unlock USD 25 bn in non-oil exports.

More public-private sector and government-to-government collaboration across the GCC is also more important: GCC countries need to enhance government-to-government collaborationby benefiting from each country’s competitive advantages, where one could supply the energy and another could supply labor, the report says. Cooperation with the private sector is also important in order to identify priority sectors and develop financial incentives — like grants and subsidies — to help them grow, the report adds.

GCC governments also need to create an agile and consistent regulatory framework that will facilitate business, drive growth and innovation, and reduce risk, the report says. Flexible regulation should also be implemented in priority industries and sectors in which GCC have competitive advantages.

Implementing a public-private supply chain control towercould also help generate accurate forecasts for critical products in the GCC, and measure the resiliency of product channels, the report says.

Building and training talents is also key: The report also highlights the importance of training and providing skilling and reskilling programs for workers in the priority export-focused sectors in which they wish to develop resilient GVCs. For example, oil and gas laborers could be upskilled and acquire knowledge in renewable energy and green hydrogen fields instead, the report adds.

The role of sovereign wealth funds is also vital for creating an attractive environment for resilient GVCs, by investing in companies and sectors that help complement the priority sectors identified by the government, the report explains.

Qatar + KSA to strengthen economic cooperation + Qatar, Angola officials talk transport cooperation

KSA + Qatar discuss boosting economic cooperation: Saudi Industry and Mineral Resources Minister Bandar bin Ibrahim Al-Khorayef and Chairman of Qatar Free Zone Authority Ahmed Al Sayed met in Riyadh to discuss boosting the economic relations between their countries and the role special economic zones play in bolstering logistics services, according to a statement.

ALSO WORTH KNOWING-

Qatar Transport Minister Jassim Al Sulaiti met with Angolan counterpart Ricardo de Abreau to discuss strengthening cooperation in transportation and other sectors. (Statement)

Riyadh Airports CEO Musad Aldaood elected to serve as board member of ACI Asia-Pacific

Riyadh Airports CEO Musad Aldaood (Linkedin)has been elected to the board of the Airports Council International, Asia-Pacific (ACI), according to a statement. Aldaood will contribute to achieving the ACI’s aspirations of the aviation sector at the international level, by serving part time as board member, while retaining his position as CEO of Riyadh Airports.

About ACI: Headquartered in Hong Kong, ACI Asia-Pacific is an organization of airport authorities aimed at unifying industry practices for airports, and represents some 622 airports across 47 countries in the Middle East and Asia-Pacific.

Two Saudi companies will set up assembly + distribution centers in Saudi logistics zones. PLUS: News from Flynas, DP World, and Russia

Two companies to set up assembly + distribution centers in logistics zone: Saudi Arabia’s General Authority of Civil Aviation (GACA) has signed two MoUs with Chinese digital tech company Hikvision and a joint venture between Swiss precious metals refiner Valcambi and private sector conglomerate Ajlan & Bros to establish centers for assembly, distribution, and recycling at the kingdom’s Special Integrated Logistics Zone, SPA reported on Monday.

Hong Kong energy outfit pilots program to trial hydrogen extraction for heavy-use vehicles. PLUS: Cathay Pacific to finalize Boeing order

Towngas + Hong Kong to produce hydrogen for heavy transport fuel: Hong Kong energy outfit Towngas and local authorities are starting a pilot program to source hydrogen for heavy transport use, according to media outlet South China Morning Post (SCMP). The trial will see Towngas — Hong Kong’s sole gas supplier — extract pure hydrogen from coal gas and utilize its 3.7k km pipeline network to extend “safe and efficient” energy for heavy transport vehicles, SCMP said. No details regarding timeframes and costs have been revealed, but a company official has said that it could take between 12 to 15 months to put hydrogen filling stations in place.

ALSO WORTH KNOWING-

Hong Kong-based Cathay Pacificis close to concluding a USD 2 bn order for Boeing 777-8F freight aircraft to revamp part of its cargo fleet, potentially putting to an end a tight competition that saw it attempt to decide between the Boeing craft and a soon-to-be-released freight variant of the Airbus A350. (Reuters)

A city in the UK will soon get autonomous delivery bots

Autonomous bots in the UK can deliver your goods: PeykBots created by British instant delivery company Peyk is expanding to England’s Milton Keynes to provide autonomous last-mile deliveries for food, groceries, documents, and packages, according to a statement. It will act as a courier service to be used for personal and business deliveries, according to the company website.

How it works: The PeykBot has a fully autonomous driving technology that uses waypoints and AI software and hardware to drive across town to complete deliveries. The PeykBot provides five hours of delivery services at a time, and can be controlled directly by its user.

About Peyk: Founded in 2018 by Salman Moghimi (Linkedin) as a peer-to-peer delivery platform, the company designed and manufactured autonomous bots as a way to send packages across london. The Peykbot was initially trialed in Msheireb, Qatar, according to the company. Peykbot has also recently expanded to Kuwait in partnership with Kuwaiti logistics startup Delicon Logistics Solutions.

Calendar

MAY

May: The Suez Canal Economic Zone (SCZone) plans to hand over a new 1k-meter container berth to the East Port Said Port.

May: The ArabAcademy for Science, Technology and Maritime Transport (AAST) will roll out its first locally-made electric cargo transport vehicle.

29-31 May (Monday-Wednesday): Translogistica Libya 2023, Misurata, Libya.

29-31 May (Monday-Wednesday): Electric Vehicle Innovation Summit 2023 Adnec, Abu Dhabi.

31-1 May (Wednesday-Thursday): Make it in the Emirates Forum, Abu Dhabi Energy Center, Abu Dhabi.

JUNE

June: Suez Canal Economic Zone holds a roadshow in Delhi.

1 June (Thursday): Adnoc L&S’ shares will debut on the ADX.

4-6 June (Sunday-Tuesday): IATA Annual General Meeting and World Air Transport Summit, Hilton Bomonti Hotel, Istanbul, Turkey.

6-7 June (Tuesday-Wednesday): Ports and Customs Week, Cape Town, South Africa.

8 June (Thursday): Fleet and Mobility Summit, Dubai.

12-15 June (Monday-Thursday): Saudi Plastics & Petrochem, Riyadh, KSA.

14-16 June (Wednesday-Friday): International Conference on Models and Technologies for Intelligent Transportation Systems, Nice, France.

20-23 June (Tuesday-Friday): Conference on the Marine Transportation System Innovative Science and Technologies Toward Greater Sustainability, Washington, DC, US.

JULY

1 July (Saturday): A new greenfield liquid bulk terminal in Khalifa Port Abu Dhabi will kick off operations.

1 July (Saturday): New UAE Federal Tax Authority VAT Ecommerce rules take effect.

16-17 July (Thursday-Friday): The Levitate Conference and Exhibition, St. Regis Amman Hotel.

24-25 July (Monday-Tuesday): ICSG Istanbul, Istanbul Lutfi Kirdar Convention & Exhibition Centre, Istanbul.

AUGUST

Oman will award Ras Al Hadd Airport consultancy contract.

SEPTEMBER

5 September (Tuesday): The Leaders in Logistics KSA Summit, Riyadh.

20-22 September (Wednesday-Friday): Transport Evolution Africa Forum and Expo, Inkosi Albert Luthuli ICC Complex (Durban ICC), South Africa.

OCTOBER

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

NOVEMBER

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

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

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

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

EVENTS WITH NO SET DATE

2H2023:Construction of Neom’s first hydrogen fueling station will kick off.

2H2023: Expansion of Baghdad International Airport to begin.

2024

FEBRUARY 2024

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

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

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

MARCH 2024

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

MAY 2024

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

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.

Sections

About

Privacy & Support

Get EnterpriseAM daily