UAE, KSA, and Egypt non-oil private sector activity tells a mixed tale in September

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What we're tracking today

TODAY: PMI reports are in for UAE, KSA, and Egypt + Lots of diplo updates from the UAE

Good morning, folks. We have the latest PMI readings from the UAE, KSA, and Egypt this morning along with a generous helping of diplomacy updates from the Emirates. But first, crisis averted on the US eastern seaboard…

THE BIG STORY ABROAD- US port strikes suspended until further notice: US dockworkers agreed to end a three-day strike and returned to work on Friday as negotiators reached a tentative agreement until 15 January 2025. The agreement — between The International Longshoremen’s Association and the US Maritime Alliance — would see a possible 62% wage hike over six years, increasing average wages to USD 63 an hour from the previous USD 39 an hour over the life of the contract. “Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume,” union and port operators said in a statement.

Ports are back in business: Vessel activity in the Port of New York and New Jersey resumed on Friday, as well as ports in Georgia’s Savannah and Brunswick. The Port of Virginia said it will take it 24 hours to restore operators and will offer weekend hours for cargo pickup and delivery. Dozens of ships carrying containers and auto could potentially arrive faster than they can be unloaded. As of Friday, over 30 container ships and car carriers were anchored off the coast of Texas, Georgia, South Carolina, Virginia, and New York.

Crisis averted, but impact lingers: Shares in several shipping firms dipped heavily across Europe and Asia on Friday after operators agreed to end the strike sooner than expected, with Maersk’s shares dropping 8.6%, while Hapag-Lloyd eased 14%, Reuters reported on Friday. “Investors who hoped for a short-term rebound in freight charges, which are in a downward trend, are selling as the strike ends,” Yang Ji-hwan told Reuters. Cargo blockage is likely to take over a month to clear, while port terminals will take a while to fully be operational again.

HAPPENING THIS WEEK-

#1- Dubai International Chamber kicked off a trade mission to Serbia and Turkey yesterday that runs until 11 October, aiming to help UAE businesses identify and capitalize on potential investments in Serbia and Turkey. The program includes bilateral business meetings designed to foster cooperation, expansion, and the establishment of new trade and investment agreements between companies from the two countries.

#2- The Global Trade and Supply Chain Summit will open its doors tomorrow and wrap on Wednesday in Dubai. The event aims to address the evolving landscape of international trade and supply chains, focusing on overcoming challenges and leveraging solutions offered by new technologies.

#3- The Global Rail Transport Infrastructure Exhibition and Conference will kick off tomorrow and wrap on Thursday in Abu Dhabi. The event gathers leaders and specialists from the rail and transport industries from the region and beyond to discuss smart mobility, greentech, and automation.

WATCH THIS SPACE-

#1- Maersk expects charge on pollution by IMO in 2025: Shipping giant Maersk expects the UN’s International Maritime Organization (IMO) to approve a charge on ships’ greenhouse gas emissions in 2025, with implementations by 2027, Bloomberg reported on Friday. Proposed new rules from the IMO may also involve a gradual decrease in the greenhouse gas intensity of the energy used by ships. Ultimately, these regulations could significantly cut carbon emissions and potentially require the industry to pay bns of USD if it continues to emit at current levels.

The details: The IMO aims to finalize the new rules by next year, with plans for them to take effect in 2027. If a global mandatory pricing mechanism for greenhouse gas emissions is implemented, it would be the first of its kind, according to the World Bank. However, reaching a consensus among the more than 175 member states may be challenging.

#3- Egypt to reportedly import seven LNG shipments this month: Egypt’s Petroleum and Mineral Resources Ministry will reportedly import seven shipments of liquified natural gas (LNG) this October to meet the daily needs of the country’s gas network, Al Arabiya reported on Thursday, citing a government official familiar with the matter.

Details: Six of the shipments will reportedly be delivered to Ain Sokhna Port and offloaded onto a floating gasification vessel, while the seventh will arrive at Aqaba Port in Jordan where it will be gasified before being sent to Egypt, the source says. These upcoming shipments, worth USD 880-910 mn, are part of a contract for 20 LNG shipments set for delivery by 4Q 2024.

IN OTHER EGYPT NEWS- Egypt gives greenlight for Roubiki-Tenth of Ramadan-Belbeis railway line: The Egyptian cabinet has approved a draft presidential decree to establish a 63.5 km non-electric railway connecting Robeiky, Tenth of Ramadan, and Belbeis, according to a statement released on Wednesday. The project — in collaboration with the French Development Agency (AFD ) — aims to enhance freight transport efficiency, reduce road congestion, and strengthen local industry, the statement said. The railway is set to run on diesel and can expand to a double-track on the Roubiki-Tenth of Ramadan line if necessary. The Tenth of Ramadan-Belbeis line will have a double track from the jump.

We’ve been waiting for this: Egypt’s Railway Authority reportedly received offers back in September from four international and local consortiums for a USD 285 mn Robeiky-Tenth of Ramadan-Belbeis freight and passenger railway revamp project. The project is set to link the 10th of Ramadan Dry Port to Egypt's main rail network and seaports, bypassing the Cairo railway junction, and is part of Egypt’s budding initiative to plug investments into seven key logistics corridors over the next three years. The move looks to streamline movements between the nation’s logistics channels by improving links between Egypt’s dry ports and sea ports.

ALSO- More freezones incoming: Egypt’s General Authority for Investment and Freezones (GAFI) will set up four new freezones and have two others go live next year, GAFI boss Hossam Heiba told Asharq Business (watch, runtime: 6:28).

#4- Ineco to expand Morocco’s railway network: A consortium of engineering firms formed by Spain’s Ineco and Morocco’s CID is set to work on a feasibility study for the urban railway service connecting the Moroccan cities of Tangier and Tetouan, according to a statement released last week. The feasibility study will cover expanding the Tanger-Melloussa line, connecting the south of Tangier with football stadiums and Tangier airport, and establishing a rail connection between Tetouan and Cherrafat, Atalayar reported last week. The project is part of Morocco’s Railway Strategy 2040 — a comprehensive long-term plan for the development of the national railway network.

Ineco has footprints in Morocco: Morocco's National Airports Office commissioned Ineco back in March to draw up plans for improvements at Mohamed V Casablanca International Airport. Ineco will also consider the airport’s projected needs for road and rail connectivity and phased expansions.

DISRUPTION WATCH-

Flydubai and Etihad resume flights as Emirates and Air Arabia extend suspensions amid regional unrest: Budget airline flydubai resumed flights from Dubai to Iran, Iraq, Israel, and Jordan today, Khaleej Times reported on Thursday, citing a company spokesperson. Abu Dhabi-based Etihad Airways also resumed flights to Tel Aviv yesterday. The airline has suspended its flights to Beirut until 8 October, according to a network update.

Emirates extends flight suspensions: Emirates extended its suspension of flights to Basra, Baghdad, Tehran, and Amman until 5 October, and will not operate flights to Beirut until 8 October, due to regional unrest, Gulf News reported on Thursday. Meanwhile, Air Arabia’s flights between Sharjah and Beirut remain indefinitely suspended.

MARKET WATCH-

#1- Oil dips after steepest hikes last week: Oil prices fell in early morning trading after recording their highest weekly gains in over a year last week amid rising tensions in the Middle East potentially disrupting exports, Reuters reports. Brent crude futures fell USD 0.31 to USD 77.74 a barrel by 04.35 GMT, while US West Texas Intermediate (WTI) futures lost USD 0.20 to trade at USD 74.18 a barrel. Brent price spiked over 8% last week — the biggest weekly gain since January 2023 — while the WTI contract gained 9.1% week-on-week, the biggest advance since March 2023.

#2- Aramco raised the price of its flagship Arab Light Crude to Asian buyers by USD 0.90 to a premium of USD 2.2 / bbl against the regional benchmark, Bloomberg reported on Saturday. The move, which comes against a backdrop of rising geopolitical tensions, surprised traders and refiners who were expecting a less substantial USD 0.65 bump, according to a survey by the business news service. Meanwhile, the state owned oil giant slashed the price of all grades to the US and Europe.

IN CONTEXT- The price hike follows Iran’s missile strikes on Israel, which have shaken global oil markets. The ripple effects are being closely monitored, especially as OPEC+ delays output hikes until December.

#3- Oil market gains relatively muted despite geopolitical turbulence: Substantial spare capacity — estimated at some 6 mn bbl / d — that can come online when needed, as well as recent history that shows that conflicts in the Ukraine and the Middle East have not led to significant supply disruptions so far, Daan Struyven, co-head of global commodities research told CNBC in an interview on Thursday (watch, runtime: 3:29). At the same time, there is an uptick in activity in options markets as buyers look to hedge against future uncertainty.

#4- Oil prices could fall “marginally” in 2025 due to escalating geopolitical tensions in the region, First Abu Dhabi Bank chief economist Simon Ballard told CNBC on Thursday (watch, runtime, 2:05). Ballard’s remarks came in response to Opec+ dismissing a Wall Street Journal report citing the Saudi energy minister as saying that oil prices will fall from the current USD 70 per barrel to USD 50 if the oil cartel’s members fail to adhere to production cuts.

REMEMBER- Opec+ kept its policy unchanged on its planned oil production target, including plans to phase out supply cuts by December, putting it on course for a 180k barrels per day (bbl / d) hike by the end of the year.

#5- Baltic index takes a dip: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 0.7% to 1,928 points on Friday, registering their lowest since 18 September. The capesize index was down by 1.7% to 3,243 points, while the panamax index gained two points at 1,388 points. The smaller supramax dipped two points at 1,258.

#6- The Drewry World Container Index fell by 5% to USD 3,489 per 40-ft container on Thursday, according to the latest index readings. Spot rates for 40-ft containers are now 66% below the previous pandemic peak of USD 10.4k in September 2021, but remains 146% above the pre-pandemic rate of USD 1.4k. The average composite index YTD is USD 4,097 per 40ft container, which is USD 1,269 higher than the 10-year average rate of USD 2,828.

DATA POINTS-

#1- Global air cargo volumes record August gains: Global demand for air freight measured in cargo tonne-kilometers (CTK) rose 11.4% y-o-y in August, surpassing a peak registered in 2021, according to an International Air Transport Association (IATA) statement released on Thursday. Capacity, which is measured in available cargo tonne-kilometers (ACTK), climbed by 6.2% y-o-y, attributable to expansions in international belly capacity.

#2- Trade between GCC countries hit USD 2.2 tn in 2023, up from USD 1.5 tn in 2022, Saleh bin Hamad Al Sharqi, secretary general of the Federation of Chambers of the GCC, told CNBC Arabia (watch, runtime: 5:49). GCC intra-trade is poised for further growth in 2024 through partnerships and trade pacts, Al Sharqi added.

#3- UAE food trade grew by 20% y-o-y in 1H, with imports up 23% y-o-y and exports rising 19% y-o-y, Al Khaleej reports, citing data from the Economy Ministry. The country imported AED 84.4 bn (USD 23 bn) in food in 2023, while food exports reached AED 24.24 bn (USD 6.6 bn).

The country aims to kick up the food sector's contribution to GDP to USD 10 bn by 2030, while slashing food imports from 90% to 50% by 2050, Economy Minister Abdullah bin Touq Al Marri said at the Future Food summit earlier this week, Wam reported.

#4- Qatar’s Mwani sees surge in port performance: Qatar Ports Management Company (Mwani) saw an increase in transhipment volumes by 30% y-o-y during the first nine months of 2024 (January to September), according to a statement released last week. Vessels carried 1.3 mn tons of general bulk and cargo, 1.1 mn TEUs were handled during the first nine months, and 522k transshipment containers went through Hamad Port. Ro-Ro units registered a 49% increase to 89.3k units, while heads of livestock grew by 25% to 431k and 206k tons of building materials were transported. The total number of vessels at Mwani ports exceeded 2k.

#5- Morocco was the largest car exporter in Africa in 2023, importing 6.4 bn, Asharq Business reported on Sunday. Tunisia held the sixth position at 13.6 mn, while Egypt stood at ninth position at 6 mn.

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CIRCLE YOUR CALENDAR-

Bahrain will host the Routes World forum from Sunday, 6 October to Tuesday, 8 October. The event will bring together VPs and network planning heads from some 250 carriers to discuss global air route networks.

Saudi Arabia will host the Global Logistics Forum from Saturday, 12 October to Monday, 14 October in Riyadh. The forum will gather key industry players, government officials, and industry experts to discuss optimizing operations and driving growth in the logistics sector. The event will take a specific look at how the sector can adapt with regards to global climate change and incorporate sustainability into their supply-chain operations.

Saudi Arabia will host the Global Airport & Aviation Forum from Wednesday, 16 October to Thursday, 17 October in Jeddah. The forum will bring together aviation leaders and experts to discuss future projects in the aviation industry, including new airport developments, capacity upgrades and expansions, new aircraft orders, and important airport services.

Saudi Arabia will host the Smart Ports & Logistics Transformation Summit on Monday, 21 October and Tuesday, 22 October in Riyadh. The two-day conference aims to discuss strategies, innovation, and technologies in line with Saudi Arabia’s Vision 2030, which aims to position KSA as a logistics hub in the MENA region.

The UAE will host the International Conference on Tourism, Transport, andLogistics on Saturday, 26 October and Sunday, 27 October in Dubai. The event will gather scientists, scholars, and engineers from around the world to discuss new ideas and research development projects in the industry.

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

UAE, KSA, and Egypt non-oil private sector activity tells a mixed tale in September

How non-oil private sectors in UAE + Saudi + Egypt performed in September: Purchasing manager indices (PMI) tracking non-energy sectors in the three countries told a mixed tale in September. The UAE and Saudi Arabia held above the 50.0 mark threshold, while Egypt saw a sharp decline in its headline PMI, driven by a surge in output charges, a decline in new orders, and an increase in inflation rates.

REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.

First up, UAE: Non-oil business activity grew at its slowest pace in three years in September, due to a dip in new orders and weak employment rates, as well as rising costs and capacity constraints, according to S&P Global’s UAE Purchasing Managers’ Index (pdf). The country’s headline PMI slipped to 53.8 in September from 54.2 in August, marking its second-lowest reading in three years, yet still remaining above the 50.0 threshold separating growth from contraction.

Slower gains in new orders and business activity contributed to the slowdown in growth, while exports continue to grow at its second-lowest pace in 18 months on the back of rising competition and “caution towards the business outlook.

Backlogs are continuing to pile up: A surge in backlogs — registering a four-month high in September — led to a climb in purchases, with firms using up their new purchases to meet existing commitments. Customs duties delaying input deliveries were also cited as a major contributor to slower supplier performance.

A hiring freeze? Firms saw a decline in employment rates on the back of a declining new order growth, signaling their weakest employment growth since December 2022.

Price pressures remained high: Input price inflation persisted, driven by higher shipping, fuel, and technology expenses. As a result, businesses raised their selling prices for the fifth consecutive month, and at the fastest rate since early 2018, as they continued to pass increased costs onto customers.

A watchful stance: Business sentiment shifted to a more cautious outlook for the coming year, with expectations now “at their lowest since early 2023,” S&P Senior Economist David Owen said. However, lighter cost pressures in September compared to the last few months “could be a sign that the inflationary trend will lessen,” offering some relief to firms, Owen added.

Over in Saudi Arabia: Non-oil business activity in the Kingdom continues to grow, driven by a sharp increase in output, new orders, new exports, employment, despite a slight decrease in purchasing growth, according to the Riyad Bank Saudi Arabia PMI (pdf). The seasonally-adjusted headline figure climbed to 56.3 in September from 54.8 in August, remaining well above the 50.0 mark that separates growth from contraction. September marks the second consecutive month Saudi’s PMI figure has risen.

New orders + output driving growth: The uptick was mainly driven by a surge in new orders and output as businesses tapped stronger domestic demand and rolled out new projects across a number of sectors. New clients and marketing efforts also contributed to the boost in orders, with export orders also seeing marginal growth. “Rising output levels not only enhance the competitiveness of Saudi businesses but also drive forward developments aimed at expanding private sector participation in the economy,” said Naif Al-Ghaith, Chief Economist at Riyad Bank.

Hiring was also up: Firms ramped up hiring efforts to keep up with new orders and reduce workloads. Nevertheless, shortages in skilled workers and weather-related disruptions meant that backlogs grew marginally in September.

Firms’ purchasing activity eased: A sharp uptick in inventories among non-oil firms led some firms to “reassess” their purchasing, leading purchasing growth to hit a three-year low. Supplier delivery times improved at their slowest rate since August 2023.

The outlook is positive: Upward momentum in the non-oil private sector signals wider business confidence, “showing a healthy environment to increase investment, job creation, and overall economic stability,” Al-Ghaith adds. Besides hedging against a fall in oil markets, greater output in the non-oil private economy also provides a basis underpinning long-term growth, Riyadh Bank’s chief economist adds.

Meanwhile, in Egypt: Non-oil activity in Egypt declined markedly driven by rising price pressures and a surge in inflation rates, with output and new orders witnessing a sharp decline, while employment rates and purchasing activity maintaining an upward tick, according to S&P Global’s Egypt PMI (pdf). Egypt’s headline purchasing manager’s index dipped to 48.8 in September, down from 50.4 in August, reaching its lowest point since April and indicating a fall in business conditions across the non-oil private sector.

Cost inflation accelerated to a six-month high resulting in high output prices in 3Q 2024. Input prices climbed to their sharpest pace since March, with some firms reporting increased raw material costs and weak currency rates, resulting in a rise in selling prices, although at a slightly slower pace than in August. New orders scaled back due to dampened demand from domestic markets, driving slow business activity.

The impact of rising output charges: “A further solid increase in output charges suggests that price-related sales reductions may continue, despite evidence that firms are trying to limit the impact on customers,” Owen said.

Firms are maintaining their August upward trajectory, indicated by an increase in purchasing activity and stock levels. Employment rates also rose for the third month running.

Sentiment remains somewhat optimistic in the UAE + Egypt: Despite the UAE’s more cautious outlook for the coming year, the country hopes lighter cost pressure in September could ease the inflationary trend. Over in Egypt, expansions across firms indicate a possible bounce back from the dip in September across the non-oil sector in 4Q 2024.

KSA remains confident: Saudi Arabia remains confident about growth across the non-oil private sector and in the face of challenges of a fluctuating oil market. “By expanding output across key non-oil industries, Saudi Arabia is better positioned to navigate the challenges of oil market fluctuations, ensuring a more sustainable and diversified economic future,” Al-Ghaith added.

UAE inks trade agreements with Serbia and Jordan

It was a busy weekend for the UAE: The UAE inked two separate trade and economic agreements with Serbia and Jordan aimed at boosting investment and trade flows.

JORDAN-

#1- UAE inks first trade pact with an Arab country: The UAE signed an economic partnership with Jordan, marking the inaugural agreement of its kind to be signed between the UAE and an Arab country, Wam reports. The agreement is set to reduce restrictions and non-tariff measures on goods and services, and is poised to “accelerate growth in priority sectors and strengthen supply chains,” according to Wam. The agreement was finalized during president Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Jordan.

The targets: The agreement aims to double trade between the countries to USD 8 bn over the next five years, up from USD 4.2 bn in 2023. “Promising” areas of cooperation include tourism, hospitality, real estate, renewables, transport, logistics, manufacturing, pharma, and food security, Trade Minister Thani Al Zeyoudi told Wam (watch, runtime: 2:02) on the sidelines of the visit. The agreement is expected to be ratified later this year, Al Zeyoudi added.

Background: The UAE is currently the biggest foreign investor in Jordan, with more than USD 4 bn invested in the country and mutual investments totaling USD 22.5 bn, spanning sectors like energy, infrastructure, transport, and finance. The UAE signed agreements to build a USD 2.3 bn railway in Jordan earlier in September, with plans to complete studies for the project by the end of next year.

During the visit, Al Nahyan and Jordan’s King Abdullah II bin Al Hussein emphasized the importance of the trade agreement as a “natural progression” of the two countries’ economic ties, noting that it will pave the way for further opportunities, Wam reports. The two heads of state also discussed ongoing collaboration in the economy, investment, sustainable development, food security, renewable energy, and other key sectors. They also discussed the ongoing war in the region, stressing the need for a ceasefire.

SERBIA-

The UAE and Serbia signed a trade and economic partnership agreement to remove tariffs on up to 96% of customs tariff lines and facilitate investment in “high-growth sectors,” including renewable energy, agriculture, infrastructure, and logistics, state news agency Wam reports here and here. The trade agreement is the UAE’s first with a non-WTO member country.

Private sector cooperation is another priority: The agreement will also see the countries work to protect intellectual property and support small and medium-sized enterprises, in a bid to ramp up private-sector collaboration between the UAE and Serbia.

By the numbers: The agreement is expected to add USD 351 mn to the local economy by 2032, with non-oil bilateral trade forecast to rise to USD 500 mn over the next five years, up from USD 122.9 mn in 2023. The UAE accounts for 55% of Serbia’s trade with Gulf nations — marking it the country’s largest GCC trading partner — and is the third-largest market for Serbian exports in the Middle East.

More UAE-Serbia collaboration to come? President Sheikh Mohamed bin Zayed Al Nahyan explored further cooperation with his Serbian counterpart Aleksandar Vučić on Saturday, focusing on investment, economy, trade, technology, food security, and renewable energy, Wam reported separately. The leaders also addressed “several regional and international issues of mutual interest,” the statement reads.

REMEMBER- The agreements come as part of the country’s broader plan to double foreign trade to AED 4 tn by 2031. The UAE finalized similar agreements with New Zealand and Australia last month.

IN OTHER DIPLO NEWS-

Emirati trade mission to Malta next year? The Federation of UAE Chambers of Commerce and the Malta Chamber of Commerce are considering forming a joint business council and sending a UAE trade mission to Malta in 2025. (Wam)

Investment, maritime, zones, and aviation updates from Egypt, KSA, UAE, and Qatar

INVESTMENT WATCH-

Barry Callebaut to establish a first factory in Egypt: Switzerland’s chocolate manufacturer Barry Callebaut will commit USD 30 mn to develop its first chocolate manufacturing factory in Egypt, according to a statement. It is unclear where the factory will be located, and a timeline for the project was not disclosed.

A sweet investment: The investment aims to meet the high demand in the local market as well as position Egypt as a hub for exporting Barry Callebaut products across the Middle East and Africa. The Zurich-based firm inked a partnership with Morocco’s Attelli back in 2022 to establish its first local production footprint in North Africa.

STORAGE + WAREHOUSES-

Saudi launches tender for developing 13 customs warehouses: KSA’s Zakat, Tax, and Customs Authority (Zatca) and the National Centre for Privatisation (NCP) launched a tender for building and operating warehouses across the Kingdom, according to a post on X. The project includes building 12 new warehouses, renovating an existing one, and supplying equipment for 38 points of entry nationwide under a 15-year contract. Interested companies have until 14 November 2024 to express their interest and submit a request for qualification here.

ZONES

Rakez partners up with Tianjin FTZ: The UAE’s Ras Al Khaimah Economic Zone (Rakez) has signed an MoU with China’s Tianjin Pilot Freetrade Zone (Tianjin FTZ) with Tianjin Port Freetrade Zone to facilitate cooperation between Rakez and China, according to a statement released on Saturday.

This collaboration aims to facilitate trade, foreign direct investments, and industry development between the UAE and China, according to the statement. It aims to bolster cooperation in petrochemicals, renewable energy, shipping, logistics, marine economy, automotive trade, and industrial investment.

Rakez has been strengthening its ties with China for a while: Rakez signed off on an industrial park in August with China’s Shandong Timber and Wood Products Association, setting up the Zhong A Shandong Industrial Park.

SHIPPING + MARITIME-

Mawani has launched the FEM1 shipping service at Jeddah Islamic Port in collaboration with C Star and United Global Logistics (UGL), according to a press release. The service has a 2.8k standard container capacity and links Jeddah to the ports Qingdao, Shanghai, Ningbo, and Nansha in China, Kelang in Malaysia, and Istanbul in Turkey. The expansion is the 21st new route to be added to the Kingdom’s ports in 2024 according to a Mawani post on X, and comes in a bid to boost competitiveness and enhance connectivity at the port, while boosting national exports and imports.

OTHER STORIES WORTH KNOWING THIS MORNING-

Mwani + QFZ sign cooperation MoU: Mwani Qatar has inked an MoU with the Qatar Freezones Authority to allow commercial movements in Qatar’s freezones at the lowest possible cost. (Mubasher)
Qatar Airways to launch flights to Toronto: Qatar Airways will operate three weekly flights from Hamad International Airport in Doha to Toronto Pearson International Airport starting 11 December 2024. (Statement)
Emirates lands in Nigeria: Emirates has resumed daily flights from Dubai to Lagos, Nigeria. (Statement)

IMO shipping levy talks reach a stalemate

IMO talks on shipping levy hit a dead end: Negotiations on how to implement a proposed levy on shipping emissions reached a stalemate last week when shipping executives and negotiators from various countries gathered in London to discuss the proposal, the Financial Times reported on Friday. A USD 100 levy on each tonne of shipping’s carbon emissions has been pushed by many small island states threatened by sea level rises, with the funds intended for distribution to the countries affected by climate change.

Waters are choppy: “There are no real discussions on the actual amount, because we are not even having agreement in the room how [the economic measure] could be constructed,” Bimco’s Lars Robert Pedersen told the FT as he left the meetings on Thursday. Negotiators are at loggerheads over how the proceeds of the economic measure should be divided, and some are pushing for a measure that would only charge ships with emissions above a certain threshold, while offering payouts as an incentive to those who pollute the least.

But the small islands are pushing on: “There is so much politics that has come into what should be a technical conversation. The islands have become the adults in the room [and] need to break the chokehold [that the world’s biggest countries hold on the IMO]. It is a suit boys club,” Ambassador for the Marshall Islands Albon Ishoda said. The small island developing nations recently won backing from the EU, Canada, South Korea, and Japan, along with support from Africa for the proposal, the FT writes.

Who is holding out? Major exporters including Brazil, China and South Africa have historically resisted such proposals in fear they would drive up the costs of commodity trade, the FT writes. Shipowners — who play a significant role in IMO negotiations — are divided on the issue. The Danish company AP Møller-Maersk, which has begun investing in ships that could run on green methanol, is among those worried about losing their competitive edge if a cost is not imposed on fossil fuels.

India + US to cooperate on critical minerals supply chains: India and the US signed an MoU on Friday to collaborate on enhancing the resilience of critical mineral supply chains essential for clean energy transition, Reuters reported. Priorities of the cooperation include “identifying equipment, services, policies and best practices to facilitate the mutually beneficial commercial development of U.S. and Indian critical minerals exploration, extraction, processing and refining, recycling and recovery,” a US Commerce Department statement read.

The US has been on a quest to edge out China’s dominance in critical minerals supply chains: The US finalized a critical minerals agreement with Australia last month aimed at reducing reliance on China, which reportedly controls 70% of the global rare earth market.

Nikola sees a rise in hydrogen-powered truck deliveries: American electric truck manufacturer Nikola saw an increase in wholesale deliveries of hydrogen-powered electric trucks by 22% y-o-y in 3Q 2024, Reuters reported on Wednesday, citing a statement. The EV maker sold 88 of its Class 8 Nikola hydrogen fuel cell trucks wholesale during 3Q, adding up to a total of 200 trucks throughout the first three quarters of 2024. The truck sales fall within the company’s guidance of between 80-100 fuel cell units per quarter.

Calendar

OCTOBER

6-8 October (Sunday-Tuesday): Routes World 2024, Bahrain.

8-10 October (Tuesday-Thursday): The Global Rail Transport Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi, UAE.

7-9 October (Monday-Wednesday): AFSIC – Investing in Africa, London, UK.

8-10 October (Tuesday-Thursday): AntwerpXL Expo, Antwerp, Belgium.

12-14 October (Saturday-Monday): Global Logistics Forum, Riyadh, Saudi Arabia.

13 October (Sunday): International Transport Workers’ Federation (ITF) Congress, Marrakesh, Morocco.

16-17 October (Monday-Tuesday): Global Airport & Aviation Forum, Jeddah, Saudi Arabia.

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh, Saudi Arabia.

22-24 October (Tuesday-Thursday): Asean Ports and Logistics, Johor, Malaysia.

22-24 October (Tuesday-Thursday): Global Ports Forum, Singapore.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai, UAE.

NOVEMBER

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh, Saudi Arabia.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

11-14 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

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

13-15 November (Wednesday-Friday): ITC North-South - New Horizons, Astrakhan, Russia

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Damman, Saudi Arabia.

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam, Saudi Arabia.

18-19 November (Monday-Tuesday): G20 Summit, Rio de Janeiro, Brazil.

20-21 November (Wednesday-Thursday): Saudi Rail Exhibition, Riyadh, Saudi Arabia.

DECEMBER

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh, Saudi Arabia.

10-11 December (Tuesday-Wednesday): Rail Industry Summit, Casablanca, Morocco.

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

20 December (Wednesday): The Iran-Senegal Joint Economic Cooperation Commission, Dakar, Senegal.

EVENTS WITH NO SET DATE

IATA Annual General Meeting (AGM) and World Air Transport Summit, New Delhi, India.

1H 2024: Civil Construction subcontracts for construction firms in Oman for implementation of the Abu Dhabi - Suhar rail link to be announced.

2H 2024: Bahri’s barges for Saline Water Conversion Corporation (SWCC) to begin initial and commercial operation.

King Salman Energy Park is set to become operational.

The Cross-Border Digital Trade Forum, Dubai.

2025

FEBRUARY

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

APRIL

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

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 twoof Jafza Logistics Park to be completed.

NOVEMBER

4-6 November: The International Air Cargo Association TIACA’s Air Cargo Forum 2025, Abu Dhabi, UAE.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

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

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UAE, KSA, and Egypt non-oil private sector activity tells a mixed tale in September

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TODAY: PMI reports are in for UAE, KSA, and Egypt + Lots of diplo updates from the UAE

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UAE, KSA, and Egypt non-oil private sector activity tells a mixed tale in September

An independent publication supported by

Today at a glance

TODAY: PMI reports are in for UAE, KSA, and Egypt + Lots of diplo updates from the UAE

Get Enterprise daily

Related

This publication is proudly sponsored by

UAE, KSA, and Egypt non-oil private sector activity tells a mixed tale in September

Related

Related

UAE inks trade agreements with Serbia and Jordan

Related

Related

Investment, maritime, zones, and aviation updates from Egypt, KSA, UAE, and Qatar

Related

Related

IMO shipping levy talks reach a stalemate

Related

Calendar

Related

An independent publication supported by

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