UAE’s industrial and logistical sprawl heads North

1

WHAT WE’RE TRACKING TODAY

TODAY: UAE’s industrial engine is moving North — not by choice, but by necessity

Good morning, ladies and gents. We’re starting the day with a map that’s being redrawn by both high demand and high-stakes geopolitics.

For your eyes only: We have exclusive insights from Knight Frank into the state of the UAE’s industrial and logistics sectors — where capacity crunches in traditional hot spots are pushing operators into new areas. Meanwhile, we also take a look at the US move to impose secondary Iran sanctions — and how it may impact Iran’s trading partners in the region.

The big logistics story abroad

InPost sold — FedEx and Advent head EUR 7.8 bn takeover: A consortium led by logistics giant FedEx and private equity firm Advent International has acquired Polish parcel-locker and last-mile courier InPost in a EUR 7.8 bn transaction. The agreement is slated to close in 2H 2026 and will leave InPost as an independent player.

The details: The consortium is offering EUR 15.60 per share — a 50% premium over the early January price. Under the new structure, Fedex and Advent will each hold a 37% share, while founder Rafal Brzoska will retain a 16% stake and Czech investment firm PPF will hold the remaining 10%. The move comes three years after InPost’s EUR 8 bn IPO.

Why does this acquisition matter? For the broader logistics sector, the agreement signals that high-growth tech-logistics firms are finding more value in private markets where they can scale infrastructure. It can also be seen as a testament to the growth of the locker-based model for the last-mile sector in Europe.

***

We’re hiring a technology reporter: EnterpriseAM is looking for a tech reporter to own the beat across Egypt, the UAE, Saudi Arabia, and beyond.

This is a reporting job — not a desk job. You’ll be working sources, breaking stories, and writing about trendlines (not just headlines) in our voice and with the authority our readers expect. AI and digital infrastructure are huge features of the beat, but our interests are broad: fintech, telecoms, regulation, SaaS, and the bajillion ways tech is reshaping how businesses operate across the region.

We want someone who can pick up the phone or WhatsApp, get people talking, and turn what they say into stories that senior decision-makers need to read. We also expect you to attend industry events and maintain relationships with PR folks across the industry without selling out. If you’ve got 2-3 years of experience and the hunger to build a beat from the ground up, we want to hear from you. We’re also interested in hearing from veteran reporters. Spoken Arabic is strongly preferred.

The role is based in Cairo, though we’re open to remote for the right candidate. If you’re reading EnterpriseAM, you know what we’re about: A no-BS daily news outlet that tells busy execs, investors, founders, and ambitious people what they need to know about the trends shaping business, economy, finance, regulation, and public policy across our region. We write stories that have impact — about issues that matter — for a global audience of decisionmakers.

Do we sound like the type of place where you want work? Send your CV and three clips to jobs@enterpriseamea.com. Also enclose a great cover letter that tells us who you are, what you do, and why you’d be a great fit for this job.

***

Watch this space

WAREHOUSES — KSA’s warehouse crunch is getting a PIF-backed boost: PIF-owned real estate developer Roshn has formed a JV with Kuwait-based logistics heavyweight Agility Logistics Park to develop a large-scale Grade A logistics park in Saudi Arabia. While the exact location remains undisclosed, the 1.5 mn sqm park is set to be close to one of the Kingdom’s key gateways and logistics corridors.

Roshn is diversifying beyond residential communities into industrial infrastructure. By partnering with Agility, Roshn gains immediate access to global operational expertise and tenant networks, positioning itself to capture the surge in demand for high-spec warehousing as the Kingdom aims to become a global trade hub.

REMEMBER- Grade A facilities are in hot demand — and regulatory mandates are helping meet that demand. The Kingdom has issued new regulations for setting up new warehouses as well as operating existing ones, implementing risk-based safety and architectural requirements. The new standards could see non-compliant operators facing up to SAR 1 mn in fines.

[wwttِ2] AVIATION — The hunt for a private player to take on the Prince Naif bin Abdulaziz Airport project has begun, after Matarat Holding and the National Center for Privatization & PPP (NCP) rolled out calls for expressions of interest for the new airport project in Buraydah, Qassim Province.

A tall order: The project’s scope will involve building a new passenger terminal, developing a runway, taxiways, and aprons. The chosen applicant will handle the design, construction, operation, and maintenance of the facility.

Interested? The project will be implemented under a build-transfer-operate (BTO) contract with a concession period of 30 years. Interested parties have until Monday, 23 February, to submit their expression of interest.

REMEMBER- Matarat Holding and NCP have been on a privatization push, most recently announcing that several leading global consortia are in the running for the new Taif International Airport development project. We are also eagerly waiting to hear who they settle on for the Abha International Airport upgrade project, which will be awarded within weeks.

DISRUPTION WATCH — No hack here, EgyptAir told EnterpriseAM in response to claims by a hacker that they are selling 104k stolen records from the state-owned airline’s HR and recruitment databases, which was reported by cybersecurity intelligence firm Hackmanac. The leak allegedly included accounts and passwords, national ID details, personal details, and other documents.

EgyptAir told us no data breach or leak has been detected, and that no signs of a cyber attack have appeared on its system in connection with the files in question. The national flag carrier added that its HR and employee data is stored at its primary data center, which is “subject to strict security procedures and systems implemented according to the highest protection standards adopted by the company” with the support of a specialized cybersecurity contractor.

Market watch

Oil prices surged this morning amid continuing US-Iran tensions and signs of stronger demand from India, Reuters reports. Brent crude futures rose USD 0.55 to trade at USD 69.35 / bbl as of 03:56 GMT, while US West Texas Intermediate (WTI) was up USD 0.57 to USD 64.53 / bbl.

The Baltic Index slips again: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — dropped 0.7% to 1,882 points on Tuesday, falling for the seventh straight session. The capesize dipped 2.2% to 2,771 points, while the panamax index rose 1.3% to 1,670. Meanwhile, the smaller supramax index gained 0.8% to hit 1,123.

Data point

50.1 — that’s the seasonally adjusted Purchasing Managers’ Index figure for Lebanon in January, down from 51.2 in December, according to Blominvest Bank’s Lebanon PMI (pdf). While Lebanon’s private sector technically logged a sixth consecutive month of expansion, momentum has largely evaporated, with the number hovering just around the 50.0 no-change threshold.

The breakdown: Business activity stalled in January, ending a five-month growth streak, as output growth eased amid weaker demand. New orders rose only marginally, with project cancellations and delays reflecting stagnant investment conditions and weighing on sales. For the first time since last July, companies scaled back purchasing activity, citing a reduced need to renew stocks amid softer demand. Meanwhile, input costs for metals and construction materials rose, but the good news is that the rate of inflation eased to a five-month low, with just around 2% of firms raising their output prices during the month.

***YOU’RE READING EnterpriseAM Logistics, the essential MENA publication for senior execs who care about the industry that connects producers and retailers to global markets. We’re out Monday through Thursday by 9:15am in Cairo and Riyadh and 11:15am in the UAE.

EnterpriseAM Logistics is available without charge thanks to the generous support of our friends at Hassan Allam Utilities, Transmar, and AK-Ships.

Were you forwarded this email? Tap or click here to get your own copy of Enterprise Logistics.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on logistics@enterprisemea.com.

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

UAE industrial sprawl heads North as Dubai, Abu Dhabi hit capacity

It’s looking like the industrial shift toward the Northern Emirates was cemented further last year, as the supply crunch in Dubai and Abu Dhabi continues to worsen and other emirates grow their hospitality and manufacturing sectors, requiring more industrial and logistics space for support.

REMEMBER- The first half of last year saw displacement drive a 40% rise in local industrial rents in the Northern Emirates, rapidly eroding the cost advantage that initially attracted occupiers. A new report (pdf) by Knight Frank says that this trend remained the reality for much of the year.

Case in point: In core hubs like Al Quoz, the absence of available stock has pushed Grade A rents to a record AED 100 per sq ft. “Most central places in Dubai are operating at occupancy levels above 95%,” says Knight Frank’s Adam Wynne. Meanwhile, Abu Dhabi’s Kezad alone saw 97% occupancy, while Abu Dhabi Airport Freezone has the highest rents in the emirate at AED 625 per sqm, the report adds.

Who’s left behind? As higher-margin, tech-driven industries take over Dubai’s remaining industrial land, SMEs and manufacturers are being relocated north into Sharjah and Umm Al Quwain.

The shift has also triggered a sharp regional repricing. In Sharjah, industrial real estate transactions nearly doubled to AED 9.24 bn in 2025, as the emirate shifts from an overflow market to a primary industrial hub. The spillover has also been evident in Umm Al Quwain, where industrial rents have risen to AED 40 per sq ft from around AED 25.

The question: Is the shift north sustainable, or is it merely a temporary and circumstantial trend?

The shift toward Sharjah and Umm Al Quwain appears to be more of a “permanent change” than a “stopgap,” according to Wynne. “The Northern Emirates are no longer viewed as low-cost spillover markets — businesses are increasingly relocating there to support new hospitality and industrial developments,” he explained. This comes as over the past year, 10 industrial and logistics contracts were awarded in Ras Al Khaimah alone, with a total value of USD 547 mn, he said.

Infrastructure will support the shift: By 2026, the national rail network will be fully operational for freight, effectively turning the UAE into a single, continuous industrial corridor. “Over the next 14-18 months, we expect increased traction from the rail network as it becomes more widely utilized and continues to expand across the UAE,” Wynne noted.

As does the delivery outlook in Dubai: Of the 6.6 mn sq ft of industrial space scheduled for delivery in Dubai in 2026, the vast majority is Grade A — offering limited relief to mid-market manufacturers facing immediate space shortages.

But challenges remain

Across the Northern Emirates, peak power consumption has surged, creating a widening gap between supply and demand. For high-intensity users — like cold storage or heavy manufacturers — rent savings in the North can quickly be erased by the cost of diesel generators or the long lead times for a utility connection. “While identifying properties with sufficient power capacity, without the need for upgrades, can be challenging, it is not impossible. In most cases, companies are not having to rely on private generators, but limited grid capacity does mean power availability is increasingly shaping location decisions in the Northern Emirates,” Wynne tells us.

Our take

The UAE is transitioning to a hub-and-spoke industrial model. Dubai and Abu Dhabi are maturing into a high-end logistics and distribution center increasingly dominated by technology-driven, higher-margin operators. By contrast, the Northern Emirates are emerging as the country’s new engine room for bulk goods, storage, and manufacturing.

And it changed the game for operators: For operators, relocation only makes financial sense if productivity gains from rail connectivity outweigh rising rental baselines and persistent delays in utility connections. Looking ahead, while Dubai will continue to attract premium Grade A facilities, the bulk movement of goods and manufacturing activity is expected to increasingly take place in the Northern Emirates.

And they’re not a cheap exit anymore — they will now price in the same scarcity premium seen in Dubai and Abu Dhabi. Institutional investors have already priced in a permanent industrial bottleneck, compressing net yields to around 8% — a clear signal that elevated rents are becoming the new baseline.

The story is about more than just costs though: “While prices have increased in more central locations, some occupiers are willing to absorb year-on-year rental growth if the location delivers time savings and operational efficiencies. In these cases, decisions are often made more holistically rather than based solely on rental cost,” Wynne tells us.

Still, other more affordable alternatives are gaining interest, namely Ras Al Khaimah, especially as “hospitality assets approach handover and the supporting ecosystem continues to develop,” Wynne added.

The outlook is relatively rosy

Despite high demand and occupancy rates, near-term rental conditions across the Northern Emirates are expected to soften as more supply comes to market, Knight Frank says.

US tariffs on Iran’s trade partners could shake up GCC supply chains

The era of pragmatic trade with Iran could soon be coming to an end. Iran’s top trading partners are bracing for a supply chain shock as they prepare for possible secondary tariffs from the US after US President Donald Trump signed an executive order enabling up to 25 % tariffs on countries that continue to trade with Iran.

Who’s bracing for impact? “While the US tariff threat introduces uncertainty, Iran’s major diversified export partners — China, UAE, Turkey — are likely more well-positioned to absorb the shock by switching suppliers,” Nasser Saidi, president of UAE-based advisory firm Nasser Saidi and Associates and former Lebanese economic minister, told The National. “The pain will be felt primarily by Iran and Iraq,” he clarified.

Let’s break it down: Iran’s top trade partners were China at USD 14.5 bn, Iraq at USD 10.5 bn, and the UAE at USD 7.5 bn between January and October last year. For operators in the UAE, this is a procurement and lead-time challenge. For those in Iraq, it’s a fundamental threat to the power required to keep businesses running.

What’s next?

The Emirates’ logistics pivot: The UAE is a major importer of Iranian fresh fruit, vegetables, and livestock due to short shipping times. If tariffs are enforced, logistics operators should prepare for a shift toward suppliers in Pakistan, India, or Europe. While this adds miles to the supply chain, the inflationary impact is expected to be contained.

Hold your horses — they’re still weighing pros and cons: “We have to see, is this going to affect the supply of the food products, or some of the products that come from Iran? Is this going to affect the prices on the consumer and how much they’re paying to have the alternative?” UAE Foreign Trade Minister Thani Al Zeyoudi said (watch, runtime: 02:37) last month.

Iraq is set to take the biggest hit. Unlike the UAE, Iraq is logistically tethered to Iran for electricity and gas. Cutting these ties wouldn’t just affect food prices, it could trigger energy blackouts and drive up local operational costs across the board.

Regional players could stand to gain from Iran’s loss: China accounted for over 90% of Iran’s oil exports last October, primarily through independent Chinese refineries. That being said, it would be “relatively simple for China to source [oil] from other trade partners, including from the GCC,” Saidi noted.

We’re on the lookout

Countries may not stay above board when circumventing tariffs. Analysts suggest that squeezed formal trade could trigger an uptick in informal trade routes — small vessels and land crossings moving consumer goods and food off the books. The UAE and Iraq have yet to clarify how these tariffs will affect specific commodity prices or the feasibility of alternative supply routes.

Jazeera Airways reports a solid FY 2025 with record bottom line

Jazeera Airways had a solid FY 2025 with record bottom line

Jazeera Airways narrowed its quarterly losses — with its net loss tightening nearly 70% y-o-y to KWD 1.2 mn in 4Q 2025 on the back of boosted revenues. The carrier’s operating revenue increased 3.3% y-o-y to KWD 46.5 mn.

The full year was the charm: The carrier’s net income rose 113.7% y-o-y to KWD 21.8 mn in FY 2025, while its revenues climbed 4.6% y-o-y to KWD 218 mn.

G3A’s new Damietta-Alex-Dekheila container cargo rail link gets moving

Egypt’s G3A has launched trial operations on its new cargo rail link — transporting containers from Damietta Port to Alexandria and Dekheila Ports — in partnership with the Damietta Container and Cargo Handling Company. The trial was completed in collaboration with shipping giant Ocean Network Express (ONE Shipping), whose containers were shuttled between the key maritime hubs.

REMEMBER- Private-sector player G3A is leading the country’s push to ramp up rail cargo volumes after securing a 15-year concession to operate all cargo rail services. Since taking over in 2023, the firm was able to double volumes to 6 mn tons in 2024 and is now targeting 12 mn tons, G3A’s Chief Operating Officer Noha Awad previously told EnterpriseAM.

EgyptAir snags its first Airbus

EgyptAir got its hands on its first Airbus A350-900 aircraft, which operates on a blend of sustainable aviation fuel (SAF). This move brings EgyptAir closer to its long-term goal of net-zero aviation and comes as part of an agreement with Airbus for the flag carrier to obtain 16 A350-900 jets.

Demand for SAF in Egypt is on the upswing, with EgyptAir’s SAF targets a key driver of demand. The national flag carrier targeted a 2% SAF share in its fuel mix last year.

Calendar

2026

FEBRUARY

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

12 February (Thursday): Technical Seminar on Marine Biofuels, London, UK.

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.

25-27 February (Wednesday-Friday): Air Law Treaty Workshop, Tanzania, Dar es Salaam, Tanzania.

MARCH

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

9-13 March (Monday-Friday): World Cargo Alliance 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

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.

MAY

19-21 May (Tuesday-Thursday): Ground Handling Conference (IGHC), Cairo, Egypt.

12-14 May (Tuesday-Thursday): Aviation Energy Forum (AEF), Paris, France.

Sections

About

Privacy & Support

Get EnterpriseAM daily