UAE’s Khazna expands into Turkey with a 100 MW data center

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What we're tracking today

TODAY: Khazna expands into Turkey + Atmin trading house sets up shop in Dubai

Good morning, nice people. We have a very brisk read this morning with news from Khazna regional data center expansion efforts and an update on Oman’s Marsa LNG project. Let’s dive right into a sukuk issuance update from KSA’s Avilease…

WATCH THIS SPACE-

#1- PIF-owned aircraft leasing firm Saudi Arabia’s AviLease is planning to issue USD 2 bn in sukuk by 2027, starting with a USD 750 mn tranche this year, CEO Edward O’Brien told Asharq Business. The new funding will add to the company’s USD 2.25 bn in existing loans, bringing its liquidity to 30% of total assets.

With a current fleet of 200 aircraft worth USD 8 bn, AviLease aims to grow its portfolio to 500 aircraft by 2030, capitalizing on strong domestic demand from airlines including Riyadh Air, Saudia, and flynas.

#2- Iraq receives bids for railway revamp: The Iraqi Transport Ministry has started receiving bids from international companies for the modernization of the nation’s railway network, the Ministry’s Media Office Director Maytham Al Safi told Iraqi daily Al Sabah. The project’s expansion, modernization, and development efforts will cover over 2.3k km of rail and 115 stations, Al Safi noted. The project aims to establish a more cost-effective transport corridor between the north and south, prioritizing the line between Umm Qasr port, Baghdad, and Mosul.

The latest in Iraqi rail: Baghdad established a private company to manage the Development Road project early last month, which involves connecting Iraq’s Al Faw mega port to Turkey via road and rail over 1.2k km. Turkey, Qatar, and the UAE signed on to contribute to the project last year.

MARKET WATCH-

#1- Oil prices steadied today after a sharp drop on the back of Saudi potentially raising its output and US economic data, Reuters reports. Brent crude futures fell by USD 0.06 to USD 61.00 a barrel, while the US West Texas Intermediate (WTI) went down by USD 0.12 to reach USD 58.09 a barrel by 07.30 GMT.

#2- Baltic index on a downward spiral: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 12 points to 1,386 on Wednesday. The capesize fell 17 points to 1,961, while the panamax index shed nine points to 1,380. The smaller supramax index eased 10 points to 957.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Smart Logistics trade fair on Monday, 12 May to Thursday, 15 May in Riyadh. The event will provide insights into the latest international and local technology, solutions, equipment providers, and sustainable workflow practices within the logistics industry in the country.

The UAE will host the Global Ports Forum on Tuesday, 13 May to Wednesday, 14 May in Dubai. The forum will cover topics such as port strategy and development, port automation, finance, and efficiency.

The UAE will host the Seamless Middle East from Tuesday, 20 May to Thursday, 22 May in Dubai. The event will cover topics including digital marketing, e-commerce, and retail and merchant payments.

Saudi Arabia will host the Saudi Warehousing & Logistics Expo from Tuesday, 27 May to Thursday, 29 May in Riyadh. The expo will host over 18k supply chain industry professionals and more than 400 exhibitors. It will also explore over 3.5k solutions.

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

Khazna to build 100 MW data center in Turkey as part of regional expansion drive

Dubai-based Khazna Data Centers is entering the Turkish market with plans to build a 100 MW AI-ready data center in the Başkent Organized Industrial Zone in Ankara, according to a company statement. The facility will support AI, cloud, and other high-density computing workloads, and more Khazna investments in Turkey will follow.

We saw this coming: CEO Hassan Al Naqbi said last October that Khazna was pursuing regional expansion, with ongoing projects in Egypt and Saudi Arabia, and potential entries into Turkey and Southeast Asia.

The timeline: The Ankara facility will be built in phases, beginning with a cloud-focused design to be scaled up. Khazna plans to appoint a general contractor in 2Q 2025. The project will include solar panels, low-GWP refrigerants, wastewater reuse systems, and generators compatible with HVO fuel.

Why Turkey… and why now? Turkey has seen a 198% increase in AI talent concentration since 2016, according to Stanford’s 2025 AI Index. The project also follows more than USD 50 bn in UAE-Turkey strategic agreements signed in 2023 covering energy and technology cooperation.

Khazna’s not alone: UAE-based Damac’s data center arm Edgnex and Vodafone Turkey are jointly developing a USD 100 mn, 6 MW facility in Izmir which is due online this year.

Meanwhile, back home: Khazna is expanding its UAE footprint with two new 30 MW data centers — AUH4 in Mafraq and AUH8 in Masdar City — set to come online by 2H 2026. Its 100 MW QAJ1 Ajman facility is also expected to be completed in December 2026. All three are designed for AI workloads and will include liquid cooling and automated energy systems.

What’s next: The company is advancing construction in Saudi Arabia, where it aims to capture 25% of the local market, and is finalizing a location for a USD 250 mn data center in Egypt, due by 2026. Development is also underway in Kenya. Khazna is backed by a USD 5.5 bn valuation following a shareholder reshuffle involving MGX and Silver Lake.

Africa-focused trading house Atmin to be set up in Dubai

Afreximbank backs new Dubai-based trade house: Top traders from oil giant Shell group are set to to launch a Dubai-based Africa-focused trading house — dubbed Africa Trading Minerals (Atmin) — in a move backed by African Export–Import Bank (Afreximbank), two trading sources familiar with the transaction told Reuters.

What we know: Dubai-based Atmin — set to hire 15 employees to run its operations — will begin by focusing on crude and then expand into other oil products and minerals. Afreximbank will operate as Atmin’s controlling shareholder, sources said, while employees will retain around 15% of the company. The exact investment figure Afreximbank is plugging into the venture was not disclosed by the bank.

What they said: “Afreximbank-affiliated trading entity Atmin will… participate actively in the trading and financing activities of the leading African oil trading companies with long-term relationships with Afreximbank who are also expected to support this effort,” the bank noted.

Who’s behind the venture? The trade house will be headed by Shell’s 17-year veteran Ajay Oommen (LinkedIn), who headed the firm’s low sulphur crude desk, a department which oversaw the trade of some 1.5 mn barrels per day of oil, the sources said. It will also include Vikram Thakur (LinkedIn), who headed business development at Shell and spent 18 years at the firm. It will also tap Joseph Kanaan (LinkedIn) — who brings his 11 years of experience as a trader at Shell.

The bank’s push into African oil trade: Afreximbank just launched a USD 3 bn revolving intra-African oil trade financing program to support the purchase of refined petroleum products by African and Caribbean oil buyers, the bank noted in a statement. The figure is earmarked to provide trade finance to oil traders, banks, and governments. Africa spends some USD 30 bn annually on fuel imports — and Afreximbank’s revolving facility is forecasted to fund some USD 10 bn to USD 14 bn in Intra-African petroleum imports.

In context: The continent is witnessing a drop in oil and gas production due to under-investment, as Western banks and major oil players shy away from Africa. That said, the continent’s bns of oil and gas barrels are at risk of sitting idle, as global producers sprint to extract as many resources as possible in the wake of the energy transition capping demand for fossil fuels.

Sohar Port and Freezone inks three construction contracts for Marsa LNG

Oman’s Sohar Port and Freezone has inked three contracts with three international firms to start the construction phase of the Marsa LNG project, according to a statement. The USD 1.6 bn project — the first LNG-dedicated bunkering hub in the Middle East — will produce 1 mn metric tons of LNG annually and will be entirely powered by a 300 MW solar plant.

Here’s what we know about the contracts:

#1- A consultancy agreement has been signed with WSP International for project management, back-office support, design analysis, site monitoring, and contract management. The consultant contract runs from November 2024 to November 2028.

#2- A dredging work contract has been inked with Boskalis International to remove nearly 3.8 mn cubic meters of material to build an access channel, berth pocket, and a turning cycle. The work is slated to be completed by September 2025.

#3- A construction agreement has been signed with Six Construct LLC for the development of the LNG jetty, shore protection, and a drainage system. The contract is scheduled to last 16 months.

REMEMBER- Sohar Port and Freezone began dredging operations for the Marsa LNG project in February. LNG production at the plant is set to kick off in 1Q 2028.

UAE’s Dubai Aerospace Enterprise and Qatar’s Nakilat boost bottom lines in 1Q 2025

Dubai Aerospace Enterprise (DAE) recorded a 26.5% y-o-y increase in its bottom line to USD 85.8 mn in 1Q 2025, which the firm attributed to increased operating net income largely counterbalanced by high net finance costs and income tax expenses during the quarter, according to an earnings release (pdf). The firm’s top line increased 15.2% y-o-y to USD 395.9 mn during the same period.

Expanding its fleet: The company onboarded 13 owned and six managed aircraft in 1Q and sold 11 owned and four managed aircraft. DAE’s capital fleet was primarily concentrated in the Americas at 29%, followed by the Middle East at 20%, and Asia Pacific at 16% at the end of 1Q.

Maintaining its upwards trajectory: The firm saw its bottom line increase 36.2% y-o-y to USD 477.5 mn in 2024. The company’s revenues rose 8.7% y-o-y to USD 1.43 bn during the same period.

REMEMBER- DAE acquired 17 used aircraft for USD 1 bn last month. The new aircraft are currently on lease to 11 airlines across 10 countries. The new uptakes are all next-generation aircraft — 80% of which are manufactured by Airbus and the remaining 20% by Boeing.

!_Subhed_! NAKILAT-

Qatar shipping and maritime firm Nakilat recorded a 3.2% y-o-y increase in its bottom line to QAR 433 mn (USD 119 mn) in 1Q 2025, driven by Nakilat’s strategic fleet expansion, operational efficiency, and long-term agreements, according to a press release (pdf). The firm’s total expenses dipped 5.7% y-o-y to QAR 673 mn.

Fleet expansion is still a priority: Construction on six LNG vessels commissioned by Nakilat kicked off at South Korea’s HD Hyundai Samho shipyard in March. Construction of eight other LNG vessels commissioned by Nakilat began at South Korea’s Hanwha Ocean Shipyard the same month. The move is part of Qatar’s initiative to expand its fleet of LNG vessels to advance plans to bolster its LNG production capacity to some 142 mn tons per year by 2030. Nakilat currently boasts a total fleet size of 72 vessels.

Updates on ports and customs from the UAE

PORTS-

Hutchinson offers container services at Saqr Port: Saqr Port Authority-managed Ras Al Khaimah Ports (RAK Ports) has inked an extension agreement with Hong Kong-based Hutchison Port Holdings to continue to offer its container terminal services at Saqr Port until 2037, according to a statement. The agreement should help further boost links between Saqr Port — the region’s biggest bulk-handling port — and Asian markets.

CUSTOMS-

Dubai’s Ports, Customs, and Free Zone Corporation launched its new arm Digital Zero 4, a digital window specializing in smart transformation in business operations, according to a statement. The platform will serve as a commercial front for integrating technological and AI supported solutions in the logistics sector, including commercial licensing, civil engineering, port security, maritime operations, and advanced customs processing.

CMA CGM acquires Air Belgium’s cargo operations

French shipping firm CMA CGM has acquired Air Belgium’s cargo operations for an unspecified amount, according to a press release (pdf). CMA CGM had placed an offer to acquire Air Belgium in March 2025, which received the Business Court of Walloon Brabant’s formal approval. The Belgian Civil Aviation Authority granted new Belgian operating licenses to enable the transfer of Air Belgium's cargo activities to CMA CGM after all conditions were met. The shipping firm will keep the Air Belgium brand — safeguarding 124 jobs at the airline — and will exclusively focus on air freight.

REMEMBER- CMA CGM suspended its freight alliance with Air France KLM — where CMA CGM continues to hold stakes – citing regulatory hang ups in March 2024. Both companies intend to continue collaborating on cargo, but under new terms allowing the pair to operate independently as the tight regulatory environment in certain important markets has prevented the cooperation from working in an optimal way.

Calendar

MAY

6-8 May (Tuesday-Thursday): Airport Show, Dubai, UAE.

6-7 May (Tuesday-Wednesday): Capital Market Summit, Dubai, UAE.

13-14 May (Tuesday-Wednesday): Egypt Facility Management Forum, Cairo, Egypt.

12-15 May (Monday-Thursday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

15-18 May (Thursday-Sunday): Global Logistics Conference, Dubai, UAE.

13-14 May (Tuesday-Wednesday): Global Ports Forum, Dubai, UAE.

20-22 May (Tuesday-Thursday): Seamless Middle East, Dubai, UAE.

27-29 May (Tuesday-Thursday): Saudi Warehousing & Logistics Expo, Riyadh, Saudi Arabia.

28-30 (Wednesday-Friday): International Conference on Logistics and Supply Chain Management, Casablanca, Morocco.

JUNE

1-3 June (Sunday-Tuesday): Annual General Meeting & World Air Transport Summit 2025, Delhi, India.

2-4 June (Monday-Wednesday): Propak MENA, Cairo, Egypt.

5-6 June (Thursday-Friday): Supply Chain & Logistics Innovation Summit, Amsterdam, Netherlands.

11-13 June (Wednesday-Friday): Sustainability World Summit, Frankfurt, Germany.

17-19 June (Tuesday-Thursday): Terminal Operations Conference & Exhibition, Rotterdam, Netherlands.

19 June (Thursday): East Med Maritime Conference, Athens, Greece.

25-26 June (Wednesday-Friday): Decarbonizing Shipping Forum, Hamburg, Germany.

JULY

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

SEPTEMBER

4-10 September (Thursday-Wednesday): Intra-African Trade Fair, Algiers, Algeria.

7-10 September (Sunday-Wednesday): Comex Global Technology Show, Muscat, Oman.

24-26 September (Wednesday-Friday): Routes World, Hong Kong.

30 September - 2 October (Monday-Thursday): Global Rail Transport Infrastructure Exhibition and Conference, Abu Dhabi, UAE.

OCTOBER

1-2 October (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam, Saudi Arabia.

14-15 October (Tuesday-Wednesday): Investing in Africa Conference and Expo, London, UK.

NOVEMBER

3-6 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

4-6 November (Tuesday-Thursday): Air Cargo Forum, Abu Dhabi, UAE.

17-21 November (Monday-Friday): Dubai Airshow, Dubai, UAE.

EVENTS WITH NO SET DATE

Mid-2025: Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

AD Ports-operated Safaga Port’s multi-purpose terminal will become operational.

Phase 3 of APM Terminals Tangier MedPort to be complete and operational.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

1Q 2025: Phase two of Jafza Logistics Park to be completed.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

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

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