USD 8 bn in LNG supply is heading to Egypt by 2026

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What we're tracking today

TODAY: Egypt locks in LNG supply through 2026

Good morning, friends. The summer news cycle slowdown has hit us once again, but we still have a few trade updates from Egypt and new insights from Knight Frank on how industrial and logistics space in Dubai took a big dip in 1H.

THE BIG LOGISTICS STORY-

A US-China trade agreement is… almost here: Washington and China wrapped their trade talks in Stockholm without reaching an agreement on extending their trade truce, though US President Donald Trump said Treasury Secretary Scott Bessent felt “good” about the talks. Trump would have to give final approval on any agreement, Bessent confirmed. The 90-day pause on tariffs is set to expire on 12 August, after which Chinese exports could be subject to up to a 125% tariff — as floated by Trump earlier in the year.

Speaking of tariffs: Procter & Gamble is forecasting a USD 1 bn hit on the back of US tariffs, and said it would hike prices “moderately” in the US as part of its long-term strategy.

This story grabbed ink in the int’l press: Bloomberg | CNBC | Reuters | Financial Times | Guardian

WATCH THIS SPACE-

#1- Egypt + Singapore in talks to digitize ports: Egypt’s Suez Canal Economic Zone (SCZone) is looking into cooperating with Singapore Cooperation Enterprise to integrate its port management and smart port tech expertise across Egypt’s ports, according to a statement. The talks come as the SCZone works on digitizing its operations, and is looking to improve governance, operational efficiency, and cargo handling capacities at its ports.

REMEMBER- SCZone’s on a digital kick: SCZone launched the first phase of a new digital services platform in March for investors, offering them the chance to turn in applications and receive project approvals and licenses through a single platform. The platform — developed with support from the European Bank for Reconstruction and Development — will feature more services in the phases that follow.

#2- The Egyptian Sugar and Integrated Industries Company is exploring developing a USD 400 mn bioethanol production plant at its facilities in Kom Ombo, Managing Director Salah Fathy told AlMal. The project is set to poise all surplus production for exports — although the local market will remain the primary focus. The project will be implemented in partnership with Italy’s Eni and Proger, and co-financed by the European Bank for Reconstruction and Development. Technical and financial studies are still underway.

#3- Korea’s Hyundai Rotem is prepared to actively contribute to Morocco’s rail expansion plan, according to a statement, citing rail solutions head Jeong Hoon Kim as saying. The “ambitious roadmap,” as described by Kim, is set to expand Morocco’s national rail network by 2040.

Hyundai is already on board: Morocco’s National Office of Railways inked a USD 1.5 bn contract with Hyundai Rotem in February to supply double-decker trains for its new high-speed rail network. The network is slated to increase Casablanca’s connectivity to the rest of the country. No further details were provided on whether Hyundai is looking at additional projects and contributions for the rail network expansion.

#4- Syria is now accepting tender applications to construct hangars at the Nassib border crossing — valued at some USD 142k, according to a statement from the General Land and Sea Ports Authority. The project will entail the development of a hangar scanner and inspection yard at the crossing. The submission deadline is set for 10 August.

MARKET WATCH-

#1- Oil prices eased in early morning trading following a 3% surge as investors weigh Trump’s deadline to Russia, Reuters reports. Brent crude futures rose USD 0.08 or 0.12% to reach USD 71.81 / bbl by 4:19am GMT, while US West Texas Intermediate (WTI) futures increased USD 0.08 or 0.12% to trade at USD 66.29 / bbl.

Oil prices are going to drop, but not as sharply as feared: The IMF is expecting oil prices in Saudi Arabia to fall by 13.9% in 2025 to an average of USD 68.18 per barrel — a more moderate drop than previously anticipated, according to its World Economic Outlook report (pdf). The decline is set to continue in 2026, albeit at a slower pace, with prices forecast to fall by an additional 5.7% to USD 64.33 / bbl.

#2- Baltic index on a downwards trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — decreased 5.3% at 2,109 points on Tuesday. The capesize dropped 7.9% to 3,476 points, while the panamax index dipped 3.2% to 1,741 points. The smaller supramax index fell 0.6% to 1,281 points.

DATA POINT-

Dubai International Airport (DXB) handled 1 mn tons of cargo in 1H 2025 — a 0.1% y-o-y increase, according to a statement. The airport also received 22.5 mn passengers in 2Q 2025 — recording 3.1% growth y-o-y.

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

CIRCLE YOUR CALENDAR-

The UAE will host the Africa Procurement & Supply Chain Leaders’ Conference on Monday, 25 August until Friday, 29 August in Dubai. The conference will host global industry leaders, policymakers and stakeholders to discuss how AI is changing procurement and supply chain efficiency, sustainability and risk management.

Oman will host Transport Middle East on Monday, 1 September until Wednesday, 3 September in Salalah. The conference will host 35 international speakers and over 50 exhibitors from the maritime sector to discuss global transportation and logistics.

Saudi Arabia will host the Sustainable Maritime Industry Conference on Wednesday, 3 and Thursday, 4 September in Jeddah. The event is set to gather over 60 speakers and more than 3k participants to discuss maritime decarbonization, digital transformation, regulatory frameworks, capacity building, and sustainable practices.

Algeria will host the Intra-African Trade Fair on Thursday, 4 September until Wednesday, 10 September in Algiers. The fair will host over 75 countries and 2k exhibitors across several sectors to explore investment prospects and exchange information on trade between B2B and B2G.

Oman will host the Comex Global Technology Show on Sunday, 7 September and run till Wednesday, 10 September in Muscat. The event will host over 360 participants and 133 tech startups to show achievements in eGovernment, fintech, smart cities, health tech, agritech and cybersecurity.

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

Egypt secures LNG supply through 2026, plans to boost domestic production for exports

Egypt has secured LNG supply through 2026 at a total estimated cost of USD 8 bn, a government source told EnterpriseAM. The final bill may fluctuate based on domestic production and consumption levels, thanks to a built-in flexibility mechanism negotiated with suppliers.

Egypt will be investing more in regasification capacity to make it work: The government plans to lease a fifth floating regasification plant to accommodate the remaining 46 incoming LNG shipments. Talks with Qatar are also underway for medium-term LNG supply.

REMEMBER- A government source previously told us that the sector has contracted for 60 shipments to secure needs through the summer — the peak window for consumption — at a value of USD 2.5-3 bn.

Exports are on hold: Egypt is expected to miss its 2027 deadline to resume exports and will remain a net gas importer until at least 2030, Bloomberg reports. LNG import agreements have added pressure to the global market, reducing available cargoes as European buyers seek alternative supplies to replenish reserves and offset lost Russian volumes.

The countermeasures: The government is preparing a new bidding round to attract energy investors and is seeking to increase natural gas production by developing several fields to produce around 300-350 bn cbf, another government source told us. The plan to increase production will reduce the import bill for petroleum products for the current fiscal year by approximately USD 1.5 bn, according to the source.

A big plan unfolding: The government wants to see petroleum sector output rise to EGP 1.7 tn this fiscal year, according to documents seen by EnterpriseAM. The plan is to unlock some EGP 208 bn in private investment in the sector during the 2025-2026 fiscal year — 40% of it in natural gas — with a goal of generating USD 5 bn in export revenues by 2030, up from USD 3.3 bn currently.

IN OTHER TRADE NEWS-

More details about the plan to bring in Cypriot gas to Egypt for liquefaction and re-export: Plans are underway to fast-track the connection of Cyprus’ offshore Cronos and Aphrodite gas fields to Egypt’s Zohr infrastructure, with a combined 1.3 bcf/d of gas set to be routed through the network by 2028, government sources told Asharq Business.

Breaking down the timeline: Eni is expected to complete a 90-km subsea pipeline linking the Cronos field to Port Said by the end of 2027, bringing in around 500 mcf/d, a percentage of which will be used to feed the national grid. Gas from the Aphrodite field will follow with 800 mcf/d coming in a year later.

REMEMBER- Egypt and Cyprus inked multiple agreements earlier this year that will see Cyprus ship natural gas from its offshore fields to be liquefied in facilities in Idku and Damietta before being re-exported to foreign markets.

Demand for industrial, logistics space in Dubai drops by a third in 1H 2025 as rents climb amid limited stock

Demand for industrial and logistics space in Dubai dipped by nearly a third y-o-y to 11.5 mn sq ft, as supply limitations and high rents dampened demand, according to Knight Frank's Dubai and Abu Dhabi Industrial and Logistics Markets Review (pdf). This follows a record 2024, which saw demand for 40.6 mn sq ft in industrial and logistics space throughout the year.

The combination of increased rents and limited supply led many occupants to stay in their existing facilities and delay their expansion plans by two to four years, when more supply is set to come online, the report said. Rents in Al Quoz were still the highest across the emirate, with grade A rents coming in at AED 85 per sq ft — up 31% y-o-y. Dubai Investments Park follows with average rents of AED 60 per sq ft, up 33% y-o-y.

Three core sectors continued to dominate demand in Dubai, with logistics accounting for 27% of required space during 1H 2025. The manufacturing sector was next with 17%, and retail and trading made up 14%.

Over in Abu Dhabi, rents in certain areas saw significant upticks. Kezad Mussafah recorded average price rises of 57% y-o-y to AED 500 per sqm, while Abu Dhabi Airports Freezone held the top spot with AED 625 per sqm.

Tight market conditions in Dubai and Abu Dhabi are prompting firms to look to northern emirates like Umm Al Quwain instead — though perhaps this will not be a safe option for long, with rents there climbing 40% y-o-y on average. Firms are also increasingly opting for mid-sized units, which overtook larger spaces to become the most in-demand.

The outlook: Dubai’s supply shortage is expected to continue this year, with only 780k sq ft of new stock expected — almost half of which will come from Radius Group’s planned 355k sq ft development in Dubai Investments Park 2. The medium-term outlook appears more positive, with 7.2 mn sq ft of industrial and logistics space currently under development through 2028. Market analysts expect the market to gradually transition from its current landlord-favorable conditions to a more balanced environment.

What they said: “While the current tapering in demand reflects a recalibration after an extraordinary growth phase, the structural drivers for the sector remain intact,” the report said. “We expect demand to remain resilient, albeit more selective, in the coming quarters as the market adjusts to a new equilibrium, underpinned by a shortage of stock.”

Two major projects are helping ease the 2026 pipeline, with the 550k sq ft Terralogix Phase 1 scheduled for completion in 3Q 2026, and Aldar and DP World's joint National Industries Park development set to add 1.6 mn sq ft from mid-2026.

Al Seer Marine records 82% drop to its bottom line, while revenues shoot up

The UAE’s Al Seer Marine reported an 82% y-o-y net loss of AED 296 mn in 1H 2025, according to an earnings release (pdf) . On the other hand, the firm’s top line hiked up 20.2% y-o-y to AED 698 mn, driven by operational expansions and growth.

Behind the numbers: The firm attributed the revenue boost to its diversification strategy across several sectors, including its operation of six new MR tankers and the development of a new JV — ASBI Shipping — with B International Shipping and Logistics, an affiliate of Geneva-based energy trader BGN Energy.

The firm might have been sustaining losses…: Al Seer Marine recorded losses of nearly AED 1.5 bn in 2024, an almost 43% wider loss than the previous year by our calculation. The UAE-based maritime player's top line, however, increased 4% y-o-y to AED 1.28 bn during the same period.

…but it's making room for expansions: Al Seer Marine secured an AED 760 mn (USD 207 mn) facility from Abu Dhabi Commercial Bank to support its portfolio expansion earlier this month. Earlier this year, ADCB provided an AED 210 mn (USD 57 mn) loan to ASBI Shipping to help fund the acquisition of small and midsize LPG tankers.

Updates on ports storage and zones from UAE and Saudi Arabia

PORTS-

AD Ports Group's Noatum Maritime opened its first Shanghai office for maritime services, marking another step in its China expansion following the recent Beijing office launch, according to a press release. The new facility will provide shipping and maritime logistics services to vessel operators and cargo owners. The Shanghai location becomes its 78th port office in 18 countries, co-located with existing Noatum Logistics facilities to enable integrated services

ZONES-

AECOM to provide advisory services for SILZ’s integrated zone project in Riyadh: US engineering firm AECOM will serve as a project management consultant for the Special Integrated Logistics Zones Company’s (SILZ) integrated zone project in Riyadh, according to a press release. Under an agreement signed between AECOM and SILZ, AECOM will provide strategic advisory services for the country’s first integrated logistics zone that is located near King Khalid International Cargo Village.

Boeing to face another strike + tariffs to bog down Chinese-US exports by 2027

Is another union strike coming for Boeing? US manufacturer Boeing is expecting over 3.2k union workers at three St Louis plants — which produce fighter jets — to go on strike on the back of a denied proposal on Sunday that demanded a 20% pay increase spread over three years, according to a statement.

A truce period: The union workers entered into a seven-day “cooling period” until 4 August, in a bid to reduce the likelihood of a strike. The strike is set to begin after the week is over, although its duration was undisclosed. The International Association of Machinists and Aerospace Workers is insisting on eventually renegotiating their contracts.

SOUNDS FAMILIAR? Boeing’s last strike in 2024 lasted for six weeks, also over workers’ wages, delaying deliveries of 737 Max jets.

Chinese exports to the US are expected to fall by USD 485 bn within the next two years — driven by recent tariffs and their impact on global trade, CNBC reports, citing an OEC tariff simulator. The US is charging a 51% tariff on Chinese goods, while China is charging 33%. “Countries will have a natural tendency to rewire their trade relationships away from the US in many of these scenarios,” Datawheel founder Cesar Hidalgo told the news outlet. On the other hand, US exports will see a 12% increase by 2027, driven by Chinese tariffs and the latest EU trade agreement — despite a decline in Chinese goods.

Tariffs could reach 145% if disputes remain unresolved — pending the 12 August deadline. The Trump administration has been intensifying its efforts to undercut China’s exports by targeting transshipment networks, risking choking off 70% of China’s exports to the US — equivalent to over 2.1% of China’s GDP. China has meanwhile increased its reliance on other countries like Vietnam, Mexico, and parts of the EU.

Other countries caught in the crossfire: Vietnam might see its exports to the US fall by USD 102 bn by 2027, while South Korea’s exports could decrease by USD 49 bn over the same period — with goods such as broadcasting equipment, computers, and cars affected the most, according to the outlet.

Calendar

AUGUST

25-29 August (Monday-Friday): Africa Procurement & Supply Chain Leaders’ Conference, Dubai, UAE

SEPTEMBER

1-3 September (Monday-Wednesday): Transport Middle East 2025, Salalah, Oman.

3-4 September (Wednesday-Thursday): Sustainable Maritime Industry Conference, Jeddah, Saudi Arabia.

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

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

15-16 (Monday-Tuesday) September: Smart Ports & Logistics Transformation Summit, Jeddah, KSA

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

25 September (Thursday): World Maritime Day.

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

OCTOBER

The International Maritime Organization (IMO) is set to formally adopt the Net-zero Framework this month, stipulating new fuel standards for ships and a global pricing mechanism for emissions.

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

7-8 October (Tuesday-Wednesday): Global EV & Mobility Technology (GEMTECH) Forum, Riyadh.

13-17 October (Monday-Friday): The Marine Environment Protection Committee’s second extraordinary session, London, UK.

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

15 October (Wednesday): Global Trade Review, Cairo, Egypt

28-30 October (Tuesday-Thursday): Borneo International Maritime Week, Sarawak, Malaysia.

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.

9-11 November (Sunday-Tuesday): TransMea Expo, Cairo, Egypt

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

24-26 November (Monday-Wednesday) The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh, Saudi Arabia.

DECEMBER

1-3 December (Monday-Wednesday): INTRALOGISTICS Powered by CeMAT, Riyadh, KSA

2 December (Tuesday): European Commission issues its decision on Adnoc’s Covestroc acquisition.

15-16 December (Monday-Tuesday): Supply Chain And Logistics Conference 2025, Riyadh, KSA.

2026

27-29 January (Tuesday-Thursday) Transport Middle East 2026, Abu Dhabi, UAE.

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

28-30 April (Tuesday-Thursday) Mediterranean Ports and Logistics, Porto, Portugal.

12-13 May (Tuesday-Wednesday): IntraLogistex, Abu Dhabi, UAE

24-26 June (Wednesday-Friday) Transport Logistic & Air Cargo 2026, Shanghai, China.

7-9 July (Tuesday-Thursday) Asean Ports and Logistics, Kuala Lumpur, Malaysia.

17-19 November (Tuesday-Thursday) Intermodal Africa 2026, Luanda, Angola.

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.

2027

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

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