Good morning, friends. It’s a busy morning in the regional logistics sector and we have the latest in all Red Sea disruption movements as well as a healthy serving of investment and M&A updates.

PSA-

Abu Dhabi International Airport has been rebranded as Zayed International Airport, Abu Dhabi Airports said on X on Friday.

WATCH THIS SPACE-

#1-The US sanctions three UAE-based oil traders and shippers: The US Treasury Department has rolled out new sanctions against three UAE-based entities for engaging in the trade of Russian crude priced above the G7-mandated USD 60 per barrel price cap while employing US-based services, according to a Thursday Office of Foreign Assets Control (OFAC) statement. The latest round of sanctions target UAE-based Zeenit Supply and Trading, Talassa Shipping, and Oil Tankers SCF Mgmt FZCO, with a Liberian-registered owner also listed, the statement read. The move sees the sanctioned entities’ US-based assets frozen and prohibits US companies and individuals from engaging with them.

ICYMI- OFAC rolled out its first price cap-related sanctions for the year last month targeting UAE-based shipowner Hennesea Holdings for violations to the G7 mandate. December 2023 saw OFAC tighten its guidelines while hitting out a UAE-based subsidiary of Russia’s state-owned fleet operator Sovcomflot, in addition to a UAE-based and two Hong Kong based “under-the-radar” traders.

#2- The UAE could finance Turkey’s Bosphorus railway: The UAE is currently in talks with Turkey to grant the Turkish government a loan to finance the railway project across Istanbul’s Bosphorus Strait, Asharq Business reports on Thursday, citing Anadolu Agency. The Turkish government expects to reach an agreement on the loan during Turkish President Recep Tayyip Erdoğan’s visit to the Emirates set for this month, Turkish Transport and Infrastructure Minister Abdulkadir Uraloğlu reportedly said.

This isn’t the first time we hear of the UAE taking part in the project: Abu Dhabi’s ADQ fund reportedly held talks with Turkey in October last year to discuss building the railway, which is planned to be a part of a trade corridor linking Europe to the MENA region and Asia, Bloomberg reported.

#3- Iraq’s Oil Ministry looks to bolster the national tanker fleet: Two Norwegian-made tankers were inducted into the country’s fleet and began operations, with plans to contract a multinational firm to construct more vessels, INA reported on Friday, citing statements by an oil ministry spokesperson.

MARKET WATCH-

#1- Baltic Index up across the board: The Baltic Exchange’s dry bulk sea freight index marked a four-week-high on Friday, buoyed by higher rates across all vessel segments, Reuters reported on Saturday. The overall index — which factors rates for capesize, panamax, and supramax vessels — gained 4.9% to 1545 points, up 4.7% w-o-w and marking its highest since 11 January, the newswire said. Trading saw the capesize subindex rally 8.4% to 2381 points, its highest in four weeks. The panamax and suezmax segments were up 2.4% and 3 points to 1509 and 1053 points, according to the newswire.

#2- Oil prices surged once again on Thursday, as Israel rejected a ceasefire offer and a weaker greenback made crude purchases cheaper for traders holding other currencies, Reuters reported on Thursday. Benchmark Brent inched up 0.4% to USD 79.56 by 07.30 GMT, while West Texas Intermediate (WTI) also rallied 0.4% to USD 74.17. Stronger-than-forecasted drops in US gasoline and middle distillate inventories also propped up the market, the newswire said.

DATA POINTS-

#1- Egypt’s trade deficit declined 24.15% y-o-y to USD 36.9 bn in 2023, according to Trade and Industry statements here, here and here. Egypt’s non-oil exports for the year topped USD 35.6 bn, while non-oil imports declined 14% y-o-y to USD 72.5 bn, the statements said. Turkey was Egypt’s top export partner in 2023, accounting for USD 2.94 bn of the country’s export, Al Sharq Al Awsat reported citing a Tuesday statement by Egypt’s trade and industry minister Ahmed Samir. KSA and the UAE were Egypt’s second and third-largest export partners, accounting for USD 2.7 bn and USD 2.2 bn of exports, Samir said.

#2- Bahrain’s trade deficit surged 618% y-o-y to BHD 1.1 bn in 2023,Bahrain News Agency (BNA)reported last week, citing Information &eGovernment Authority (iGA) trade figures. National exports fell 21% y-o-y to BHD 3.9 bn, while re-exports increased by 5% y-o-y to settle at BHD 756 mn. Meanwhile, imports dropped 1% over the same period to BHD 5.8 bn, the report said.

#3- Morocco’s net customs revenues topped MAD 84 bn in 2022,up 18.6% y-o-y, Moroccan News Agency (MAP) reported last week, citing the Kingdom’s General Treasury (TGR). Gross revenues increased 18.7% to MAD 84 bn over the same period, with 239 mn MAD going towards account refunds, rebates and tax refunds, TGR said. Net revenues from customs duties and value added tax (VAT) on imports bumped up 16.7% and 28.5% on a yearly basis to MAD 13.8 bn and MAD 54.4 bn, TGR also said.

#4- ACC notes boost to Jordanian exports in January: The value of certificates of origin for exports issued by Amman’s Chamber of Commerce (ACC) posted a 9% y-o-y increase to JOD 108 mn in January 2024, Petra reports, citing the chamber’s statistics. The number of certificates for the month totalled 1778, down 24.3% y-o-y. Iraq accounted for the lion’s share of January’s exports, totalling some JOD 61 mn, followed by the UAE (JOD 10 mn), Egypt (JOD 8 mn), KSA (JOD 6 mn), and Switzerland (JOD 3 mn), the report said.

#5- KSA’s notes SAR 128 bn worth of non-oil exports to Africa between 2019 and 2023, SPA reported on Thursday. Chemical and polymer products were the country’s leading non-oil exports to the continent, with a value exceeding SAR 83 bn, followed by construction materials (SAR 10 bn) and packaging (SAR 9 bn), SPA said.

CIRCLE YOUR CALENDAR-

The UAE will host The World Trade Organization’s 13th Ministerial Conference from Monday, 26 February to Thursday, 29 February in Abu Dhabi. The event will gather ministers from around the world to assess the operation of the multilateral trading system and make key decisions regarding the future tasks of the WTO.

The UAE will host the TradeTech Forum on Tuesday, 27 February in Abu Dhabi. The forum will see some 180 trade leaders and experts discuss the technologically advanced trade environment and a showcase of trade tech solutions.

The UAE will host The Logistics Middle East Award on Wednesday, 6 March in Dubai. The awards ceremony brings together industry experts to celebrate the sector’s biggest accomplishments over the previous 12 months.The deadline for submitting nominations is Friday, 19 January.

KSA will host a special World Economic Forum event from Sunday, 28 April through to Monday, 29 April in Riyadh. The event will focus on global collaboration and energy.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

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

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