Good morning, folks. It’s a fairly busy news day with updates on the UAE trade and cargo connectivity front, along with PMI readings from Kuwait, Qatar, and Lebanon. We also have the latest readings from the liner shipping connectivity index and what that means for our region. Let’s get the ball rolling.
WATCH THIS SPACE-
#1- Bahrain’s flag carrier Gulf Air aims to become profitable within the next three years, Zawya reports, citing comments made by CEO Jeffrey Goh to Airline Routes & Ground Services. The airline aims to boost its current fleet network — which boasts 40 aircraft — with six more A320s and two B2787s to ensure operational efficiency and expand its network by 25% over the next five years, adding new destinations east and west of its current network. Recent additions include Shanghai, Guangzhou, Munich, Baghdad, Rhodes, and Geneva.
#2- Egypt aims to launch infrastructure projects to encourage engagement by the private sector, according to a statement. Egypt is specifically looking to encourage investments in solar energy tech, semiconductor manufacturing, outsourcing services, and data centers. Egypt is also making moves to cut down on trade barriers, streamline customs procedures, and boost logistics infrastructure to better connect with international markets, Egyptian Investment and Foreign Trade Minister Hassan Al-Khatib said on the sidelines of the Center for International Private Enterprise Conference yesterday.
Also in the pipeline: The ministry is working on a number of policies to help the Madbouly government reach its growth target of 6-7%, up exports to USD 145 bn by 2030 by drumming up private investments worth USD 240 bn. The policies will be inflation-oriented and will prioritize increasing the private sector’s involvement in the economy. They will also aim to support foreign trade.
El Khatib also laid out some of the state’s investment priorities at the conference, pointing to industry, healthcare, agriculture, energy, and tourism. The minister also highlighted hydrogen production and energy storage as a priority, along with solar technology, microchip production, data centers, and outsourcing services.
#3- LNG tankers are diverting from Asia to Europe after concerns over the escalating conflict in the Middle East caused a surge in benchmark Dutch prices, Bloomberg reports. Three LNG vessels from the US altered course after originally planning to head for Asian destinations, and two ships headed for Bangladesh and South Korea were rerouted to the UK and Belgium respectively, Bloomberg said, citing data from Kpler. The diversions are in response to a spike in European futures, pushed up by worries over growing risk to supplies available in the Middle East.
No shift in demand: Traders indicated that the diversion of cargoes was primarily a response to price changes rather than significant shifts in demand. Since mid-September, Dutch gas futures have increased by as much as 29%.
#4- Indian firms eye DP World’s Bharat Mart: DP World has attracted interest from some 9k Indian businesses looking to establish operations in Bharat Mart, a warehousing and trading hub in Dubai designed for India’s MSMEs, CNBC TV18 reports, citing Indian Commerce and Industry Minister Piyush Goyal. The facility, located in DP World’s Jebel Ali Freezone, will span 100k square meters and include 1.4k units.
Background: The foundation stone for the project was laid earlier this year. Set to open in 2026, the marketplace aims to streamline access to global markets for Indian manufacturers and exporters.
MARKET WATCH-
#1- Oil prices fell over USD 1 in early morning trading amid fears MENA is on the brink of a regional war, Reuters reports. Brent crude futures fell USD 1.17 trading at USD 79.76 a barrel at 04.20 GMT, while US West Texas Intermediate (WTI) futures fell USD 1.19 trading at USD 75.95 a barrel. Both contracts rose over 3% yesterday, reaching their highest levels since late-August due to worries over disrupted oil supply from the Middle East.
#2- Baltic index stays low: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 1.1% to 1,907 points on Monday, registering their lowest since 18 September. The capesize index dropped 2.5% to its lowest since mid-September at 3,161 points, while the panamax index gained 27 points to 1,415 points. The smaller supramax eased one point at 1,257.
DATA POINT-
#1- Qatar’s Hamad Port breaks its transshipment record: QTerminals’ Hamad Port broke its record for highest volume of transshipment containers handled, reaching over 254k TEUs in the first three quarters of 2024, according to a statement.
#2- Investments in Oman’s economic zones up 20% in H1 2024: Investments in Oman’s special economic zones, freezones, and industrial cities rose by 20% y-o-y to OMR 20.1 bn in the first half of this year, according to a statement. Some OMR 7.5 bn were invested in Oman’s operational industrial cities, OMR 4.6 bn in Salalah Freezone, OMR 6 bn in SEZD, OMR 1.3 bn in Sohar Freezone, OMR 459.2 mn in Khazaen Economic City, and OMR 198 mn in Mazyunah Freezone.
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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, and Logistics 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.