Kingdom attracted FDI worth SR30bn in 2014

Updated 28 June 2015
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Kingdom attracted FDI worth SR30bn in 2014

RIYADH: Foreign direct investments (FDIs) in Saudi Arabia dropped by 6.9 percent to $8.012 billion (SR30bn) in 2014 compared to $9.298 billion in 2013, local media said, quoting data released by a UN body.

Saudi Arabia, meanwhile, ranked third among western Asian countries of having received the highest FDIs behind Turkey which ranked first at $12.146 billion in 2014 and the UAE, ranked second, at $10.1 billion, the UN Conference on Trade and Development (UNCTAD) report said.
It said Oman was the fourth biggest FDI recipients in the region at $1.180 billion, followed by Qatar at $1.040 billion, Bahrain at $957 million, and Kuwait at $486 million.
However, the FDI inflows to the western Asian countries continued to fall for the six consecutive years in 2014 at 4 percent to reach $43 billion, the report said.
The UN body attributed the continued fall of the FDIs to occurrence of crises in the region, starting from the global economic crisis and the outbreak of political strife, particularly in countries directly hit by political developments with their impact on the neighboring countries.
In the GCC countries, FDIs remained stagnant which dropped by 4 percent to $22 billion despite the fact the GCC countries have enjoyed political stability and maintained a robust economic growth in the past years, the report said.
Regarding infrastructure projects, the report said Saudi Arabia and Qatar have embarked on ambitious plans with special focus on railway projects where in 2013 more than $30 billion contracts were awarded for Riyadh and Doha metro projects. Of $157 billion contracts awarded by the GCC countries, companies in Saudi Arabia captured the highest portion of those deals at $66 billion, followed by the UAE ($52 billion), Qatar ($22 billion), Kuwait, Bahrain and Oman ($17 billion), the report said.


Lufthansa announces overhaul of budget carrier Eurowings

Updated 24 June 2019
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Lufthansa announces overhaul of budget carrier Eurowings

  • Lufthansa cited falling revenues at Eurowings as a major reason for its warning on full-year profits on June 16
  • Eurowings’ long-haul business would be managed by Lufthansa in the future

BERLIN: Lufthansa on Monday announced a turnaround plan for Eurowings in which the budget carrier will focus on short-haul flights and seek a 15 percent cut in costs by 2022 in the hope of returning to profit.
The German airline cited falling revenues at Eurowings as a major reason for its warning on full-year profits on June 16. Eurowings’ revenue was also forecast to fall sharply in the second quarter.
Lufthansa said its Eurowings fleet would be standardized on the Airbus A320 family and it would seek to boost productivity at Eurowings by limiting itself in Germany to one air operator’s certificate.
Brussels Airlines — the Belgian national flag carrier which Lufthansa took control of in 2016 — would not be integrated into Eurowings, Lufthansa said. A turnaround plan for Brussels Airlines will be announced in the third quarter.
Lufthansa also said it would start pegging its dividend payout ratio to net profit in the future to give the group more flexibility. It would pay out a regular dividend of 20 percent-40 percent of net profit, adjusted for one-off gains and losses.
Lufthansa said Eurowings’ long-haul business would be managed by Lufthansa in the future.
Carsten Spohr, Chief Executive Officer of Lufthansa, said Monday’s announcements sent “a clear signal that this company cares about its shareholders and tries to create value for them.”
Lufthansa said its Network Airlines — made up of Lufthansa, Swiss and Austrian Airlines — would aim to use innovations in sales and distribution to make a contribution to increasing unit revenues by 3 percent by 2022.
Network Airlines will aim to reduce unit costs continuously by 1 to 2 percent annually, the airline said.