Saudi Arabia to allow Boeing 737 MAX to return to service

Boeing’s top-selling 737 MAX was grounded globally in March 2019 after two fatal crashes involving the same model in five months. (File/AFP)
Boeing’s top-selling 737 MAX was grounded globally in March 2019 after two fatal crashes involving the same model in five months. (File/AFP)
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Updated 28 February 2021

Saudi Arabia to allow Boeing 737 MAX to return to service

Saudi Arabia to allow Boeing 737 MAX to return to service
  • Boeing 737 MAX aircraft was grounded globally in March 2019
  • National carriers do not operate the Max model

LONDON: Saudi Arabia’s civil aviation authority announced on Sunday that the Boeing 737 MAX plane would be allowed to return to service in the Kingdom.
The General Authority of Civil Aviation (GACA) said the decision came after completing a review, taking the necessary measures, and completing all required tests by the US Federal Aviation Administration, the European Aviation Safety Agency and other civil aviation authorities around the world.
Boeing’s top-selling MAX was grounded globally in March 2019 after two fatal crashes involving the same model in five months.
The authority said that national carriers do not operate the Max model, but several foreign airlines operate flights to and from Saudi airports, and several flights cross their airspace with the same model.
GACA said the temporary suspension was lifted after “close coordination with the international civil aviation community, regarding changes, licensing and training, to ensure the highest level of safety.”
The civil authority also published a navigational notice permitting the MAX model to return to service. 
(With Reuters)


Sustainable investment leaders to gather for Riyadh summit

Sustainable investment leaders to gather for Riyadh summit
Updated 18 min 12 sec ago

Sustainable investment leaders to gather for Riyadh summit

Sustainable investment leaders to gather for Riyadh summit
  • ESG funds attract billions of dollars
  • Most assets currently held in Europe

DUBAI: Thought leaders in sustainable investment will gather virtually in Riyadh on Thursday to explore one of the hottest topics in the world of finance — the move to environmental, social and governance (ESG) benchmarks by big global investors.

The event, under the auspices of the Future Investment Initiative (FII) Institute, will focus attention on sustainable investment in the post-pandemic recovery, and the role of emerging markets like Saudi Arabia within the new investment philosophy.

ESG investing has recently taken off, attracting hundreds of billions of dollars into funds that pledge to weigh broader considerations when deciding where to put their money, rather than mere cash returns.

Richard Attias, chief executive of the FII Institute, said: “Although ESG has proven its worth, much remains to be done to ensure we use it to its full potential. The low level of inclusion and participation of emerging markets in the development of ESG frameworks is counterproductive to global sustainability.

“Perhaps the most challenging task, and one that we will address during this event, is how we push ourselves to think beyond ESG as a risk management tool and deploy it to create a truly sustainable future,” he added.

Although sustainable investment has been advocated as a concept for many years, it has taken off recently against the background of the COVID-19 pandemic, which persuaded many traditional big investors to look again at their basic criteria.

The most significant recent convert to the new thinking has been Larry Fink of giant investment manager BlackRock, who promised to divert funds into ESG sectors and away from traditional investment areas, particularly in the area of climate change.

“The risks that climate change poses to the world of finance can no longer be ignored,” Fink wrote in his annual letter to global chief executives.

Many investment managers seem to have agreed with the BlackRock boss. Figures from Refinitiv, the data provider, show that flows into ESG funds totaled around SR562.6 billion ($150 billion) in the final quarter of 2020 alone, twice as much as the same period in 2019 before the pandemic.

But global investment flows are not even, recent research has shown. By far the biggest assets in ESG funds are held in Europe, with a total of $1.34 trillion, according to financial industry analysts. This compares with only $236 billion in the US, and a meager $65 billion in the rest of the world, including the Middle East.

“The event will offer insights into how to boost participation of emerging markets in ESG and also deep dive into the role of ESG across corporations, retail investing, and monetary policy in pursuit of a sustainable world,” the FII Institute said.

The delegates will be addressed by Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund, which has incorporated ESG principles into its $400 billion worth of global investments.

It will also hear from Bandar Hajjar, president of the Islamic Development Bank, and Noel Quinn, chief executive of HSBC, which recently decided to cease investment in coal assets, as well as senior executives from leading financial institutions in Asia and Africa.

Despite the fast-rising investment trend in some parts of the world, there are still areas of disagreement worldwide on what constitutes fair ESG standards.

Khalid Abdullah Al-Hussan, the CEO of the Saudi Stock Exchange (Tadawul), said recently: “There are several standards applied worldwide, and a method applied in one country is not necessarily suitable for another. The agencies must consider local criteria while evaluating ESG in emerging markets.”

That issue is particularly relevant in the Arabian Gulf, where the bulk of investments are in oil and gas-related assets, which have come under attack from ESG activists with calls to divest from so-called “fossil fuel” investments.

But there are signs the new investment principles are beginning to catch on among regional investors, especially from the younger generation.

A recent survey by Barclays Private Bank found that nearly 60 percent of investors from Arab family offices were heading into more sustainable investment directions, in many cases prompted by concerns of younger family members.

“The report findings reflect that 76 percent of all respondents in the Middle East state that responsible investing is important to their family,” said Rahim Daya, head of private banking at Barclays in the Middle East.


French Louvre Hotels to open 31 new properties in Saudi Arabia

French Louvre Hotels to open 31 new properties in Saudi Arabia
Updated 14 April 2021

French Louvre Hotels to open 31 new properties in Saudi Arabia

French Louvre Hotels to open 31 new properties in Saudi Arabia
  • The new additions will bring the group’s total properties in the Kingdom to 16

DUBAI: French group Louvre Hotels has announced plans to open 31 new properties across the Kingdom by 2025, as the global hospitality sector slowly emerges from the COVID-19 pandemic.

The new hotels will open by the end of 2025, the group announced, adding 6,552 rooms to its current inventory in the Kingdom.

Five of the new properties will be launched this year, with investment from private sector partners, in key destinations across Saudi Arabia:

Golden Tulip Riyadh (Phase 1: 94 rooms) and Golden Tulip Unaizah (84 rooms) were scheduled to open during Q1, and will be joined by the Tulip Inn Dammam Corniche (70 rooms), the Tulip Inn Al Balaad Madinah (150 rooms) in Q3, whil the Golden Tulip Umm Al Qurah (454 rooms) will open in Makkah during Q4.

“Saudi Arabia is a key market for our international expansion, particularly as the country places more importance on travel and tourism with such a vast array of spectacular destinations within the Kingdom,” Pierre-Frédéric Roulot, CEO of Louvre Hotels Group, said in a statement.

The new additions will bring the group’s total properties in the Kingdom to 16.


Bahrain’s Gulf Air makes progress in delaying jet deliveries

Bahrain’s Gulf Air makes progress in delaying jet deliveries
Updated 14 April 2021

Bahrain’s Gulf Air makes progress in delaying jet deliveries

Bahrain’s Gulf Air makes progress in delaying jet deliveries
  • Operating at 50-60% of pre-pandemic levels
  • Seeks delays in some Boeing and Airbus planes

DUBAI: Bahrain’s Gulf Air has made good progress in its efforts to delay some Airbus and Boeing aircraft deliveries, its acting chief executive said on Wednesday.
The state-owned carrier has been seeking to push back the delivery schedule of some new jets amid a slump in global travel due to the coronavirus pandemic.
“We had to go renegotiate the delivery dates. We haven’t canceled anything,” Acting CEO Waleed Abdulhameed Al-Alawi told an online event organized by aviation consultancy CAPA.
“We have actually negotiated with the main suppliers Boeing and Airbus and we’ve got good progress with these two scenarios.”
Al-Alawi told Reuters in January the airline would receive some aircraft this year but was seeking delays in Airbus A320neo and Boeing 787 Dreamliner deliveries.
“At the moment no airline would be keen on receiving aircraft or accepting delivery flights to park these airplanes because of costs,” he told the CAPA event.
The state-owned carrier was currently operating at about 50 percent or 60 percent of its pre-pandemic levels, he said.


SABIC to distribute $1.2bn in H2 2020 dividends

SABIC to distribute $1.2bn in H2 2020 dividends
Updated 14 April 2021

SABIC to distribute $1.2bn in H2 2020 dividends

SABIC to distribute $1.2bn in H2 2020 dividends
  • Eligible shares will be entitled to a dividend of SR1.5 per share

DUBAI: The Saudi Basic Industries Corporation (SABIC) has approved cash dividends amounting to SR4.5 billion ($1.2 billion) to shareholders for the second half of 2020.
Eligible shares will be entitled to a dividend of SR1.5 per share, representing 15 percent of the nominal share value, the company said in a statement. It will be distributed on May 3, 2021.
The announcement brings the total dividend for last year to SR9 billion at SR3 per share.
CEO Yousef Al-Benyan highlighted the company’s resilience amid the pandemic, recording an improved performance in sales volumes to SR117 billion.
“Our resilience is defined by our sound business model, operational efficiency, and effective customer engagement,” he said.
SABIC’s production levels increased by 0.8 percent in 2020 compared to pre-pandemic figures, Al-Benyan added.


Dubai’s DP World seeks $210.2m in damages from Djibouti

Dubai’s DP World seeks $210.2m in damages from Djibouti
Updated 14 April 2021

Dubai’s DP World seeks $210.2m in damages from Djibouti

Dubai’s DP World seeks $210.2m in damages from Djibouti
  • DP World and Djibouti have since 2012 been locked in the dispute over DP World’s concession to operate the Doraleh Container Terminal

DUBAI: Dubai’s DP World, one of the world’s largest port operators, is seeking $210.2 million in damages from Djibouti’s government in an ongoing legal battle over port concession rights, documents related to the dispute, seen by Reuters, showed.

DP World and Djibouti have since 2012 been locked in the dispute over DP World’s concession to operate the Doraleh Container Terminal, which is located in the Horn of Africa along key trade routes at the southern entrance to the Red Sea. Djibouti seized the terminal from state-owned DP World in 2018.

The London Court of International Arbitration has previously ruled that DP World’s concession to operate the terminal is legal and binding and ordered it be restored.

DP World is now seeking damages for the estimated loss of revenue and management fees from 2018 to March 31 this year through the same court while still seeking to restore the concession, the documents showed.

If the concession is not restored, DP World estimates losses in excess of $1 billion, including future profits, one of the documents showed.

A decision on DP World’s claim by the London court is expected on June 29.

“If today DP World wants to again begin other proceedings, they are free to do so, but Dijbouti has already made its position clear and in our view this matter is settled,” said Alexis Mohamed, chief adviser to President Ismail Omar Guelleh, who won a fifth five-year term in elections held last Friday.

DP World said it remained the legal holder of the concession and alleged that Djibouti had acted illegally in seizing the terminal from the Dubai state-owned company.