Boeing sees $14.9bn in growth opportunity in Saudi Arabia over next 5 years

Boeing sees $14.9bn in growth opportunity in Saudi Arabia over next 5 years
An aerial view of a Boeing 737 MAX 10 airplane parked at King County International Airport-Boeing Field in Seattle, Washington, US. (Reuters/File)
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Updated 28 July 2022

Boeing sees $14.9bn in growth opportunity in Saudi Arabia over next 5 years

Boeing sees $14.9bn in growth opportunity in Saudi Arabia over next 5 years
  • The company, which has been partnering with the Kingdom for more than 70 years, has over 2,200 people employed by various Boeing entities and joint ventures with Saudis holding leadership positions and a strong Saudi employee base

LONDON: Boeing said it forecasts $14.9 billion in opportunity for growth in Saudi Arabia’s military business over the next five years with a rise in strong demand for defense capabilities. 

“We are committed to making the Kingdom’s Vision 2030 a success by contributing to its defense and security needs, creating jobs and growing Saudi Arabia’s aerospace and defense industry,” Rick Lemaster, vice president of Middle East, North Africa, and Turkey and international business development at Boeing Defense, Space and Security, told Arab News.

He said the US aerospace manufacturer sees strong demand for fighters, trainer aircraft, vertical lift and attack helicopters, surveillance capability, autonomous systems, and refueling aircraft – both on the platform side and support and services side. 

The company, which has been partnering with the Kingdom for more than 70 years, has over 2,200 people employed by various Boeing entities and joint ventures with Saudis holding leadership positions and a strong Saudi employee base.

Lemaster shrugged off growing global supply chain issues, rising costs and the negative effects of COVID-19, and said: “Customers across the Middle East and here in Saudi Arabia have placed their trust in Boeing to help sustain and upgrade their fleets, support high operational readiness rates, expand parts availability, and maximize partnerships with local industry.”

He added that these goals are key elements of Boeing’s business and they are working with their customers to ensure the challenges are mitigated.

“We see tremendous opportunity for customers in the region to upgrade their existing fleets to the newest, most advanced configurations or acquire new capability. Boeing continues to invest based on our customer’s requirements in innovation, technology, defense and security; as well as in partnerships, and services.”

Boeing participated in the UK’s Farnborough Airshow — one of the biggest global aerospace and defense exhibitions — that ran from July 18-22, along with the Kingdom, which had a grand pavilion featuring some of the country’s key defense stakeholders.

Aside from highlighting its highly capable military helicopters and aircraft, and displaying some of its newest, most digitally-advanced programs, Boeing also held ongoing discussions with defense officials from the Gulf and Middle East regions on the sidelines of the event.

Lemaster said talks mainly focused on Boeing’s “fleet modernization efforts and enduring needs for fighters, trainers, cargo and attack helicopters, intelligence, surveillance and reconnaissance capabilities, tankers, unmanned systems, support and training.”

An agreement was also signed between Boeing and the Saudi Arabian Military Industries as a joint venture to further enable the Kingdom’s capabilities and help achieve the 50 percent localization target by 2030.

“The Middle East in particular is a region of very strategic importance to Boeing in terms of growth, partnerships, investments and presence, ” Lemaster said, adding: “We are proud that our customers in the region operate several of Boeing’s platforms.”

Boeing’s overall Middle East market outlook for defense and government services is $33.5 billion for the next five years with 98 campaigns, he informed.

Lemaster said Boeing was also “privileged” to be part of the Kingdom’s World Defense Show, which was held in March, and was impressed with how quickly the expo came together, adding that they “expect the next show will be even bigger and better.”

He said: “We hope to build on that experience in following shows, where we will continue to take the time to listen to our customers’ needs and emphasize the benefits of Boeing’s refreshed business strategy to them.”


Oil up $2 per barrel from multi-month low

Oil up $2 per barrel from multi-month low
Updated 27 September 2022

Oil up $2 per barrel from multi-month low

Oil up $2 per barrel from multi-month low

NEW YORK: Oil rose by $2 a barrel on Tuesday from a nine-month low a day earlier, supported by supply curbs in the US Gulf of Mexico ahead of Hurricane Ian and a slight softening in the US dollar.
Prices also drew support from analyst expectations of possible supply cuts from the Organization of the Petroleum Exporting Countries and allies, which meets to set policy on Oct. 5.
Brent crude was up $2.35, or 2.8 percent, to $86.41 a barrel at 10:52 a.m. EDT (1452 GMT). On Monday it fell as low as $83.65, the lowest since January. US West Texas Intermediate  crude was up $2.04, or 2.7 percent, at $78.74.
Crude soared after Russia invaded Ukraine in February, with Brent coming close to its all-time high of $147 in March. Recently, worries about recession, high interest rates and dollar strength have weighed.
“Oil is currently under the influence of financial forces,” said Tamas Varga of oil broker PVM. “In the meantime, relief rallies, like the one this morning caused by Hurricane Ian in the US Gulf, are viewed as temporary phenomena.”
The dollar edged back from a 20-year high, which also supported oil. A strong dollar makes crude more expensive for buyers using other currencies.
Supply cuts also lent support. BP and Chevron said on Monday they had shut production at offshore platforms in the Gulf of Mexico as Hurricane Ian approached.
The outages may only provide a momentary reprieve for oil prices, Jim Ritterbusch, of Ritterbusch and Associates, said in a note.
“Outages are apt to prove brief,” Ritterbusch said, adding that the Gulf of Mexico represents “only about 15 percent of total US production amid this shale age” so the effect “is apt to be minimal.”
The oil price drop has raised speculation that OPEC+ could intervene. Iraq’s oil minister on Monday said the group was monitoring prices and did not want a sharp increase or a collapse.


Moody’s assigns stable outlook to PIF-owned firm’s EMTN program

Moody’s assigns stable outlook to PIF-owned firm’s EMTN program
Updated 27 September 2022

Moody’s assigns stable outlook to PIF-owned firm’s EMTN program

Moody’s assigns stable outlook to PIF-owned firm’s EMTN program

RIYADH: Global rating agency Moody’s has assigned the Public Investment Fund-owned GACI First Investment Co.’s EMTN program  a (P) A1 rating.

The euro medium-term note program has been established under the special purpose company incorporated in the Cayman Islands.

The firm has been assigned a stable outlook in line with the stable outlook on existing ratings of PIF.

The rating decision reflects Moody’s view that note holders will effectively be exposed to PIF’s senior unsecured credit risk.

In February, Moody’s Investors Service assigned an A1 long-term issuer rating to the PIF. As one of the world’s largest sovereign wealth funds, PIF is one of the main vehicles to grow the Kingdom’s non-oil economy and reduce its reliance on the hydrocarbon sector.


UAE In-Focus — Hospitality market to expand by 25% by 2030; Dubai to announce hydrogen strategy soon

UAE In-Focus —  Hospitality market to expand by 25% by 2030; Dubai to announce hydrogen strategy soon
Updated 27 September 2022

UAE In-Focus — Hospitality market to expand by 25% by 2030; Dubai to announce hydrogen strategy soon

UAE In-Focus —  Hospitality market to expand by 25% by 2030; Dubai to announce hydrogen strategy soon

DUBAI: The UAE’s hospitality market is set to expand by 25 percent by 2030, with a further 48,000 rooms adding to the nation’s extensive 200,000 key portfolio, according to a study conducted by Knight Frank.

The global property consultancy said in its report that Dubai will account for the lion’s share of these new rooms, with 76 percent coming to the emirate, which already boasts more than 130,000 rooms.

“The emirate has cemented its status as a city with universal appeal, in large part to the world-leading government response to the pandemic and some of the world’s most visited and incredible attractions,” Faisal Durrani, partner and head of Middle East Research at Knight Frank said.

It is estimated that the hotel room supply will cost approximately 117.5 billion dirhams ($32 billion).

Dubai develops hydrogen strategy

Dubai will soon unveil its green hydrogen strategy, MEED reported quoting the managing director of the Dubai Electricity & Water Authority as saying.

Saeed Mohammed Al-Tayer made the revelation at a press conference held to announce the World Green Economy Summit on Sept. 28-29.

Rental market

The Dubai Land Department has signed a memorandum of understanding with Dubai Chambers to enhance the emirate’s rental market’s investment environment, according to Dubai Media Office.

As a result of the MoU, Dubai Chambers will be able to offer real estate and office space to business councils and groups.

It will also facilitate market research and joint training workshops related to the rental sector in Dubai.

In a statement, Abdul Aziz Al-Ghurair, chairman of Dubai Chambers, said the partnership complements Dubai Chambers’ 2022-2024 strategy and the ongoing efforts to boost confidence in the real estate sector, which remains a key contributor to the emirate’s economy.

A constructive dialogue between the public and private sectors is essential to Dubai’s sustainable economic growth and development, he said.

 


Saudi Arabia agrees to fund $63m Senegal road project

Saudi Arabia agrees to fund $63m Senegal road project
Updated 27 September 2022

Saudi Arabia agrees to fund $63m Senegal road project

Saudi Arabia agrees to fund $63m Senegal road project

RIYADH: The Saudi Fund for Development is pumping $63 million into a coastal road project in Senegal, it has been announced.

The agreement with the African country will see the construction of a 12 km, two-lane highway in Dakar.

The project will also contribute to raising the level of road safety, meeting the needs of residents of cities and villages, and reducing the rates of injuries and deaths resulting from traffic accidents.

The move is the latest cash injection the Saudi Fund for Development into Senegal, having previously financed 27 loans to contribute to 25 projects and programs, with a value of about $447 million.

It has also awarded grants worth $19 million in the sectors of transportation, transportation, infrastructure, health, housing, urban development, energy, education, water and sanitation.

In August, the Fund signed an agreement with the Cameroonian government to finance the construction of the Mbalmayo Regional Hospital Project, by providing a soft development loan of $12 million.

The agreement was signed by SFD CEO Sultan Al-Marshad, and the Cameroonian Minister of Economy, Planning, and Regional Development, Alamine Ousmane Mey.

The agreement will help to build and equip the hospital with 200 beds and develop specialized medical departments, centers, and buildings spanning a total area of 14,000 sq. meters. 

The development plan also comprises rehabilitating the roads that connect the hospital to the main roads to ensure easy access.


Kuwait Central Bank appoints Sahar Al-Rumaih as its first female deputy governor 

Kuwait Central Bank appoints Sahar Al-Rumaih as its first female deputy governor 
Updated 27 September 2022

Kuwait Central Bank appoints Sahar Al-Rumaih as its first female deputy governor 

Kuwait Central Bank appoints Sahar Al-Rumaih as its first female deputy governor 

RIYADH: The Central Bank of Kuwait has named Sahar Al-Rumaih as its deputy governor in a first-ever such appointment of a woman to this position in the Gulf state.

Al-Rumaih, who was the deputy CEO for corporate banking at Ahli Bank of Kuwait, replaced Yousef Al-Obaid as his term had expired, according to Bloomberg. 

With this new appointment, the central bank’s board now includes two women. 

This comes following a similar development in Saudi Arabia in June when the Kingdom’s Central Bank named Sheila Al-Rowaily, who worked as a financier with Saudi Aramco, as its first woman board of directors. 

In recent years, Saudi Arabia’s Vision 2030 has focused on women’s empowerment and workforce, with efforts directed towards increasing female employment in diplomatic and governmental services. 

Women joining the workforce in Saudi Arabia has been a key development of the Kingdom’s Vision 2030 social and economic reforms, which has seen their participation jump from 19 percent in 2016 to 33 percent last year.