Air Arabia’s JV with DAL Group to launch new airline in Sudan

Air Arabia’s JV with DAL Group to launch new airline in Sudan
Air Arabia Sudan will be based in Khartoum International Airport (Supplied)
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Updated 22 September 2022

Air Arabia’s JV with DAL Group to launch new airline in Sudan

Air Arabia’s JV with DAL Group to launch new airline in Sudan

RIYADH: Middle East and North Africa region’s largest air carrier Air Arabia has joined hands with Sudanese conglomerate DAL Group to launch a new airline called ‘Air Arabia Sudan’.

The carrier will be created through a joint venture between the two companies, and will be based in Khartoum International Airport, located in Khartoum, the capital of Sudan.

Air Arabia Sudan will have a fleet of new Airbus A320 aircraft, according to a statement.

“We are confident that Air Arabia Sudan will add significant value to the air transport sector of Sudan and directly contribute to the growth of the local economy and the development of the travel and tourism sector,” said Sheikh Abdullah Bin Mohamed Al Thani, chairman of Air Arabia.

He added: “We thank DAL Group and the Sudanese Civil Aviation Authority for their trust, and we look forward to working hand in hand to develop the new airline, which will serve as a new value-for-money air travel option for the country.”

Osama Daoud Abdellatif, DAL Group’s chairman, said: “Our decision to partner with a leading pioneer of low-cost air travel is driven by our core commitment to perpetually contribute toward realizing Sudan’s long-term human and economic growth and development potential.”

 


Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu

Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu
Updated 15 sec ago

Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu

Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu

RIYADH: Knowledge Tower Trading Co. will conduct an initial public offering of its 350,000 ordinary shares on the Nomu-Parallel Market according to the company’s plans, revealed by its financial advisor Watheeq Capital.

This represents around 20 percent of Knowledge Tower’s SR18 million ($5 million) share capital, which is divided into 1.75 million shares, as it was stated in a filing with the Stock Exchange.

The end price of the offering is expected to be determined once the book-building process for the offering has been completed.

The offering period will run from Oct. 30 through Nov. 3 for qualified investors, according to the statement.

As of Sept. 12, the Capital Market Authority has approved the company’s application to list on the parallel market Nomu.

This came after it secured the approval of the listing by the Saudi Exchange on July 24.

Watheeq Capital has been appointed as Knowledge Tower’s Financial Advisor, while Derayah Financial has been appointed as Knowledge Tower’s Lead Manager for the IPO.

In its latest earnings report, Knowledge Tower posted SR3.6 million in profits during its financial year ending in March, with its revenue exceeding SR20 million during the same period.

The company expected that its shares would start trading on the parallel market once all its letters were completed.

The Dammam-based company is currently engaged in the wholesale distribution of stationery and office supplies, as well as the retail sale of stationery, newspapers, and magazines as part of its business activities.

The company also publishes printed books, dictionaries, atlases, and maps in addition to importing and producing written, drawn, and illustrated intellectual products.

It is the sole agent for American books published by National Geographic for American schools in Saudi Arabia.

The Saudi stock exchange Tadawul Group announced in March that it had received more than 70 listing applications for both the main index TASI, as well as the parallel index Nomu.

The Saudi Stock Exchange recorded 17 initial share sales in the first half of the year, generating proceeds amounting to $5.07 billion.

The parallel Nomu market accounted for nine listings worth $649 million.

This number is up from 15 offerings during the whole of 2021, which raised almost $5 billion.

As of Tuesday, Sept. 27, TASI, the main market, has listed 10 IPOs, while Nomu, the parallel market, has listed 11 IPOs.


Goldman cuts 2023 oil price forecast due to weakening demand outlook

Goldman cuts 2023 oil price forecast due to weakening demand outlook
Updated 28 min 45 sec ago

Goldman cuts 2023 oil price forecast due to weakening demand outlook

Goldman cuts 2023 oil price forecast due to weakening demand outlook

RIYADH: Goldman Sachs on Tuesday cut its 2023 oil price forecast due to expectations of weaker demand and a stronger US dollar, but said the ongoing global supply disappointments only reinforced its long-term bullish outlook.

Goldman’s commodities research division lowered the forecast for next year by $17.5 per barrel on average, even as it saw a seasonally adjusted global oil market deficit in the fourth quarter of 2022 and in 2023.

It revised its oil price forecast lower by $19 per barrel on average for the period stretching from the fourth quarter of 2022 to the fourth quarter of 2023 and sees global oil demand growing in 2023 by 2.0 million barrels per day at current prices, versus a previous forecast of 2.5 million bpd, according to a research note issued by the investment bank.

“Even with a cautious growth outlook ... the oil market remains critically tight, with still near-record low inventories and OPEC spare capacity and with supply soon set to turn supportive once again between the end of the US Strategic Petroleum Reserve sale and the expected decline in Russian production later this year,” the note said.

The short-term path for oil prices is likely to remain volatile, Goldman said, adding that a sharply appreciating dollar and lower demand expectations will continue to put downward pressure on oil for the rest of this year. 

“While it may be surprising that oil is pricing such low growth expectations, this reflects the outsized exodus of investors, forced away by the extreme price volatility this spring,” it said.

It would take an economic hard landing and a contraction in global gross domestic product growth to justify sustained lower prices, the note said.

Oil prices, which touched a nine-month low on Monday, were up more than 2 percent on the back of supply curbs in the US Gulf of Mexico due to Hurricane Ian and a slightly weaker dollar.

Goldman does not expect the Organization of the Petroleum Exporting Countries to increase its production quotas this year and sees the oil exporting group stabilizing output near current levels through 2023.


Third Jordan-Gulf Economic Forum begins in Amman

Third Jordan-Gulf Economic Forum begins in Amman
Updated 28 September 2022

Third Jordan-Gulf Economic Forum begins in Amman

Third Jordan-Gulf Economic Forum begins in Amman
  • Jordanian minister said value of trade between his country and Gulf Cooperation Council member states reached $6.6 billion in 2021

AMMAN: The third session of the Jordan-Gulf Cooperation Council Economic Forum began in Amman on Tuesday. It brings together officials and business representatives from Jordan and GCC member states to discuss opportunities for the expansion and development of economic relations, the Jordan News Agency reported.

The forum, which is taking place under the title New Horizons for Economic and Investment Cooperation, aims to advance the strategic objectives and interests of all participating nations, according to the Jordanian Ministry of Industry, Trade and Supply.

The delegates at the two-day event include businessmen, investors, the heads of trade federations and chambers of commerce, and representatives of Gulf and Jordanian government stakeholders, according to the ministry.

In his opening remarks, Youssef Shamali, the Jordanian minister of industry, trade and supply, said that the value of trade between his country and GCC member nations reached $6.6 billion in 2021. Jordanian exports to the GCC were worth $1.7 billion of that total, while Jordan’s imports accounted for $4.9 billion.

The minister added that Gulf nations are responsible for the most significant foreign investments in Jordan, and capital from the region has benefited the nation’s economy and created jobs for the Jordanian people.

He added that if Arab nations were to unite to form a powerful economic bloc, it would allow them to boost exports, increase production, create new job opportunities for young people, and achieve greater integration into the global economy.
 


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.