Emirates and flydubai expand fleets with Boeing orders at Dubai Airshow

Emirates committed to an additional 95 wide-body aircraft worth $52 billion from the American aviation giant, bringing the total order book to 295. Photo/Supplied

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Updated 13 November 2023

Arab News

November 13, 2023 16:30

Emirates and flydubai expand fleets with Boeing orders at Dubai Airshow

Updated 13 November 2023

Arab News

November 13, 2023 16:30

RIYADH: Middle East carriers revealed significant fleet expansion plans at the beginning of the Dubai Airshow on Monday, with both Emirates and its sister airline flydubai announcing new aircraft orders from Boeing.

Emirates committed to an additional 95 wide-body aircraft worth $52 billion from the American aviation giant, bringing the total order book to 295, according to an official press release.

The UAE flag carrier is set to acquire Boeing 777-9s, 777-8s, and 787s, aligning with its vision to connect even more cities globally and support Dubai’s economic agenda.

It emphasized its commitment with firm orders for 55 additional 777-9s and 35 777-8s, expanding its 777-X order book to a total of 205 units.

The airline also confirmed an order for 202 GE9X engines to power the additional 777X aircraft, bringing its total GE9X engine order to 460 units. These investments set the stage for Emirates to be a launch customer of the 777-8 passenger variant.

Sheikh Ahmed bin Saeed Al-Maktoum, chairman and chief executive of Emirates, said in a statement that these additional aircraft will enable Emirates to connect even more cities, supporting the Dubai economic agenda D33 set out by Sheikh Mohammed bin Rashid Al-Maktoum, UAE vice president and prime minister and ruler of Dubai, to add 400 cities to Dubai’s foreign trade map over the next decade.”

He added: “By the early 2030s, we expect the Emirates fleet to be around 350-strong, connecting Dubai to even more cities around the world.”

With first deliveries expected in 2026, this move is set to enhance Emirates’ capacity and position the airline for future growth.

“This order is an incredible vote of confidence in the efficiency and versatility of the 777X family to meet Emirates’ needs for global long-haul travel,” said Stan Deal, president and CEO of Boeing Commercial Airplanes.

He added that 777-9 and 777-8 are the “perfect airplanes” to support Emirates’ growth plans, improving environmental performance and unmatched payload capability.

Meanwhile, the low-cost carrier flydubai revealed plans to diversify its fleet with 30 new Boeing 787-9 Dreamliners.

This represents a notable step as flydubai ventures into wide-body aircraft for the first time, showcasing the airline’s focus on adapting and innovating within the conventional travel landscape.

The Boeing 787-9, known for its operational efficiency, fuel economy, and passenger appeal, fits well with flydubai’s plan to explore new, extended routes and increase capacity across its network.

This order follows the airline’s trajectory in aircraft acquisitions, starting with 50 Next-Generation Boeing 737 aircraft in 2008 and culminating in this latest commitment for 30 Boeing 787 Dreamliners.

With deliveries expected to commence in 2026, flydubai said it looks to leverage the Dreamliner’s capabilities to meet growing demand and expand its network further.

Saudi Arabia and GCC drive global sukuk market amid economic diversification push: Moody’s

Updated 15 sec ago

MANAL AL-BARAKATI

September 09, 2024 15:13

Saudi Arabia and GCC drive global sukuk market amid economic diversification push: Moody’s

Updated 15 sec ago

MANAL AL-BARAKATI

September 09, 2024 15:13

RIYADH: The global sukuk market is poised for a strong performance in 2024, with issuance volumes expected to surpass those of 2023 despite a slowdown in the year’s second half.

According to a report by the global credit rating agency Moody’s, the issuance of Shariah-compliant bonds could reach between $200 billion and $210 billion this year, up from just under $200 billion in 2023.

This growth is being fueled by robust sovereign issuance across the Gulf Cooperation Council and Southeast Asia, with Saudi Arabia playing a leading role.

Economic diversification efforts and the issuance boom

The GCC region remains strong in the global sukuk market, accounting for a substantial share of the total issuance in 2024.

In the first half of 2024, GCC sukuk issuance grew 138 percent year on year, reaching $69.2 billion.

Saudi Arabia led this surge, comprising 37 percent of the total issuance.

The Kingdom’s efforts to diversify its economy have bolstered investor confidence, making it a key market for the financial instrument.

In the first half of 2024, the nation issued $17 billion in sukuk, primarily to refinance debt maturing later this year, as well as in 2025, and 2026.

This pre-financing strategy is expected to continue throughout 2024 as Saudi Arabia accelerates key strategic projects tied to Vision 2030. It also reflects efforts toward economic diversification, a cornerstone of the blueprint that aims to reduce the Kingdom’s dependency on oil revenues.

Abdulla Al-Hammadi, the assistant vice president and an analyst at Moody’s, emphasized Saudi Arabia’s key position in the market, saying: “We expect full-year 2024 sukuk issuance volumes to exceed 2023, supported by strong sovereign issuance across the Gulf Cooperation Council and Southeast Asia, and from Saudi Arabia (A1 positive) and Malaysia (A3 stable) in particular.”

The Kingdom’s borrowing activities align with broader efforts to deepen its capital markets. The government has expanded its borrowing program to build its general reserves and finance major investments.

This proactive fiscal policy is not just about addressing short-term financing needs; it is designed to maintain a robust presence in global debt markets and ensure steady progress on 2030’s ambitious goals.

Other GCC countries, including the UAE and Qatar, have also experienced significant growth in sukuk issuance.

The UAE saw its volumes double to $8.6 billion in the first half of 2024, while Qatar witnessed a 258 percent year-on-year increase, reaching $4.57 billion.

Both nations are implementing economic diversification strategies similar to those of Saudi Arabia, further cementing the region’s dominance in the sukuk market.

Southeast Asia, particularly Malaysia and Indonesia, is a vital region for these bonds.

Malaysia, with its comprehensive Islamic finance ecosystem, accounted for nearly 30 percent of the total issuance in the first half of the year.

Indonesian issuance is expected to rise in the latter half of 2024 as the government looks to fund its budget deficit and refinance existing sukuk.

Sustainable sukuk and ESG initiatives

A notable trend in 2024 has been the growing prominence of green and sustainable sukuk.

These instruments, which align with environmental, social, and governance principles, are increasingly attractive to global investors.

Saudi Arabia, in particular, has been a driving force behind this trend, issuing significant volumes of ESG-linked sukuk.

In the first half of the year, issuances in this area reached $6 billion, with Saudi Arabia, the UAE, and Indonesia leading the charge.

As the global focus on sustainability grows, the Kingdom has taken steps to promote investments in green projects, which is in line with its commitment to environmental stewardship.

Notable issuances include Al Rajhi Bank’s first dollar-denominated sustainable sukuk, valued at $1 billion, and Alinma Bank’s $1 billion additional tier one capital sukuk.

These reflect Saudi Arabia’s intention to maintain leadership in sustainable finance while encouraging private sector participation in ESG initiatives.

Outlook for 2024 and beyond

Moody’s report highlights that while sukuk issuance is expected to slow in the second half of 2024, the long-term growth prospects for the market remain robust.

Sovereign issuances from the GCC and Southeast Asia will remain strong, driven by continued efforts to diversify economies away from oil. By the end of the year, sovereign issuances by countries in the bloc, led by Saudi Arabia, could total $100 billion.

The increasing demand for sukuk is not limited to traditional Islamic markets, with investors worldwide are highly interested in these finance products, particularly green and sustainable offerings.

Al-Hammadi highlighted: “The pool of investors will continue to grow, thanks to the growing popularity of Islamic products beyond core Islamic markets, rising demand for green and sustainable sukuk, and the increasing sophistication and diversity of Islamic instruments.”

Saudi Arabia is well-positioned to benefit from this trend, with its deepening capital markets, a growing reputation as a leader in sustainable finance, and robust economic reform agenda.

Topics: Finance Sukuk Moody's

Egypt’s trade deficit narrows by 5.1% in June

Updated 41 min 38 sec ago

Reem Walid

September 09, 2024 14:34

Egypt’s trade deficit narrows by 5.1% in June

Updated 41 min 38 sec ago

Reem Walid

September 09, 2024 14:34

RIYADH: Egypt’s trade deficit decreased by 5.1 percent in June, reaching $2.87 billion, due to falling prices for wheat and other commodities.

Data from the Central Agency for Public Mobilization and Statistics shows that imports fell by 3.3 percent to $6 billion during the month.

The decline in imports was primarily driven by reduced prices for key commodities: wheat prices dropped by 21.5 percent, medicines and pharmaceutical preparations by 11.9 percent, plastics by 4.2 percent, and corn by 28.6 percent. This follows a 10.3 percent decrease in trade deficit recorded in May, which was also attributed to lower import values.

Since 2004, Egypt has consistently run trade deficits, as import growth has outpaced export growth, largely due to increasing imports of petroleum and wheat, according to Trading Economics.

CAPMAS data also revealed some increases in imports in June compared to the same month in 2023, including a 49.8 percent rise in petroleum products, a 33.6 percent increase in raw materials of iron and steel, a 5.8 percent rise in organic and inorganic chemicals, and a 39.6 percent increase in natural gas.

Export values, however, fell by 1.6 percent year on year to $3.13 billion. This decrease was due to lower prices for commodities such as fertilizers (down 42.9 percent), crude oil (down 64.6 percent), iron rods, bars, angles, and wires (down 23.7 percent), and fresh onions (down 25.4 percent). Conversely, exports of petroleum products increased by 56.3 percent, ready-made clothes by 5.5 percent, fresh fruits by 24.3 percent, and pasta and various food preparations by 12.4 percent.

Egypt aims to revitalize its economy by enhancing exports across diverse global markets. This involves close collaboration between government bodies, the business community, and exporters to improve product quality and competitiveness. The country is targeting $100 billion in annual merchandise exports over the next three years to address its trade deficit.

The International Monetary Fund noted in August that Egypt’s economy is showing signs of recovery, with recent government measures to restore macroeconomic stability starting to yield positive outcomes. Although inflation remains high, it is decreasing.

The IMF’s review highlighted Egypt’s economic reforms, including the unification of official and parallel exchange rates in March, as key to maintaining fiscal stability.

Topics: main

Saudi Arabia’s non-oil exports to Qatar surge 213%: GASTAT

Updated 49 min 23 sec ago

Nirmal Narayanan

September 09, 2024 14:20

Saudi Arabia’s non-oil exports to Qatar surge 213%: GASTAT

Updated 49 min 23 sec ago

Nirmal Narayanan

September 09, 2024 14:20

RIYADH: Saudi Arabia’s non-oil exports to Qatar surged 213 percent in the second quarter of 2024 compared to the previous three months, reaching SR5.79 billion ($1.54 billion), official data showed.

According to the latest report by the General Authority for Statistics, the surge was driven primarily by shipments of transport equipment and parts, totaling SR4.59 billion.

The Kingdom also exported mechanical appliances and electrical products valued at SR154.4 million to Qatar during the same period, followed by shipments of live animals and related products at SR153.9 million.

This increase underscores Saudi Arabia’s broader economic diversification strategy, which seeks to mitigate the Kingdom’s historical dependence on oil revenues.

Overall, Saudi non-oil exports grew 4.3 percent in the second quarter from the previous three-month period. The Kingdom also exported prepared food products and beverages worth SR103.8 million to Bahrain, and chemical and allied products valued at SR116.8 million.

Saudi Arabia’s total outbound shipments to Arab countries reached SR12.15 billion in the second quarter, up 42.94 percent from the previous quarter.

In terms of imports, Saudi Arabia received SR2.45 billion worth of goods during the same period.

The UAE remained the top destination for Saudi non-oil exports, receiving SR15.07 billion in the second quarter. Non-oil shipments to China and India were SR7.08 billion and SR5.48 billion, respectively.

Other notable exports included SR3.13 billion to Singapore, SR2.93 billion to Turkiye, and SR2.40 billion to Belgium.

Earlier in September another report released by GASTAT noted that non-oil activities in Saudi Arabia witnessed a 4.9 percent year-on-year increase in the second quarter of 2024, driven by expansion of the finance and insurance sectors.

Compared to the first quarter, non-oil activities rose 2.1 percent. The Kingdom’s seasonally adjusted gross domestic product increased by 1.4 percent quarter on quarter but saw a slight annual decline of 0.3 percent.

The sharp rise in non-oil exports to Qatar highlights the ongoing success of Saudi Arabia’s economic diversification efforts.

By boosting trade ties with key regional partners and expanding its non-oil export base, the Kingdom is reinforcing its strategy to build a more resilient and diversified economy, aligning with its Vision 2030 goals.

Topics: main Saudi-Qatar saudi non-oil Saudi trade

Mining firm AMAK to focus on gold production and operational expansion in 2025

Updated 09 September 2024

Nadin Hassan

September 09, 2024 13:16

Mining firm AMAK to focus on gold production and operational expansion in 2025

Updated 09 September 2024

Nadin Hassan

September 09, 2024 13:16

RIYADH: Saudi firm Al-Masane Al-Kobra Mining Co. will focus on gold deposit production and operational expansion as part of a growth plan to strengthen its industry position through 2025.

This effort is to ensure ongoing operational excellence and boost production capacity, thereby creating value for all stakeholders and benefiting the local community, the company said on Tadawul.

A central component of the strategy is the development of the Khutainah project. This undertaking is set to play a pivotal role in advancing gold deposit production and will involve expanding operations at nearby sites, including Sukari 1, Sukari 2, and Al Aqiq.

By focusing on these key areas, the mining company, also known as AMAK, aims to significantly enhance its production capabilities and reinforce its position in the industry.

Saudi Arabia is strategically positioning itself to become a major player in the mining sector, with its mineral wealth estimated to be worth SR9.4 trillion ($2.4 trillion).

The emphasis on economic diversification – known as Vision 2023 – has elevated the industry as a central component of national development plans.

Mining is pivotal in the Kingdom’s efforts to steer away from oil dependency, focusing on tapping into substantial reserves of phosphate, gold, copper, and bauxite.

Additional primary aspects of the strategy include improving operational efficiency and infrastructure, initiating underground mining at the Guyan Gold Mine, and starting iron oxide production at the Nuham site within three months of the license issuance, which is currently in its final stages.

AMAK will establish a new drilling and exploration company to support its future growth and build new facilities to increase the storage capacity for dry tailings using safe, sustainable, and environmentally friendly methods.

The firm will also strengthen its portfolio by acquiring additional exploration permits for promising base and precious metal sites and expand activities to include the exploration and mining of industrial minerals.

As part of its sustainability efforts, AMAK has begun linking its facilities to the national electricity grid to cut carbon emissions and boost operational efficiency.

Located in the Najran region of Saudi Arabia, the private mining firm received a gold exploration permit from the Ministry of Industry and Mineral Resources to carry out activities in an area spread over 78.07 sq. km.

AMAK also received two additional licenses to carry out exploration of zinc and copper in an area spanning over 138.64 sq. km in Najran. These permits will be valid until April 25, 2028.

The company said it is all set to carry out the relevant studies within the regulatory period to ensure the availability of the raw materials.

Since its inception in 2008, AMAK has highlighted adopting a long-term advanced business strategy based on the research and sustainable growth of its technical and operational infrastructure to support its various activities.

Topics: Mining Amak Al-Masane Al-Kobra Mining Co

UAE GDP grows 3.4% in Q1, driven by non-oil sector

Updated 09 September 2024

Nour El-Shaeri

September 09, 2024 13:14

UAE GDP grows 3.4% in Q1, driven by non-oil sector

Updated 09 September 2024

Nour El-Shaeri

September 09, 2024 13:14

RIYADH: The UAE’s gross domestic product reached 430 billion dirhams ($117 billion) in the first quarter of 2024, marking a 3.4 percent year-on-year growth.

Economy Minister Abdulla Al-Marri highlighted that the preliminary estimates from the Federal Competitiveness and Statistics Center emphasize the vitality of the UAE economy and its ability to sustain growth, as reported by Emirates News Agency, also known as WAM.

The non-oil sector played a significant role in this expansion, with a 4 percent increase contributing substantially to the overall economic performance.

Al-Marri attributed this success to the UAE’s adoption of an innovative economic model, guided by the nation’s leadership. “The UAE has embraced an innovative economic model that aligns with its future vision, supported by effective national strategies, global openness, and a focus on flexibility and innovation,” Al-Marri stated, according to WAM.

These results align with the UAE’s long-term vision, We the UAE 2031, which aims to elevate the national GDP to 3 trillion dirhams within the next decade. This commitment to sustainable growth is reflected in the performance of key sectors such as finance, transportation, construction, and tourism.

Hanan Ahli, managing director of the Federal Competitiveness and Statistics Center, noted the substantial contributions of these sectors. “The financial and economic data from Q1 2024 demonstrate the resilience of the UAE’s vital economic sectors,” Ahli said. She added that the UAE’s strong global economic competitiveness is supported by a stable financial system, robust economic fundamentals, and effective policy frameworks.

In the first quarter of 2024, financial and insurance activities emerged as the leading non-oil sector, growing by 7.9 percent, fueled by a 6 percent rise in local credit extended to the private sector. The transportation and storage sector also showed impressive growth, with a 7.3 percent increase, supported by a 14.7 percent rise in passenger traffic through UAE airports, which saw 36.5 million travelers. Additionally, Dubai’s international ports handled 3.7 percent more containers, while Abu Dhabi’s ports experienced a 36 percent increase in cargo volume.

Construction and building activities grew by 6.2 percent, largely due to increased public capital expenditures, totaling 4.8 billion dirhams in the first quarter, compared to the previous year. The restaurant and hotel sector expanded by 4.6 percent, bolstered by an 11 percent rise in international tourists visiting Dubai, which welcomed 5.18 million visitors. Abu Dhabi also experienced strong tourism performance, with increases in hotel occupancy rates and revenue per available room.

In terms of non-oil GDP contributions, trade activities led with a 16.1 percent share, followed by manufacturing at 14.6 percent, and financial and insurance activities at 13.4 percent. Construction and real estate activities contributed 11.8 percent and 7.1 percent, respectively.

Topics: main

Emirates and flydubai expand fleets with Boeing orders at Dubai Airshow

Emirates and flydubai expand fleets with Boeing orders at Dubai Airshow

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Emirates and flydubai expand fleets with Boeing orders at Dubai Airshow

Emirates and flydubai expand fleets with Boeing orders at Dubai Airshow

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