Saudi Arabia’s flyadeal boosts Dammam network with 3 domestic routes

Saudi Arabia’s flyadeal boosts Dammam network with 3 domestic routes
The airline’s fleet comprises 36 modern Airbus A320 narrowbody aircraft. Shutterstock
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Updated 10 November 2024
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Saudi Arabia’s flyadeal boosts Dammam network with 3 domestic routes

Saudi Arabia’s flyadeal boosts Dammam network with 3 domestic routes
  • The new destinations, Najran, Tabuk, and Yanbu, are strategically significant
  • Expansion marks the first phase of flyadeal’s 2025 growth plan

RIYADH: Saudi Arabia’s low-cost airline, flyadeal, will launch three new domestic routes from Dammam starting in January, aligning with the Kingdom’s Vision 2030 objectives. 

The airline will launch daily flights from Dammam to Najran and four weekly services to Tabuk on Jan. 1, followed by three weekly flights to Yanbu starting Jan. 2.

The announcement was made by Steven Greenway, CEO of flyadeal, on the sidelines of the World Travel Market in London.

Greenway said the new routes are part of flyadeal’s mission to connect smaller towns and cities across the Kingdom, catering to populations under 400,000 that are underserved yet have a growing demand for air travel.

“Having well-established bases in Riyadh and Jeddah, flyadeal is now strengthening its presence in the Eastern Province by increasing frequencies on existing routes and adding three new destinations connected to Dammam,” Greenway said.

He added: “Our new flights will facilitate travel for business and leisure purposes, support the growing desire among Saudis and international visitors to discover the rich diversity that the country offers, and attract a growing expatriate population to explore the Kingdom.”

The expansion complements Vision 2030, which seeks to diversify Saudi Arabia’s economy and transform the Kingdom into a global transportation and logistics hub.

By enhancing access to remote and economically vital cities, flyadeal supports Vision 2030 objectives to strengthen tourism, stimulate business opportunities, and increase domestic mobility.

The new routes will also advance the nation’s strategy to welcome 150 million visitors annually by 2030.

The expansion marks the first phase of flyadeal’s 2025 growth plan, which includes adding more domestic routes and launching international flights from its primary hubs in Riyadh, Jeddah, and Dammam in the coming months.

The developments align with Saudi Arabia’s broad national efforts to establish itself as a key player in the aviation sector, with enhanced infrastructure, expanded air service networks, and a focus on customer experience.

Operating from its three main bases, Riyadh, Jeddah, and Dammam, flyadeal serves nearly 30 year-round and seasonal destinations across the Kingdom and select cities in the Middle East, Europe, and North Africa.

The airline’s fleet comprises 36 modern Airbus A320 narrowbody aircraft, optimized for efficiency and passenger comfort, reinforcing Saudi Arabia’s commitment to advancing sustainable and high-quality air travel.

The new destinations, Najran, Tabuk, and Yanbu, are strategically significant. Najran, an agricultural hub in the southwest, contributes substantially to the local economy.

Tabuk serves as a gateway to the Red Sea coast and plays a pivotal role in the Kingdom’s large-scale tourism and development projects.

Yanbu, Saudi Arabia’s second-largest port in the Madinah province, is a hub for petroleum and petrochemical industries, supporting national economic objectives and Vision 2030’s goals for diversified growth.

With international routes to Amman, Cairo, and Istanbul, flyadeal positions itself as a crucial connector between the Kingdom and key regional and international destinations, advancing Vision 2030’s ambition of creating an integrated, globally connected Saudi Arabia.


Saudi Arabia signs key tax, customs pacts to boost global trade and investment

Saudi Arabia signs key tax, customs pacts to boost global trade and investment
Updated 20 sec ago
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Saudi Arabia signs key tax, customs pacts to boost global trade and investment

Saudi Arabia signs key tax, customs pacts to boost global trade and investment

JEDDAH: Saudi Arabia has signed a series of tax and customs agreements with multiple countries, further reinforcing the Kingdom’s commitment to global economic integration and enhancing its role in international trade.

The agreements were signed by Minister of Finance Mohammed Al-Jadaan, who also serves as chairman of the Zakat, Tax, and Customs Authority, during the 3rd Zakat, Tax, and Customs Conference held in Riyadh on Wednesday.

The two-day conference, inaugurated by Al-Jadaan, aims to strengthen Saudi Arabia’s international standing and promote deeper cooperation in the fields of tax, zakat, and customs.

The event focuses on digitization, artificial intelligence, and sustainability, addressing key challenges and supporting economic development in line with the goals of Saudi Vision 2030.

Al-Jadaan signed a double taxation avoidance agreement with Croatian Deputy Prime Minister Marko Primorac. This agreement aims to foster trade and investment between Saudi Arabia and Croatia while addressing tax-related challenges.

In addition, Al-Jadaan signed a customs cooperation agreement with Kosovo’s Minister of Finance, Labor, and Transfers, Hekuran Murati. This agreement focuses on enhancing trade facilitation through administrative collaboration and the use of advanced customs technologies.

He also signed a double taxation avoidance agreement with Kuwait’s Minister of Finance Noora Al-Fassam. This pact seeks to boost investment, address tax challenges, and strengthen bilateral economic relations between the two nations.

The conference brings together over 70 workshops, 90 local and international entities, and numerous panel discussions to share knowledge, address challenges, and develop strategies for supporting sustainable economic growth.

In his opening remarks, Al-Jadaan emphasized the conference’s role in fostering international collaboration and contributing to global economic recovery. He also highlighted Saudi Arabia’s progress in advancing Saudi Vision 2030, particularly through digital transformation.

Under ZATCA’s leadership, Saudi Arabia has become a global leader in e-government, achieving a 99.35 percent score on the UN E-Government Development Index.

This accomplishment reflects the Kingdom’s commitment to improving business processes and leveraging technology to streamline operations.

Al-Jadaan commended ZATCA for its continued excellence in achieving its objectives, contributing to Saudi Arabia's broader economic reforms, and advancing the Kingdom’s vision for a diversified and sustainable economy.

The 3rd Zakat, Tax, and Customs Conference underscores Saudi Arabia’s growing influence in global economic affairs and its proactive approach to fostering international partnerships.

By embracing innovation and working collaboratively with global partners, Saudi Arabia is positioning itself as a key player in the future of global trade and economic development.


Saudi Arabia to increase green spaces, promote afforestation

Saudi Arabia to increase green spaces, promote afforestation
Updated 22 min 47 sec ago
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Saudi Arabia to increase green spaces, promote afforestation

Saudi Arabia to increase green spaces, promote afforestation

RIYADH: Saudi Arabia is working to expand its green spaces and accelerate afforestation efforts, according to the Kingdom's Minister of Municipal, Rural Affairs, and Housing.

During the keynote address at the session titled "Urban Green Spaces: Leveraging Nature-Based Carbon Capture Solutions" on the second day of the fourth Saudi Green Initiative Forum in Riyadh, Majid Al-Hogail shared that the Ministry of Municipal, Rural Affairs, and Housing has developed initiatives and an effective strategic plan to support the Saudi Green Initiative.

This aligns with the critical role urban green spaces play in utilizing nature-based carbon capture solutions to address climate change. It also complements the Kingdom’s commitment to rehabilitating over 74 million hectares of land. To date, 94,000 hectares of degraded land have been restored, and since 2021, 49 million plants and shrubs have been planted.

“The Ministry of Municipalities and Housing is part of this transformation,” Al-Hogail said. “We are pleased to increase the percentage of green spaces, encourage afforestation, and ensure the efficient use of resources within the framework of Saudi Vision 2030, which prioritizes citizens' quality of life.”

He added, “The Kingdom has made tangible progress in enhancing environmental sustainability, improving air quality, and reducing carbon emissions.”

Al-Hogail also emphasized that achieving SGI’s goals requires coordinated efforts from all sectors and individuals.

“What the Ministry of Municipalities and Housing has done in this regard is far greater than what has been reviewed. However, we confirm that we will remain an active partner in realizing this ambitious vision and our commitment to transforming the cities of the Kingdom into global models of innovation and quality of life, building a greener future,” he said. “We have also encouraged the private sector to adopt social responsibility programs to support afforestation, reflecting the collaboration between the public and private sectors in achieving our common goals.”

During the panel discussion, Aljawhara Al-Quayid, head of the Climate and Sustainability Program at the King Abdullah Petroleum Studies and Research Center, highlighted the role cities must play in reducing emissions.

“Utilizing and optimizing all potential solutions is definitely a priority, and one of these is maximizing the carbon sequestration potential of urban green spaces,” Al-Quayid stated.

She further explained that Saudi Arabia recently launched the Saudi Greenhouse Gas Crediting Mechanism, a milestone that lays the foundation for an effective carbon market in the Kingdom and the broader region.

“These initiatives are driven not only by the government but also by the Public Investment Fund’s creation of a trading platform through its regional voluntary carbon market company,” she added. “These two accrediting mechanisms and the trading platform are the key enablers of the carbon market.”

Donnel Baird, founder of BlocPower, also participated in the session, explaining his company's work.

“My company, BlocPower, turns buildings into Teslas. What does that mean? Just as Tesla replaced fossil fuel engines in cars with all-electric engines, we can replace fossil fuel-based heating, cooling, and hot water systems in buildings with solar-powered, wind-powered, all-electric systems,” Baird explained.

This year’s Saudi Green Initiative Forum, held on Dec. 3-4 as part of COP16, is addressing global environmental challenges such as land rehabilitation, carbon reduction, and sustainable financing. The event also explores the role of natural solutions in helping communities adapt to climate change, while emphasizing efforts to preserve the Kingdom’s rich biodiversity, according to an official statement.


Venture capital, banking key to driving sustainable finance

Venture capital, banking key to driving sustainable finance
Updated 20 min 28 sec ago
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Venture capital, banking key to driving sustainable finance

Venture capital, banking key to driving sustainable finance
  • CEO of KBW Ventures highlighted how venture capital is at the forefront of investing in ideas
  • Prince Khaled bin Alwaleed was speaking on the second day of the fourth Saudi Green Initiative Forum in Riyadh

RIYADH: Venture capital and the banking sector are key to advancing innovative solutions for environmental sustainability, according to the founder and CEO of KBW Ventures.

During a session titled “Redefining Sustainable Finance: From Competitive to Catalytic Impact,” on the second day of the fourth Saudi Green Initiative Forum in Riyadh, Prince Khaled bin Alwaleed explained the role of impact investing and how it is scalable, sustainable, and profitable.

This falls in line with the fact that sustainable finance is evolving from a competitive advantage to a catalyst for systematic change. With global environmental, social, and governance assets expected to reach $50 trillion by 2025, the focus is shifting toward driving large-scale impact.

“Venture capital is not competitive to traditional banking sector. The banking sector loves venture capital because they de-riskify concepts that haven’t been developed yet,” Prince Khaled said.

 “Really, it’s a marriage of different types of industries coming together harmoniously, and venture capital and banking complement each other really well,” he added.

The CEO went on to say: “For me personally, impact investing really plays a huge role, simply because it reflects a lot on the investor’s desire for financial return as well as being in fact positively impacting the environment, whether it’s people, whether it’s the environment, whether it’s social responsibility,” he added.

Prince Khaled also highlighted how venture capital is at the forefront of investing in ideas that haven’t yet materialized, bearing much of the risk in the process.

“Venture capital comes in and de-riskify these opportunities. And to fuel the growth and to fuel the scale, banks come in and feel that scale once the proven model is there once there’s profitability, once there’s product market fit,” he said.

The founder also shed light on how impact investing is yet to develop in the region.

“We’ve seen investing, but impact investing is starting to grow. We’ve seen that in the last three to four years, we haven’t seen much happening in that field, but it’s slowly going to happen simply because investors dictate ESG-driven models have to be implemented in certain companies or even in certain startups,” Prince Khaled said.

He also highlighted that policies don’t drive innovation; rather, innovation drives innovation.

“Blanket policies don’t necessarily translate really well internationally or worldwide. They work in a specific manner, and they have to be tailored for other areas in the world. And again, this is why I believe policy doesn’t necessarily dictate change. I think the market, I think innovation, I think private sector really dictates the way change is going to happen,” the CEO concluded.

This year’s edition of the Saudi Green Initiative Forum, held from Dec. 3-4 as part of COP16, aims to tackle pressing global environmental challenges, such as land rehabilitation, carbon reduction innovations, and sustainable financing. The gathering will also explore the role of natural solutions in helping communities adapt to climate change while emphasizing efforts to preserve the Kingdom’s rich biodiversity, according to an official statement.


Saudi Arabia’s economic diversification fuels 4.4% growth forecast for 2025: ICAEW

Saudi Arabia’s economic diversification fuels 4.4% growth forecast for 2025: ICAEW
Updated 24 min 16 sec ago
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Saudi Arabia’s economic diversification fuels 4.4% growth forecast for 2025: ICAEW

Saudi Arabia’s economic diversification fuels 4.4% growth forecast for 2025: ICAEW
  • Institute of Chartered Accountants in England and Wales said it marks a rebound from 1.4% growth expected in 202
  • OECD projects Kingdom’s GDP growth at 3.6% in 2025 and 3.8% in 2026

RIYADH: Saudi Arabia’s economy is forecast to grow 4.4 percent in 2025, driven by strong non-oil sector momentum and easing oil production cuts, according to the projections.

The Institute of Chartered Accountants in England and Wales highlighted that this marks a rebound from the 1.4 percent growth expected in 2024, supported by a 5.8 percent increase in the non-oil sector. 

Similarly, the Organization for Economic Co-operation and Development projects Saudi Arabia’s gross domestic product growth at 3.6 percent in 2025 and 3.8 percent in 2026. 

ICAEW emphasized the non-oil sector as a key growth driver across the Gulf Cooperation Council, with industries like tourism, real estate, and finance at the forefront.

Regional outlook

GCC economies are expected to grow at an annual rate of 4 percent over the next five years, more than double that of advanced economies. 

Scott Livermore, ICAEW’s economic advisor, said: “The GCC’s projected 4 percent growth in 2025 highlights the success of the region’s diversification efforts amid global challenges.” 

He added: “Managing capacity constraints in these high-growth sectors and navigating global uncertainties will be critical to sustaining long-term economic stability.”

Strong investments in construction, tourism, and infrastructure, coupled with rising oil production from 2025, are anticipated to bolster growth. 

Saudi Arabia’s economy is undergoing a significant transformation, with Vision 2030 spearheading efforts to reduce oil dependence and diversify economic activities.

Reforms, including regulatory changes and infrastructure investments, are strengthening non-oil industries and attracting both domestic and foreign investments. This transformation is positioning the Kingdom for long-term economic stability, supported by growing oil production and a thriving non-oil sector.

The GCC region is also projected to experience robust growth, driven by government-led diversification initiatives that are accelerating economic expansion.

According to an ICAEW report, the regional Purchasing Managers’ Index remains in expansionary territory, indicating sustained momentum in non-energy sectors. This growth is expected to result in a 4 percent expansion in industries such as tourism, real estate, and finance in both 2024 and 2025.

These developments highlight the successful implementation of strategies aimed at reducing oil dependence and fostering sustainable, diversified economic growth across the region.

Oil production recovery 

ICAEW projects that Saudi Arabia’s oil production will rise by 3.4 percent in 2025, recovering from 2024’s production cuts, which reduced output to around 9 million barrels per day.

This rebound is expected to boost GDP growth in oil-dependent economies such as Kuwait and Oman. However, the region faces challenges from the global shift toward cleaner energy and the development of renewable projects, which add complexities to long-term oil strategies. 

OPEC+ members, including Saudi Arabia, have been withholding a combined 5.86 million barrels per day of oil output — around 5.7 percent of global demand — through a series of cuts initiated in 2022 to stabilize the oil market.

OPEC+ is scheduled to meet on Dec. 5, with expectations of extending the current output cuts until the end of the first quarter of 2025 to maintain market support.  

Inflation and interest rates

ICAEW anticipates that interest rates in the GCC, which have been aligned with the US Federal Reserve’s monetary policy, will continue to ease into 2025.

After two years of aggressively tightening monetary policy to combat inflation, GCC countries lowered rates by 50 basis points in September and 25 basis points in November. 

While this easing of interest rates is expected to stimulate lending, it has also contributed to rising real estate prices, as lower borrowing costs make it easier for individuals and businesses to secure financing. 

However, the effects on the real estate market and corporate lending have been mixed. The lower rates have fueled increased demand, particularly in major cities like Riyadh, which has led to higher property prices and rents.

In Saudi Arabia, rental prices have been a key driver of inflation, particularly as the growing population and urbanization have intensified the demand for housing. As a result, inflation is forecast to rise from 1.7 percent in 2024 to 2.3 percent in 2025, with rents expected to remain a significant contributor, according to ICAEW.

State Street Global Advisors forecasts a “soft landing” in 2025, with the economy growing gradually without a sharp downturn, balancing inflation control with sustainable growth. This scenario aims to avoid major negative impacts such as high unemployment or a sharp decline in consumer spending.

Debt levels and fiscal flexibility

Saudi Arabia’s budget deficit is projected to persist, with ICAEW estimating a shortfall of 2.8 percent of GDP in 2024. However, the country's low government debt levels provide flexibility to fund key Vision 2030 initiatives and infrastructure projects.

The Kingdom’s 2025 budget, approved in early November, forecasts revenues of SR1.18 trillion and expenditures of SR1.28 trillion, resulting in a deficit of SR101 billion. 

These deficits are within manageable, planned levels, strategically designed to support the government’s expansionary spending on key projects aimed at diversifying the economy.

Saudi Arabia also maintains a strong credit rating from international agencies, reflecting its fiscal stability and investor confidence, which bolsters its capacity to finance these expansionary projects. 

Across the GCC, most countries are expected to maintain manageable debt levels, with sovereign wealth funds and other financial tools helping bridge budget gaps. 

According to State Street Global Advisors, the GCC’s economic diversification efforts have led to a significant increase in fixed income issuance, with outstanding bonds surpassing $1.35 trillion by September, more than tripling since 2019.

Notable growth in local currency bonds, sukuk, and green bonds reflects the region’s commitment to economic diversification and sustainability.

GCC bonds have outperformed the broader JP Morgan EMBI Global Diversified Index, offering lower volatility and drawdowns compared to other emerging market bonds, making them attractive to investors, according to their report.  

Capital market expansion

The GCC is undergoing a significant transformation in its capital markets, with Saudi Arabia at the forefront.

According to State Street Global Advisors, GCC equities have outperformed the broader emerging markets index over the past decade, despite global challenges. This outperformance is attributed to the region’s economic resilience and successful diversification efforts.

GCC equities also exhibit a low correlation with oil prices and both developed and emerging markets, offering distinct sectoral exposure. The stability of dollar-pegged currencies further reduces currency risk, making GCC equities an attractive investment in volatile global markets.

Saudi Arabia’s stock market has grown to become the seventh-largest globally, reflecting the strength of the real economy.

Key reforms in the sector, including new regulatory frameworks, have increased liquidity and market accessibility.

Saudi Arabia’s inclusion in the MSCI Emerging Markets Index and the expansion of local equity offerings have been pivotal milestones. Additionally, the introduction of sukuk and green bonds has diversified the investment landscape, drawing international investors.

The ongoing integration of Saudi capital markets with global markets, coupled with Vision 2030 reforms, has positioned the Kingdom as an attractive destination for international investors, signaling a shift toward greater economic diversification and sustainability.


Saudia teams up with Air France-KLM to strengthen local MRO services

Saudia teams up with Air France-KLM to strengthen local MRO services
Updated 04 December 2024
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Saudia teams up with Air France-KLM to strengthen local MRO services

Saudia teams up with Air France-KLM to strengthen local MRO services
  • Partnership demonstrates shared commitment to advancing Kingdom’s aviation sector
  • Air France-KLM revealed plans to expand its presence in Saudi Arabia

JEDDAH: The Kingdom’s national carrier, Saudia, has entered into a strategic partnership with Air France-KLM to expand and localize its maintenance, repair, and overhaul capabilities. This collaboration aims to enhance the Kingdom’s aviation infrastructure and contribute to its economic growth.

The agreement was formalized during a signing ceremony on Dec. 3, which was attended by French President Emmanuel Macron, Saudi Arabian Airlines Corp. Chairman Saleh Al-Jasser, Saudia Group Director Gen. Ibrahim Al-Omar, and several other dignitaries and ministers, as per a statement from Saudia.

Al-Omar said the partnership is in line with Saudi Arabia’s Aviation Strategy, led by the General Authority of Civil Aviation, and demonstrates a shared commitment to advancing the country’s aviation sector.

Benjamin Smith, the CEO of Air France-KLM, highlighted the long-standing relationship between Saudia and the Air France-KLM Group, noting: “In the context of Saudi Arabia’s rapid development, we see great mutual benefit in expanding our commercial cooperation and combining our expertise, especially in the strategic area of MRO services.”

He added that Air France-KLM Engineering and Maintenance, a leader in the field, is well-positioned to deepen its collaboration with Saudia to unlock additional opportunities in Saudi Arabia and across the region.

This agreement is also part of Saudia’s broader effort to increase local content and develop local talent and capabilities in aviation, aligning with Saudi Vision 2030’s objectives to build a strong national economy.

The deal supports Saudi Arabia’s National Aviation Strategy, which aims to position the Kingdom as a global leader in tourism, business travel, and logistics. Key goals include enhancing interconnectivity, expanding the market share of national carriers, and improving airport infrastructure.

The agreement was signed by Fahd Cynndy, managing director of Saudia Technic, and Anne Brachet, executive vice president of engineering and maintenance at Air France-KLM.

The partnership marks a significant milestone in Saudia’s efforts to enhance its technical operations within the Kingdom and solidify both parties’ commitment to mutual growth in the aviation sector.

Under the terms of the agreement, Saudia will take on the assembly and disassembly of GE90 engines, which are used in Boeing 777 aircraft. Saudia will also allocate at least 50 percent of GE90 work orders to Air France-KLM in exchange for the localization of these processes.

Additionally, the partnership explores the creation of a joint venture to support GEnx engines, which power Boeing 787 aircraft. This will further bolster Saudia’s growing MRO capabilities, which already include servicing CFM LEAP-1A engines used on the Airbus A320neo family of aircraft.

On the commercial front, the agreement also focuses on strengthening the codeshare relationship between Saudia and Air France-KLM, both members of the SkyTeam alliance. This will allow for expanded reciprocal codesharing across a broader range of domestic and international routes, improving connectivity and increasing flight frequency.

Coinciding with this announcement, Air France-KLM revealed plans to expand its presence in Saudi Arabia. The group will launch a new route between Paris-Charles de Gaulle and Riyadh in the summer of 2025, operated by Air France. This follows a recent agreement between Air France-KLM and Saudi Arabia’s Air Connectivity Program, signed in the presence of Deputy Minister of Tourism for International Affairs Sultan Al-Musallam.

In addition to the new Paris-Riyadh route, Transavia, the low-cost carrier of Air France-KLM, will begin flights to Jeddah from Paris-Orly and Lyon. With these new services, all three airlines in the Air France-KLM Group — Air France, KLM, and Transavia — will operate in Saudi Arabia. KLM currently serves Riyadh and Dammam from its hub at Amsterdam Schiphol.

Benjamin Smith expressed his excitement about the expansion, saying, “Saudi Arabia is rapidly becoming a world-class destination and a key gateway. We are thrilled to support the Kingdom’s growth by expanding our network and strengthening our existing routes.”

Majid Khan, CEO of the Saudi Air Connectivity Program, welcomed the addition of Air France services to the Kingdom, emphasizing that this move is part of broader efforts to enhance air connectivity to vital international destinations and streamline travel to Saudi Arabia.

“Air connectivity plays a critical role in driving tourism development. The new direct flights between Riyadh and Paris, set to launch in summer 2025, will facilitate a stronger flow of tourism between our two nations,” Khan said.