Middle Eastern airlines’ fleet set for 5% annual surge, outpacing global growth: report 

Middle Eastern airlines’ fleet set for 5% annual surge, outpacing global growth: report 
Saudi Arabia and the UAE are driving much of this growth, accounting for 60 percent of the region’s aviation market, according to Oliver Wyman’s analysis. Shutterstock
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Updated 20 March 2025
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Middle Eastern airlines’ fleet set for 5% annual surge, outpacing global growth: report 

Middle Eastern airlines’ fleet set for 5% annual surge, outpacing global growth: report 

RIYADH: The Middle East’s commercial airlines’ fleet will see a 5.1 percent compound annual growth rate from 2025 to 2035, above the 2.8 percent global average, according to a new forecast.

A report by consulting firm Oliver Wyman projected 2,557 aircraft would be available in the region, with fleet expansion fueled by demand for short-haul flights.

The Middle East’s share of the global commercial fleet is projected to rise from 5.3 percent in 2025 to 6.7 percent by 2035. Alongside fleet expansion, maintenance, repair, and overhaul spending is forecast to surge from $16 billion in 2025 to $20 billion in 2035, propelled by the increasing number of aircraft.

The analysis underscores the region’s aggressive push to strengthen its aviation sector, aligning with broader economic ambitions — particularly in Saudi Arabia, where the government’s National Tourism Strategy aims to attract 150 million visitors by 2030. 

Andre Martins, head of transportation, services, and operations practices for India, the Middle East, and Africa at Oliver Wyman, said: “The Middle East commercial aviation market is on a growth trajectory, supported by strong demand for air travel, from both full-service airlines and low-cost carriers entering the market.” 

He added: “The region’s fleet expansion will be driven primarily by the addition of narrowbodies that will cater to the growth in domestic and shorter-haul flights.” 

Martins said that there is a significant opportunity for different countries in the Middle East to capture the large market potential across the entire value chain, while simultaneously enhancing the productivity and efficiency of operations.

“By leveraging global insights and best practices, the aviation sector in the Middle East can adapt their strategies to address local challenges while driving substantial improvement,” he added. 

Saudi Arabia and UAE flying high

Saudi Arabia and the UAE are driving much of this growth, accounting for 60 percent of the region’s aviation market, according to Oliver Wyman’s analysis. 

Saudi Arabia leads in domestic travel, making up 45 percent of total seats, while the UAE remains focused on international traffic. 

A recent report by the International Air Transport Association highlighted the Middle East’s aviation sector growth, with passenger demand rising 9.6 percent year on year in January. 

IATA also noted that the capacity of air carriers in the region increased by 4.4 percent compared to the same month last year. 

However, air cargo demand saw an 8.4 percent year on year decline in January. 

Narrow-body aircraft to dominate fleet 

The Middle East’s fleet expansion will be dominated by narrow-body aircraft, projected to reach 1,190 by 2035, marking a rise of 75.25 percent compared to 2025. 

Their share of the region’s total fleet will grow from 43 percent to 47 percent. One of the key advantages of narrow-body aircraft is their superior fuel efficiency. Their streamlined design and lighter weight make them an environmentally favorable choice for airlines aiming to cut carbon emissions and lower fuel consumption. 

The number of widebody aircraft in the region is projected to reach 1,307 in 2035, representing a rise of 63.17 percent compared to 2025. The number of Turboprop aircraft in the Middle East region will be 37 by 2035, followed by regional jets at 23. 

Global outlook 

The analysis projects the global fleet to surpass 38,300 aircraft by 2035, with production challenges prompting airlines to delay retiring older planes, raising the fleet’s average age. 

Narrowbody aircraft are expected to maintain their dominance, with their share increasing from 62 percent to 68 percent by 2035. 

The report highlighted that emerging regions like China, India, and the Middle East are poised to capture a larger share of the global aviation market, reflecting shifting industry dynamics. 

India’s commercial airline fleet is projected to grow at a compound annual rate of 8.5 percent from 2025 to 2035. 

The report forecasts aircraft production to reach 1,800 units in 2025, rising to 2,200 by 2029 and just over 2,400 by 2035. 

In December, a separate IATA report projected the aviation industry’s net profit to climb to $36.6 billion in 2025, up from $31.5 billion in 2024. 

The industry body also estimated passenger numbers will hit 5.2 billion in 2025 — a 6.7 percent increase from 2024 — marking the first time global travelers surpass the 5 billion mark. 

IATA further projected cargo volumes to rise 5.8 percent year on year to 72.5 million tonnes in 2025. 


Most Gulf markets in red on US inflation concerns, rate uncertainty

Most Gulf markets in red on US inflation concerns, rate uncertainty
Updated 16 July 2025
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Most Gulf markets in red on US inflation concerns, rate uncertainty

Most Gulf markets in red on US inflation concerns, rate uncertainty
  • Saudi Arabia’s benchmark index dropped 0.5%
  • Dubai’s benchmark index jumped 1%

DUBAI: Most Gulf markets ended lower on Wednesday as investors weighed US trade policy developments and signs that tariffs may be fueling inflation, while awaiting cues on the Federal Reserve’s interest rate policy. 

US consumer prices rose at the fastest pace in five months in June, raising concerns that tariffs were beginning to pressure inflation. 

On Tuesday, President Donald Trump said letters notifying smaller countries of their tariff rates would be sent soon. 

Saudi Arabia’s benchmark index dropped 0.5 percent, hit by a 0.4 percent fall in Al Rajhi Bank. Oil giant Saudi Aramco fell 0.7 percent. About 217.4 million shares changed hands, compared with an average of 314.3 million shares over the previous 10 sessions. 

Oil prices — a catalyst for the Gulf’s financial markets — fell by about 1 percent, as signs of stronger Chinese crude consumption were outweighed by investor caution about the wider economic impact from US tariffs. 

Dubai’s benchmark index jumped 1 percent to 5,974 dirhams, having crossed the mark for the first time in nearly 17.5 years. Financial stocks led gains with a 3.7 percent jump in Emirates NBD after concluding 3.9 billion dirhams in syndicated loans for Dubai Metro’s Blue Line Project. 

Abu Dhabi index added 0.3 percent, helped by a 2.6 percent increase in top lender First Abu Dhabi Bank. Strong bank earnings lifted sentiment across both Abu Dhabi and Dubai financials. 

Qatar’s stock index inched 0.1 percent lower. In the US, data on Tuesday showed consumer prices rose 0.3 percent in June, in line with forecasts, but the largest gain since January. 

Trump, however, reiterated his call for lower interest rates from the Fed, saying that consumer prices remain low. Monetary policy in the Gulf tends to mirror the Fed’s moves, given the region’s currency pegs to the US dollar. 

Outside the Gulf, Egypt’s blue-chip index, which is trading at a near all-time high, dropped 1 percent, weighed by a 5.3 percent slide in tobacco monopoly Eastern Company. 

Egypt’s progress on structural reforms under an $8 billion International Monetary Fund loan agreement has been mixed, the fund said, citing the public sector’s continued dominance of the economy as a problem.


IMF says Egypt makes mixed reform progress, cites state dominance of economy 

IMF says Egypt makes mixed reform progress, cites state dominance of economy 
Updated 16 July 2025
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IMF says Egypt makes mixed reform progress, cites state dominance of economy 

IMF says Egypt makes mixed reform progress, cites state dominance of economy 

CAIRO: Egypt’s progress on structural reforms under an $8 billion International Monetary Fund loan agreement has been mixed, the fund said, citing the public sector’s continued dominance of the economy as a problem.

In its long-delayed staff report for the fourth review of Egypt’s program, the IMF said there had been limited headway in reducing the role of state- and military-owned firms which enjoy preferential treatment in the form of tax exemptions, access to prime land and cheap labor.

These companies remain largely shielded from public scrutiny, with “very limited transparency about their financial condition,” the fund said.

Egypt’s reliance on a state-led growth model, centered on mega-projects and public investment, was curbing job creation and stifling the private sector in an increasingly volatile global environment, it said.

“The resulting financial and resource distortions have left Egypt with a large informal economy and few buffers against growing global financial, geopolitical and climate shocks,” the fund said.

The report was published late Tuesday, four months after the board approved the review and unlocked a $1.2 billion disbursement. Total disbursements are around $3.5 billion.

The 46-month facility was signed in March 2024 following more than a year of severe foreign currency shortages and inflation that peaked at 38 percent in September 2023.

The fund said last week it would merge the fifth and sixth program reviews into one later this year to give Egypt more time to implement critical reforms.

The fund forecast that Egypt’s external debt would rise from $162.7 billion in 2024/25 to $202 billion by 2029/30. Public debt overall “poses a high risk of sovereign stress,” it said, urging authorities to broaden the tax base, phase out untargeted subsidies and increase oversight of off-budget entities such as the state oil company EGPC and the urban development authority NUCA.

The report also cited “persistent and successive external shocks” that it said had “complicated policy execution,” including the war in Sudan which has pushed hundreds of thousands to flee to Egypt, as well as trade disruptions in the Red Sea which reduced foreign exchange inflows from the Suez Canal by $6 billion last year. 

Egypt finance minister reacts

Egypt's Finance Minister Ahmed Kouchouk said on Wednesday he is confident Egypt is hitting targets set by the IMF over the country's $8 billion loan programme and expects the next review to be completed by September or October.

"Both sides, are working on the expectation that this should be happening in September, October," Kouchouk said on the sidelines of an event at the London Stock Exchange.

"The IMF is after certain targets - and that's what's important."

A successful agreement on a review and subsequent sign off by the Fund's executive board triggers payment of a tranche.

Kouchouk also said he expected the government to complete three to four privatisation transactions before the end of the current financial year that started earlier this month.

The IMF has made increasing the role of the private sector in the economy a requirement of an expanded $8 billion loan, and Egypt's cabinet said earlier this year it would offer stakes in military-owned companies through its sovereign wealth fund to help comply with the Fund's requirements.

"It will be across a lot of sectors, but we have shared also a very strategic plan, a medium-term plan with the international institutions, including the IMF and others, with a very clear, visible timeline," added Kouchouk. 


Closing Bell: Saudi main index closes in red at 11,038

Closing Bell: Saudi main index closes in red at 11,038
Updated 16 July 2025
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Closing Bell: Saudi main index closes in red at 11,038

Closing Bell: Saudi main index closes in red at 11,038
  • MSCI Tadawul Index decreased by 0.41% to close at 1,415.42
  • Parallel market Nomu gained 0.16% to close at 27,345.08

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 56.67 points, or 0.51 percent, to close at 11,038.74.

The total trading turnover of the benchmark index was SR4.01 billion ($1.06 billion), as 51 of the listed stocks advanced, while 195 retreated.

The MSCI Tadawul Index decreased by 5.89 points, or 0.41 percent, to close at 1,415.42.

The Kingdom’s parallel market Nomu gained 43.62 points, or 0.16percent, to close at 27,345.08. This comes as 39 of the listed stocks advanced, while 43 retreated.

The best-performing stock was SHL Finance Co., with its share price rising by 4.77 percent to SR23.70.

Other top performers included Arabian Centers Co., whose share price rose by 4.19 percent to SR22.15, and Mutakamela Insurance Co., which saw a 3.71 percent increase to SR16.21.

The worst performer of the day was Emaar The Economic City, whose share price declined by 3.63 percent to SR13.02.

Arriyadh Development Co. and Alistithmar AREIC Diversified REIT Fund also saw declines, with their shares dropping by 3.33 percent and 3.31 percent to SR31.32 and SR8.75, respectively.

On the announcements front, Asas Makin Real Estate Development and Investment Co. has signed a contract with First Avenue for Real Estate Development Co. to execute the Jadah Al-Huda residential project in Riyadh. 

According to a statement on Tadawul, the 23,199 sq. meters project will feature modern townhouse units designed to meet high-quality standards and urban integration, aligning with the growing demand in Saudi Arabia’s real estate market.

Valued at 14.5 percent of the actual construction cost, the 15-month contract is part of Asas Makin’s expansion strategy to enhance its portfolio and diversify revenue streams. 

The company expects the project to positively impact its financial results while contributing to the development of the Kingdom’s real estate sector.

The firm’s shares traded 0.8 percent higher in Wednesday’s trading session on the main market to close at SR108.

First Avenue for Real Estate Development Co.’s shares traded 3.33 percent higher in the main market to close at SR8.99.

Al Yamamah Steel Industries Co. has announced the completion of construction and the start of trial operations at its new Al Yamamah Wind Power Systems Factory in Yanbu Industrial City. 

The company confirmed in a statement that commercial operations will officially begin on Aug. 1, subject to regulatory approvals. The factory’s financial impact is expected to be reflected in Al Yamamah’s consolidated financial statements starting from the third quarter of 2025.

The company’s shares traded 3.61 percent higher on the main market to close at SR34.42.


Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor

Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor
Updated 16 July 2025
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Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor

Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor
  • District will include Diriyah Arena, three mixed-use office buildings, and parking facility
  • It is expected to contribute around SR70 billion to GDP

JEDDAH: Saudi Arabia’s entertainment landscape is set for a major boost with the awarding of a SR5.75 billion ($1.53 billion) contract to construct a 20,000-seat arena as part of the Diriyah development. 

Diriyah Co., a subsidiary of the Public Investment Fund, has awarded the contract to a branch of China Harbor Engineering Co. for the Arena Block, a district that will include the Diriyah Arena, three mixed-use office buildings, and a parking facility, the company announced. 

Spanning approximately 74,000 sq. meters, the Diriyah Arena is designed to host concerts, sports, esports, exhibitions, and live performances to attract residents and international visitors. 

The Diriyah project, located on the northwestern outskirts of the capital, Riyadh, is one of five giga-projects backed by PIF under the Vision 2030 plan and aims to transform the Kingdom’s economic and tourism sectors. 

Upon completion, it is expected to contribute around SR70 billion to the gross domestic product, generate nearly 180,000 jobs, and accommodate approximately 100,000 residents. 

“The iconic Diriyah Arena will be a landmark entertainment complex in Diriyah that reinforces the City of Earth’s growing global role in shaping Saudi Arabia’s artistic and cultural future, in alignment with Vision 2030,” Jerry Inzerillo, group CEO of Diriyah Co., said.

The contract is the latest step in the company’s ongoing 2025 development drive, marking continued progress on the project. 

Yang Zhiyuan, CEO of the Chinese firm for the Middle East, said: “CHEC will bring to the project a wealth of global experience, technical expertise, and a proven track record in delivering the complex.” 

Designed by global firm HKS Inc., the structure blends traditional Najdi architecture with modern elements, reflecting Diriyah’s cultural heritage and global outlook. 

The broader Arena Block will also include three mixed-use office buildings designed by John McAslan + Partners, covering 114,000 sq. meters, along with over 4,000 parking spaces to support the stadium and surrounding offices. 


UAE unveils AI-driven federal budget cycle for 2027–29

UAE unveils AI-driven federal budget cycle for 2027–29
Updated 12 min 58 sec ago
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UAE unveils AI-driven federal budget cycle for 2027–29

UAE unveils AI-driven federal budget cycle for 2027–29

JEDDAH: The UAE has launched its federal budget cycle for 2027–29, introducing an artificial intelligence-driven, performance-based approach aimed at accelerating national development and supporting the country’s long-term strategic ambitions.

The Ministry of Finance announced the new cycle as part of broader efforts to modernize public financial management, enhance fiscal sustainability, and align government spending with national priorities.

According to the state news agency WAM, the total value of the UAE’s federal budgets across the past four consecutive cycles has reached 900 billion dirhams ($245 billion).

The announcement coincided with the unveiling of the federal government’s new strategic planning cycle, “Towards Achieving We the UAE 2031,” launched by Sheikh Mohammed bin Rashid Al-Maktoum, vice president, prime minister of the UAE, and ruler of Dubai.

Sheikh Maktoum bin Mohammed bin Rashid Al-Maktoum, first deputy ruler of Dubai, deputy prime minister, and minister of finance, underscored the importance of the new budget framework, emphasizing that “achieving the ambitions of the UAE Centennial 2071 requires a financial system that is agile and future-focused, a system that can respond to global shifts and direct government spending toward high-impact opportunities.”

He added that, to achieve this, the Ministry of Finance is investing in intelligent tools and advanced analytical models designed to enhance financial efficiency, maximize impact, and support data-driven decision-making aligned with the nation’s developmental, economic, and social objectives.

“Our vision is to transform the federal budget into a future-ready instrument that drives sustainable growth and elevates the quality of government services to new heights.” he said.

The government said the budget cycle would prioritize sectors that directly impact citizens’ lives, including education, healthcare, social welfare, and core government services.

It also aims to promote integration and coordination among federal entities while directing spending toward initiatives that support sustainable economic development.

Over the past several years, the ministry has implemented regulatory and digital reforms to strengthen financial governance. Public debt remained stable at 62.1 billion dirhams as of June 2025, while federal assets increased to approximately 464.4 billion dirhams by the end of 2024—demonstrating the UAE’s robust financial position.

Mohamed bin Hadi Al-Hussaini, minister of state for financial affairs, said the latest budget cycle reflects a shift toward results-based governance and improved institutional efficiency.

“The ministry’s transformation over recent years extends beyond legislative and digital reforms to include a complete redesign of the budgeting experience.” he said.