Saudi banks shift focus to debt markets during sukuk surge

Saudi banks shift focus to debt markets during sukuk surge
Saudi Arabia was the world’s largest sukuk issuer in 2024. Shutterstock
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Updated 21 March 2025
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Saudi banks shift focus to debt markets during sukuk surge

Saudi banks shift focus to debt markets during sukuk surge

RIYADH: As Saudi Arabia’s financial system turns increasingly to debt markets for funding, it will face new opportunities and increased risk in relation to its stability and resilience, experts told Arab News.

The growth of sukuk issuance and other debt market activities are essential to the Kingdom’s economic diversification targets and objectives set out in the Vision 2030 initiative.

Saudi Arabia raised SR2.64 billion ($704 million) through sukuk issuances in March, following the SR3.07 billion secured in February and SR3.72 billion in January. 

A report by Fitch Ratings in February showed that the Kingdom holds the largest share of the Gulf Cooperation Council’s debt capital market — which itself surpassed the $1 trillion milestone at the end of January.

This represented a 10 percent year-on-year growth across all currencies. 

Another report by Fitch earlier this year showed that Saudi Arabia became the largest dollar-denominated debt issuer in emerging markets  — outside China — and the world’s largest sukuk issuer in 2024. 

The Kingdom’s debt capital market grew by 20 percent year on year in 2024, reaching $432.5 billion in outstanding debt.

Funding uses

Saudi Arabia uses sukuk issuance as a mechanism to finance giga-projects such as NEOM, the Red Sea, and Qiddiya, which collectively require hundreds of billions of dollars in funding.

Ian Khan, a technology futurist and author, said this highlights the Kingdom’s commitment to Islamic finance as a driver of sustainable development.

“Sukuk aligns with Vision 2030 by attracting both domestic and international ethical investors, particularly from markets in Southeast Asia, the Middle East, and North Africa. Additionally, sukuk’s structure, which ties returns to tangible assets, ensures that funds are channeled into real economic activities such as renewable energy, infrastructure, and technology, all of which are cornerstones of Saudi Arabia’s diversification agenda,” Khan said.




Ian Khan, a technology futurist and author. Supplied

“Furthermore, by developing its domestic sukuk market, the Kingdom reduces its dependence on oil revenues, which currently account for over 50 percent of GDP,” he said.

Khan emphasized that sukuk also supports green finance initiatives, with Saudi entities already issuing green sukuk to fund renewable projects such as the 300 MW Sakaka Solar Project.

Risks and rewards

According to Mohammad Nikkar, principal at Arthur D. Little Middle East, reports published by the Kingdom’s central bank highlight the capitalization strength of the Saudi banking system.

“However, an overreliance on external funding such as debt markets could potentially weaken the credit quality of the banking system, highlighting the need for more prudent risk management,” he said.

There is no doubt that as the focus shifts toward debt markets, new dynamics and opportunities emerge.

“As the sector progresses toward 2030 and beyond, the increasing reliance on debt markets necessitates continued regulatory vigilance and the implementation of robust risk management practices to maintain overall stability and resilience,” Nikkar said.




Mohammad Nikkar, principal at Arthur D. Little Middle East. Supplied

Khan said that the Kingdom’s sovereign bond issuances have been met with strong global demand, with oversubscriptions often exceeding several billion dollars, reflecting investor confidence in the country’s economic reforms.

“However, the increasing exposure to external debt introduces risks, particularly if global interest rates rise or oil revenues fluctuate significantly,” he said.

The author went on to emphasize that to address these challenges, the Saudi Central Bank is likely to strengthen regulatory frameworks and risk buffers, ensuring that banks maintain adequate capital and manage foreign currency risks effectively.

According to Edmond Christou and Basel Al-Waqayan, analysts at Bloomberg Intelligence, the increasing reliance on debt markets will improve the resilience of Saudi Arabia’s banking sector by diversifying funding sources and providing more stable capital to support long-term project financing.

“With banks managing significant duration and liquidity risks, stable funding is critical for driving growth in key sectors aligned with Vision 2030. Senior unsecured paper, for instance, are issued at an average spread of 90 basis points above benchmark treasuries, while subordinated AT1 bonds range between 150–200 basis points,” the analysts told Arab News in a joint statement.

“In 2024, Saudi banks raised approximately $11.5 billion in debt markets, and they are on track to exceed that figure as they continue to finance major projects,” they added.

Martin Blechta, partner at Boston Consulting Group, explained that some of the largest and most recent issuances were done by AlRajhi Bank, Riyad Bank, and Banque Saudi Fransi, as well as Arab National Bank, Saudi Investment Bank, and Gulf International Bank, among others. For some, this was a first-time issuance.

“The increasing reliance on the debt market is an expected progression of the banking sector overall and very much on the strategic agenda of the Saudi Capital Market Authority aiming to expand the debt instrument market,” Blechta said. 

“Additional Tier 1 capital plays an important role in the capital structure of leading international banks and the recent developments in the Saudi banking sector are very much in line with that.” 

Vision 2030 alignment

From ADL’s point of view, Nikkar explained that by fostering a robust debt capital market, the Kingdom enables growth of alternative sources of funding — a pillar of its National Investment Strategy and aligned with Pillar 1 of the Financial Services Development Program.

The ADL partner added: “This expansion not only opens the country to more investments from international investors but also provides new opportunities for domestic investors to participate in the investment drive fueled by the country’s unprecedented infrastructure and flagship projects within Vision 2030.”

Christou and Al-Waqayan from Bloomberg Intelligence argued that growing focus on sukuk issuance and debt market activities is pivotal to support Saudi Vision 2030’s objectives of economic diversification and sustainable growth.

“A deeper and more developed local capital market attracts foreign investment flows, which are critical to supporting the Kingdom’s expanding economy. Initiatives such as last year’s Saudi ETF listing in Hong Kong and China, as well as the Lenovo deal are key to attract international capital,” the analysts said.

Blechta from BCG noted that banks are diversifying funding sources to match the changing nature of government and large corporate financing needs.

“The majority of large-scale projects are in need of very long-term debt that is typically USD-denominated, to increase international investor demand. Banks are accordingly matching this demand on their funding side. Interestingly, most recent Saudi bank debt issuances were heavily oversubscribed, which shows strong investor confidence in the Saudi banking sector overall,” the partner said.

“However, most demand for the SAR denomination was still domestic, while the USD titles have seen more international investor uptake,” he added.




Martin Blechta, partner at Boston Consulting Group. Supplied

Transformative effects on the Kingdom’s financial landscape 

The accelerating trend of Saudi banks looking toward debt markets is set to transform the Kingdom’s financial landscape,

From ADL’s perspective, Nikkar believes that this shift is likely to deepen the capital markets, enhance liquidity, and introduce a wider array of financial instruments to market participants, thereby attracting a more diverse group of investors.

“The Saudi debt capital market is poised to exceed SR2 trillion outstanding over the next few years, driven by government projects under Vision 2030, deficit funding, diversification efforts, and ongoing reforms,” he said.

“This substantial growth indicates a maturing financial market capable of supporting large-scale economic initiatives. Collectively these developments will foster a more dynamic and diversified financial services ecosystem in Saudi Arabia,” the ADL representative added.

Additionally, the accelerated shift of Saudi banks toward debt markets will fundamentally transform the Kingdom’s financial landscape by enabling greater sophistication, resilience, and competitiveness.

From Khan’s point of view, Saudi banks hold an average capital adequacy ratio that provides a strong foundation for leveraging debt markets without compromising financial stability.

The shift coincides with the Kingdom’s efforts to develop the domestic capital markets, as evidenced by initiatives such as the Saudi Stock Exchange reforms and the Financial Sector Development Program.

Khan believes this trend is likely to have a transformative effect on the expansion of debt market instruments.

“Saudi banks are increasingly involved in issuing corporate bonds, sukuk, and hybrid instruments to diversify their funding sources. This diversification reduces reliance on short-term deposits, thereby enhancing long-term stability,” Khan said.

The trend will also lead to greater integration with global markets, technology and innovation in finance, and enhanced environmental, social and governance alignment.

On integration with global markets, Khan said: “Participation in international debt markets has already attracted significant foreign investments. For instance, Saudi Arabia’s $10 billion green bond issued in 2023 was oversubscribed threefold, reflecting investor confidence. This global integration will help Saudi banks build stronger partnerships and access lower-cost capital.”

With regards to technology and innovation in finance, he believes the way debt instruments are issued and traded will be transformed, saying: “The Kingdom is embracing fintech to streamline debt market activities. For example, digital sukuk issuance platforms and blockchain-based systems are being explored to enhance transparency and efficiency.” 

Khan added: “The rise of ESG-focused investments, particularly green bonds and sukuk, will push Saudi banks to prioritize sustainable finance. This aligns with Vision 2030 goals of achieving net-zero emissions by 2060 and attracting investors who prioritize sustainability.” 

Bhavya Kumar, managing director and partner at BCG, believes that an increasing reliance on debt markets presents opportunities and risks for the Kingdom’s banking sector.

“While it supports Saudi’s broader economic goals under Vision 2030 by diversifying funding sources — reducing dependency on deposits, improving risk management practices required to meet international investor expectations, and fostering financial market development — it also introduces vulnerabilities related to market volatility, leverage, and systemic risks,” Kumar said.


Saudi Jameel Motors to enter South African market by distributing China’s Changan vehicles

Saudi Jameel Motors to enter South African market by distributing China’s Changan vehicles
Updated 01 April 2025
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Saudi Jameel Motors to enter South African market by distributing China’s Changan vehicles

Saudi Jameel Motors to enter South African market by distributing China’s Changan vehicles

RIYADH: Saudi Arabia’s Jameel Motors has entered the South African market, securing exclusive rights to distribute vehicles from Chinese company Changan.

The firm, owned by Saudi Arabia's Abdul Latif Jameel Group, has signed a deal to distribute SUVs, sedans, pickups, and electric vehicles in the African country, according to a statement.

South Africa, the continent’s largest automotive market, presents a strong long-term investment opportunity, driven by growing demand for affordable, tech-enabled vehicles.

The country saw a 18.3 percent year-on-year increase in new passenger car sales in the country in January.

In a statement, Jasmmine Wong, CEO — Mobility at Abdul Latif Jameel, said: “We are thrilled to announce Jameel Motors’ market entry to South Africa, especially as we do so with Changan Automobile, a forward-thinking automotive player with exceptional products.”

Wong added: “We are looking forward to driving long-term growth in the market and empowering drivers across South Africa with expanded and superior personal mobility choices.”

Jameel Motors’ commitment includes creating jobs and developing local dealerships, contributing to the country’s economic growth.

Under the terms of the newly signed agreement, Jameel Motors will initially focus on the distribution of Changan and Deepal products.

Changan offers sedans, SUVs, and pickup combustion engine models, while Deepal focuses on new energy cars.

Building on its strong track record, Jameel Motors is well-positioned to meet local customer preferences, with vehicles expected to be available for purchase in the fourth quarter of 2025.

Xiao Feng, general manager at Changan Automobile Middle East and Africa business unit, said: “This is a new milestone for our business in South Africa. Changan Automobile, as a leading Chinese automotive company, has been committed to building a world-class automotive brand.”

Feng added: “We are confident that, through the strategic cooperation with Jameel Motors, we will be a key player in the South African market.”

Jameel Motors in South Africa will be led by Marinus Venter, an expert with 18 years of experience in leading automotive brands.

“I am honored to join a business that is building on 70 years of automotive excellence, as we introduce Changan and Deepal vehicles to South Africa,” Venter said.

“By leveraging Jameel Motors’ extensive experience and Changan Automobile’s renowned focus on safety, quality, and technology, I believe we can effectively meet the diverse automotive demands of South African drivers and deliver a positive market experience,” the country manager at Jameel Motors South Africa added.


Saudi MSME lending hits $94bn driven by government-backed reforms 

Saudi MSME lending hits $94bn driven by government-backed reforms 
Updated 01 April 2025
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Saudi MSME lending hits $94bn driven by government-backed reforms 

Saudi MSME lending hits $94bn driven by government-backed reforms 

RIYADH: Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia grew by 27.62 percent year on year in 2024, totaling SR351.7 billion ($93.8 billion), according to official data. 

The Kingdom’s central bank, also known as SAMA, revealed that 94.82 percent of these loans were provided by Saudi banks, while finance companies contributed 5.18 percent. 

MSME lending made up 9.4 percent of banks’ and 18.9 percent of finance companies’ loan portfolios in 2024, reflecting growing alignment with the government’s Vision 2030 target of allocating 20 percent of credit to this vital sector. 

In 2024, medium-sized enterprises received the largest share of credit facilities, totaling 53.23 percent, or SR187.21 billion. 

Micro enterprises — those generating up to SR3 million in revenue with a workforce of no more than five employees — saw substantial growth, with credit increasing by 70 percent to SR42.32 billion, despite holding a smaller overall share. 

Credit to small enterprises, which made up 34.74 percent of MSME financing, rose by 32.4 percent to SR122.17 billion during the same period. 

The sharp increase in bank lending to Saudi Arabia’s SMEs aligns closely with the Kingdom’s Vision 2030 objective of raising the sector’s contribution to gross domestic product to 35 percent. 

To help achieve this target, Saudi banks are increasingly extending credit to small businesses, supported by government-backed incentives such as the Kafalah loan guarantee program, which operates under the supervision of Monsha’at. 

Through Kafalah, the government guarantees up to 80 percent of loans extended to eligible SMEs, significantly reducing the risk for commercial banks and encouraging broader lending. 

The SME Bank plays a complementary role by targeting underserved and high-risk segments through alternative financing solutions, such as debt-based crowdfunding. 

In its latest move, the institution allocated SR240 million in partnership with fintech platforms Manafa, Lendo, and Tameed, enabling short-term, flexible financing of up to SR1 million for qualifying MSMEs. 

Together, these efforts are expanding access to capital across the SME landscape, supporting entrepreneurship, job creation, and economic diversification. 

According to the latest report by Monsha’at, in the fourth quarter of 2024, the Kingdom saw a 67 percent quarter-on-quarter surge in new commercial registrations, totaling more than 160,000 new businesses, bringing the total to over 1.6 million registered enterprises nationwide. 

The rise was particularly strong in e-commerce, with a 10 percent increase in new digital business registrations, pushing the total number of e-commerce firms to 40,953 by the end of the year. 

Riyadh province led the growth, accounting for 39 percent of all new registrations, followed by Makkah with 17 percent, the Eastern Province with 16 percent, and smaller but growing contributions from regions like Qassim and Asir. 

This surge in new business formation reflects increasing entrepreneurial activity across the Kingdom — a trend aligned with goals to diversify the economy and build a thriving private sector. 

The synchronized rise in both entrepreneurial activity and credit availability reflects a maturing SME ecosystem and a coordinated national strategy to fuel private sector-led growth. 


New laws simplifying Saudi business registration to take effect

New laws simplifying Saudi business registration to take effect
Updated 01 April 2025
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New laws simplifying Saudi business registration to take effect

New laws simplifying Saudi business registration to take effect

RIYADH: Saudi Arabia is set to introduce significant changes to its business registration system when the new Law of Commercial Register and Law of Trade Names take effect on April 3. 

Abdulrahman Al-Hussein, the Ministry of Commerce’s official spokesperson, highlighted that one of the major changes includes the abolition of subsidiary registers, making a single commercial register sufficient, the Saudi Press Agency reported. 

The laws, announced in September, also eliminate the requirement to specify the city of registration, meaning a single commercial registration will be valid across all regions of the Kingdom, Al-Hussein added. 

The changes come as Saudi Arabia saw a 60 percent increase in commercial records in 2024, with 521,969 issued compared to the previous year, according to the Ministry of Commerce. 

The moves also align with the Kingdom’s economic diversification efforts, aimed at reducing reliance on oil and increasing the private sector’s contribution to the gross domestic product from 40 percent to 65 percent by 2030. 

Al-Hussein said the Law of Commercial Register “cancels the expiration date for the commercial register, requiring only an annual confirmation of the data.”

He underlined that the commercial registration number will now serve as the establishment’s unified number, starting with “7.” 

Existing subsidiary registers will have a five-year grace period to comply with the new regulations. 

Additionally, the updated Trade Names Law now permits the reservation and registration of trade names in English, including letters and numbers, a shift from the previous rule, which only allowed Arabic names without foreign characters or digits. 

The change also allows trade names to be managed separately from the establishment, enabling their ownership transfer. It prevents the registration of identical or similar names for different businesses, regardless of their activities. 

Al-Hussein added that this law includes provisions for reserving family names as trade names and sets standards for prohibited or misleading names. 

The Saudi Cabinet approved these changes on Sept. 17, with the government aiming to streamline business operations and improve the overall working environment. 

In a post on his X account at the time, Commerce Minister Majid bin Abdullah Al-Qasabi emphasized that the changes would streamline the procedures for reserving and registering trade names, thus protecting and enhancing their value, in line with the economic and technological advancements outlined in Vision 2030. 


Saudia launches direct flights to Bali 

Saudia launches direct flights to Bali 
Updated 01 April 2025
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Saudia launches direct flights to Bali 

Saudia launches direct flights to Bali 

RIYADH: Saudia has launched a scheduled service to Bali with three weekly flights from Jeddah, marking the airline’s second regular destination in Indonesia after Jakarta.

The inaugural flight, SV856, departed from King Abdulaziz International Airport in Jeddah on March 31, operated by a Boeing B787 Dreamliner. 

Saudia stated in a release that flight times have been coordinated to connect with its wider domestic and international network, as well as with services operated by members of the SkyTeam alliance. 

The addition of Bali is part of a broader plan announced in February to introduce 11 new destinations in 2025, including Vienna, Venice, and Larnaca, as well as Athens, Heraklion, Nice, Malaga, and El-Alamein.

The expansion comes as the airline posted a 16 percent year-on-year increase in international passenger traffic in 2024 — growth that aligns with Saudi Arabia’s National Tourism Strategy, which targets 150 million visitors annually by 2030, and aims to create 1.6 million jobs. 

Saudia is working to enhance its competitive position and international connectivity by adding both scheduled and seasonal destinations, the release stated. 

The Bali route will be served by its Boeing B787 Dreamliner aircraft, which features advanced technologies, in-flight entertainment tailored for a wide range of passengers, spacious seating, and other onboard services. 

Currently operating a fleet of 147 aircraft from Boeing and Airbus, Saudia plans to expand capacity and route coverage with the addition of 118 new planes. 

As part of its 2025 network expansion strategy, Saudia also plans to add Antalya in Turkiye and Salalah in Oman, increasing its global footprint to over 100 destinations across four continents. 

The move supports the Kingdom’s Air Connectivity Program, which has introduced more than 60 new direct routes since its launch in 2021. 

With more than 530 daily flights, Saudia’s ongoing international development plan aims to increase its global market share and strengthen connectivity between Saudi Arabia and the world. 

According to the General Authority of Civil Aviation, flight operations in the Kingdom reached approximately 905,000 in 2024, reflecting an 11 percent year-on-year increase. 

This included 474,000 domestic flights and 431,000 international flights. Air connectivity expanded by 20 percent, linking Saudi Arabia to over 170 destinations worldwide. 


Middle East airlines witness 3.3% passenger demand growth in February: IATA 

Middle East airlines witness 3.3% passenger demand growth in February: IATA 
Updated 01 April 2025
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Middle East airlines witness 3.3% passenger demand growth in February: IATA 

Middle East airlines witness 3.3% passenger demand growth in February: IATA 

RIYADH: Airlines operating in the Middle East recorded a 3.3 percent year-on-year increase in passenger demand in February, with total flight capacity rising 1.3 percent during the same period, an industry report showed. 

The latest data from the International Air Transport Association revealed global passenger demand, both domestic and international, increased by 2.6 percent over the second month of the year. 

This growth comes as many Middle Eastern countries focus on boosting the aviation sector to help diversify their economies away from oil dependency, with Saudi Arabia seeking to triple passenger numbers by 2030 compared to 2019 levels.

Commenting on the latest report, Willie Walsh, director general of IATA, said: “February traffic hit an all-time high, and the number of scheduled flights is set to continue increasing in March and April.”  

The association added that the total load factor among carriers in the Middle East region stood at 82 percent in February, representing a rise of 1.6 percentage points compared to the same month in 2024. 

The load factor is a metric used in the aviation sector that measures the percentage of available seating capacity that has been filled with passengers.

A high load factor signifies that an airline has sold most of its available seats. 

IATA also reported that carriers in the Middle East handled 9.4 percent of global passengers in February, a figure that remained unchanged from January. 

Earlier this month, a report by consulting management firm Oliver Wyman stated that the fleet of commercial airlines in the Middle East is expected to grow at a compound annual growth rate of 5.1 percent from 2025 to 2035, reaching 2,557 aircraft. 

It added that this growth rate in the Middle East is nearly double the annual global growth rate, which is projected at 2.8 percent during the same period. 

Affirming the progress of the aviation sector in the Middle East, Saudi Arabia is set to see its newest airline – the Public Investment Fund-backed Riyadh Air – take to the skies later this year, with the aim of flying to 100 countries by 2030. 

In October, Riyadh Air signed an agreement to purchase 60 Airbus A321neo single-aisle aircraft. 

In the same month, the company announced plans to order wide-body aircraft capable of seating more than 300 passengers in 2025. 

Riyadh Air is set to begin passenger flights this year. Shutterstock

According to IATA, international passenger demand growth increased by 5.6 percent in February compared to the same period in the previous year. 

However, international passenger demand growth was down compared to January, which witnessed a 12.3 percent rise. 

The report added that global domestic demand declined by 1.9 percent year on year in February. 

Africa witnessed a 6.8 percent rise in overall passenger demand, including both domestic and international, followed by Latin America at 4.6 percent, Europe at 4.3 percent, and Asia-Pacific at 4.2 percent. 

Air carriers operating in North America experienced a 3.2 percent decline in passenger demand. 

International passenger demand 

Airlines operating in the Asia-Pacific region led international passenger demand globally, marking a 9.5 percent growth in February compared to the same month in 2024. 

The total capacity of airlines in the APAC region rose by 8.3 percent year on year, while the load factor stood at 85.7 percent. 

APAC airlines handled 33.5 percent of global passengers in February, followed by Europe at 26.7 percent and North America at 22.9 percent. 

The report further indicated that international passenger demand among Middle East airlines increased by 3.1 percent in February compared to the same month in the previous year. 

The association also noted that the capacity of airlines in the Middle East region increased by 1.3 percent, while the load factor stood at 81.9 percent in February, representing a rise of 1.4 percentage points compared to the same month in 2023. 

According to IATA, international passenger demand among European air carriers rose by 5.7 percent year on year in February, while capacity increased by 4.9 percent during the same period. 

North American air carriers saw a 1.5 percent decline in international passenger demand growth, with capacity also decreasing by 3.2 percent. 

International passenger demand growth among Latin American airlines grew by 6.7 percent year on year in February, while capacity climbed by 9.9 percent. 

African airlines saw demand growth of 6.7 percent among international travelers. 

The capacity of these carriers also rose by 4 percent in February compared to the same month in 2024. 

Air cargo demand growth 

International cargo capacity increased slightly in February. Shutterstock

In a separate report, IATA revealed that air cargo demand declined slightly by 0.1 percent in February compared to the same period in the previous year, marking the first decline since mid-2023. 

Overall, cargo capacity, measured in available cargo tonne-km, decreased marginally by 0.4 percent year on year in February. 

The report added that international cargo capacity edged up by 1.1 percent over the month.

“February saw a small contraction in air cargo demand, the first year-on-year decline since mid-2023. Much of this is explained by February 2024 being extraordinary — a leap year that was also boosted by Chinese New Year traffic, sea lane closures, and a boom in e-commerce,” said Walsh. 

He added: “Rising trade tensions are, of course, a concern for air cargo. With equity markets already showing their discomfort, we urge governments to focus on dialogue over tariffs.” 

Airlines operating in the APAC region drove cargo demand growth in February. 

According to IATA, cargo demand growth among APAC airlines increased by 5.1 percent year-on-year, while capacity rose by 2.7 percent during the same period. 

Air carriers in the Middle East region witnessed an 11.9 percent year-on-year decrease in air cargo demand in February, the slowest among the regions. 

The capacity of air carriers in the Middle East also decreased by 4 percent in February. 

“North American carriers saw a 0.4 percent year-on-year decrease in demand growth for air cargo in February. Capacity decreased by 3.5 percent year-on-year,” said IATA. 

The air cargo demand growth among European airlines dropped marginally by 0.1 percent in February compared to the same month in 2024, while capacity slightly edged down by 0.2 percent. 

Air carriers operating in the Latin American region witnessed a 6 percent year on year cargo demand growth in February, the strongest rise among all regions. The capacity of these airlines also rose by 7.6 percent during the same period. 

“African airlines saw a 5.7 percent year-on-year decrease in demand for air cargo in February. Capacity decreased by 0.6 percent year-on-year,” added IATA. 

Looking at trade indicators, IATA said that the industrial production index rose 3.2 percent year-on-year in February, the highest growth in two years, while world trade expanded by 5 percent. 

In February, the Purchasing Managers’ Index for global manufacturing output stood at 51.5, indicating growth. 

The PMI for new export orders rose slightly to 49.6 from the previous month, remaining just shy of the 50-mark, which is the growth threshold. 

The report added that jet fuel prices averaged $94.6 per barrel in February, representing a 2.1 percent decline compared to January.