KUWAIT: Revenue at Kuwait-listed logistics company Agility is expected to resume growing next year as emerging markets business expands and the company develops new sectors, Chief Executive Tarek Sultan said.
With more than 20,000 employees and over 500 offices in more than 100 countries, Agility is one of Kuwait’s corporate success stories and a play on the Gulf’s rapidly expanding trade links with the rest of the world, especially emerging markets in Asia and Africa.
Its logistics and freight forwarding businesses, which account for most of its revenue, have been hit by instability in the global economy over the last few years. Total revenue sank 7 percent to 656 million dinars ($2.28 billion) in the first half of this year, after a 3 percent drop in 2013.
Agility has been able to keep its profit growing by controlling costs; salaries and employee benefits were essentially flat in the first half as net income climbed 11 percent to 24.1 million dinars.
“Globally, revenues have been affected by conditions that have challenged the freight forwarding industry,” Sultan said in an interview for the Reuters Middle East Investment Summit, adding that Agility had therefore been focusing on how it could boost productivity.
Kuwait’s Agility hopes for revenue rebound
Kuwait’s Agility hopes for revenue rebound
PIF-owned AviLease secures $1.5bn credit facility to boost global expansion
RIYADH: Saudi-backed AviLease has closed a $1.5 billion unsecured revolving credit facility to support its international expansion and investment in next-generation, fuel-efficient aircraft.
The conventional three-year facility was oversubscribed, attracting commitments from 20 global banks, including eight new lenders from Europe, Asia, and North America, the company said in a release.
Owned by Saudi Arabia’s Public Investment Fund, AviLease is central to the Kingdom’s push to diversify its economy and develop a globally competitive aviation industry under its Vision 2030 strategy.
Edward O’Byrne, CEO of AviLease, said: “We are pleased to close this facility, noting the strong international demand. Together with our existing revolver of $750 million, it brings our immediately‑available committed facilities to $2.25 billion, spanning 25 local and global lenders.”
He added: “This enhanced liquidity positions us to continue our expansion, investing in latest‑technology, fuel‑efficient aircraft while maintaining the conservative financial policy that underpins our strategy.”
Headquartered in Riyadh, the firm manages a fleet of 200 aircraft — largely composed of new-technology models — leased to 48 airline customers worldwide.
Earlier this month, AviLease signed a memorandum of understanding with Turkish Airlines for the long-term lease of eight Airbus A320neo aircraft. Two aircraft have already been delivered, with the remainder scheduled for delivery throughout 2025.
In March, the lessor delivered three A320neo aircraft to SDH Wings, a joint venture between AviLease and China’s sovereign wealth fund, in which the Kingdom holds a 10 percent stake.
The firm is also investing in local talent development. Earlier this year, AviLease partnered with Prince Sultan University and Riyad Bank to deliver a specialized aviation financing course to more than 150 professionals.
At the time, the company said the initiative aimed to equip Saudi talent to lead the Kingdom’s aviation finance sector and support the human capability development goals outlined in Vision 2030.
AviLease also stated that it will continue to create local economic value and generate both direct and indirect employment opportunities for Saudi nationals across the aviation and financial services sectors.
In October, AviLease expanded its fleet with the acquisition of nine aircraft from global lessor Avolon, building on a previous transaction in which it purchased 13 aircraft from the same company the year before.
The deal was followed by AviLease’s first transaction with BBAM, one of the world’s leading aircraft lessors, through which it acquired a Boeing 787-9. The acquisition marked the introduction of the 787-9 to AviLease’s operating lease portfolio and added a new airline customer based in the Americas, further diversifying the company’s global client base.
Saudi Arabia rallies region for deep decarbonization as COP30 nears
JEDDAH: A regional drive to cut carbon emissions in the oil and gas sector gained fresh momentum this week as the second symposium on downstream decarbonization opened in the Saudi capital, drawing high-level participation from international energy companies, industry experts, and policymakers.
Organized by the Organization of Arab Petroleum Exporting Countries and held under the patronage of Saudi Energy Ministry, the event—titled “Pathways to Reducing Carbon Emissions in Downstream Petroleum Industries”—builds on the success of its inaugural edition last June.
The symposium aims to advance strategies for curbing emissions in refining and petrochemical operations, reaffirming OAPEC’s commitment to sustainable energy development while fostering both regional and global collaboration.
Central to discussions is the challenge of balancing environmental goals with the continued strategic role of hydrocarbons in the global energy mix.
Opening the event, Saudi Arabia’s Deputy Minister for Sustainability and Climate Change Khalid Al-Mehaid highlighted the organization’s evolving vision.
He praised OAPEC’s decision to rebrand as the “Arab Energy Organization,” a move he said reflects a broader commitment to embracing all forms of energy to better serve the region’s long-term development goals.
He underscored the need for deep decarbonization strategies to safeguard energy security, protect the environment, and drive economic growth, according to the Saudi Press Agency.
Al-Mehaid emphasized the importance of integrated carbon management solutions, pointing to the role of the International Energy Forum in fostering collaboration between energy-producing and consuming nations in the face of the global energy trilemma.
With COP30 fast approaching, he called on Arab countries to move beyond negotiations and toward actionable climate cooperation, urging the adoption of science-driven solutions to meet net-zero emission targets.
OAPEC Secretary-General Jamal Al-Loughani also commended the Saudi Ministry of Energy for its central role in shaping the event’s direction.
He credited the leadership of Prince Abdulaziz bin Salman for driving the success of the symposium’s inaugural edition and setting the stage for its second iteration.
According to the SPA report, Al-Loughani noted that these collaborative efforts have significantly advanced both Arab and global dialogues on emissions reduction, particularly in refining the technical and technological approaches needed to meet climate goals.
Al-Loughani noted that the symposium comes at a pivotal moment, as the oil and gas sector faces mounting environmental challenges.
He emphasized that member states are actively working to transition toward a low-emissions economy through strategic investments in renewable energy, carbon capture and reuse technologies, and improved operational efficiency.
Al-Loughani also highlighted pioneering initiatives led by the Kingdom, including the Saudi Green Initiative and the Middle East Green Initiative. He commended similar efforts across the region, citing the UAE’s Al-Reyada carbon capture project, alongside notable programs in Algeria, Kuwait, Qatar, Iraq, Egypt, and Bahrain.
Mohammed Eid Al-Suraihi, president of the Arab Council for Creativity and Innovation, underscored the vital role of linking innovation with industrial solutions and stressed the importance of civil society participation in environmental awareness campaigns, according to the SPA.
He further emphasized that innovation remains key to building a more sustainable future for the petroleum sector.
Ali Al-Samawi, a senior energy analyst and representative of IEF Secretary-General Jassim Al-Shirawi, warned of unprecedented global challenges in decarbonizing the downstream petroleum industry. He pointed to circular carbon economy models, carbon markets, artificial intelligence-driven energy efficiency, and carbon capture, utilization, and storage technologies as essential tools for transformative change and unlocking future investment.
The symposium closely aligns with Saudi Arabia’s broader sustainability efforts, particularly through the Saudi Green Initiative and Middle East Green Initiative—both aimed at reducing carbon emissions and expanding renewable energy adoption.
The Kingdom has committed to achieving net-zero greenhouse gas emissions by 2060, a goal announced by Crown Prince Mohammed bin Salman during the 2021 Saudi Green Initiative Forum.
Saudi Arabia’s focus on decarbonizing its oil and gas sector—especially through advanced technologies like carbon capture — complements the symposium’s core agenda and reinforces the country’s leadership in promoting regional and international climate cooperation ahead of COP30.
According to SPA, the symposium drew broad participation, including representatives from OAPEC member states, international organizations, and over 15 leading global firms specializing in emissions reduction technologies.
Delegates from around 20 Arab and foreign countries attended, with nearly 140 experts and stakeholders present. The event featured 23 technical papers showcasing the latest innovations and strategies in emissions mitigation.
Saudi Reinsurance earns ‘A2’ rating from Moody’s, outlook stable
RIYADH: Moody’s has upgraded the insurance financial strength rating of Saudi Reinsurance Co. to “A2” from “A3” and revised its outlook to stable from positive, a new report showed.
Released by the global credit rating agency, the data indicated that Saudi Re’s A1.sa national scale IFSR has also been affirmed, according to a statement.
The upgrade of Saudi Re’s IFSR signifies the company’s improved business and financial position following the Public Investment Fund’s minority acquisition and the government’s implementation of enhanced reinsurance escrow regulations. Saudi Re is well-equipped to utilize these regulations to bolster its market position and potential for growth within the Kingdom.
The upgrade also aligns with the fact that the company experienced premium growth in 2024, with gross written premiums increasing by approximately 48 percent to SR2.36 billion ($629 million), driven by the strict implementation of existing domestic reinsurance ceding requirements and its participation in new government-mandated insurance initiatives.
The newly released Moody’s statement said: “Furthermore, the rating upgrade reflects our expectation that Saudi Re will continue to benefit from the ongoing growth and diversification of the Saudi economy, along with government initiatives aimed at promoting growth in the local insurance sector.”
“In addition, we believe that the company’s increased capital base, the good diversification of its business, and its central role in supporting the local insurance sector enable it to withstand potential shocks that may arise. We expect the ongoing trade tensions and increased volatility in financial markets to have a limited impact on the company,” it added.
The statement further disclosed that the organization expects the firm’s strong market position, coupled with its affiliation with PIF, to support continued growth in business volumes as market opportunities expand.
It also emphasized that the company’s strong capital adequacy and consistent underwriting discipline support its ability to maintain a solid balance sheet and profitability, even amid rapid growth.
“The stable outlook reflects our expectation that Saudi Re will maintain its underwriting discipline and good profitability, while maintaining strong capital adequacy and asset quality. Factors that could lead to an upgrade or downgrade of the ratings,” the statement said.
Moody’s continued to note that increased ownership by PIF and evidence of explicit support may also contribute to a rating upgrade.
Saudi Arabia ramps up mining investment as sector outpaces global peers
RIYADH: Saudi Arabia’s mining sector is emerging as a global standout, supported by regulatory reforms, major investment, and a strong pipeline of domestic projects, a new analysis said.
In a report titled “Saudi Arabia Doubles Down on Mining,” S&P Global Ratings said the sector is poised for rapid expansion, with its contribution to gross domestic product expected to surge from $17 billion in 2024 to $75 billion by 2030, under the government’s Vision 2030 strategy.
Saudi Arabia’s mining ambitions are anchored in its substantial natural endowments and reinforced by robust government support. The country holds an estimated SR9.37 trillion ($2.5 trillion) in mineral reserves — a 90 percent increase on a 2016 forecast — thanks to new discoveries of rare earth elements, base metals, and expanded phosphate and gold deposits.
Hina Shoeb, credit analyst at S&P Global Ratings, said: “Saudi Arabia's proactive measures and substantial resources may help offset continued cost pressures and support the resilience of metals and mining companies’ credit profiles.”
The agency noted that unlike many global peers, Saudi Arabia’s metals and mining companies benefit from strong government support, a modern regulatory framework — including the Mining Investment Law — and substantial state-led investment in mega projects and infrastructure.
The number of exploitation licenses has increased by 138 percent since 2021, and exploration permits rose from 58 to 259, driven by the law’s transparency and investor-friendly policies.
Flagship state-owned enterprise Ma’aden reported SR32 billion in 2024 revenues, with a diversified portfolio spanning gold, phosphate, aluminum, and base metals. Its gold output alone reached 450,000 ounces, while phosphate production surpassed 6.5 million tonnes.
The number of exploration firms has grown from just six in 2020 to 133 in 2023. “As budgets continue to increase, the likelihood of discovering additional resources and expanding existing operations supports our view of sustainable, long-term growth of Saudi Arabia’s metals and mining industry,” the report said.
The Vision 2030 framework has driven a shift away from oil dependency, focusing instead on sectors like mining, tourism, and manufacturing.
The mining sector alone contributed about $400 million in revenues as of 2023 and is now backed by a $100 billion investment plan targeting critical minerals by 2035.
Government funding also includes a SR29 billion commitment to the Wa’ad Al-Shamal phosphate project.
Saudi Arabia’s geography offers logistical advantages with access to European, Asian, and African markets, while mega projects such as NEOM and Qiddiya are expected to drive up local demand for construction materials and high-value metals.
These projects, the report stated, “which benefit from funding and infrastructure investments, aim to reduce the country’s import costs for metals, including iron, steel, precious and semi-stones, by creating a solid domestic market for metals and minerals.”
However, the report also notes infrastructure and labor as potential bottlenecks. Many deposits are in remote desert regions lacking adequate transportation and water infrastructure.
Additionally, the sector’s expansion will require substantial investments in workforce training to avoid high labor costs from foreign recruitment.
S&P states that Saudi Arabia’s commitment to financial discipline, low debt levels in the sector, and targeted policy support position the Kingdom’s mining industry to grow sustainably — even amid volatile commodity markets.
“We expect these initiatives will spur domestic demand for metals, reduce import dependency, and over time improve the sector's operational efficiency,” S&P added.
Pakistan’s stocks, dollar bonds plunge amid investor concerns over surging tensions with India
- Pakistani stocks lose two percent of their index value at close of market, dollar bonds decline by more than four cents
- Tensions between India and Pakistan surged this week after Delhi blamed Islamabad for an attack in Jammu and Kashmir
KARACHI: Pakistan’s stocks and dollar-denominated bonds plunged in value on Thursday, which financial experts attributed to investor concerns over surging tensions between Islamabad and New Delhi.
Pakistan’s stocks shed two percent of their index value when the market closed on Thursday, as per data from the Pakistan Stock Exchange (PSX). The benchmark KSE-100 Index plummeted to 114,661 points but managed to recover some ground before closing at 115,019.81 points.
Pakistan’s dollar-denominated bonds maturing in 2036 also declined by more than four cents to 74 cents, international news agency Reuters reported, citing data from Tradeweb. Pakistani financial experts attributed the plunges to increasing investor concerns after renewed tensions between Islamabad and New Delhi.
New Delhi on Wednesday blamed Pakistan for being involved in an attack this week in Indian-administered Kashmir. Gunmen killed 26 men at a tourist site in the Anantnag district in Indian-administered Kashmir, following which India announced it was suspending its decades-old water-sharing treaty with Pakistan, among a raft of measures that included downgrading ties with Islamabad on Wednesday. Pakistan denied involvement in the attack and reciprocated with similar measures on Thursday.
“Both the KSE-100 and Nifty-50 are in the red today due to pressure from rising Pakistan-India tensions following the Pahalgam incident,” Najeeb Ahmed Khan Warsi, head of online trading at brokerage firm Foundation Securities Ltd., told Arab News.
The Nifty-50 is India’s National Stock Exchange index, representing the float-weighted average of the country’s 50 largest listed companies.
Warsi said investor sentiment remained “cautious” despite corporate earnings largely aligning with market expectations, noting that trading at Asian markets had also subdued with global recovery losing momentum amid uncertainty over the US–China tariff policy.
“Geopolitical and global economic concerns continue to overshadow market fundamentals,” he said.
Kamal Ahmed, an analyst at AKD Securities Ltd., said whenever border tensions arise, stock markets in both countries experience uncertainty. This prompts investors to take safer positions that impacts the market negatively.
“The market sentiment going forward will depend on how long this standoff lasts,” Ahmed explained. “Investors will remain cautious and the market could decline further if the situation escalates.”
Top brokerage firm Topline Securities said the plunge reflected “heightened investor caution.”
“Despite the risk-averse sentiment, overall participation remained firm with volumes clocking in at 505 million shares and a turnover of Rs24.44 billion ($87.94 million), underscoring continued investor engagement amid macro and geopolitical overhangs,” Topline Securities said in a statement.
Despite being supported by strong earnings, Pakistan’s stock index has lost 2.9 percent since Tuesday, when the attack took place. Pakistan’s stock market has been performing impressively, gaining more than 80 percent last year in both dollar and rupee terms. This surge was primarily driven by investor optimism surrounding a positive review by the International Monetary Fund, whose executive board is expected to approve a $1 billion tranche for Pakistan next month.
Further positive developments, such as global ratings agency Fitch recently upgrading Pakistan’s credit rating, are expected to support the growth of the country’s equities.
