SINGAPORE: Singapore Airlines said Thursday it had ordered 39 Boeing passenger planes worth $13.8 billion as it seeks to expand its capacity in the face of growing competition.
The carrier said it had signed a letter of intent with the US manufacturer for 20 of its 777-9s and 19 of its 787-10s, with options for six more of each aircraft, bringing the total to 51 if exercised.
“Today’s major order for widebody aircraft enables us to continue operating a modern and fuel-efficient fleet, providing the SIA Group with additional expansion opportunities to ensure that we retain our industry-leading position,” chief executive Goh Choon Phong said in a statement.
“This order is also another demonstration of our commitment to further growing the Singapore hub, as we will be able to offer even more travel options for our customers.”
The 787-10s, powered by Rolls-Royce Trent 1000 engines, are due to be delivered in the 2020/21 financial year, while the 777-9s, fitted with General Electric’s GE9X engines, are scheduled to arrive in 2021/22.
SIA has a fleet of 182 planes across five brands which include the main airline, regional wing SilkAir, medium- to long-haul budget carrier Scoot and low-cost arm Tiger Airways, as well as its cargo business.
Aviation analyst Shukor Yusof said the deal was SIA’s attempt to move into its next stage of growth.
“The new Boeing 787 aircraft are likely to be given to Scoot and Tiger Airways, which will be used for shorter journeys around the region,” said Shukor of Malaysia-based aviation consultancy Endau Analytics.
He said the 777-9s will complement the airline’s fleet of Airbus A350s, which it uses for non-stop flights to San Francisco.
SIA has been facing tough competition from Middle Eastern carriers on long-haul routes and budget airlines within the region.
On Tuesday it said it booked a net profit of Sg$177 million ($125 million) in the third quarter to December, down 35.6 percent year on year, and warned 2017 would be “another challenging year.”
SIA pointed to “tepid global economic conditions and geopolitical concerns, alongside market headwinds such as overcapacity and aggressive pricing by competitors.”
It also said “loads and yields for both the passenger and cargo businesses are projected to remain under pressure.”
SIA shares closed at Sg$9.94 Thursday, up 1.43 percent from the previous day. The orders were announced after the market closed.
Singapore Airlines in $13.8 bn Boeing deal
Singapore Airlines in $13.8 bn Boeing deal
Closing bell: Saudi main index rises to 12,002; trading turnover at $1.96bn
- Parallel market Nomu gained 474.42 points to close at 25,919.34
- MSCI Tadawul Index increased by 6.87 points to 1,503.56
RIYADH: Saudi Arabia’s Tadawul All Share Index rebounded on Tuesday, as it gained 41.96 points, or 0.35 percent, to close at 12,001.63.
The total trading turnover of the benchmark index was SR7.34 billion ($1.96 billion), with 144 of the listed stocks advancing and 81 declining.
The Kingdom’s parallel market Nomu gained 474.42 points to close at 25,919.34, while the MSCI Tadawul Index also increased by 6.87 points to 1,503.56.
The best-performing stock on the main market was CHUBB Arabia Cooperative Insurance Co. The firm’s share price surged by 8.17 percent to SR45.
Other top performers were Saudi Public Transport Co. and Fawaz Abdulaziz Alhokair Co., whose share prices soared by 6.06 percent and 5.74 percent to SR23.12 and SR13.64, respectively.
The worst performer on the main index was Al-Baha Investment and Development Co. as the firm’s share price slipped by 8.57 percent to SR0.32.
On the announcements front, Al Rashid Industrial Co. said it completed the purchase deal worth SR9.2 million for the facility site of the International Factory for Jewel Boxes in Qassim 1st. Industrial City.
According to a Tadawul statement, the entire purchase was self-financed and said that the deal was part of the company’s expansion plans to increase production capacity and market share in the packaging industry, both locally and internationally.
The company added that the financial impact of the deal is expected to be visible in 2025.
Al Rashid Industrial Co.’s share price climbed 2.40 percent on Tuesday to SR42.70.
Almuneef Co. for Trade, Industry, Agriculture, and Contracting announced that it signed a contract valued at SR3.75 million with National Agricultural Development Co. to purchase 1,500 tons of first-generation certified wheat seeds for 2024.
The firm said that the financial impact of the four-month contract will be visible in the company’s fiscal performance in the fourth quarter of this year.
The share price of Almuneef Co. for Trade, Industry, Agriculture, and Contracting edged up by 0.78 percent to SR51.90.
SVC invests $15m in Vision Ventures to fuel startups
RIYADH: Startups in the Kingdom are set to benefit after Saudi Venture Capital Co. committed $15 million to Saqr 2 Fund, which targets early-stage investments across the region.
The $90 million fund, managed by Saudi-based Vision Ventures, targets businesses from pre-seed to pre-series B stages, spanning various sectors in the Kingdom and the broader Middle East and North Africa region, according to the Saudi Press Agency.
Nabeel Koshak, CEO and board member of SVC, said: “The investment in Vision Ventures’ venture capital fund is part of our fund investment program.”
He added: “It aligns with our strategy to stimulate the establishment of funds that invest in Saudi startups and small and medium-sized enterprises at various growth stages. Additionally, we aim to encourage these funds to provide added value to the startups and SMEs.”
Vision Ventures, a key player in the venture capital ecosystem, expressed confidence in the collaboration.
“SVC’s continued commitment to our venture capital funds is a privilege for us,” said Kais Al-Essa, co-founder and CEO of Vision Ventures, adding: “We are proud to have SVC as a key investor in our funds once again, reaffirming the company’s ability to provide investors with exceptional performance and returns, attracting investors alongside other leading institutional investors like SVC.”
This investment is part of SVC’s broader initiative to stimulate venture capital activity in Saudi Arabia and foster the growth of startups and SMEs in the region.
Deals worth $28bn across various sectors expected at FII8, says Attias
RIYADH: Deals worth $28 billion are expected to be announced at this year’s Future Investment Initiative, said FII Institute CEO Richard Attias.
He was speaking at a press conference held in Riyadh on Tuesday to announce details about the eighth edition of the conference.
Attias said the event will bring together entrepreneurs and startups from around the world and serve as a bridge of communication between them.
The summit is committed to fostering positive change through effective solutions across various domains, including global connectivity, mining, AI, health-tech, sports, circular economy, food, economies of the future, art, culture, and other key areas.
Saudi Arabia, Italy enhance mining ties through investment talks
- Official trip aims to bolster industrial and mining cooperation and explore joint opportunities aligned with the Kingdom’s National Industrial Strategy
JEDDAH: Saudi-Italian mining relations are set to strengthen following meetings between senior officials in Rome focused on sustainable solutions, clean energy, and attracting investment to the Kingdom’s expanding exploration sector.
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef commenced his three-day visit on Oct. 14, meeting with Italy’s Minister of Environment and Energy Security Gilberto Pichetto Fratin.
The meeting, attended by Prince Faisal bin Sattam bin Abdulaziz, Saudi ambassador to Italy, and Saleh Al-Sulami, CEO of the National Industrial Development Center, emphasized the importance of collaborative development and the strategic partnership between the two nations across various sectors, the Saudi Press Agency reported.
The official trip aims to bolster industrial and mining cooperation and explore joint opportunities aligned with the Kingdom’s National Industrial Strategy.
This comes on the back of Saudi Arabia’s increasing non-oil exports to Italy, which reached SR2.8 billion ($747 million) in 2023, while total non-oil imports from Italy amounted to SR21.8 billion.
In a post on his X account, Alkhorayef said: “At the beginning of my visit to Italy, I met the minister of environment and energy security, and we talked about the important partnership between Saudi Arabia and Italy in various sectors.”
He underscored the “mutual desire” to strengthen collaboration for the benefit of both countries.
During the talks, Alkhorayef outlined the promising prospects within the Kingdom’s mining sector, detailing all stages from exploration to processing. He highlighted Saudi Arabia’s untapped mineral resources, estimated at approximately $2.5 trillion, and emphasized the availability of 80 years’ worth of geological data to support informed investment decisions.
The minister also explored opportunities to enhance collaboration, share expertise, and attract joint investments in renewable energy, stressing the need for improved supply chain integration to meet local, regional, and global demands. He encouraged Italian companies to expand their operations in the Kingdom, urging the private sector to leverage significant developmental projects.
Alkhorayef extended an invitation to Fratin to attend the International Mining Conference in Riyadh in early 2025, anticipating substantial participation from Italy given its crucial role in the global mining sector.
The Italian Ministry of Environment and Energy Security expressed its commitment to supporting the transition to a low-carbon economy while promoting sustainable mineral resource management, SPA reported.
On the same day, Alkhorayef engaged in bilateral meetings with major Italian and global companies, focusing on localizing electric vehicle manufacturing opportunities, enhancing cooperation in the aviation and shipbuilding sectors, and exploring smart manufacturing solutions.
Discussions highlighted the unique opportunities presented by 12 strategic sectors central to the National Industrial Strategy and incentives designed to attract global investors, facilitating value creation for the national economy.
In his meeting with the founder and CEO of Swiss electric vehicle manufacturer Piech, Alkhorayef discussed the potential for transferring advanced automotive manufacturing technologies to the Kingdom.
He emphasized the country’s commitment to nationalizing this industry, referencing the Lucid project, which aims to produce 155,000 electric vehicles annually by 2027, and the Ceer company, targeting 170,000 vehicles by 2034.
The minister outlined Arabian Tiger Holding Co.’s plans to localize aviation manufacturing technologies in the Kingdom during discussions with its CEO, focusing on establishing a facility for aircraft component production after acquiring Piaggio Aerospace, a leader in commercial and drone aircraft.
Alkhorayef also met with officials from Fincantieri, an Italian shipbuilding firm, to explore collaboration in the maritime industry, addressing all stages of the value chain from design to delivery.
In a meeting with the international market director at AlmavivA, he discussed the latest automation solutions for industrial facilities aimed at enhancing productivity and promoting smart manufacturing cooperation between the Kingdom and Italy, with a particular focus on integrating robotics into manufacturing processes.
Alkhorayef also engaged in talks with Yousef Al-Mimni, vice chairman of the Saudi-Italian Business Council, commending the Council’s role in strengthening trade and economic ties between the Kingdom and Italy.
He encouraged Italian private sector companies to invest in promising sectors in Saudi Arabia, particularly in industrial and mining.
Saudi-South African Business Forum sees $25m credit agreement signed to help exporters
RIYADH: A $25 million credit agreement involving the Saudi Export-Import Bank and a major South African financial institution was among the deals struck at a special business forum in Johannesburg.
The arrangement with Standard Bank Group will see companies in the Kingdom given extra funding support to trade with the African country.
The deal was signed during the Saudi-South African Business Forum, which saw 420 business leaders and officials discuss how to boost economic ties between the nations – with an emphasis on the mining sector, the Saudi Press Agency reported.
Bloomberg cited Naif Al-Shammari, Saudi EXIM’s deputy CEO, as saying that the agreement with Standard Bank Group will bolster trade links between the two countries.
Another memorandum of cooperation was signed between the Saudi Export Development Authority and Skytower Development Co.
Commerce between Saudi Arabia and South Africa was estimated at about $3.5 billion in 2023. The Kingdom also ranks first among South Africa’s trading partners in the region.
The high-level Saudi delegation attending the forum was led by the Minister of Commerce and Chairman of the National Competitiveness Center, Majid bin Abdullah Al-Qasabi, and was organized by the NCC in collaboration with the Federation of Saudi Chambers and the South African Ministry of Trade and Industry, according to SPA.
One panel at the event addressed cooperation in the mining sector, while the another discussed expanding the economic partnership between the Kingdom and South Africa in light of promising opportunities.
It also introduced the mechanisms used by relevant authorities to resolve challenges facing the business sector.
The forum also falls in line with the Kingdom’s commitment to strengthening its trade and economic relations with the African continent, which was announced by the Crown Prince and Prime Minister of Saudi Arabia at the Saudi-African Summit held in Riyadh last November.
The gathering included a presentation on the key reforms implemented to enhance the Kingdom’s competitiveness, delivered by the Vice Minister of Commerce and NCC CEO Iman bint Habas Al-Mutairi.
Al-Mutairi reviewed the positive outcomes witnessed in Saudi Arabia’s economy and business environment, such as implementing more than 820 economic reforms carried out by 65 government entities since 2016 across nine key sectors.
About 1,200 regulations and laws have been issued or updated, boosting the legal framework and contributing to making the Kingdom’s business environment one of the leading global destinations for companies and entrepreneurs.
She further underlined that Saudi Arabia allows 100 percent of foreign ownership in most business sectors and has established the Saudi Business Center, which has helped re-engineer procedures for starting and operating enterprises, reducing licensing requirements by 55 percent.
During the visit, Al-Qasabi participated in the inauguration of the operations center of SMSA Express in South Africa, which will contribute to providing logistical solutions for the business sectors in the two countries.
He also held discussions with several South African ministers, including Parks Tau of trade, industry, and competition; Stella Ndabeni-Abrahams of small business development; Patricia de Lille of tourism; and John Steenhuisen of agriculture.
Key topics included ways to strengthen trade relations, promising business opportunities in both countries, facilitating trade in goods and services, and South African companies’ participation in the Biban24 forum.
The meetings also addressed initiatives aimed at supporting and empowering small-and medium-sized enterprises and proposed collaboration in areas of common interest.
