MANILA: The 10 countries of the Association of Southeast Asian Nations (ASEAN) could form the world’s fourth largest economy by 2030 though work is needed to help small companies and reduce trade barriers, Malaysia’s Prime Minister Najib Razak said Friday.
Najib told a business forum on the sidelines of a summit of ASEAN leaders meeting in Manila that the combined size of the group’s economies will grow to $9.2 trillion by 2050.
He said more optimistic forecasts see that happening as early as 2030, turning the region into the world’s fourth-biggest economy after the US, EU and China.
As of November 2015, the region’s combined economy was nearly $2.7 trillion, ranking 7th largest in the world, he said.
Growth is crucial to ensure prosperity can be shared, Najib said. Some ASEAN members, like Singapore, are already affluent, but others, such as Myanmar and Laos, lag far behind.
The Malaysian leader urged that ASEAN members bring average tariffs to zero or near zero from the 4 percent average seen in 2015. He also decried an increase in “non-tariff barriers,” such as quotas and excessively onerous import regulations, saying the number of such measures had risen to nearly 6,000 in 2015 from about 1,600 in 2000.
Expanding e-commerce would be especially helpful to small companies. Retail e-commerce transactions in ASEAN countries currently average just over 1 percent of total retail spending, compared to more than 10 percent in developed economies, suggesting the huge potential for growth, Najib added.
‘ASEAN likely to become world’s 4th-largest economy’
‘ASEAN likely to become world’s 4th-largest economy’
UAE’s ADQ, Energy Capital partners to launch $25bn US venture
RIYADH: Abu Dhabi Developmental Holding Co., a sovereign investment entity from the UAE, and Energy Capital Partners are joining forces to establish a $25 billion energy partnership aimed at meeting power needs across 25 gigawatts of US-based projects.
The collaboration will see the UAE-based firm partner with the largest private owner of power generation and renewable energy in the US in a 50-50 venture.
This partnership will focus on developing new power generation and energy infrastructure tailored to support data centers, hyperscale cloud companies, and other energy-intensive industries.
The combined initial capital contribution from both partners is expected to reach $5 billion, according to a report from the Emirates News Agency or WAM.
A portion of the funds may also be directed toward investment opportunities in select international markets.
This strategic move is aligned with recent findings from the International Energy Agency, which forecasts the world’s electricity consumption to increase at its fastest rate in years. The surge is driven, in part, by rising demand from data centers and industrial electrification. In the US, electricity demand is expected to rise by an amount equivalent to California’s current power consumption over the next three years.
The partnership also supports predictions that global power demand from data centers will increase by 50 percent by 2027 and may grow by as much as 165 percent by 2030. This surge is largely driven by the expansion of artificial intelligence and high-density data centers.
The US Department of Energy further reports that data center load growth has tripled over the past decade and is expected to double or triple again by 2028.
In a statement, UAE Investment Minister Mohamed Hassan Al-Suwaidi, who also serves as managing director and group CEO of ADQ, emphasized the strategic importance of this collaboration. He stated: “The rapid acceleration of AI and its widespread adoption presents significant opportunities to address the growing power and infrastructure needs of data centers and hyperscalers. Meeting these power demands poses evolving challenges for governments worldwide to ensure a secure, stable, and commercially competitive electricity supply.”
“As an active investor with a strong focus on critical infrastructure and a proven ability to build long-term partnerships, we are well-positioned to address these shifting dynamics. Our partnership with ECP enables us to invest meaningfully in power generation and related infrastructure assets that will meet the growing demand for electricity, support industry progress, and help future-proof economies,” Al-Suwaidi added.
The statement further highlighted the critical need for reliable and consistent power in high-growth sectors, underscoring the necessity of nearby captive power plants to meet these demands. The partnership is designed to address these long-term needs, focusing on greenfield developments, new projects, and expansion opportunities, positioning it as a leader in power generation for the expanding US economy.
Doug Kimmelman, founder and executive chairman of ECP, remarked: “We are honored to collaborate with ADQ to provide the electricity resources required by the rapidly expanding AI and data center sector. The build-out of new power generation resources in the U.S. will necessitate significant, patient capital with a long-term investment horizon.”
Middle East airline fleet set for 5% annual surge, outpacing global growth: report
RIYADH: The Middle East’s commercial airline 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.
Tadawul approves Merrill Lynch Kingdom of Saudi Arabia as market maker for 20 listed securities
RIYADH: Saudi Exchange has approved Merrill Lynch Kingdom of Saudi Arabia to act as market maker for 20 listed securities across the main trading platform and the parallel index.
This decision allows the company to enhance market liquidity and improve price efficiency in accordance with regulations and procedures.
Merrill Lynch Kingdom of Saudi Arabia’s participation in market making is expected to contribute to greater liquidity and a more efficient trading environment, reinforcing the development of the country’s capital market.
This move aligns with the Kingdom’s ongoing efforts to attract global financial institutions and strengthen its capital markets by promoting transparency, efficiency, and investor confidence.
Tadawul’s recent initiatives, such as the introduction of the Fixed Income Market Making Framework, underscore the commitment to bolster market liquidity and efficiency.
These developments are integral to attracting both domestic and international investors, fostering a more dynamic and robust capital market environment in the Kingdom.
Among the securities listed on the main index, Merrill Lynch Kingdom of Saudi Arabia will act as a market maker for Naseej International Trading Co., ensuring a minimum presence of orders at 70 percent, maintaining a size of SR75,000 ($19,995), and adhering to a maximum spread of 0.75 percent, with a minimum value traded of 5 percent.
Similarly, it will provide services for the National Co. for Glass Industries under the same trading obligations as Naseej International Trading Co.
The National Co. for Learning and Education will have a minimum order presence of 70 percent, a minimum size of SR50,000, a maximum spread of 0.75 percent, and a minimum value traded of 5 percent.
Meanwhile, Al Hassan Ghazi Ibrahim Shaker Co. will adhere to the same market-making requirements as Naseej International Trading Co. and the National Co. for Glass Industries.
Sustained Infrastructure Holding Co. and Theeb Rent a Car Co. will also be covered under similar obligations, ensuring a minimum presence of orders at 70 percent, a minimum size of SR75,000, a maximum spread of 0.75 percent, and a minimum value traded of 5 percent.
Saudia Dairy and Foodstuff Co. will have a minimum order presence of 80 percent, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a minimum value traded of 5 percent.
Dallah Healthcare Co. will operate under the same market-making conditions as Naseej International Trading Co., while Gulf Insurance Group will have a minimum order presence of 60 percent, a minimum size of SR50,000, a maximum spread of 1 percent, and a minimum value traded of 5 percent.
Aldawaa Medical Services Co. will be subject to a minimum order presence of 80 percent, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a minimum value traded of 5 percent.
Meanwhile, Tourism Enterprise Co. will ensure a minimum order presence of 50 percent, a minimum size of SR250,000, and a maximum spread of 3 percent, with no specified minimum value traded.
On Nomu, Merrill Lynch Kingdom of Saudi Arabia was approved as a market maker for Atlas Elevators General Trading and Contracting Co., Riyadh Steel Co., Sure Global Tech Co., and Ladun Investment Co.
Additionally, the firm will provide market-making services for MOBI Industry Co., Molan Steel Co., and Fesh Fash Snack Food Production, as well as Yaqeen Capital Co. and Lana Medical Co.
For each of these securities, the firm will ensure a minimum presence of orders at 50 percent, maintain a minimum size of SR50,000, and adhere to a maximum spread of 5 percent, with no minimum value traded requirement.
Oil Updates — prices rise on demand outlook strength, weaker US dollar
LONDON: Oil prices rose on Thursday, boosted by a strong outlook for demand in the United States after fuel inventories fell more than expected, and a weaker US dollar.
Brent crude futures rose 43 cents, or 0.6 percent, to stand at $71.21 a barrel by 7:23 a.m. Saudi time, their highest level since March 3. US West Texas Intermediate crude gained 38 cents, or 0.6 percent, to $67.54.
US government data showed a higher-than-expected drawdown last week in distillate inventories, including diesel and heating oil, which fell by 2.8 million barrels, outstripping a drop of 300,000 barrels expected in a Reuters poll.
“US oil demand outlook remains healthy despite lower air travel passenger volumes,” JP Morgan analysts said in a note, adding that reduced US travel activity did not signal broader weakness in demand outlook.
Global oil demand averaged 101.8 million barrels per day, an annual increase of 1.5 million bpd, the analysts said.
US crude inventories, rose 1.7 million barrels, however, exceeding expectations for an increase of 512,000 barrels in an earlier Reuters poll.
A weaker greenback also contributed to oil gains, with the dollar on a downtrend since the end of February.
“Throughout the week, the weakness of the dollar appeared to provide some support for dollar-denominated oil prices,” said Phillip Nova senior market analyst Priyanka Sachdeva.
Oil investors stay hopeful of the prospect of the Federal Reserve easing interest rates by 50 basis points by year’s end, she added.
Global risk premiums rose after Israel launched a new ground operation on Wednesday in Gaza after breaking a ceasefire of nearly two months.
The US kept up airstrikes on Houthi targets in Yemen in retaliation for the group’s attacks on ships in the Red Sea. President Donald Trump has also vowed to hold Iran responsible for future Houthi attacks.
On Wednesday, Ukrainian President Volodymyr Zelensky said a halt to strikes on energy facilities in the war with Russia could come quickly, suggesting both sides were moving closer to a ceasefire that could lead to the easing of sanctions and the return of Russian supply to the market.
Trump’s Middle East envoy, Steve Witkoff, has said another round of talks will be held in Saudi Arabia on Sunday by Russian and US officials aiming to halt the war.
Closing Bell: Saudi main index edges down 0.7% to close at 11,709
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Wednesday, as it shed 82.97 points or 0.70 percent to close at 11,709.43.
The total trading turnover of the benchmark index was SR4.55 billion ($1.21 billion), with 66 stocks advancing and 174 declining.
The Kingdom’s parallel market, Nomu, also shed 35.29 points to close at 30,683.64. The MSCI Tadawul Index declined by 0.59 percent to 1,484.07.
The best-performing stock on the main market was United International Holding Co. The firm’s share surged by 3.49 percent to SR172.
Conversely, the share price of the Mediterranean and Gulf Insurance and Reinsurance Co. declined by 10 percent to SR20.70.
On the announcements front, several major Saudi companies released their annual financial results for the period ending Dec. 31, 2024, showcasing mixed performances across industries.
Sahara International Petrochemical Co., also known as SIPCHEM, reported a 63.74 percent decrease in net profit, reaching SR462.1 million, compared to SR1.175 billion in the previous year. This decline was primarily due to higher feedstock and raw material costs, a decline in revenue, and decreased zakat expenses during the year.
The company saw a 2.99 percent drop in its share price on Wednesday to settle at SR21.46.
Rabigh Refining and Petrochemical Co. posted a 3.15 percent decrease in net profit, reaching SR4.54 billion, down from SR4.69 billion in the prior year. The company, in a statement to Tadawul, said this decline was due to a one-time expense, lower sales and margins, and higher costs of key feedstock.
Its share price saw a 0.43 percent increase to reach SR6.93.
Meanwhile, Saudi Real Estate Co. saw a significant 218.19 percent increase in net profit to SR215.1 million, up from SR67.7 million in the previous year. The increase was primarily attributed to a 42.64 percent increase in operating profit, a 181 percent increase in the company’s share of profit from an associate and the joint venture, and a 39 percent decrease in zakat expenses recorded during 2024.
Saudi Real Estate Co.’s stock price shed 1.76 percent to reach SR25.75.
The National Shipping Company of Saudi Arabia, or Bahri, reported a 34.46 percent increase in net profit, reaching SR2.169 billion, compared to SR1.613 billion in the previous year. The growth was driven by the improvement of operational performance and global shipping rates in several business units of the group.
The company’s stock price grew 2.33 percent to reach SR30.20.
