DUBAI: Passenger traffic at Dubai International Airport passed 43 million during the first six months of the year, 6 percent higher compared with the same period last year, operator Dubai Airports said on Wednesday.
Traffic for the world’s busiest airport for international travel in June meanwhile grew at a modest 3.9 percent to 6.08 million passengers from 5.85 million passengers due to the traditionally slow month of Ramadan.
During the first six months, the top country destinations in terms of total passenger volumes were India with 5.9 million, Saudi Arabia at 3.1 million, the UK with 3.06 million, Pakistan with 2.2 million and the US with 1.56 million.
“We are pleased with the growth in the first half, and with the rush of travelers expected to hit peak at the end of school holidays later next month, we are looking forward to another quarter of positive growth,” said Paul Griffiths, the chief executive of Dubai Airports, said in a statement.
In terms of percentage growth, the top regions were South America market, with expanded 36.4 percent, followed by Eastern Europe at 28.7 percent, Asia at 18.7 percent).
The top cities by passenger volumes included London with 1.89 million passengers, Mumbai with 1.2 million, Bangkok at 1.03 million and New Delhi with 1.01 million.
“We will continue to focus on improving service quality at DXB by bringing in new experiences and services to engage and delight our customers,” Griffiths said.
Emirates airline last week said it has entered into an “extensive partnership” with budget carrier flydubai, also its sister company, which goes beyond code-sharing and includes “integrated network collaboration with coordinated scheduling.” Emirates currently operates from its own dedicated Terminal 3 and flydubai mainly operates from Terminal 2 of Dubai International.
“This is an exciting and significant development for Emirates, flydubai, and Dubai aviation,” said Sheikh Ahmed bin Saeed Al Maktoum, the chairman and chief executive of Emirates Group and the chairman of flydubai.
Dubai airport passenger traffic hits 43 million in the first half
Dubai airport passenger traffic hits 43 million in the first half
GCC, Canada discuss strengthening ties across key sectors
RIYADH: The Gulf Cooperation Council and Canada have reaffirmed their commitment to strengthening international development and investment ties following high-level talks between officials.
On Jan. 6, GCC Secretary General Jasem Al-Budaiwi met with Canadian Minister of International Development Ahmed Hussen to discuss improving bilateral cooperation.
According to a statement from the GCC Secretariat, the talks explored opportunities to deepen alliances between the economic bloc and the North American country, including education and renewable energy.
Within the GCC, countries including Saudi Arabia are actively deepening their relations with Canada, as demonstrated by the restoration of diplomatic ties in May 2023 after a five-year hiatus.
The statement from the GCC Secretariat added that the Jan. 6 discussions also addressed pressing regional and international issues, highlighting the significance of dialogue and strategic partnerships in fostering security and global stability.
“At the conclusion of the meeting, both sides reaffirmed the significance of joint cooperation to enhance sustainable development efforts at both regional and global levels, contributing to greater stability in the region and beyond,” the statement said.
At the end of December, Saudi Arabia’s Minister of Economy and Planning Faisal Al-Ibrahim held talks with Canadian Ambassador Jean-Philippe Linteau at his department’s headquarters in Riyadh, according to the Saudi Press Agency.
Economic cooperation was the focus the meeting as relations between the nations continue to progress.
Bahrain’s non-oil sector fuels 2.1% economic growth
RIYADH: Bahrain’s economy expanded by 2.1 percent year on year in the third quarter of 2024, driven by strong performance in its non-oil sectors, official data showed.
According to data from the Ministry of Finance and National Economy, non-oil sectors grew 3.9 percent during the period, accounting for 86.4 percent of real gross domestic product.
Key contributors included the information and communication sector, which surged 11.9 percent year on year, supported by increased mobile and broadband subscriptions.
Bahrain’s third-quarter growth mirrors positive trends across the Gulf Cooperation Council, with Saudi Arabia’s GDP rising 2.8 percent and Qatar’s advancing 2 percent, driven by ongoing economic diversification.
Despite these gains, Bahrain’s economy faced challenges in the oil sector, where activities contracted by 8.1 percent year on year, contributing to a 0.9 percent decline in nominal GDP.
However, non-oil sectors fared well, with the country’s financial and insurance activities performing strongly, growing by 5.8 percent, while electronic funds transfers increased by 13.7 percent year-on-year.
Manufacturing expanded by 4.2 percent, aided by higher production at the Bapco Refinery, while wholesale and retail trade grew by 2.1 percent, bolstered by a significant rise in e-commerce transactions.
In contrast, the oil sector faced headwinds due to maintenance activities at the Abu Sa’afa field and declining global oil prices. This resulted in a year-on-year contraction of oil activities by 8.1 percent in real terms, while average daily oil production from the Abu Sa’afa field fell by 11.5 percent year on year.
Trade and investment activities also presented mixed results. The current account surplus narrowed by 54.5 percent year on year to 148.6 million Bahraini dinars ($394.2 million), largely due to a 19.2 percent decline in the value of oil exports.
Non-oil exports, however, saw modest growth of 1.1 percent, with base metals and mineral products leading the category. Foreign direct investment stock increased by 3.5 percent year on year, reaching 16.5 billion dinars. The financial and insurance sector remained the dominant contributor, accounting for 67.3 percent of the total foreign direct investments.
Development projects in various sectors continued to advance during the quarter. The Bapco Modernization Program, completed in December, increased refinery capacity by 42 percent, representing the largest capital investment in Bapco’s history.
In the tourism sector, four new five-star hotels and the “Hawar Resort by Mantis” were inaugurated, enhancing Bahrain’s hospitality offerings.
The healthcare sector saw the construction of a new rehabilitation center in Al Jasra, while the Aluminum Downstream Industries Zone was launched as part of Bahrain’s Industrial Strategy.
Monetary and financial indicators reflected positive trends. The broad money supply expanded by 6.1 percent year on year, supported by a 15.6 percent increase in government deposits.
Total loans provided by retail banks grew by 4.9 percent year on year, with personal loans comprising nearly half of the total. The labor market recorded a 1.7 percent increase in the number of Bahrainis employed in the public and private sectors, reaching 153,842.
Recruitment under the Economic Recovery Plan met 98 percent of its annual target for 2024, while over 13,679 Bahrainis received training.
Bahrain’s capital markets also performed well, with the Bahrain All Share Index closing the third quarter at 2,012.77 points, a year-on-year increase of 3.8 percent. The Bahrain Islamic Index recorded even stronger growth, rising by 10.1 percent. Market capitalization increased by 2.4 percent, reaching 7.8 billion dinars.
In global competitiveness rankings, Bahrain retained its position as the freest economy in the Arab world, ranking 34th globally in the Economic Freedom of the World report.
The nation also climbed eight places to rank 30th in the IMD World Digital Competitiveness Ranking, reflecting significant progress in adopting and leveraging digital technologies.
Riyad Bank issues SR-denominated Tier 1 sukuk
RIYADH: Riyad Bank has commenced the issuance of its additional Tier 1 sukuk under its SR10 billion ($2.66 billion) Additional Tier 1 Capital Sukuk Program via a private placement in the Kingdom.
In a statement to Tadawul, the lender, one of the largest financial institutions in Saudi Arabia, said that the terms of the offer and the value of the sukuk would be determined based on market conditions.
The financial institution added that the offering, which commenced on Jan. 7, will run through Jan. 16, with a minimum subscription limit of SR250,000.
Sukuk, also known as an Islamic bond, is a Shariah-compliant debt product through which investors gain partial ownership of an issuer’s assets until maturity.
According to the statement, the bank has mandated Riyad Capital as the sole lead manager in relation to the offer and issuance of the sukuk.
The financial institution added that it will announce any other relevant material developments in due course.
The steady issuance of sukuk happening in the Kingdom falls in line with the views shared by Fitch Ratings in a report in October, which said that the distribution of these Islamic bonds is expected to grow in 2025, driven by US Federal Reserve rate cuts.
According to Fitch, interest rates are expected to be at 3.5 percent in 2025, resulting in a boost in sukuk issuances in the short term.
In December, Fitch Ratings affirmed Riyad Bank’s long-term issuer default rating at A- with a stable outlook.
The US-based agency said that the A- rating of the financial institution is attributed to the support it receives from Saudi Arabia’s government.
The report added that Saudi authorities’ strong ability and willingness to support domestic banks irrespective of size, franchise, funding structure, and level of government ownership also played a crucial role in the strong rating of Riyad Bank.
According to Fitch, an A- rating denotes expectations of low default risk and a strong ability to pay financial commitments.
In October, Riyad Bank announced that its net profit for the first nine months of 2024 reached SR7.06 billion, representing a rise of 16 percent compared to the same period of the previous year.
In December, an analysis by Kamco Invest projected that Saudi Arabia is expected to witness the greatest share of bond and sukuk maturities in the Gulf Cooperation Council region from 2025 to 2029 to reach $168 billion.
Oil Updates — prices dip as demand optimism fades
BEIJING/SINGAPORE: Oil prices eased on Tuesday, extending losses into a second consecutive session after last week’s rally, although concerns about tighter Russian and Iranian supply amid widening Western sanctions checked losses, according to Reuters.
Brent futures edged down 8 cents, or 0.1 percent, to $76.22 a barrel by 07:52 a.m. Saudi time, while US West Texas Intermediate crude fell 15 cents, or 0.19 percent, to $73.42.
Both benchmarks slid on Monday, after rising for five days in a row last week to settle at their highest levels since October on Friday amid expectations of more fiscal stimulus to revitalize China’s faltering economy.
“This week’s weakness is likely due to a technical correction, as traders react to softer economic data globally that undermines the optimism seen earlier,” said Priyanka Sachdeva, senior market analyst at Phillip Nova, referring to bearish economic news from the US and Germany.
Also dragging on oil prices is the rising supply from non-OPEC countries that, coupled with weak demand from China, is expected to keep the oil market well supplied this year.
Market participants are waiting for more data this week, such as the US December nonfarm payrolls report on Friday, for clues on US interest rate policy and oil demand outlook.
“The move higher in crude oil prices appears to be running out of momentum,” ING analysts wrote in a note.
“While there has been some tightening in the physical market, fundamentals through 2025 are still set to be comfortable, which should cap the upside.”
Worries over tightening Russian and Iranian supply amid sanctions, however, kept a floor under oil prices.
The uncertainty has translated into better demand for Middle Eastern oil, reflected in a hike in Saudi Arabia’s February oil prices to Asia, the first such increase in three months.
Money managers raised their net long US crude futures and options positions in the week to Dec. 31, the US Commodity Futures Trading Commission said on Monday.
Saudi Arabia issues $12bn 3-part bond: NDMC
RIYADH: Saudi Arabia issued a $12 billion triple-tranche bond under its Global Medium-Term Note Issuance Program, attracting strong investor demand with a total order book of $37 billion.
The offering, issued by the National Debt Management Center, was oversubscribed threefold and included three tranches: a $5 billion three-year bond maturing in 2028, a $3 billion six-year bond maturing in 2031, and a $4 billion 10-year bond maturing in 2035.
The NDMC stated that the transaction is part of its strategy to diversify the Kingdom’s investor base and meet its financing needs efficiently through international debt capital markets.
The high level of demand reflects investor confidence in Saudi Arabia’s economic strength and its long-term investment opportunities.
This issuance is part of Saudi Arabia’s broader fiscal strategy. Earlier this month, the NDMC unveiled the Kingdom’s annual borrowing plan, targeting approximately SR139 billion ($37 billion) in funding.
The plan aims to address an anticipated budget deficit of SR101 billion and refinance SR38 billion in maturing debt, reflecting Saudi Arabia’s commitment to fiscal stability as it continues its economic transformation under Vision 2030.
As part of the borrowing plan, the NDMC has been marketing international bonds in multiple tranches, with proceeds intended to cover the budget shortfall and service existing debt.
Pricing for these bonds has been benchmarked against US Treasury bonds, showcasing Saudi Arabia’s strategic approach to accessing global debt markets.
The NDMC has also been exploring diverse funding sources to support the Kingdom’s fiscal objectives.
In December, it secured a $2.5 billion Shariah-compliant revolving credit facility with a three-year tenure, arranged with both regional and international financial institutions.
This facility aligns with the NDMC’s medium-term debt strategy, aimed at diversifying funding channels while supporting Saudi Arabia’s economic growth agenda.
In January 2024, the NDMC had projected the Kingdom’s total debt portfolio to reach SR1.115 trillion by the end of the year, with financing focused on servicing debt maturities and addressing the 2024 budget deficit.
In the first half of 2024, Saudi Arabia emerged as the largest dollar debt issuer among emerging markets, excluding China, and the leading global issuer of sukuk, according to Fitch Ratings.
This surge is attributed to substantial issuances in the first half of 2024, driven by the government’s funding needs and strategic economic projects.
Fitch Ratings projected a significant increase in dollar-denominated debt issuance by Saudi Arabia in 2025 as oil revenues moderate.
The Kingdom’s debt capital market is expected to surpass $500 billion in outstanding debt in the medium term, driven by the financing of government giga-projects under Vision 2030, deficit funding, economic diversification efforts, and ongoing structural reforms.
