DUBAI: Abu Dhabi carrier Etihad Airways on Wednesday launched an initiative that allows customers to book and pay for flights in monthly installments.
Etihad on Wednesday said it has partnered with online payment service provider Payfort for the scheme, wherein travelers who book through the carrier’s website can choose to pay for their flight tickets via installment ranging from three to 60 months. The carrier said 17 banks in the region are participating in the initiative.
The initiative was designed to assist low to medium income travelers and families by empowering them with the ability to book travel without the burden of having to pay for it up front, Justin Warby, the Vice President for Digital Strategy and Innovation fo Etihad Airways, said.
“We’re taking a global outlook and bringing best practice to the region. … This is perhaps an example of the most intuitive use of technology we can provide as an airline,” Warby said.
Abu Dhabi’s Etihad Airways offers installment payment plan for flights
Abu Dhabi’s Etihad Airways offers installment payment plan for flights
Saudi Arabia approves FY2025 budget, forecasts $27bn deficit amid expansionary spending
RIYADH: Saudi Crown Prince Mohammed bin Salman on Tuesday approved Saudi Arabia’s fiscal year 2025 budget, which projects revenue of SR1.18 trillion ($315.73 billion) and expenditures of SR1.28 trillion, resulting in a deficit of SR101 billion ($27 billion).
The budget reflects a significant expansionary approach as the Kingdom continues to pursue its economic diversification goals under Vision 2030.
The Ministry of Finance’s budget document also forecasts Saudi Arabia’s GDP growth will accelerate to 4.6 percent in 2025, a sharp increase from the 0.8 percent growth estimated for 2024.
In a statement following the weekly Cabinet session, Crown Prince Mohammed bin Salman emphasized the government’s ongoing efforts to strengthen the Kingdom’s economic base. “We will continue to work on expanding the economic base and enhancing the Kingdom’s financial position,” he stated.
He also highlighted the pivotal role of Saudi Arabia’s sovereign wealth funds—the Public Investment Fund and the National Development Fund—in driving economic stability and achieving Vision 2030 objectives. “These funds are essential to diversifying the economy and supporting long-term investments,” he said.
The total public debt is expected to reach SR1.3 trillion by 2025, equivalent to 29.9 percent of GDP, while government reserves are projected to stand at SR390 billion. Tax revenue is forecasted to increase by 4 percent to reach SR379 billion, making up approximately 32 percent of total revenues. Inflation is expected to average 1.9 percent over the next three years, slightly higher than the 1.7 percent forecast for 2024.
The Kingdom’s fiscal outlook also includes projections for steady deficits over the medium term, with the 2026 and 2027 deficits forecasted at SR130 billion and SR140 billion, respectively. Revenues are expected to grow steadily, reaching SR1.2 trillion by 2026 and SR1.29 trillion by 2027.
In terms of sector-specific allocations, defense remains a top priority, with the military sector receiving SR272 billion, a 5 percent increase compared to 2024. Health and social development are also key areas of focus, with SR260 billion allocated to these sectors.
The budget underscores the government’s commitment to enhancing public services and improving living standards, while also ensuring that the economy remains resilient to both domestic and global challenges.
The crown prince also reaffirmed the government’s commitment to fiscal reforms that have already improved Saudi Arabia’s credit ratings. While the projected deficit for 2025 signals short-term fiscal challenges, the government is focused on ensuring long-term economic sustainability.
He noted that this year’s budget will continue to prioritize economic diversification, with significant emphasis on empowering the private sector and fostering growth in small and medium-sized enterprises.
The crown prince stressed that, despite global economic uncertainties, Saudi Arabia is well-positioned to navigate external challenges and play an increasingly central role in regional and global economic stability.
“Our economy is well-prepared to overcome challenges,” he said.
He also emphasized the importance of long-term financial planning to maintain momentum on Vision 2030 initiatives, underscoring the government's focus on spending efficiency and transparent execution of the budget to meet its strategic goals.
Closing Bell: Saudi main index closes in red at 11,736
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, with the index shedding 51.65 points to close at 11,736.07.
The total trading turnover of the benchmark index was SR5.15 billion ($1.37 billion) with 54 of the listed stocks advancing, while 179 declined.
The Kingdom’s parallel market Nomu also slipped by 0.85 percent to 30,602.83, while the MSCI Tadawul Index inched down by 0.22 percent to 1,474.39.
The best-performing stock on the main market was Riyadh Cables Group Co., with its share price surging by 7.56 percent to SR128.
Media giant MBC Group’s share price soared by 6.83 percent to SR50.80, while the stock price of Elm Co. increased by 4.03 percent to SR1,105.
Conversely, the share price of Jadwa REIT Saudi Fund slipped by 5.12 percent to SR10.38.
On Nomu, the top gainer was Miral Dental Clinics Co. The firm’s share price increased by 14.63 percent to SR113.60.
In announcements, the Saudi Investment Bank stated that it has completed the debut offering of its $750 million dollar-denominated Tier 1 Sustainable Sukuk, issued under its $1.5 billion Additional Tier 1 Sukuk Program.
The bank confirmed that the offering will be settled on Nov. 27, and the sukuk will be listed on the London Stock Exchange’s International Securities Market.
SAIB’s share price rose by 0.57 percent on Tuesday, closing at SR14.04.
Saudi Reinsurance Co. announced that it has received approval from the Kingdom’s Capital Market Authority to increase its capital by offering 26.73 million shares, while suspending preemptive rights, at a value of SR427.68 million.
The reinsurance firm’s share price increased slightly by 0.11 percent to SR45.50.
Tamkeen Human Resources Co. stated that it will begin trading on Saudi Arabia’s main market on Nov. 27.
The daily and static fluctuation limits for the company’s stocks will be set at 30 percent and 10 percent, respectively, during the first three days of trading.
From the fourth day, the daily price fluctuation limits will revert to ±10 percent, and the static price fluctuation limits will no longer apply.
Saudi Arabia clinches 3rd-term presidency of Arab States Aviation Security Committee
JEDDAH: Saudi Arabia has been awarded the presidency of the Aviation Security Committee for a third consecutive term following a unanimous vote by member states.
The announcement was made during the recent 40th committee meeting held at the Arab Civil Aviation Organization’s headquarters in the Moroccan capital, Rabat.
The result underscores the Kingdom’s pivotal role and constructive efforts in dealing with regional and global developments in the aviation industry, according to the Saudi Press Agency.
It also underlines the Kingdom’s international standing in forums related to civil aviation and its engagement in specialized international organizations in the field.
Commenting on the reappointment, the General Authority of Civil Aviation’s executive vice president Mohammed Al-Fozan – who also serves as chairman of the Cooperative Aviation Security Program in the Middle East – underlined the significance of enhancing collaborative Arab efforts in aviation transportation security.
He also spoke of the importance of maintaining continuous communication to uphold the highest safety standards.
The vice president explained that Saudi Arabia, a member of ACAO since its creation in 1996, has been working to support the international organization’s efforts through active participation, coordination, and involvement in its corporate structures, the executive council, and its technical committees.
He assured that the Kingdom will continue its efforts to develop and support the Arab League-affiliated organization, enhance its international leadership role, and collaborate with stakeholders to strengthen the industry.
The Kingdom’s civil aviation sector saw a 17 percent annual increase in the first half of 2024 as it reached 62 million passengers, driven by rising domestic and international travel demand.
According to GACA, the period also saw 446,000 flights, a 12 percent rise compared to 2023.
Additionally, air cargo traffic at the country’s airports surged by 41 percent, reaching 606,000 tonnes during the same period.
These developments support Saudi Arabia’s aviation goals, which include tripling annual passenger numbers to 330 million, expanding connectivity to over 250 destinations from its 29 airports, and increasing air freight capacity to 4.5 million tons annually by 2030.
According to GACA, Saudi Arabia remains committed to supporting global civil aviation through various programs and initiatives.
This includes deploying experts to work with specialized bodies, hosting the permanent headquarters of the International Civil Aviation Organization’s CASP-MID, and housing the permanent hub of the Regional Safety Oversight Organization for the Middle East and North Africa.
SPA also highlighted the Kingdom’s $1 million contribution to ICAO under the “No Country Left Behind” initiative.
Saudi Arabia signs over $9.3bn in deals to boost supply chain resilience
RIYADH: Saudi Arabia has signed nine major agreements valued at SR35 billion ($9.31 billion) during the Global Supply Chain Resilience Initiative forum in Riyadh. The deals aim to enhance global trade connectivity and diversify the Kingdom’s economy.
The agreements span key sectors, including copper smelting, aluminum production, and rare earth processing. These projects align with GSCRI’s goal of attracting SR150 billion in export-focused investments by 2030. Saudi Arabia’s significant progress in logistics is reflected in its 17-place jump to 38th position in the World Bank’s 2023 Logistics Performance Index.
Key agreements
Notable agreements include ventures in copper smelting, refining, and rod production with Vedanta; titanium projects with Advanced Metals Industries Cluster and Tasnee; and rare earth processing facilities with Hastings. Other key deals involve semi-finished aluminum plants with Red Sea Aluminum and an aluminum foil rolling plant with Tahweel.
Further investments include zinc smelting opportunities with Moxico, a platinum group metals smelter and base metals refinery with Ajlan & Bros and Platinum Group, and lithium carbonate extraction along with a copper refinery project with Zijin Group.
One of the highlights of the forum is the signing of a deal to establish a state-of-the-art manufacturing facility with GlassPoint, marking the first step toward building the world’s largest industrial solar thermal project.
Strategic vision
Saudi Investment Minister Khalid Al-Falih emphasized that while globalization is ongoing, it is evolving into a new phase characterized by regionalization and the clustering of supply chains. “In the future, supply chains will be centered around where raw materials, energy, human resources, and capital coexist in an enabling business environment,” he said.
Al-Falih also highlighted the important roles of companies backed by the Public Investment Fund (PIF), such as Manara and Alat, in advancing sectors like mining and digital manufacturing.
Industrial and mining growth
Minister of Industry and Mineral Resources Bandar Alkhorayef reaffirmed Saudi Arabia’s ambition to become a leading industrial player on the global stage. “The country is focused on expanding its industrial base, entering new sectors, and playing a key role in global challenges, particularly in mining,” he stated.
As part of this vision, the Ministry of Industry and Mineral Resources has announced the qualification of both local and international firms to compete for exploration licenses in key mineralized areas, including Jabal Sayyad and Al-Hajar, which cover a combined 4,788 square kilometers. Eligible companies include Zijin Mining Group, Hancock Prospecting, and First Quantum Minerals.
Enhancing supply chain resilience
Minister of State Hamad Al-Sheikh underscored Saudi Arabia’s commitment to strengthening its logistical infrastructure and enhancing global supply chain resilience. He outlined several national strategies aimed at attracting both local and international investment, including the National Industrialization Strategy, the National Investment Strategy, the National Transportation and Logistics Strategy, and the National Agricultural Strategy.
However, Al-Sheikh also cautioned about the challenges posed by shifting market dynamics, geopolitical influences, and environmental considerations. “We must remain aware of the challenges arising from rapid changes in the global supply chain landscape,” he warned.
Aviation industry and logistical stance
President and board chairman of Boeing Saudi Arabia Asaad Al-Jomoai also took part in the event. His speech mainly focused on the Kingdom’s advancements in the aviation industry as well as its logistical positioning.
With regards to air mobility and environmental concerns, Al-Jomoai highlighted that Boeing has pledged that by the end of the decade, all its commercial jetliners will be compatible with sustainable aviation fuel.
“We think that the PSAF, which is producing sustainable aviation fuel using renewable energy, since the Kingdom has second-to-none infrastructure when it comes to the cost of renewable, I think that is a super attractive value proposition for companies like the Boeing Co. to look into sourcing PSAF down the road from the Kingdom of Saudi Arabia,” he said.
When it comes to Saudi Arabia’s logistical positioning, the chairman added: “We are at the crossroads of three continents, also at the crossroads of leading trade routes and energy flows and we also have very strategic and competitive energy landscape, both hydrocarbon and renewable energy in addition to world-class physical and digital infrastructure.”
Al-Jomoai further highlighted that the nation is leading the way in digitizing its government processes.
“The fiscal and monetary stability that the Kingdom offers investors is very rare around the world. I’d like to also highlight that the currency exchange has been fixed for the US dollar for a very long time, which gives certainty for many, many investors that we meet and that we engage with,” he said.
Launched in October 2022, the GSCRI initiative aims to position Saudi Arabia as a global supply chain hub by capitalizing on its strategic advantages and mitigating the impact of global disruptions. This initiative is an integral part of the ongoing 28th World Investment Conference in Riyadh, which continues until Nov. 27.
India’s Vedanta Copper to invest $2bn in Saudi mining sector
RIYADH: Saudi Arabia’s Ministry of Investment and Ministry of Industry and Mineral Resources have joined forces with Vedanta Copper International, a subsidiary of India’s Vedanta Ltd., to develop $2 billion worth of copper projects in the Kingdom.
The collaboration, formalized through a memorandum of understanding, represents a significant step toward advancing Saudi Arabia’s Vision 2030, which seeks to diversify the country’s industrial and mineral resources sectors.
The investment will focus on the construction of a 400,000-tonnes-per-year copper smelter and refinery, as well as a 300,000-tonnes copper rod production facility. These projects will be located in Ras Al-Khair Industrial City and are intended to reduce Saudi Arabia’s reliance on copper imports, addressing the Kingdom’s growing demand for the metal.
Currently, Saudi Arabia imports most of its annual copper requirement of 365,000 tonnes, a figure expected to more than double by 2035. This partnership will help bridge that gap and strengthen the Kingdom’s domestic copper supply.
In a broader context, these initiatives align with Saudi Arabia’s goal of unlocking its vast, untapped mineral resources, which are estimated to be worth $1.3 trillion. The country aims to increase the mining sector’s contribution to its GDP from $17 billion to $64 billion by the end of the decade.
The projects also support Vision 2030’s broader industrial diversification goals, which are focused on reducing the Kingdom’s dependence on oil revenues and fostering growth in non-oil sectors.
“We are excited and honored to collaborate with the Kingdom of Saudi Arabia in its Vision 2030 initiative,” said Chris Griffith, CEO of Base Metals at Vedanta Ltd.
“Our projects will enhance the Kingdom’s self-reliance in the copper supply chain. Saudi Arabia has been a leader in oil exploration for decades, and now, under visionary leadership, it is ready to tap into its untapped mineral potential, as it embraces the 4th Industrial Revolution.”
Vedanta Copper has already welcomed senior officials from Saudi Arabia’s Ministry of Industry and Mineral Resources, as well as the National Industrial Development Center, to its operations in India. These visits have paved the way for further high-level discussions and planning.
The first phase of the project will involve the construction of a 125,000-tonnes-per-year copper rod mill, requiring an investment of approximately $30 million. Vedanta has confirmed that all necessary approvals have been obtained, land has been acquired, and technology orders have been placed. Construction is expected to begin soon, with commercial production slated to start by the fourth quarter of fiscal year 2025-26.
Beyond the copper rod mill, Vedanta’s broader investment in copper smelting, refining, and rod manufacturing is expected to generate thousands of new jobs and stimulate the development of hundreds of downstream industries in Saudi Arabia.
Over the long term, these projects are projected to contribute approximately $19 billion to the Kingdom’s gross domestic product while helping achieve its goal of self-sufficiency in copper production.
