LONDON: Supermarket group Tesco, Britain’s biggest retailer, announced Thursday a rise in sales over the key Christmas period, despite high UK inflation weighing on consumer incomes.
Total sales grew 1.8 percent in the 19 weeks to January 6 compared with the corresponding period a year earlier, Tesco said in a statement.
“Whilst inflationary pressures remain in the UK market as a whole, we have continued to work with our supplier partners to help mitigate the impact on our customers,” Tesco said.
“As a result, we have passed on less inflation to date than our competitors.”
In Britain, wages are being eroded by Brexit-fueled inflation according to recent data.
Since Britain voted to leave the EU in June 2016, a drop in sterling — making imported goods more expensive — has pushed up inflation to an annual rate of 3.1 percent.
Tesco reports higher sales over Christmas period
Tesco reports higher sales over Christmas period
Strategic reforms and cultural depth are driving Uzbekistan’s tourism boom, says official
TASHKENT: As Uzbekistan undergoes an economic transformation, tourism has emerged as both a cultural ambassador and a powerful growth engine.
At the forefront is Umid Rustamovich Shadiyev, chairman of the Tourism Committee under the Ministry of Ecology.
Formerly Uzbekistan’s Permanent Representative to UNESCO, Shadiyev brings both diplomatic experience and a deep understanding of the nation’s rich heritage.
Arab News spoke with Shadiyev during the Tashkent International Investment Forum 2025, a flagship platform bringing together global investors, policymakers, and innovators to explore Uzbekistan’s investment landscape.
Now in its fourth edition, the forum has become a cornerstone of the country’s reform agenda, highlighting strategic sectors such as energy, infrastructure, agriculture, and tourism.
This year’s event welcomed over 2,500 delegates from 70 countries, with tourism receiving special focus as a driver of inclusive and sustainable development.
Saudi-Uzbek tourism ties deepen
The conversation turned to Saudi Arabia, where tourism is undergoing a historic transformation under Vision 2030. Shadiyev praised the Kingdom’s diversification efforts, calling it “a new center of global tourism.”
Uzbekistan sees an opportunity for synergy, and a memorandum of cooperation in tourism was signed in 2022, followed by joint forums and high-level meetings in 2023 and 2024.
“Our relationship with Saudi Arabia is growing stronger each year,” said the official.
The results are visible. Saudi tourist arrivals in Uzbekistan rose from 1,731 in 2022 to over 4,100 in 2024, reflecting growing interest in cultural, gastronomic, and mountain tourism.
“There’s huge potential in developing family-oriented tours, heritage trails, and collaborative media campaigns,” Shadiyev noted.
Tourism university exchanges, journalist visits, and influencer collaborations are also being explored.
In 2025, Uzbekistan is emphasizing sustainable tourism and aims to increase the average stay of foreign visitors to 10 to 12 days. Strategic partnerships — such as with Saudi Arabia — are seen as central to achieving this goal.
Tourism emerges as economic pillar
“Tourism is currently one of the key sectors of Uzbekistan’s economy,” Shadiyev noted. “In 2024, we saw a significant leap forward: the export of tourism services increased by 1.6 times, reaching $3.5 billion.”
This performance is backed by a rise in entrepreneurship, with more than 2,000 new tourism businesses launched in the past year alone. From boutique hotels to eco-lodges and cultural tour operators, a new generation of investors is responding to supportive government policies and the sector’s strong profitability.
The transformation is evident across the country. Over the past eight years, Uzbekistan has attracted $6.5 billion in tourism-related investments and added 130,000 new hotel beds.
“These achievements reflect our commitment to building a world-class tourism ecosystem,” Shadiyev said.
A major milestone came in April, when over 1 million foreign tourists visited Uzbekistan in a single month — a national record.
Shadiyev attributes this growth to visa policy reforms, infrastructure upgrades, and active global engagement. “We’re not only opening our doors wider; we’re creating lasting experiences for visitors,” he said.
Looking ahead, Uzbekistan aims to further increase both international arrivals and tourism export volumes in 2025. The government is systematically working toward these goals by investing in digital transformation, human capital, and diversified tourism offerings.
Four seasons, one destination
Positioned at the crossroads of the Great Silk Road, Uzbekistan has long served as a bridge between East and West. Shadiyev highlighted the country’s unique geographic and cultural positioning: “We’re the heart of Central Asia — no regional tour is complete without including Uzbekistan.”
What makes Uzbekistan truly special, he said, is its year-round appeal. In spring, visitors celebrate Navruz, the festival of renewal, and explore blooming gardens, vibrant bazaars, and the historic cities of Tashkent, Samarkand, Bukhara, and Khiva.
Summer brings tourists to mountain resorts and natural lakes, rich fruit harvests, and traditional crafts festivals.
Winter offers skiing and tranquil nature retreats, while autumn is ideal for cultural immersion and warm Uzbek hospitality.
“Every season offers a new story, a new flavor,” Shadiyev said.
The country’s legacy is underscored by its many UNESCO World Heritage Sites, including Samarkand, Bukhara, and Khiva. Uzbekistan is also witnessing a boom in niche tourism markets, including ziyarat, or pilgrimage tourism, ecotourism, domestic travel, and culinary tours.
Uzbekistan’s rise on the global travel radar is also backed by international accolades.
The country was named the Most Desirable Emerging Destination by Wanderlust, UK; won the tourism in the CIS award from Russian Traveler; and was featured among the Top 25 Destinations of 2025 by both BBC Travel and The New York Times.
Gulf travelers drawn to shared culture
When asked about Uzbekistan’s appeal to Arab travelers, particularly from the Gulf region, Shadiyev emphasized deep-rooted cultural and spiritual ties.
“Our shared Islamic heritage and atmosphere of religious respect make Uzbekistan especially attractive to Gulf visitors,” he said.
Khiva’s designation as the 2024 Tourism Capital of the Organization of Islamic Cooperation reflects this connection.
Other key events include the Economic Cooperation Organization’s tourism forum in Shakhrisabz, which spotlighted opportunities in religious and cultural travel.
Uzbekistan is enhancing its appeal through substance and strategy.
A 30-day visa-free regime now applies to citizens of Saudi Arabia, the UAE, and Qatar, as well as those of Oman, Bahrain, and Kuwait.
Direct flights from Gulf capitals are expanding, and tour operators are curating experiences tailored to Arab travelers.
The country offers a rich mix of gastronomy — including signature dishes like plov, manti, and shurpa — as well as ethno-tourism experiences in traditional villages, and a vibrant calendar of music, art, and food festivals.
Uzbekistan is also rolling out a UN tourism platform and a unified tourist card integrating visa services, tickets, and discounts.
“We’re not just promoting Uzbekistan; we’re building a seamless visitor experience,” Shadiyev added.
Vision rooted in heritage and openness
As the interview concluded, Shadiyev returned to a theme central to Uzbekistan’s tourism push: openness. “We are a country that welcomes the world — with history in our stones and hospitality in our hearts,” he said.
The Tashkent International Investment Forum served as the perfect setting for this conversation, reflecting Uzbekistan’s economic momentum and its growing network of global partnerships — none more vibrant than those flourishing through tourism.
As Shadiyev put it, quoting an old proverb: “It’s better to see something once than hear about it a hundred times.”
Oil Updates — prices rise as US-China talks counter OPEC supply worries
SINGAPORE: Oil prices climbed on Tuesday as investors awaited the outcome of US-China talks that could pave the way for easing trade tensions and improve fuel demand.
Brent crude futures rose 22 cents, or 0.3 percent, to $67.26 a barrel by 09:45 a.m. Saudi time. US West Texas Intermediate crude was up 18 cents, or 0.3 percent, at $65.47.
On Monday, Brent had risen to $67.19, the highest since April 28, buoyed by the prospect of a US-China trade deal.
US-China trade talks were set to continue for a second day in London as top officials aimed to ease tensions that have expanded from tariffs to rare earth curbs, risking global supply chain disruptions and slower growth.
Prices have recovered as demand concerns have faded with the trade talks between Washington and Beijing and a favourable US jobs report, while there are risks to North American supply due to wildfires in Canada, Goldman Sachs analysts said.
US President Donald Trump said on Monday that the talks with China were going well and he was “only getting good reports” from his team in London.
A trade deal between the US and China could support the global economic outlook and boost demand for commodities including oil.
Elsewhere, Iran said it would soon hand a counter-proposal for a nuclear deal to the US in response to a US offer that Tehran deems “unacceptable,” while Trump made clear that the two sides remained at odds over whether the country would be allowed to continue enriching uranium on Iranian soil.
Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries and any easing of US sanctions on Iran would allow it to export more oil, weighing on global crude prices.
Meanwhile, a Reuters survey found that OPEC oil output rose in May, although the increase was limited as Iraq pumped below target to compensate for earlier overproduction and Saudi Arabia and the UAE made smaller hikes than allowed.
OPEC+, which pumps about half of the world’s oil and includes OPEC members and allies such as Russia, is accelerating its plan to unwind its most recent layer of output cuts.
“The prospect of further hikes in OPEC supply continues to hang over the market,” Daniel Hynes, senior commodity strategist at ANZ, said in a note.
“A permanent shift to a market driven strategy (in OPEC) would push the oil market into a sizeable surplus in H2 2025 and almost surely lead to lower oil prices.”
UAE shares end higher as outcome of US-China trade talks awaited
LONDON: Stock markets in the UAE ended higher on Monday, in step with Asian peers, as investors awaited the outcome of US-China trade talks in London in the hope that a deal could boost the global economic outlook.
Top US and Chinese officials will sit down in London on Monday for talks aimed at defusing the high-stakes trade dispute between the two super powers that has widened to export controls over goods and components critical to global supply chains.
Dubai’s benchmark index hit its highest levels since 2008 and settled up 1 percent, with almost all sectors in positive territory.
Tolls operator Salik Company gained 2.3 percent and Deyaar Development surged 14.6 percent.
In Abu Dhabi, the index was up for a third straight session and gained 0.1 percent, lifted by a 1.6 percent rise in blue-chip developer Aldar Properties and a 1.8 percent advance in Abu Dhabi’s flagship energy firm Abu Dhabi National Energy Company.
Most stock markets in the Gulf and Egypt including Saudi, Qatar, Kuwait are closed on Monday due to a public holiday.
Saudi commercial bank profits jump 16% in April, topping $2bn before zakat, tax
- Year-to-date earnings reached SR32.97 billion, an annual rise of 20%
- Banks getting balance sheets ready for next investment wave
RIYADH: Saudi Arabia’s banking sector extended its winning streak in April, posting SR7.77 billion ($2.07 billion) in pre-zakat and tax profits, a 16 percent increase compared to the same month last year.
According to the Saudi Central Bank, also known as SAMA, this brought year-to-date earnings to SR32.97 billion, an annual rise of 20 percent, keeping the Kingdom firmly on course for another record-breaking period.
The sustained momentum is attributed to a robust mix of state spending on giga-projects, resilient consumer demand, and still-elevated interest rates.
Financing volumes continue to climb, driven primarily by corporate borrowers across a growing range of industries, including manufacturing, utilities, insurance, and private education.
Contractors are also racing to secure long-term credit for giga-projects such as NEOM, Diriyah, and the Jafurah gas field.
A wider Gulf picture
Strong as those local figures are, the broader region is also gaining momentum. A Kamco Invest report released in May showed that Gulf banks collectively earned a record $15.6 billion in the first quarter of 2025, an 8.6 percent increase from a year earlier.
Financial institutions in the UAE posted the largest absolute increase, adding $639.6 million, while Saudi lenders recorded the fastest annual growth at 17.2 percent.
Kamco added that fee income is rising, costs are under control, and loan-loss provisions fell sharply during the period, cushioning a small dip in net interest income.
Investor appetite is visible in market valuations. Forbes Middle East’s “30 Most Valuable Banks 2025” March list includes 10 Saudi lenders with a combined market cap of about $269 billion— roughly one-third of the entire ranking.
Al Rajhi Bank led the pack at $105.6 billion, with Saudi National Bank following at $54.7 billion.
Global Finance named Saudi Awwal Bank the Kingdom’s best lender in its May “World’s Best Banks in the Middle East 2025” release, highlighting its HSBC-backed mobile app upgrades, Visa Direct payments, and one-stop small and medium-sized enterprises lending platform.
Cleaning the books and raising cash
Banks are also getting balance sheets ready for the next investment wave.
Bloomberg reported in March that lenders are exploring sales of older non-performing loans to specialist investors to free up capital for upcoming mega project drawdowns.
They’re also tapping capital markets. By June, they had issued over $5.6 billion in Additional Tier-1 bonds, already a full-year record and the world’s second-largest AT1 issuance in 2025, according to Bloomberg.
The spree includes Al Rajhi Bank’s $1.25 billion deal in April, Banque Saudi Fransi’s $650 million perpetual at 6.375 percent in May, Saudi Awwal Bank’s $650 million inaugural issue, and Alinma Bank’s $500 million of sustainable sukuk, all heavily oversubscribed.
By tapping eager investors now, while margins remain healthy and global demand for Gulf paper is strong, lenders are bulking up capital buffers and keeping loan-to-deposit ratios in check. That leaves them better prepared to fund the fast-rising credit needs of projects like NEOM and Diriyah without tripping liquidity alarms later in the year.
Fintech role
Fintech is reshaping Saudi banking from the ground up. The Saudi Central Bank’s Open Banking Framework — most recently updated in September to cover payment-initiation services — sets common technical rules that let lenders and start-ups plug their systems together safely and at speed.
Speaking at the inaugural 24 Fintech conference in September, Finance Minister Mohammed Al-Jadaan revealed that the Kingdom had licensed 224 fintech firms by the second quarter of 2024, up from fewer than 100 just three years earlier.
One of the newest players is Riyadh-based Stitch, which closed a $10 million seed round on May 28. The company offers a single set of application-programming interfaces that lets banks, fintechs and even non-financial brands bolt on real-time payments and open-banking functions far faster than older systems.
Early adopters already include Lulu Exchange and point-of-sale platform Foodics. The founders say the fresh cash will go toward doubling the engineering team and expanding the product suite.
Looking ahead
Riyad Capital’s first-quarter preview, released in April, expects another double-digit profit rise this year, about SR19 billion for the listed banks it tracks, as loan growth stays strong and rate cuts arrive slowly.
S&P Global, in its Saudi Arabia Banking Sector Outlook 2025 report, says a 10 percent increase in lending should outweigh a 20- to 30-basis-point dip in margins, keeping sector returns on assets near 2.1 percent to 2.2 percent.
Funding is the main watchpoint. Moody’s shifted its system outlook to stable on Feb. 25, saying strong credit growth is tightening liquidity, but capital buffers remain solid.
For now, asset-quality risks remain low. S&P expects non-performing loans to edge up to just 1.7 percent by the end of 2025, while loan-loss provisions are projected to stay around 50 to 60 basis points. Banks’ total capital ratios, hovering near 19 percent, provide a solid buffer to absorb potential shocks from falling oil prices or rising private-sector leverage.
Saudi lenders are still the region’s earnings workhorse. Profits are rising, market values are high, and fresh money — from bond buyers to venture capitalists — is flowing in. If they can keep gathering deposits quickly enough to fund a fast-growing loan book, the Kingdom’s banks look set to stay ahead of their Gulf neighbors in both profit and ambition well into next year.
Saudi carrier flynas to expand operations across 4 hubs, official says
- Hubs include Riyadh, Jeddah, Madinah, and Dammam as part of growth plan
- Carrier expanded its summer schedule, launching four new international destinations
RIYADH: Saudi Arabia’s low-cost carrier flynas is set to expand operations across its four main hubs — Riyadh, Jeddah, Madinah, and Dammam — as part of an ambitious growth plan, according to a top official.
In an interview with Al-Eqtisadiah, Waleed Ahmed, the company’s official spokesperson, said that flynas holds the largest aircraft order in the Kingdom and one of the biggest in the Middle East, with a total of 280 aircraft set to be received.
This follows a major deal signed in July with Airbus to acquire 160 new aircraft, including 30 wide-body A330neo and 130 single-aisle jets across A320neo, A321neo, and A321LR models.
The airline has seen a sharp rise in passenger traffic, with volumes climbing from around 11 million in 2023 to more than 14.7 million in 2024, reflecting the low-cost carrier’s rapid expansion in line with Saudi Arabia’s push to position itself as a leading global hub for tourism and business.
“These numbers reinforce the company’s role in supporting Vision 2030, which aims to increase the number of passengers to 330 million and attract more than 150 million international passengers by that year.” Ahmed said, as quoted by Al-Eqtisadiah.
He also highlighted that, as part of its ambitious strategic plan, flynas has expanded its summer schedule by launching four new destinations for the first time: Krakow in Poland, Geneva in Switzerland, Milan in Italy, and Rize in Turkiye, in addition to its usual summer routes.
Last week, flynas finalized its initial public offering at SR80 ($21) per share — the top of its indicated price range — following strong demand from both institutional and retail investors.
The pricing values the airline at an estimated market capitalization of SR13.6 billion at listing.
The offering followed the company’s announcement last month of its intention to float 30 percent of its share capital on the Saudi Exchange, making flynas the first airline in the Kingdom to go public and the first Gulf airline IPO in nearly two decades.
In line with its ongoing fleet expansion, flynas recently took delivery of its fourth Airbus A320neo of 2025, bringing the total number of A320neo aircraft in its all-Airbus fleet to 57. The current fleet includes 63 aircraft — 57 A320neo, four A320ceo, and two A330neo wide-body jets.
