SAN FRANCISCO: Uber CEO Dara Khosrowshahi is focused on cutting the company’s massive losses and “getting the love back” after a year of damaging revelations about the ride-hailing service’s sometimes heartless treatment of its employees, drivers, regulators and rivals.
“We strive to be and should be a brand that is as beloved as Amazon and Google,” Khosrowshahi said late Wednesday during an appearance at a Goldman Sachs technology conference. “We have a long way to go, but we have to re-earn our consumer and driver trust. Just getting the love back is a very important priority for us.”
The job is proving to be even more difficult than Khosrowshahi anticipated five months ago after Uber lured him away from online travel agency Expedia to replace its embattled co-founder, Travis Kalanick, as CEO.
Khosrowshahi inherited a mess after Uber acknowledged rampant sexual harassment within its ranks and its use of duplicitous software to thwart government regulators while dealing with the fallout from a video that captured Kalanick berating one of its own drivers.
To make matters worse, Khosrowshahi discovered that Uber had covered up a computer break-in that stole personal information about millions of riders and drivers. He also landed in the midst of a court battle that pitted Uber against a Google spinoff alleging that the ride-hailing service had conspired to steal its self-driving car technology while Kalanick was running things.
“It looked messy and it was messy,” Khosrowshahi said.
As part of the cleanup, Uber last week agreed to pay $245 million to settle the trade secrets case brought by Waymo, the company spawned by a self-driving car project started by Google. The settlement came after four days of trial testimony that included a dramatic appearance by Kalanick, who fended off accusations of orchestrating a elaborate high-tech heist during more than two hours on the witness stand.
“I thought Travis was terrific,” Khosrowshahi said. “I thought he really held up well, and spoke his mind. I think that helped us get to the settlement.”
Uber didn’t acknowledge any wrongdoing in the settlement that gave Waymo’s corporate parent, Alphabet Inc., more stock in the ride-hailing service. Google, which is also owned by Alphabet, had already accumulated Uber stock as one of the company’s early investors.
Alphabet and other investors stand to reap big gains on their stakes if Uber files for an initial public offering of stock next year, as Khosrowshahi plans. But how well Uber’s stock fares on Wall Street will likely be tied to whether the company proves it can make money — something it isn’t close to doing now.
Uber lost $4.5 billion in 2017, widening from a $2.8 billion setback in the previous year. The results released earlier this week showed Uber pared its fourth-quarter loss by 25 percent from the third quarter, a modestly encouraging sign.
Gross revenue for the year rose 85 percent over 2016, to $37 billion.
Uber’s results are difficult to decipher because it only divulges pieces of data, taking advantage of its status as a privately held company. Khosrowshahi detailed them on a conference call with investors Tuesday, and the company disclosed some data to a website called The Information.
A person briefed on the results provided some numbers and confirmed the accuracy of The Information’s story to The Associated Press on Wednesday. The person didn’t want to be identified because Uber remains a private company.
In a sign that the negative publicity surrounding its problems alienated many consumers, Uber’s share of the ride-hailing market in the US fell from 82 percent at the start of last year to 70 percent in the fourth quarter. People’s view of Uber has become “appropriately negative,” Khosrowshahi conceded Wednesday.
Those numbers underscore Uber’s tenuous position, despite its pioneering role in the ride-hailing industry that enabled it to build a substantial lead over rivals such as Lyft, said Stephen Beck, managing partner of cg42, a management consulting firm. “Their app is just a download away from people moving on to a competitor,” he said.
In his appearance, Khosrowshahi said Uber could quickly reverse its losses by retreating from less-developed markets outside the US and reducing the money it pours into expensive projects like its work on self-driving cars. That, he said, is something Uber isn’t ready to do yet.
“I am pretty confident that we can turn the knobs to make this business profitable, but it would sacrifice growth and innovation,” Khosrowshahi said.
While Uber’s losses are significant, the company appears to be on the right track under Khosrowshahi’s leadership, said Rohit Kulkarni, managing director of SharesPost, a research group focused on privately held companies. “If you draw that out further, a year from now, this could be a significant IPO waiting to happen,” he said.
Uber CEO aims to pare losses and get ‘the love back’
Uber CEO aims to pare losses and get ‘the love back’
Saudi Arabia’s MSMEs see 22.6% growth in credit facilities to $88bn: SAMA
RIYADH: Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia grew by 22.6 percent year on year in the third quarter of 2024, totaling SR329.23 billion ($87.8 billion), according to official data.
The Kingdom’s central bank, known as SAMA, revealed that 94.7 percent of these loans were provided by Saudi banks, while finance companies contributed 5.3 percent.
MSME lending represented 9.1 percent of banks’ total loan portfolios and 18.8 percent of finance companies’ credit portfolios.
The Saudi government has been actively encouraging financial institutions to allocate at least 20 percent of their loan portfolios to this critical sector, reflecting its strong and continued commitment to fostering business growth and economic diversification in line with Vision 2030.
In the third quarter, medium-sized enterprises received the largest share of credit facilities, totalling 55 percent, or SR181.05 billion.
Micro enterprises — those generating up to SR3 million in revenue with a workforce of no more than five employees — saw substantial growth, with credit increasing by 50.4 percent to SR36.14 billion, despite holding a smaller overall share.
Credit to small enterprises, which made up 34 percent of MSME financing, rose by 30.4 percent to SR112.03 billion during the same period.
The growth of SMEs in Saudi Arabia is driven by government-backed initiatives and Saudi Vision 2030’s ambitious reforms.
Key programs include Kafalah for loan guarantees, Tamweel for connecting SMEs with financiers, and the Saudi Venture Capital Co. for startup investments.
The Indirect Lending Initiative also enhances SME financing through intermediaries.
Regulatory advancements, such as the 2015 Companies Law, NIDLP, and the National Center for Privatization, have improved the business environment.
Vision 2030 aims to boost SMEs’ GDP contribution to 35 percent by enhancing productivity, developing skills, improving infrastructure, and supporting sector diversification.
Monsha’at key figures
The Small and Medium Enterprises General Authority, also known as Monsha’at, drives SME growth by improving access to financing through collaborations with financial institutions and initiatives including the Kafalah Program, which is designed to boost lending.
Monsha’at also champions entrepreneurship, supports business development with specialized training programs, and advocates for regulatory enhancements to create a more business-friendly environment.
According to its third-quarter report, Saudi Arabia saw a significant surge in commercial registrations, which grew by 62 percent year on year to 135,909, with 46.8 percent attributed to female-owned businesses.
This momentum points to MSMEs’ growing role as engines of innovation, job creation, and economic diversification, strengthening the foundation for sustainable, long-term growth.
It highlights increasing entrepreneurial activity and business confidence, with more diverse participation across industries.
The rise in female-owned businesses, in particular, reflects the success of government initiatives aimed at empowering women and fostering inclusivity in the economy, a core objective of Vision 2030.
Regionally, Riyadh led with 39 percent of new commercial registrations, totaling 53,150, followed by Makkah with 18 percent, or 24,782, and the Eastern Province with 15 percent, amounting to 19,841.
New expansion increases Riyadh airport’s capacity to 7m passengers
RIYADH: The first phase of the Terminal 1 expansion at King Khalid International Airport in Riyadh was inaugurated on Jan. 8, enhancing the airport’s capacity to accommodate up to 7 million passengers per year.
The ceremony was attended by Saudi Arabia’s Minister of Transport and Logistics Services Saleh Al-Jasser, who also serves as chairman of the General Authority of Civil Aviation.
Saudi Arabia’s aviation sector has experienced significant growth, marked by record passenger numbers, an expanding fleet, and new international partnerships—all aligning with the country’s Vision 2030 objectives.
King Khalid International Airport, in particular, has remained the top airport in the Kingdom for several months in 2024, achieving the highest compliance and operational standards. The expansion of Terminal 1 follows the completion of Terminals 3 and 4 in November 2022.
In his remarks, Al-Jasser emphasized that the phased expansion will increase Terminal 1’s annual passenger capacity from 3 million to 7 million. This development is part of a broader initiative to enhance both Terminals 1 and 2, contributing to Saudi Arabia’s Vision 2030 goals to strengthen the nation’s transportation infrastructure, improve the passenger experience, and stimulate economic growth through enhanced air connectivity.
“This expansion not only boosts the terminal’s operational capacity but also reinforces Riyadh’s role as a global hub for international travel and trade,” Al-Jasser said.
He further noted that the project would bolster tourism and economic activity while optimizing the overall passenger experience.
The newly expanded Terminal 1 features a host of modern amenities, including 38 check-in counters, 10 self-service kiosks, 26 passport control counters, and 10 automated gates. In addition, the terminal offers 24 boarding gates and 40 passport control counters in the arrivals area, complemented by 11 self-service gates designed to streamline passenger flow.
When combined with the upcoming enhancements to Terminal 2, the total capacity of both terminals is expected to reach 14 million passengers annually.
The expansion also includes upgrades to commercial spaces, air circulation systems, energy efficiency measures, and enhanced safety protocols.
Al-Jasser also highlighted the transformative potential of the recently unveiled master plan for King Salman International Airport.
The plan aims to position Riyadh as a premier global destination for events, while further establishing the city as a key player in international travel and commerce.
Ayman Abu Abah, CEO of Riyadh Airports Co., opened the ceremony by underscoring the importance of Terminal 1’s expansion. He reiterated that the project aligns with global operational standards and strengthens Saudi Arabia’s position as a vital air transport link between continents.
The inauguration event was attended by several prominent figures, including the President of GACA and the CEO of Airports Holding Company.
This expansion marks a significant milestone in Saudi Arabia’s ambitious efforts to build world-class transportation infrastructure, in line with the National Transport and Logistics Strategy outlined in Vision 2030.
Banking sector in Kuwait, Qatar and UAE to stay stable in 2025: S&P Global
RIYADH: Banks in Kuwait, Qatar, and the UAE are expected to maintain stability in 2025, supported by strong capital buffers, favorable economic conditions, and supportive government policies, according to a new analysis.
In Kuwait, S&P Global forecasts improved asset quality, driven by a stronger economy and lower interest rates.
The banking sector is well-positioned to deal with potential geopolitical stress in the region, with stronger lending growth offsetting the negative impact of lower interest rates on profitability, it added.
S&P Global’s analysis echoes the views shared by Fitch Ratings in November 2024, which stated that the standalone credit profiles of Islamic banks in Kuwait are expected to remain stable in 2025, supported by favorable operating conditions.
“After an estimated 2.3 percent contraction in 2024, we expect Kuwait’s GDP growth will rebound to 3 percent in 2025 as OPEC+ oil production restrictions are gradually eased, and project implementation and reform momentum improves,” said Puneet Tuli, S&P Global Ratings credit analyst.
The report added that accelerated reforms following last year’s political changes could improve the pace of reform and growth prospects for the economy, “which in turn would support higher lending growth for the banking system.”
According to the report, the credit losses in the Kuwaiti banking sector are approaching cyclical lows.
S&P Global added that banks are likely to resort to write-offs to limit the rise in the nonperforming loan ratio, supported by strong provisioning buffers.
The analysis further noted that banks in Kuwait operate with robust capital buffers and typically retain 50 percent or more of their profits, which supports their capitalization.
The US-based agency also highlighted that Kuwaiti banks’ funding structures benefit from a solid core customer deposit base and a net external asset position.
“Deposits from government and public institutions have experienced some volatility in the past, as these entities seek to diversify their deposits among local and foreign banks. However, we believe that government support to systemically important banks will be forthcoming if needed,” said S&P Global.
It added: “Private sector deposits from corporations and households have been stable and dominate Kuwaiti banks’ funding base.”
Qatar’s outlook
In Qatar, S&P Global expects continued strong performance for banks in 2025, driven by strong capitalization and ample liquidity. The rise in liquefied natural gas production, along with its impact on the non-hydrocarbon economy, is expected to support credit growth in the next two to three years.
The report added that local funding sources will play an increasing role in supporting credit growth among Qatari banks, driven by slower public sector deleveraging.
S&P Global also noted that the Qatari government’s strong support for its banking sector is expected to mitigate the risk of external debt outflows in the event of escalating geopolitical risks.
“Geopolitical tensions in the Middle East are high but we currently do not expect a full-scale regional conflict, and we anticipate macroeconomic conditions in Qatar will remain broadly stable,” said S&P Global Ratings credit analyst Juili Pargaonkar.
Forecast for the UAE
In the UAE, S&P Global forecasts improved asset quality metrics and lower credit losses in 2025, driven by a robust domestic economy.
The agency expects banks in the emirates to maintain strong capital buffers, robust funding profiles, and continued government support in 2025, which will underpin their resilience.
The analysis also noted that banks in the UAE have experienced a significant increase in deposits over the past three years, which will help sustain their strong growth momentum in 2025.
“Deposit growth has improved in recent years as private corporations and retail depositors prioritized saving over spending, and higher interest rates provided better yields on deposits,” said S&P Global.
It added: “We expect strong deposit growth to continue through 2025, given the non-oil economy remains supportive, leading to stronger cash flow generation from corporations.”
Saudi domestic tourism driving travel sector growth, Almosafer CEO says
RIYADH: Saudi Arabia’s domestic tourism is fueling a significant expansion in the Kingdom’s travel sector, with domestic bookings now making up over 40 percent of Almosafer’s overall travel market, according to CEO Muzzammil Ahussain.
This growth is underscored by a 45 percent year-on-year increase in domestic flight bookings in 2024, alongside a 39 percent rise in room night bookings, according to Almosafer’s latest travel trend report, released during the third Saudi Tourism Forum held in Riyadh.
The surge is linked to the country’s expanding tourism offerings and enhanced connectivity through low-cost carriers, with family and group travel seeing a particular boost, rising over 70 percent, the report added.
“The country has invested heavily in creating offerings and events to support domestic tourism,” Ahussain told Arab News on the sidelines of the event. “We see continued strength and sustainability in this, so we remain focused on domestic tourism.”
Almosafer, a Saudi travel company and part of Seera Group, is benefiting from this trend as domestic tourism becomes more sustainable. “In the report, over 40 percent of all of our bookings are now domestic,” Ahussain explained. “That doesn’t mean international travel is slowing down; overall travel is growing.”
He said flight prices dropped 7 percent year on year, prompting higher spending in destinations. “People are spending more on hotels, staying longer, and spending on experiences and events,” Ahussain said. “So overall, total spend is increasing.”
Despite the growth, challenges remain. Almosafer CEO said that the limited hotel supply during peak times, such as Riyadh season, leads to higher rates and makes it difficult for travelers to find accommodations.
“We’ve already seen a number of initiatives to improve hotel capacity and rooms across the country,” Ahussain said, adding that such improvements would make domestic tourism more attractive at all levels, from luxury to economy.
The company’s ongoing efforts to enhance partnerships with regional authorities and airlines are also key to this growth, and Almosafer said it collaborates closely with the Saudi Tourism Authority and regional bodies like the Aseer Investment Authority.
“We’ve had a number of signings at the Saudi Tourism Forum with different authorities from around the country to promote and market key destinations,” he added.
Ahussain also highlighted the strong partnerships Almosafer has with low-cost carriers like flynas and flyadeal, as well as its new partnership with Riyadh Air, which is set to launch later in 2025.
Looking ahead, Ahussain is optimistic about the impact of global events, such as Expo 2030 and the 2034 FIFA World Cup, on the Kingdom’s tourism sector. “These projects and events, as we saw with Expo 2020 Dubai, help build a brand for a city or country, and that brand creates awareness,” Ahussain said.
He continued: “When people come, whether domestically or internationally, we are working to build a foundation that supports them throughout their travel — before, during, and after these events.”
Almosafer is also preparing for an initial public offering as part of its long-term strategy, with a target IPO date in 2025 or 2026.
“In November 2023, Seera Group announced that Almosafer would be targeted for an IPO in two to three years,” he said.
“We’re still on track with that plan and working toward it.”
With domestic tourism growing rapidly, Almosafer is enhancing its digital offerings through partnerships aimed at streamlining travel services.
During the forum, Almosafer signed a memorandum of understanding with the Saudi Tourism Authority to integrate digital platforms, enhancing access to travel services.
Ahussain explained that the partnership also aimed to improve Sara Al, the smart guide for Saudi tourism, by adding booking services for flights and accommodations.
Egypt’s inflation drops to 23.4% in December amid falling food prices
- Banking sector shows strong resilience with record capital adequacy
RIYADH: Egypt’s annual inflation rate slowed to 23.4 percent in December 2024, down from 25 percent in November, according to figures from the Central Agency for Public Mobilization and Statistics.
The consumer price index for the country stood at 239.7 points in December, reflecting a deceleration largely driven by a drop in food prices.
Key food categories saw notable price decreases, with vegetables falling by 14 percent, dairy products, cheese, and eggs decreasing by 0.7 percent, fish and seafood dropping by 0.6 percent, and meat and poultry experiencing a slight reduction of 0.1 percent.
However, other sectors showed price increases, putting upward pressure on the overall inflation rate.
For example, telephone and fax services surged by 11 percent, fruit prices rose by 7.5 percent, and medical products, devices, and equipment saw a 5.5 percent increase.
Other notable price hikes included postal services (up 3.6 percent), hotel services (up 3.2 percent), and recreational and cultural services (up 2.8 percent).
Meanwhile, costs for telephone and fax equipment grew by 2.6 percent, while actual housing rentals increased by 1.6 percent. Hospital services saw a rise of 1.4 percent, with furniture, carpets, and floor coverings up by 1.3 percent.
Smaller price increases were recorded in oils and fats, electricity, gas, and fuel materials (up 0.7 percent), transportation services (up 0.5 percent), and basic foodstuffs like grains and bread (up 0.3 percent). Sugar and sugary foods, as well as private transportation costs, also saw slight increases of 0.2 to 0.3 percent.
Banking sector
Egypt’s banking sector continues to demonstrate stability and resilience, playing a vital role in maintaining the country’s economic, financial, and monetary stability, according to the Central Bank of Egypt’s latest Financial Soundness Indicators.
The sector’s capital adequacy ratio reached 19.1 percent by the end of Q3 2024, comfortably surpassing the regulatory minimum of 12.5 percent. This marks a 0.5 percent improvement from the previous period, highlighting the sector’s growing financial health.
In terms of asset quality, nonperforming loans represented just 2.4 percent of total loans, with provisions coverage for these loans standing at a strong 87.4 percent.
Liquidity levels remained robust, with local currency liquidity at 32.1 percent and foreign currency liquidity at 77.7 percent, well above the regulatory requirements of 20 percent and 25 percent, respectively.
The banking sector’s loan-to-deposit ratio was recorded at 61.3 percent by the end of Q3 2024, reflecting conservative lending practices. Meanwhile, profit margins remained impressive, with a return on equity of 32.2 percent for the 2023 fiscal year.
