Airbus fights to defend A330 as order decisions loom

Imminent airline decisions on $10 billion of wide-body plane orders could influence the fate of Airbus’ A330neo even before the recently upgraded jet completes flight trials. (REUTERS)
Updated 06 March 2018
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Airbus fights to defend A330 as order decisions loom

PARIS: Imminent airline decisions on $10 billion of wide-body plane orders could influence the fate of Airbus’ A330neo even before the recently upgraded jet completes flight trials, industry sources said.
American Airlines said in January it was reviewing the Boeing 787-9 Dreamliner and shorter-range Airbus A330-900, which is in test flights before entering service this summer.
The US airline, which did not immediately respond to a request for comment, aims to buy some 25-30 wide-body jets and could make a decision in coming days, one of the sources said.
Even Boeing’s most vigorous supporters doubt Airbus would give up on the A330neo, which is key for its bottom line, but the contest marks the latest in a series of battles between Boeing’s newest long-haul jet in the air, the 787 Dreamliner, and upcoming A330neo — a market-share feud that has consumed the two planemakers for the past nine months or more.
Level, a long-haul budget carrier recently set up by British Airways owner IAG, is also closing in on an order for about 8 planes in the same segment, the sources said.
“We’ll wait and see and we’ll take advantage of whatever aircraft is available,” IAG boss Willie Walsh said on Tuesday.
Airbus has had patchy results with the latest version of its money-spinning A330, relaunched in 2014 with efficient new Rolls-Royce engines, and has made boosting sales one of its top priorities this year.
A330 family output has fallen to six a month from a peak of 10, making the success or failure of Airbus’s only profitable wide-body line a key topic for investors.
“The A330 makes money and generates cash, while absorbing a great deal of overhead,” said Sash Tusa, aerospace analyst at Agency Partners, adding that its long list of customers was useful to Airbus when it came to marketing other planes.

HAWAII SWITCH
Jitters over the future of the A330neo became apparent when AirAsia, one of Airbus’s largest customers, toyed with the idea of switching to Boeing’s 787.
Its decision to uphold an order for 66 jets, first reported by Reuters, eased pressure on the A330neo but analysts say that could change if it feels too exposed as the dominant buyer. .
The last major A330neo order was for 28 planes from IranAir but doubts are growing whether that can be implemented any time soon due to US concerns about a nuclear sanctions deal.
Now, sources say Hawaiian Airlines has dropped an order for A330neos for the 787, a switch first reported by Leeham News.
With that in mind, industry sources agree Airbus is under intense pressure to win at American, preventing further output cuts and gaining valuable bragging rights in future contests across Asia.
Keeping the A330neo in the game would also leave less space for a new mid-market plane that Boeing is thinking of launching as early as this year — a 225-275-seat model that partly competes with the A330 family.
An Airbus spokesman declined to comment on specific contests, but said, “Many campaigns are ongoing, building on the 110 airlines who are operating the A330 family today.”
After trouncing Airbus in wide-body sales last year, Boeing aims to seize the advantage by targeting Airbus’s slow-selling A330neo with further sales of its competing 787.
Some analysts have speculated Boeing would also revive the passenger version of its 767 as a cheaper alternative to the A330, but an executive ruled this out.
But keeping A330neo output to a minimum would leave Airbus increasingly dependent on one model, the much newer A350-900, for its position in the wide-body market — mirroring Boeing’s predicament in the Airbus-led narrowbody market.
As the two marketing armies chase around the globe to the next 787-A330 dog fight, Australia’s Qantas and Air New Zealand could be next to step into the battle, sources said.


Saudi Arabia adds MEDEX service to Jeddah Port, linking 12 global hubs

Updated 11 June 2025
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Saudi Arabia adds MEDEX service to Jeddah Port, linking 12 global hubs

  • New service connects Jeddah to Abu Dhabi and Jebel Ali in the UAE
  • It also connects to Karachi in Pakistan, and Colombo in Sri Lanka

RIYADH: Saudi Arabia has expanded its maritime connectivity with the addition of the MEDEX shipping service at Jeddah Islamic Port, linking the Kingdom to 12 regional and international ports. 

Operated by global logistics firm CMA CGM, the new service connects Jeddah to Abu Dhabi and Jebel Ali in the UAE, Karachi in Pakistan, and Colombo in Sri Lanka, according to a release by the Saudi Ports Authority, or Mawani. 

The move is part of Mawani’s broader efforts to improve operational efficiency at Jeddah Islamic Port and raise Saudi Arabia’s standing in global port performance rankings. 

It also supports the Kingdom’s National Logistics Strategy, which aims to increase the sector’s contribution to gross domestic product from 6 percent to 10 percent by 2030, positioning Saudi Arabia as a strategic logistics hub connecting three continents.

“This service enhances the port’s competitive advantage, facilitates global trade, opens new business horizons, and supports national exports,” Mawani said.

Jeddah Islamic Port currently features 62 multi-purpose berths, a bonded and re-export logistics area, several specialized terminals, and advanced cargo-handling equipment. Shutterstock 

The MEDEX service is the 19th shipping line added to Jeddah Islamic Port since the beginning of 2025, reinforcing Saudi Arabia’s commitment to improving regional and international connectivity. 

With a capacity of up to 10,000 twenty-foot equivalent units, the new service also links Jeddah to Mundra and Nhava Sheva in India, Piraeus in Greece, Malta, Genoa in Italy, Fos in France, and Barcelona and Valencia in Spain.

Headquartered in Marseille, CMA CGM Group operates in 177 countries and is the world’s third-largest shipping company. It serves more than 420 ports across five continents with a fleet of over 650 vessels. 

The new service aims to boost domestic import and export activity, supporting Saudi Arabia’s broader objective of establishing itself as a global trade hub. 

Jeddah Islamic Port currently features 62 multi-purpose berths, a bonded and re-export logistics area, several specialized terminals, and advanced cargo-handling equipment. It also houses two general cargo terminals, two ship repair docks, and a dedicated marine services zone. The port’s total handling capacity reaches 130 million tonnes annually. 

Saudi Arabia climbed to 15th place globally in container throughput rankings in 2024, underlining its growing role as a maritime logistics powerhouse, according to Lloyd’s List, a UK-based shipping industry journal. 

The report said Jeddah Islamic Port advanced to 32nd place globally, up from 41st in 2023, after handling 5.58 million containers last year — a 12.6 percent increase from the previous year.


Closing Bell: Saudi main index holds steady at 11,005

Updated 11 June 2025
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Closing Bell: Saudi main index holds steady at 11,005

  • Parallel market Nomu shed 84.03 points to close at 27,223.71
  • MSCI Tadawul Index declined by 0.07 percent to end at 1,405.46

RIYADH: Saudi Arabia’s Tadawul All Share Index gained 0.49 points on Wednesday, closing at 11,005.02.

The total trading turnover of the benchmark index was SR5.60 billion ($1.49 billion), with 149 of the listed stocks advancing and 89 declining.

The Kingdom’s parallel market Nomu, however, shed 84.03 points to close at 27,223.71.

The MSCI Tadawul Index also declined by 0.07 percent to 1,405.46. 

Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, was the best-performing stock on the main market, as the company’s share price advanced by 9.93 percent to SR19.70. 

Miahona Co. also saw its share price increase by 6.09 percent to SR24.38.

The stock price of Americana Restaurants International PLC advanced 5.74 percent to SR2.21. 

Conversely, the share price of Elm Co. declined by 6.66 percent to SR959.20. 

The top gainer on Nomu was Meyar Co., whose share price grew 20.74 percent to SR65.20.

In the parallel market, Knowledge Net Co. also saw its stock price rise by 10 percent to SR34.10. 

The share price of Anmat Technology for Trading Co., which debuted on the Kingdom’s parallel market, climbed by 4.74 percent to SR9.95. 

On Tuesday, Saudi Arabia’s main market also witnessed three negotiated deals worth SR23.3 million. 

The negotiated deals include ACWA Power’s SR12.59 million, followed by Ades Holding Co.’s SR5.74 million, and Saudi Kayan Petrochemical Co.’s SR5 million. 

A negotiated deal indicates the purchase of a stock based on an agreement between buyers and sellers, apart from the market price.

These agreements are executed under the control of Tadawul and in accordance with capital market laws and regulations. 

The share price of ACWA Power declined by 5.34 percent to SR255.40. 

Ades Holding Co. saw its share price drop by 0.74 percent to SR13.48. 

The stock price of Saudi Kayan Petrochemical Co. edged up by 0.40 percent to SR4.96. 


Saudi Arabia’s ACWA Power plans $5bn investment deal with Uzbekistan 

Updated 11 June 2025
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Saudi Arabia’s ACWA Power plans $5bn investment deal with Uzbekistan 

  • Uzbekistan to localize production of wind turbine components
  • It will begin producing green hydrogen this month

RIYADH: Saudi utility giant ACWA Power is planning to invest $5 billion in Uzbekistan, affirming its status as the leading foreign investor in the Central Asian nation’s energy sector, according to a top official. 

Speaking at the Tashkent International Investment Forum, Soumendra Rout, ACWA Power’s country head for Uzbekistan, said that this planned $5 billion deal is a part of the company’s broader strategy aimed at increasing its total commitments in the country to $15 billion, UZ Daily reported. 

Being the largest foreign player in Uzbekistan’s energy sector, ACWA Power has already implemented 19 projects in the country worth a combined value of $5 billion. 

Out of these 19 projects, eight are focused on renewable energy, as Uzbekistan aims to generate 40 percent of its electricity from clean sources by the end of this decade.

“We are not going to stop here. Our objective is to expand our investments. During this forum, we plan to sign another agreement with the government of Uzbekistan worth $5 billion,” said Rout.

During the forum, Rout also emphasized the importance of Islamic finance instruments in ensuring sustainable economic development, particularly among small and medium-sized enterprises. 

He added that Shariah-compliant financing mechanisms are capable of offering more effective support to SMEs compared to traditional financing tools. 

“We are ready to share our experience with Uzbekistan and contribute to building a more inclusive financial system,” said Rout. 

During the forum, Abid Malik, president of ACWA Power for Central Asia, announced that Uzbekistan is all set to localize the production of wind turbine components, including blades and turbines. 

Malik added that ACWA Power is collaborating closely with suppliers and seeks to provide technical support to local enterprises working on renewable projects in Uzbekistan. 

As part of a 200-megawatt wind power project currently underway in Karakalpakstan, ACWA Power has tasked its turbine supplier with establishing local manufacturing operations in Uzbekistan. 

“Our supplier is planning to begin production of wind turbines and blades within the country in the near future,” added Malik. 

He further said that Uzbekistan will begin producing green hydrogen this month, with an annual production capacity of 3,000 tonnes. 

“We believe this will elevate Uzbekistan’s position on the global green hydrogen map,” said Malik. 

In 2023, Shavkat Mirziyoyev, president of Uzbekistan, launched a pilot green hydrogen facility in the Tashkent Region in cooperation with ACWA Power. 

The $88 million project is being implemented in two phases, with production from the first phase expected to begin this month.

The production of green hydrogen aligns with Uzbekistan’s goal to achieve 20 gigawatts of clean energy capacity by 2030. 

The country is also prioritizing the expansion of solar, wind, and hydroelectric energy, leveraging its natural resources to decrease reliance on fossil fuels. 

In April, ACWA Power commenced commercial operations at two major wind power plants in Uzbekistan.

In December, the company also launched three renewable initiatives in Uzbekistan, including wind, solar, and battery storage facilities. 

These undertakings include the Bash and Dzhankeldy Wind Power Plants, with a total capacity of 1,000 megawatts and a transmission line.

Additionally, there are the Samarkand 1 and 2 solar projects, which have a combined capacity of 1,000 MW of solar power, along with a 1,000 MWh battery energy storage system. The Tashkent BESS Project has a capacity of 500 MWh. 


Saudi e-commerce sales via Mada cards jump 57% in April to reach $6.2bn 

Updated 11 June 2025
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Saudi e-commerce sales via Mada cards jump 57% in April to reach $6.2bn 

  • Online transactions through Mada exceeded 132 million for the month
  • Total value of POS purchases at physical retail outlets slipped to SR52.22 billion

RIYADH: Saudi Arabia’s e-commerce sales using Mada cards increased by 57 percent in April compared to the same month last year, hitting SR23.27 billion ($6.2 billion). 

Data by the Saudi Central Bank, also known as SAMA, shows online transactions through Mada exceeded 132 million for the month, up 40.75 percent year on year, reflecting a substantial increase in consumers shopping via websites and mobile apps. 

These figures include purchases made online using linked debit cards and e-wallets, but they do not account for credit card transactions processed through international networks such as Visa or Mastercard. 

Mada, formerly known as Saudi Payment Network, is the Kingdom’s national electronic payment system, connecting all ATMs and point-of-sale terminals to a central payments switch. 

It enables debit and prepaid card services for millions of Saudis, allowing them to pay both in stores and online using funds directly from bank accounts. Importantly, Mada transactions utilize near-field communication technology for secure, contactless payments, meaning shoppers can simply tap their card or smartphone at terminals for instant checkout. 

Despite the e-commerce boom, in-store point-of-sale transactions showed contrasting trends in April. Shutterstock

This system has become a cornerstone of Saudi Arabia’s push toward a cashless economy, ensuring fast and secure transactions at physical retail locations and on e-commerce platforms. The accelerating uptake of Mada-enabled digital payments highlights growing consumer trust in online shopping and the success of national efforts to modernize the payments ecosystem. 

In-store sales plateau as online spending soars 

Despite the e-commerce boom, in-store point-of-sale transactions showed contrasting trends in April. The total value of POS purchases at physical retail outlets slipped to SR52.22 billion, marking a 1.38 percent decline year on year according to SAMA data. 

This slight drop in sales comes even as the number of POS transactions climbed by around 11.6 percent to 891.5 million over the same period. In other words, Saudi consumers made significantly more card payments in person than a year ago, but were spending slightly less per transaction on average. 

SAMA’s figures indicate over 2 million POS terminals are now deployed nationwide to facilitate card payments — a network 16.37 percent larger than a year ago, reflecting the Kingdom’s drive to expand electronic payment acceptance among businesses large and small. 

This divergence — higher transaction counts but lower total POS value — suggests a behavioral shift as digital payments become frequent for everyday purchases. With contactless “tap-and-go” cards and mobile wallets now the norm, consumers are using cards for smaller, frequent buys like groceries or coffee. 

This has driven up transaction volumes while curbing the average ticket size of each sale. Indeed, nearly all card swipes are now contactless; about 94 percent of in-store card transactions in Saudi Arabia are made via NFC, whether through a physical card, smartphone, or smartwatch, according to SAMA. 

The convenience of tap-to-pay has encouraged people to rely less on cash even for low-value items, contributing to the surge in POS transaction counts. 

Categories like food & beverages and dining continue to dominate physical sale. File/SPA

Another factor influencing the year-on-year comparison is the timing of Ramadan and Eid shopping. In 2024, the holy month of Ramadan and the Eid Al-Fitr festival fell largely in April, boosting retail spending in that period. 

In contrast, Ramadan in 2025 fell mainly in March, pushing POS sales to about SR66 billion that month. As a result, April 2025 didn’t see the same holiday-related boost, which likely played a role in the softer in-store sales figures, even though the overall trend in electronic transactions continues to grow. 

Categories like food & beverages and dining — which according to SAMA data were the top two POS spending sectors in April at around SR7.7 billion each — continue to dominate physical sale, but their growth may have been tempered without the late-Ramadan rush present a year ago. 

Fintech innovation 

The growth is also being fueled by new services and partnerships. In April, SAMA signed an agreement with Google to launch Google Pay in Saudi Arabia using Mada’s payment infrastructure.

Expected to roll out later in 2025, this integration will allow users to add their Mada-linked debit cards to Google Wallet for seamless tap-to-phone payments and online purchases, further expanding the mobile payment options available to consumers. 

This follows earlier introductions of Apple Pay and local mobile wallets, meaning Saudi shoppers will soon have a full suite of global and domestic smartphone payment apps at their disposal. 

Such developments not only offer greater convenience but also help normalize cashless spending across all demographics — including younger, tech-savvy consumers who favor using their phones and wearables to pay. 


Egypt seeking FDI boost with tourism sector investment opportunities

Updated 11 June 2025
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Egypt seeking FDI boost with tourism sector investment opportunities

  • Tourism minister announced formation of unit to monitor investment prospects
  • He presented targeted investments in antiquities preservation and restoration

RIYADH: Egypt is intensifying efforts to attract foreign direct investment by opening new opportunities in its tourism and archaeological sectors, Prime Minister Mostafa Madbouly said during a high-level strategy meeting.

The gathering, which took place at the government headquarters in the New Administrative Capital, aimed at following up on the efforts of the Ministries of Tourism and Investment, according to a statement published on the Cabinet’s official Facebook page.

This aligns with Egypt’s goal of attracting 30 million tourists annually by 2028, aiming for a 25 percent to 30 percent year-over-year increase in inbound tourism as part of the nation’s Vision 2030 for sustainable development.

“The government is working to formulate clear plans with specific targets to offer investment opportunities in various sectors, contributing to increasing foreign direct investment,” Madbouly said during the meeting.

Egyptian Prime Minister Mostafa Madbouly held a high-level strategy meeting at the government headquarters in the New Administrative Capital. Facebook/Presidency of the Egyptian Council of Ministers

During the assembly, Minister of Tourism Sherif Fathy announced the formation of a dedicated unit to monitor investment prospects. The initiative aims to establish an “investment opportunities bank” that will showcase available projects in the tourism sector, supporting the country’s efforts to meet its growth targets.

The statement said: “In a related context, the Minister explained that 2024 witnessed an increase in hotel capacity of 7,200 additional rooms — 55 percent of which are new capacity, and during the current year 2025, it is expected to add approximately 19,000 new hotel rooms — new projects, expansions of existing projects, and initiatives.”

During the gathering, Fathy also presented the targeted investments in the field of antiquities preservation and restoration, noting that the Supreme Council of Antiquities has implemented an average of 36 projects annually over the past five years.

The minister then outlined the targeted investment distribution for the tourism and antiquities sectors from 2025 to 2031 across various governorates. 

The plan includes developing hotel rooms, restaurants, safaris, camps, and amusement parks. It also focuses on investing in the rehabilitation and utilization of archaeological sites, establishing museums in partnership with the private sector, and enhancing services at heritage locations.

During the meeting, Investment and Foreign Trade Minister Hassan El-Khatib noted that the implementation timeline includes holding bilateral coordination meetings between the his department and the relevant ministries to present the strengths of each sector, available investment opportunities, proposed projects, and the challenges facing attracting investment.

He also stated that each ministry will conduct a comprehensive sectoral study, form joint working groups between the Ministry of Investment and Foreign Trade and each relevant ministry, and submit periodic reports to the Cabinet to monitor progress in implementing the sectoral investment strategy and achievement rates.