DUBAI: Air traffic movements at Dubai International Airport rose by 25 percent last year, while traffic doubled to and from Al-Maktoum International Airport in Jebel Ali, southwest of Dubai.
The growth followed the restructuring of airspace in the UAE, according to Dubai Air Navigation Services.
The airspace restructuring project improved airline operations, paving the way for cost savings of 53 million dirhams ($14.5 million) during the year for carriers flying from Dubai International Airport.
Mohammed A. Ahli, CEO of Dubai Air Navigation Services, said that 60 million dirhams was invested in the three projects
in 2017.
Sheikh Ahmed bin Saeed Al-Maktoum, president of Dubai Air Navigation Services and the Dubai Civil Aviation Authority, described 2017 as “an exceptional and groundbreaking year.” As well as highlighting the impact of the airspace restructuring project, he cited setting up of a Contingency Approach Control Room (CACR), ensuring that air traffic flows smoothly, and the opening of the Dubai Academy for Air Traffic Management as three key projects.
“Dubai Air Navigation Services has a central role in enabling the aviation sector to be one of the major contributors to Dubai’s GDP, which currently stands at 28 percent, and is forecast to increase to 35 percent by 2020,” he said.
“The organization has been able to play this transformational role through multiple facets, providing employment as well as training and development opportunities, in addition to flawlessly managing thousands of air traffic movements across Dubai’s airspace on an annual basis, and the implementation of the latest cutting edge and innovative technology in efforts to cater to the continuous growth in air traffic capacity throughout our airports.”
Air traffic control officers managed more than 500,000 movements of civilian and military aircraft during 2017. This figure is expected to exceed 600,000 a year by 2020, according to the Dubai Air Navigation Services.
Air traffic at Dubai’s International Airport rose by a quarter last year. (AFP)
UAE airspace overhaul delivers major cost savings for carriers
UAE airspace overhaul delivers major cost savings for carriers
Closing Bell: Saudi main index rises to close at 11,864
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 24.38 points, or 0.21 percent, to close at 11,864.90.
The benchmark index recorded a trading turnover of SR4.22 billion ($1.12 billion), with 124 stocks advancing and 99 declining.
The Kingdom’s parallel market Nomu also posted gains, climbing 345.06 points, or 1.13 percent, to close at 30,885.34, as 49 stocks advanced and 32 declined.
The MSCI Tadawul Index increased by 4.74 points, or 0.32 percent, to close at 1,491.56.
The best-performing stock of the day was Arabian Contracting Services Co., whose share price surged 9.97 percent to SR167.60.
Other notable gainers included Saudi Reinsurance Co., rising 4.97 percent to SR45.45, and Saudi Public Transport Co., which climbed 3.98 percent to SR23.00.
Al-Baha Investment and Development Co. led the decliners, falling 6.06 percent to SR0.31. Aldrees Petroleum and Transport Services Co. dropped 4.33 percent to SR123.60, and Batic Investments and Logistics Co. declined 3.23 percent to SR3.59.
Leejam Sports Co. announced the opening of four new fitness centers. These include a men’s center and the first ladies’ center in Al-Rass city, Qassim Province, as well as the first men’s and ladies’ centers in Al-Qunfidah city, Makkah Province.
Branded under “Fitness Time” and “Fitness Time - Ladies,” the centers will feature state-of-the-art facilities, high-spec sports equipment, and modern designs.
The financial impact of these openings is expected to reflect in the fourth quarter of 2024. Despite the announcement, Leejam Sports Co. closed the session at SR180, down 0.34 percent.
Obeikan Glass Co. reported a net profit of SR29.89 million for the nine months ending Sept. 30, a 58.3 percent drop from the same period in 2023. The decline was attributed to lower average selling prices due to global market conditions and increased administrative expenses related to a new investment in a subsidiary, Saudi Aluminum Casting Foundry.
The stock ended at SR49.60, down 1.59 percent.
United Mining Industries Co. announced the issuance of two exploration licenses for gypsum and anhydrite ore from the Ministry of Industry and Mineral Resources. The company plans to conduct studies to determine the availability of raw materials, with financial impacts to be announced upon completion.
Its stock closed at SR39.60, up 0.26 percent.
Morgan Stanley receives approval to establish regional HQ in Saudi Arabia
RIYADH: US-based investment bank Morgan Stanley has been granted approval to establish its regional headquarters in Saudi Arabia, as the Kingdom continues to attract international investment.
This move aligns with Saudi Arabia’s regional headquarters program, which offers businesses various incentives, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities, as well as access to discounts and support services.
Saudi Investment Minister Khalid Al-Falih confirmed the progress of this initiative in October, stating that the Kingdom has successfully attracted 540 international companies to set up regional headquarters in Riyadh—exceeding its 2030 target of 500.
“Establishing a regional HQ in Riyadh reflects the growth and development of Saudi Arabia and is a natural progression of our long history in the region,” said Abdulaziz Alajaji, Morgan Stanley’s CEO for Saudi Arabia and co-head of the bank’s Middle East and North Africa operations, according to Bloomberg.
Morgan Stanley first entered the Saudi market in 2007, launching an equity trading business in Riyadh, followed by the establishment of a Saudi equity fund in 2009.
This approval follows a similar move by Citigroup earlier this month, with the bank also receiving approval to establish its regional headquarters in Saudi Arabia.
Fahad Aldeweesh, CEO of Citi Saudi Arabia, emphasized that this development would support the firm’s future growth in the Kingdom.
Goldman Sachs, another major Wall Street bank, also received approval in May to set up its regional headquarters in Saudi Arabia.
Prominent international firms that have already established regional headquarters in Saudi Arabia include BlackRock, Northern Trust, Bechtel, PepsiCo, IHG Hotels and Resorts, PwC, and Deloitte.
In addition, a recent report from Knight Frank noted that Saudi Arabia's regional headquarters program has led to increased demand for office space in Riyadh, with the city’s office stock expected to grow by 1 million sq. meters by 2026.
In August, Kuwait’s Markaz Financial Center echoed this sentiment, predicting a significant uptick in the Kingdom’s real estate market during the second half of the year, driven by the regional headquarters program.
QatarEnergy strengthens global footprint with offshore expansion in Namibia
RIYADH: QatarEnergy has expanded its portfolio through a new agreement with TotalEnergies to increase its ownership stakes in two offshore blocks in Namibia’s Orange Basin.
According to a press release, the state-owned energy firm will acquire an additional 5.25 percent interest in block 2913B and an additional 4.7 percent interest in block 2912 under the new deal, subject to customary approvals.
Once finalized, QatarEnergy’s share in these licenses will rise to 35.25 percent in block 2913B and 33.025 percent in block 2912.
Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs and CEO of QatarEnergy, said: “We are pleased to expand QatarEnergy’s footprint in Namibia’s upstream sector. This agreement marks another important step in working collaboratively with our partners toward the development of the Venus discovery located on block 2913B.”
TotalEnergies, the operator of both blocks, will retain 45.25 percent in block 2913B and 42.475 percent in block 2912. Other partners include Impact Oil & Gas, which holds 9.5 percent in both blocks and the National Petroleum Corp. of Namibia, which owns 10 percent in block 2913B and 15 percent in block 2912.
Located about 300 km off the coast of the African country, in water depths ranging from 2,600 to 3,800 meters, these blocks host the promising Venus discovery. The Venus field has attracted considerable attention as a significant find that could impact Namibia’s energy future.
This offshore acquisition complements QatarEnergy’s recent ventures into renewable energy. In October, the company announced a 50 percent stake in TotalEnergies’ 1.25-gigawatt solar project in Iraq.
The initiative, part of Iraq’s $27 billion Gas Growth Integrated Project, aims to enhance Iraq’s energy self-sufficiency by addressing its reliance on electricity imports and reducing environmental impacts.
The solar project, set to deploy 2 million bifacial solar panels, will generate up to 1.25 GW of renewable energy at peak capacity, supplying electricity to approximately 350,000 homes in Iraq’s Basra region.
QatarEnergy will share equal ownership of the project with TotalEnergies, which retains the remaining 50 percent.
The firm’s dual focus on traditional and renewable energy highlights its strategic approach to meeting global demands while addressing sustainability concerns.
Its involvement in Namibia’s offshore blocks and Iraq’s shift toward renewable energy highlights a well-rounded portfolio that includes fossil fuels and clean energy investments.
GCC lending growth hits 3.1% in Q3, Saudi Arabia leads: report
RIYADH: Listed banks in the Gulf Cooperation Council achieved their highest lending growth in 13 quarters, with loans rising 3.1 percent to $2.12 trillion in the third quarter.
According to a report by Kamco Invest, Saudi Arabia led the surge with a 3.7 percent quarter-on-quarter increase in gross loans, marking its fastest growth in nine quarters.
Qatar followed with a 1.9 percent rise, while Bahrain recorded a 1.2 percent increase.
This growth aligns with the International Monetary Fund’s projection of 3.5 percent nominal gross domestic product growth for GCC nations in 2024, driven by the strong performance of non-oil sectors in the UAE, Qatar, Bahrain, and Saudi Arabia.
The region’s commitment to diversification and long-term infrastructure development continues to drive its financial sector.
Despite record lending levels, aggregate net income for GCC-listed banks increased marginally by 0.4 percent to $14.9 billion.
While total revenues grew 4.1 percent, supported by a 2.8 percent rise in net interest income and a 6.9 percent increase in non-interest income, higher expenses and impairments weighed on profitability.
Loan impairments rose to a three-quarter high of $2.5 billion, with increases in the UAE, Saudi Arabia, Oman, and Bahrain partially offset by declines in Qatar and Kuwait.
Customer deposits across GCC-listed banks reached a nine-quarter high, rising 3.2 percent to $2.5 trillion.
Saudi Arabia led with a 4.6 percent increase, while the UAE maintained its position as the largest deposit market at $828 billion.
Deposits in Oman and Qatar also saw solid growth, contributing to the region’s overall resilience.
The aggregate loan-to-deposit ratio remained stable at 81.4 percent, with Saudi Arabia reporting the highest ratio of 92.8 percent and the UAE the lowest at 69.3 percent, reflecting its strong liquidity position.
The GCC banking sector’s resilience is further demonstrated by its consistent focus on operational efficiency. The cost-to-income ratio declined slightly to 39.9 percent, highlighting the sector’s ability to manage expenses effectively despite rising costs.
As the region continues to diversify its economy, the banking sector remains a critical enabler of growth, funding large-scale projects and fostering financial innovation.
While rising funding costs and potential interest rate cuts may pose challenges, the sector’s robust fundamentals and strategic focus on non-oil growth position it for sustainable expansion.
The commitment to balancing economic diversification with financial innovation is expected to drive the sector’s continued success, reinforcing its pivotal role in the GCC’s broader economic landscape.
Saudi Arabia launches Ramlah Co. to boost tourism in Hail region
RIYADH: Saudi Arabia’s Ministry of Tourism is supporting private sector growth by launching Ramlah Co. for Tourist Trips and Resorts, a new initiative to attract visitors to the Hail region.
This undertaking is part of the broader Saudi Winter Season campaign, which offers unique experiences in its key destinations.
The Minister of Tourism Ahmed Al-Khateeb inaugurated the Ramlah Co. during a visit to Hail, signaling the Kingdom’s ongoing efforts to develop the tourism sector and foster private-sector participation, the Saudi Press Agency reported.
Al-Khateeb, also the chairman of the Saudi Tourism Authority, emphasized that the launch of the company aligns with Saudi Arabia’s Vision 2030 objectives to diversify the economy and promote tourism as a key growth sector.
The Saudi Winter Season, which began in October and runs through the first quarter of 2025, highlights seven key destinations, including Riyadh, Jeddah, and AlUla, as well as the Red Sea, the Eastern Province, Madinah, and Hail.
The campaign is designed to showcase the Kingdom’s cultural and natural attractions, with private companies like Ramlah Co. offering tailored experiences for visitors.
Ramlah Co. has met all licensing requirements set by the Ministry of Tourism and will offer a diverse range of activities in the region, from desert camping and sandboarding to off-road safaris and historical tours of landmarks such as Jubbah.
The company will also provide stargazing experiences and flexible tourism packages designed for families, groups, and solo travelers.
During his visit, Al-Khateeb announced several initiatives aimed at further developing the region’s tourism infrastructure. He revealed plans for 1,000 international training opportunities and 10,000 domestic training programs for Hail residents, according to the minister’s official X account.
He also highlighted efforts to enhance tourism initiatives and projects, underscored by the signing of two memoranda of understanding with the Hail Development Authority.
Speaking on future investments, Al-Khateeb noted that the Tourism Development Fund is currently evaluating support for several key projects in the Hail region.
“The fund is studying supporting a number of distinguished projects, the value of which exceeds SR1 billion and is expected to contribute to providing more than 850 hotel rooms in the area,” Al-Khateeb said.
These projects are anticipated to boost Hail’s hospitality capacity while fostering economic growth and job creation.
The minister also visited the Hail Tourism Development Authority, where he reviewed several qualitative initiatives designed to enhance the region’s tourism offerings.
The launch of Ramlah Co. reflects the government’s commitment to developing regional tourism hubs and providing a platform for private companies to play a pivotal role in the country’s tourism sector.
Hail, known for its UNESCO-listed Hail Rock Art and Fayd Historic City, is one of the Kingdom’s most culturally rich regions. The area also features natural attractions like Al-Adham Park, offering tourists a range of recreational activities.
Al-Khateeb continues his tour as part of the Winter Season campaign, with AlUla being his next stop.
