Dieselgate has cost VW more than €25 billion in buybacks, fines and compensation
Updated 12 April 2018
AFP
BERLIN: German car giant Volkswagen is set to replace its chief executive Matthias Mueller Thursday, as it struggles to move on from the “dieselgate” emissions scandal that has mired the company since 2015.
The supervisory board of the world’s leading carmaker will meet a day ahead of schedule and will announce its decisions in a statement, a source close to the company said late Wednesday.
Volkswagen on Tuesday announced it was considering reshuffling its board and replacing Mueller, in a move that sent stocks in the company surging.
Mueller had “signaled he was open to play a part in the changes” in conversations with supervisory board chief Hans Dieter Poetsch, the company said in a statement.
German business newspaper Handelsblatt and national news agency DPA reported Herbert Diess, head of the VW brand — one of the group’s 12 makes of cars, trucks and motorbikes — was slated to take Mueller’s place.
Mueller, a former chief executive of sportscar-building VW subsidiary Porsche AG, was brought in to replace Martin Winterkorn in 2015 and was contracted to serve until 2020.
Longtime CEO Winterkorn quit after the firm admitted to manipulating 11 million diesel vehicles worldwide to cheat regulatory emissions tests in a scandal that became known as “dieselgate.”
So-called “defeat device” software allowed vehicles to reduce exhaust pollution under test conditions, while in on-road driving conditions they emitted much higher levels of pollutants.
Mueller has chivvied the mammoth carmaker into a massive restructuring, aiming to offer electric versions of many of its models and slim down its operations over the coming decade.
But he himself has landed in prosecutors’ sights over suspicions he may have known about the diesel cheating before it became public and failed in his duty to inform investors.
Dieselgate has cost VW more than €25 billion in buybacks, fines and compensation, and the carmaker remains mired in legal woes at home and abroad.
“The most important part of getting the crisis under control is over now, so it’s right for VW to look in a new direction,” judged analyst Juergen Pieper of Metzler bank.
Diess, known as a “very good cost manager” with experience at BMW, would be “the best solution as a successor for the next five years,” he added.
Air France eyes daily Paris-Riyadh flights amid soaring demand
New route reflects airline’s ambition to reestablish presence in Saudi market
It comes in response to growing demand to access Kingdom’s expanding economic opportunities
Updated 27 min 34 sec ago
Samia Hanifi
RIYADH: Air France is planning to operate daily flights between Paris and Riyadh, a senior airline official told Arab News in an exclusive interview.
The announcement follows the launch of the carrier’s first direct route between Paris-Charles de Gaulle and King Khalid International Airport.
Stefan Gumuseli, the airline’s general manager for India and the Middle East, outlined the importance of the new route for the Air France-KLM Group and said it reflects the airline’s ambition to reestablish its presence in the Saudi market.
The decision comes in response to growing demand from travelers and investors eager to access the Kingdom’s expanding economic opportunities.
The new route marks a strategic step for Air France as it expands operations in the region and aligns with the growing connectivity between Europe and Saudi Arabia.
As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations. Supplied
Talking to Arab News, Gumuseli said: “We’re starting with three weekly flights in mid-June, then gradually increasing to five. Our first major goal is to move to a daily service.”
He added that the market is not only outward-looking; the airline is also responding to rising inbound demand for Saudi Arabia, noting that it is experiencing almost exponential year-on-year growth.
Gumuseli also pointed to the Kingdom’s Vision 2030, which reflects a strong commitment to developing tourism, hospitality, and culture, supported by substantial ongoing investments. He said: “All these megaprojects are a clear sign that tourism is booming. We have a strong relationship with Saudi Arabia and are expanding our cooperation.”
His comments were echoed by Air France’s Senior Vice President for Benelux, Asia, India, the Middle East, and East Africa Bas Gerressen, who told Arab News: “Tourism is a very important factor, but we also need traffic, which has grown significantly over the past two years.
“The more connectivity there is between the two countries, the more economic exchange will flourish in both directions,” Gerressen added.
Air France-KLM has entered into codeshare agreements to strengthen its network connectivity.
“We also place our code on these flights. So, when you consider all that connectivity from both sides, demand can only grow,” Gerressen said.
He added: “I believe Saudi Arabia has many premium travelers, and we need to reach them in specific markets. We already have strong demand across our business, premium and economy classes.”
At the same time, the airline is leveraging its distinctive French identity.
The new route marks a strategic step for Air France as it expands operations in the region. Supplied
‘We position ourselves as a truly French brand — luxury, elegance, sophistication ... The French Touch. You can feel it the moment you board,” said Gerressen.
High-end products, gourmet in-flight dining, La Premiere lounges, and exclusive cabin experiences all reinforce this premium positioning. “We offer one of the best cabins in the region with our new first class, featuring a seat with five windows and just four seats in the entire cabin. It’s a revolution in the industry,” Gerressen added.
He emphasized the cabin crew’s vital role in shaping the passenger experience, highlighting their attentiveness and approachable demeanor.
As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations.
“Each new generation of aircraft reduces CO₂ emissions by up to 25 percent. Today, 28 percent of our fleet consists of these new aircraft, and our goal is to increase this figure to 80 percent by 2030,” Gerressen said.
The airline is also the world’s leading buyer of sustainable aviation fuel.
Gumuseli said: “We account for nearly 16 percent of global SAF usage, despite representing only 3 percent of total global kerosene consumption.”
Air France is investing in technology to enhance the passenger experience.
“We’ve decided to install high-speed Wi-Fi on board. In the event of a delay, passengers will receive updates about their connecting flights directly on their screens. With data and technology, we can truly personalize the service,” Gumuseli said.
“Our target customers include expatriates living in Saudi Arabia and tourists wishing to travel to Europe, North America, South America or Africa. Businesses are also a key audience, given the strong commercial ties between France and Saudi Arabia. We aim to serve all these segments,” said Gumuseli.
“Religious tourism should not be overlooked. Pilgrims can now combine Umrah with a more tourist-oriented experience,” he added.
Gerressen stressed the importance of the eVisa: “It is crucial. Simplifying the visa process will be essential in convincing more people to visit Saudi Arabia.”
Credit Oman insures $159m in non-oil exports Q1 amid sectoral gains
Growth in construction materials, petrochemicals, mining, and agriculture cited as key drivers
Mining sector experienced largest percentage growth, jumping 150% to 570,000 rials
Updated 36 min 34 sec ago
Nadin Hassan
RIYADH: Oman’s insured non-oil exports reached 61.2 million Omani rials ($159 million) in the first quarter of 2025, marking a 6 percent increase from the same period last year, according to Credit Oman.
The sultanate’s export credit agency, which provides trade insurance and guarantees to support domestic and international exchange, cited growth in construction materials, petrochemicals, mining, and agriculture as key drivers, the Oman News Agency reported.
This comes as Oman’s broader non-oil exports grew 8.6 percent year on year to 1.61 billion rials, now making up 28.6 percent of total exports. The growth reflects ongoing efforts to boost non-oil trade, support domestic industries, attract foreign investment, localize development initiatives, and offer incentives to the private sector.
The ONA report stated: “Khalil bin Ahmed Al Harthy, CEO of Credit Oman, explained that the volume of insured export sales in the building and construction materials sector witnessed a growth of 24 percent, with a total value of 27.16 million rials.”
Exports in the petrochemicals and plastics sector climbed 45 percent to 9.2 million riyals.
Oman’s broader non-oil exports grew 8.6 percent year on year to 1.61 billion rials, now making up 28.6 percent of total exports. File/ONA
The mining sector experienced the largest percentage growth, jumping 150 percent to 570,000 rials. Meanwhile, agricultural exports surged 96 percent to nearly 5 million rials, driven by increased demand and favorable market conditions.
Despite the overall growth, Al-Harthy noted setbacks in some sectors, including packaging, fisheries, and apparel, adding that the results still reflect the broader progress of the national economy and the government’s continued push for economic development.
“He pointed out that Credit Oman is making significant efforts to support Omani manufacturers and exporters, contributing to boosting their sales both locally and internationally by offering a range of insurance services and overcoming the challenges associated with Omani products entering global and new markets,” the OMA report added.
In its earlier outlook, Credit Oman projected strong growth potential for the country’s non-oil exports in 2025. The agency cited an estimated untapped export capacity of 5 billion rials, according to the International Trade Centre.
However, it emphasized that realizing this potential would depend on evolving global trade conditions, particularly the impact of emerging tariff and non-tariff barriers, geopolitical uncertainty, and shifts in global economic trends.
This growth comes after a challenging 2024, when Oman’s non-oil exports declined 16 percent due in part to a reclassification of high-value fuel-related goods into the oil and gas category.
The 2025 rebound suggests improved export diversification, aided by Credit Oman’s efforts and favorable conditions in sectors like agriculture and plastics.
Most Gulf markets trade up, unfazed by rising regional tensions as US strikes Iran
US forces struck Iran’s three main nuclear sites late on Saturday
Updated 22 June 2025
Reuters
LONDON: Most stock markets in the Gulf were trading higher on Sunday, relatively unscathed by escalating tension in the region following US strikes on Iranian nuclear sites, as investors assessed the potential economic impact of the conflict.
US forces struck Iran’s three main nuclear sites late on Saturday, and President Donald Trump warned Tehran it would face more devastating attacks if it does not agree to peace.
By around 0915 GMT, Saudi Arabia’s benchmark index TASI had edged 0.4 percent higher, helped by a 0.7 percent rise in the country’s biggest lender, Saudi National Bank. Qatar’s benchmark index QSI had gained 0.2 percent, reversing slight early losses.
“It is admittedly a bit surprising to see regional equities shrugging off the US strikes on Iran with relative ease, with opening losses having pared relatively rapidly,” said Michael Brown, Senior Research Strategist at Pepperstone.
Brown said that the markets had already discounted the probability of a US attack, and investors anticipated a swifter resolution to the conflict following the attacks.
The market is focused on whether the conflict spreads to other nations in the region, with there being no sign of that happening right now, he added.
Bahrain and Kuwait, home to US bases, made preparations on Sunday for the possibility of the conflict spreading to their territory, with Bahrain urging drivers to avoid main roads and Kuwait establishing shelters in a ministries complex.
Kuwait’s premier index reversed early losses to trade 0.3 percent higher by around the same time, while Bahrain’s main index was flat. The Omani share index MSX30 was up 0.5 percent.
Elsewhere in the Middle East, Egypt’s benchmark index EGX30 was trading 1.7 percent higher, while the main index in Tel Aviv was up around 1 percent to reach its all-time high.
Giga-projects power 6.4% jump in Saudi Arabia’s Q1 cement sales to 13.4m tonnes
Local sales accounted for nearly 13 million tonnes, while exports edged up to 408,000 tonnes
Al Yamama Cement led the domestic market with 1.68 million tonnes
Updated 53 min 44 sec ago
Dayan Abou Tine
RIYADH: Cement sales in Saudi Arabia climbed 6.4 percent year on year in the first quarter of 2025 to 13.4 million tonnes, driven by a construction surge tied to Vision 2030 megaprojects.
According to data from Al Yamama Cement covering the Kingdom’s 17 producers, local sales accounted for nearly 13 million tonnes, while exports edged up to 408,000 tonnes.
Al Yamama Cement led the domestic market with 1.68 million tonnes, followed by Saudi Cement at 1.33 million tonnes and Qassim Cement with 1.25 million tonnes.
Saudi Arabia is powering through the largest construction surge in its history, a pillar of the Vision 2030 diversification plan. A Bloomberg report this month valued the live roster of real estate and infrastructure schemes at roughly $1.3 trillion, ranging from Riyadh’s driverless metro grid and entertainment hubs like Qiddiya to the brand-new cities of NEOM on the Red Sea coast and New Murabba in the capital’s northwest.
Those giga-projects, along with heritage revamps such as Diriyah Gate and the Red Sea’s string of luxury resorts, have now moved well beyond site grading and piling.
Saudi Cement slipped nearly 5 percent to SR108 million. Saudi Cement
Gulf Construction, a trade journal for the building and construction industries, noted in May that major project packages are entering the concrete-intensive vertical-build phase, where tower cores, bridge piers, and precast facades consume significantly more cement and clinker than earlier earthworks.
In short, the Kingdom’s transition from drawing board to steel-and-concrete reality is fueling an insatiable appetite for building materials — and cement producers are gearing up their kilns to meet it.
Momentum kept building after March. Domestic sales jumped 42.9 percent year on year to 4.18 million tonnes in April, while exports rose 26.9 percent to 703,000 tonnes, according to Al Jazira Capital’s latest dispatch survey. Contractors are pouring concrete early, keen to stay ahead of the summer heat and tighten project timelines.
Profits do not rise equally
Higher volumes did not translate into across-the-board gains. International Cement Review’s CemNet bulletin said in June that sector-wide net profit fell 16 percent in the first quarter to about SR648 million ($173 million) despite stronger turnover.
Saudi giga-projects, along with heritage revamps such as Diriyah Gate, have now moved well beyond site grading and piling. Wikipedia
Yamama Cement posted about SR142 million in earnings — up 23 percent — while Saudi Cement slipped nearly 5 percent to SR108 million. Qassim Cement improved 27 percent to roughly SR94 million, but Al Jouf Cement stayed in the red at around SR15 million.
Producers faced an added challenge from Saudi Aramco’s fuel price revision, effective Jan. 1, which several companies warned would raise kiln fuel costs by around 10 percent.
Inventory cushions remain thick. Al Yamama figures show Yanbu holding 18.9 million tonnes of clinker at end-March, with Southern Province close behind on 18.1 million tonnes. Across the sector, stockpiles cover roughly nine months of normal domestic demand, allowing firms to throttle kilns if margins tighten.
Modern kilns slash fuel use
According to Global Cement’s April report, engineering firm Sinoma has finished erecting a new preheater tower as part of Yamama Cement’s relocation and upgrade project south of Riyadh.
The upgrade increases the former 10,000-tonne-per-day line to 12,500 tonnes, with Sinoma noting it had to dismantle, relocate, and integrate large equipment while installing the latest kiln technology.
Yamama Cement posted about SR142 million in earnings — up 23 percent. Supplied
Completion of the tower clears the way for commissioning and final handover of the higher-capacity, fuel-efficient plant.
The efficiency drive extends to the Red Sea coast, where Yanbu Cement’s 34 megawatts waste-heat-recovery system already supplies about a quarter of the plant’s electricity.
The upgrades are crucial because older kiln designs waste a great deal of fuel. According to the European Cement Association, long-dry kilns consume about one-third more energy than the latest preheater–pre-calciner models, while old wet kilns can burn up to 85 percent more.
By contrast, modern PH-PC lines require only about 3.3 gigajoules of heat to produce one tonne of clinker — roughly the energy contained in 30 litres of petrol. Transitioning from long-dry or wet kilns to PH-PC technology significantly reduces fuel consumption, lowers production costs, and cuts carbon emissions — all critical advantages as energy prices continue to rise.
With Saudi Aramco’s January fuel-tariff hike expected to raise kiln-energy bills by around 10 percent, plants that already sip less fuel will feel the pinch far less — and that cost edge is flowing straight into sharper export offers, reinforcing the Kingdom’s competitive position in nearby markets.
Gulf visitor spending to hit $224bn by 2034, GCC-Stat says
Inbound visitor spending expected to contribute 13.4% to region’s total exports
Total international visitor spending amounted to $135.5 billion in 2023
Updated 37 min 55 sec ago
MIGUEL HADCHITY
RIYADH: Visitor spending in Gulf Cooperation Council nations is projected to reach $223.7 billion by 2034, driven by economic diversification, mega-projects, infrastructure upgrades, and relaxed visa policies, new data showed.
According to the GCC Statistical Center, as reported by Emirates News Agency – WAM, inbound visitor spending is expected to contribute 13.4 percent to the region’s total exports — underscoring tourism’s growing role in Gulf economies seeking to reduce dependence on oil.
This comes as GCC countries, led by Saudi Arabia, ramp up efforts to diversify their economies by investing in tourism. Central to Saudi Vision 2030 is a goal to raise tourism’s share of gross domestic product from 3 to 10 percent and attract 150 million annual visits, with mega-projects like NEOM spearheading the shift.
The WAM report stated: “The centre also indicated that GCC countries are achieving steady progress in many tourism-related indicators.”
It added: “The data demonstrate that total international visitor spending in GCC countries amounted to $135.5 billion in 2023, with a 28.9 percent increase compared to the figures recorded in 2019.”
The GCC Statistical Center said Gulf countries are achieving steady progress in many tourism-related indicators. ONA
GCC countries also lead the Middle East and North Africa region in safety and security, outperforming the regional average of 5.86 points on a scale of 1 to 7.
Additionally, all six Gulf states rank among the top Arab nations in terms of passport power, reinforcing their global travel competitiveness. The findings underscored the GCC’s growing appeal as a premier tourism and business destination.
This tourism boom aligns with broader economic diversification plans as oil-reliant nations shift their focus toward hospitality, entertainment, and business travel. Additionally, more flexible visa policies and improved infrastructure — such as modern airports and strong safety standards — are helping the region gradually become more attractive to international tourists, offering an alternative to traditional destinations like Europe and Asia.
The GCC’s geographic advantage as a bridge between East and West, coupled with investments in aviation, has turned the region into a global transit and tourism hotspot.
All GCC nations are collectively transforming into a global tourism powerhouse, each leveraging unique strengths under ambitious national strategies.
According to a report by consultancy firm Roland Berger, Saudi Arabia leads with Vision 2030, combining religious pilgrimage with giga-projects like NEOM.
The UAE counters with its Tourism Strategy 2031, doubling down on its established formula of luxury experiences and cultural fusion, aiming for 40 million hotel guests.
Qatar, building on its World Cup, is refining its urban tourism appeal, while Oman bets on natural beauty to attract 11 million annual visitors.
Even smaller players like Bahrain and Kuwait are making strategic moves — Bahrain by leveraging Formula 1 to boost leisure tourism and Kuwait through investments in entertainment infrastructure.
