SYDNEY: Qantas chief Alan Joyce on Tuesday defended the carrier’s move to list Taiwan as part of China on its websites after Australia’s foreign minister said private firms must be able to conduct business “free from political pressure.”
The Chinese Civil Aviation Administration sent a notice to 36 foreign airlines in April, asking them to comply with Beijing’s standards of referring to Taiwan, Hong Kong and Macau as Chinese territories.
Despite Taiwan having been governed separately for around seven decades, with its own government and own military, China considers the democratic island a renegade part of its territory to be brought back into the fold, by force if necessary.
In late May, AFP found several foreign airlines were still listing Taiwan as a country, including Qantas.
Joyce told reporters at an annual meeting of global airlines in Sydney that “our intention is to meet the requirements,” but there were some technical delays.
He defended the decision to comply with Beijing’s demands, stressing that “it’s not airlines that define what countries are, it’s governments.”
“And at the end of the day, the Australians, like a lot of countries, have a ‘One China’ policy,” Joyce added.
“So we’re not doing anything different than (what) the Australian government is doing in that case and I think that’s the case for a lot of airlines.”
Qantas International chief Alison Webster said the carrier had been given an extension to make the changes.
“We have some complexity to work through,” she said.
“The IT and technology that underpins our websites and the connectivity takes time for us to get to grips with changes that need to be put into the programming stages of that.”
Qantas’ decision comes amid souring relations between Canberra and Beijing.
Australia has introduced a raft of reforms to espionage and foreign interference legislation, with China singled out as a focus of concern.
Foreign Minister Julie Bishop on Tuesday acknowledged that the website was a matter for Qantas, but said: “Private companies should be free to conduct their usual business operations free from political pressure of governments.”
Air Canada chief executive Calin Rovinescu said that his carrier, which has made the changes, was “not a government” and was “not making any kind of a political statement.”
“We do, like so many of the other airlines, take the same view that when we operate into the various jurisdictions, we’ll comply with the requirements of the various jurisdictions,” he said.
“As difficult and sensitive a decision as this is, our view is that we would comply with the Chinese government requirement.”
Beijing has in recent months renewed its push to force Western companies to comply with its naming standards — which Washington has labelled “Orwellian” — or risk losing access to China’s huge market.
Clothing supplier Gap and hotel chain Marriott have also come under pressure to amend websites or products that were perceived as slights to China’s sovereignty.
Qantas defends listing Taiwan as part of China
Qantas defends listing Taiwan as part of China
- Qantas’ decision comes amid souring relations between Canberra and Beijing
- Beijing has in recent months renewed its push to force Western companies to comply with its naming standards — which Washington has labelled “Orwellian” — or risk losing access to China’s huge market
Saudi Arabia closes $2.5 billion Shariah-compliant credit facility for budget financing
RIYADH: The National Debt Management Center has announced the successful arrangement of a Shariah-compliant revolving credit facility valued at SR9.4 billion ($2.5 billion).
This three-year facility is intended to support the Kingdom’s general budgetary requirements and was secured with the participation of three regional and international financial institutions.
This credit arrangement is in line with Saudi Arabia’s medium-term public debt strategy. It aims to diversify funding sources to meet financing needs at competitive terms, while adhering to robust risk management frameworks and the approved annual borrowing plan.
In November, Saudi Arabia approved its state budget for the fiscal year 2025, with projected revenues of SR1.18 trillion and expenditures totaling SR1.28 trillion, resulting in a deficit of SR101 billion.
The Finance Ministry forecasts a robust 4.6 percent growth in the Kingdom's real gross domestic product for 2025, a significant increase from the 0.8 percent growth expected in 2024. This growth is anticipated to be driven by a rise in activities within the non-oil sector, according to the ministry’s statement.
Saudi Arabia’s total debt is projected to reach SR1.3 trillion in 2025, or 29.9 percent of GDP, which is considered a sustainable level to meet the country’s financing needs.
Revised projections for the 2024 budget indicate a deficit of SR115 billion, with total debt expected to rise to SR1.2 trillion, or 29.3 percent of GDP.
The 2025 budget places a strong emphasis on maintaining essential services for citizens and residents while increasing investment in key projects and sectors. The government's focus remains on preserving fiscal stability, ensuring long-term sustainability, and managing reserves effectively. By maintaining manageable debt levels, Saudi Arabia aims to safeguard its resilience against unforeseen economic challenges.
Closing Bell: Saudi Arabia’s TASI closes in green at 12,103
- MSCI Tadawul Index also increased by 2.55 points, or 0.17%, to close at 1,517.16
- Parallel market Nomu gained 11.83 points, or 0.04%, to close at 31,005.69 points
RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Thursday’s trading session at 12,102.55 points, marking an increase of 25.24 points, or 0.21 percent.
The total trading turnover of the benchmark index was SR5.55 billion ($1.47 billion), as 99 of the listed stocks advanced, while 131 retreated.
The MSCI Tadawul Index also increased by 2.55 points, or 0.17 percent, to close at 1,517.16.
The Kingdom’s parallel market Nomu reported increases, gaining 11.83 points, or 0.04 percent, to close at 31,005.69 points. This comes as 39 of the listed stocks advanced while as many as 43 retreated.
The index’s top performer, Tihama Advertising and Public Relations Co., saw a 9.91 percent increase in its share price to close at SR16.86.
Other top performers included Zamil Industrial Investment Co., which saw an 8.01 percent increase to reach SR35.05, while Al Yamamah Steel Industries Co.’s share price rose by 5.42 percent to SR36.
AYYAN Investment Co. also recorded a positive trajectory, with share prices rising 4.99 percent to reach SR16. Fawaz Abdulaziz Alhokair Co. witnessed positive gains, with 4.49 percent reaching SR14.44.
Arabian Cement Co. was TASI’s weakest performer, with its share price falling 5.81 percent to SR14.88.
Riyadh Cement Co. followed with a 5.45 percent drop to SR30.35. Yamama Cement Co. also saw a notable decline of 5.26 percent to settle at SR33.35.
Umm Al-Qura Cement Co. dropped 3.55 percent to SR17.94, while Methanol Chemicals Co. declined 3.03 percent to SR17.94, ranking among the top five decliners.
In the parallel market Nomu, View United Real Estate Development Co. was the top gainer, with its share price surging by 22.64 percent to SR9.10.
Other top gainers in the parallel market included Mulkia Investment Co., up 8.25 percent to SR40, and Enma AlRawabi Co., rising 6.67 percent to SR23.68.
Naas Petrol Factory Co. and Meyar Co. were the other top gainers on the parallel market.
Al-Modawat Specialized Medical Co. saw the largest decline on Nomu, with its share price slipping 8.05 percent to SR16.
Naseej for Technology Co. fell 7.14 percent to SR65, while Saudi Azm for Communication and Information Technology Co. dropped 6.18 percent to SR28.10, ranking among the notable decliners on Nomu.
On the announcement front, Al-Jouf Agricultural Development Co. said it has entered into a SR200 million Shariah-compliant bank facilities agreement with Banque Saudi Fransi to finance the company’s expansion plans and operational activities.
Its share price closed at SR64.50, reflecting a 1.2 percent gain.
Saudi Basic Industries Corp., or SABIC, announced that its Saudi affiliates have received official notification of increased feedstock prices, which is expected to affect the company’s production costs.
SABIC’s shares closed at SR67.30, marking a decline of 0.59 percent.
Sahara International Petrochemical Co., also known as Sipchem, received a notice from Saudi Aramco amending certain feedstock prices, effective Jan. 1. The financial impact is expected to result in a 2 percent increase in the total cost of sales, starting in the first quarter of the 2025 fiscal year.
Sipchem’s shares ended the day at SR24.66, down 2.43 percent.
National Agricultural Development Co., or NADEC, received a notification regarding an adjustment in fuel prices for its operational activities. The financial impact is estimated to result in a 1.5 percent increase in operating costs, to be reflected starting in the first quarter of fiscal year 2025.
This change is expected to moderately raise production costs. NADEC’s shares closed at SR24.52, marking a 1.55 percent increase.
Saudi Arabia’s Ministry of National Guard achieves 100% localization of maintenance contracts
- The milestone was celebrated at a signing ceremony for new localization contracts
- Key accomplishments celebrated at the event included the development of a strategic implementation plan for sustainability localization
RIYADH: Saudi Arabia’s Ministry of National Guard has increased local spending on maintenance, repairs, and operations for its ground systems from 1.6 percent to 100 percent over the past four years.
The milestone was celebrated at a signing ceremony for new localization contracts under the patronage of the Minister of National Guard, Prince Abdullah bin Bandar, with the participation of the General Authority for Military Industries.
The initiative is part of a broader effort to achieve sustainable development within the Kingdom’s military industries, enhance local capabilities, and support Vision 2030 goals.
The ministry has signed a series of contracts with local companies to improve the sustainability and efficiency of military systems. These agreements aim to strengthen military readiness, contribute to economic growth, and create job opportunities within Saudi Arabia.
These pacts include a sustainability contract for integrated weapons systems and heavy weaponry with SAMI Defense Systems Co., an electronic systems sustainment agreement with SAMI Advanced Electronics Co., and a vehicle sustainability deal with Alkhorayef Industries Co.
In conjunction with these contracts, GAMI announced signing two industrial participation deals to enhance local content and build national industrial capabilities.
The first agreement, signed with SAMI Defense Systems Co., focuses on the sustainability of integrated weapons and heavy weaponry, aiming to achieve over 60 percent industrial participation and create new employment opportunities for Saudi professionals.
The second contract, signed with Alkhorayef Industries Co., pertains to the sustainability of military vehicles and aims to encourage investment in qualified industrial activities to strengthen the defense sector.
The ministry highlighted the economic benefits of the localization program, including creating over 800 direct jobs and empowering national companies to take a central role in the Kingdom’s defense ecosystem.
Key accomplishments celebrated at the event included the development of a strategic implementation plan for sustainability localization, the establishment of innovation laboratories for spare parts manufacturing, and progress in achieving over 60 percent industrial participation in contracts.
These initiatives also contribute to enhancing local capabilities and fostering innovation within the Kingdom’s defense sector.
The event was attended by several high-ranking officials, including Minister of Industry and Mineral Resources Bandar Alkhorayef, GAMI Governor Ahmed Al-Ohali, Governor of the General Authority for Defense Development Faleh Al-Suleiman, and President of the General Authority for Civil Aviation Abdulaziz Al-Duailej.
Senior representatives from the companies awarded the contracts. Military and civilian officials from the Ministry of National Guard were also present.
SRC and Hassana launch mortgage-backed securities to boost Saudi real estate investment
- Deal seeks to diversify Kingdom’s financial markets by introducing an innovative asset class
- Saudi banks’ mortgage lending hit a near three-year high of $2.7 billion in November
RIYADH: The region’s first-of-its-kind residential mortgage-backed securities will be available in Saudi Arabia as the Kingdom seeks to enhance liquidity and expand investment opportunities in the real estate finance sector.
A memorandum of understanding, signed between the Saudi Real Estate Refinance Co., a subsidiary of the Public Investment Fund, and Hassana Investment Co., seeks to diversify Saudi Arabia’s financial markets by introducing an innovative asset class.
The issuance of mortgage-backed securities is anticipated to attract a wide base of local and global investors to the secondary mortgage market, creating new opportunities for investment in the sector.
Majeed Al-Abduljabbar, CEO of SRC, said: “Our partnership with Hassana marks a significant milestone in supporting the evolution of the housing finance landscape and fostering the development of Saudi Arabia’s capital markets.”
He added: “Together, we aim to introduce innovative financial solutions that deliver value to both investors and citizens while aligning with Vision 2030’s objectives.”
The deal, signed in the presence of Majid Al-Hogail, minister of municipalities and housing, and Mohammed Al-Jadaan, minister of finance, aligns with the Housing Program and Financial Sector Development Program under Vision 2030.
“This collaboration establishes a new standard for partnerships, enabling the development of scalable financial solutions that contribute to the Kingdom’s economic development goals. It aligns with Hassana’s strategy of diversifying its investment portfolios through long-term partnerships with entities like SRC,” said Saad Al-Fadhli, CEO of Hassana.
Hassana’s participation as a key institutional investor underscores the potential to create sustainable economic investment opportunities.
This comes as the Kingdom’s real estate market continues to show strong demand, with annual growth in residential sales transaction volumes across major metropolitan areas.
Saudi banks’ mortgage lending hit a near three-year high of SR10.06 billion ($2.7 billion) in November, marking a 51.23 percent year-on-year increase and the highest monthly amount in over two years, according to data from the Kingdom’s central bank.
This surge reflects strong activity in the housing market, with houses accounting for 65 percent of the loans, followed by apartments at 31 percent and land purchases at 4 percent.
As part of its Vision 2030 agenda, the Kingdom is fast-tracking residential construction, particularly in Riyadh, to accommodate its growing population and attract international talent.
Qatar’s foreign merchandise trade surplus slips 5%
- Total exports in the third quarter of 2024 — including domestic goods and re-exports — were valued at 87.8 billion riyals
- Value of imports during the same period amounted to 30.1 billion riyals
RIYADH: Qatar recorded a foreign merchandise trade balance surplus of 57.7 billion Qatari riyals ($15.8 billion) in the third quarter of 2024, down 5 percent year on year, new data revealed.
Merchandise trade balance surplus is the difference between total exports and imports.
According to figures released by the Gulf nation’s Planning and Statistics Authority, the country’s total exports in the third quarter of 2024 — including domestic goods and re-exports — were valued at 87.8 billion riyals. This represents a 2.2 percent decline compared to the same period in 2023.
The value of Qatar’s imports during the same period amounted to 30.1 billion riyals, up 4.1 percent compared to the same quarter in 2023.
The figures fall in with the nation’s trajectory to restore government revenues to pre-2014 oil price shock levels and double its economy by 2031, according to an analysis by Standard Chartered in August.
The data also reflects the steady growth of Qatar’s non-oil economy, contributing to two-thirds of the country’s gross domestic product.
Exports breakdown
The figures further disclosed that the drop in exports is mainly attributed to lower exports of mineral fuels, lubricants, and related materials by 5 billion riyals, or 6.5 percent, and miscellaneous manufactured articles by 100 million riyals, or 22 percent.
Increases were mainly recorded in chemicals and related products by 1.5 billion riyals, or 24.5 percent, machinery and transport equipment by 1.2 billion riyals, or 53.3 percent, and manufactured goods classified chiefly by material by 400 billion riyals, or 17.1 percent.
Exports of crude materials, inedible, except fuels, also witnessed a rise of 100 million, or 24.8 percent.
Imports breakdown
The rise in import values is mainly linked to increases in machinery and transport equipment by 800 million riyals, or 6.7 percent, chemicals and related products by 400 million riyals, or 17.2 percent, and mineral fuels, lubricants and related materials by 320 million riyals, or 58.2 percent.
Imports of food and live animals also jumped by 300 million riyals or 9.8 percent.
Meanwhile, decreases were recorded mainly in miscellaneous manufactured articles by 400 million, or 6.7 percent as well as manufactured goods classified chiefly by material by 300 million, or 7.7 percent.
Principal destinations
The PSA data showed that Asia was the principal destination of exports for the country, representing 75.9 percent, as well as the primary origin of Qatar’s imports, accounting for 39.7 percent.
The Gulf Cooperation Council followed, accounting for 11.6 percent of exports and 11.3 percent of imports, respectively.
The EU came next, with 7.7 percent of exports and 26 percent of imports.
