New Delhi: India has virtually abandoned a plan to sell its ailing state carrier Air India after failing to attract buyers, Bloomberg reported on Tuesday, citing people familiar with the matter.
The Indian government plans to focus on improving the carrier’s operations and selling its building in Mumbai, ground handling and aircraft maintenance units, according to the report https://bloom.bg/2M5jobm.
The decision is a highly disappointing reversal of the government’s earlier commitment to privatizating the national carrier, consultancy CAPA India said.
“Under continued government ownership, with no clear roadmap, Air India is likely to see its domestic and international market shares decline over time to a point where the carrier is no longer relevant,” it said.
“In the meantime, losses will continue (estimated at USD1.5-2.0 billion over the next two years alone), representing an unnecessary drain on tax payer funds, to subsidise a government business in an industry which is well-served by private operators,” it added.
The government in March finalized plans to divest a majority stake in Air India and offload about $5.1 billion of its debt, but prospective buyers stayed away, with some citing onerous terms as a reason for their lack of interest.
Air India and the Indian government could not be reached for comment outside business hours.
The state-run carrier said this month it was seeking a short-term loan of 10 billion rupees ($148 million) so it can continue day-to-day operations, underscoring its dire financial straits.
India decides not to immediately revive Air India sale plan — Bloomberg
India decides not to immediately revive Air India sale plan — Bloomberg
Princess Haifa urges Saudi youth to embrace technology and innovation at Misk Forum
RIYADH: Saudi Arabia has created an environment that empowers its young generation to realize their ambitions through the Vision 2030 program, according to the Kingdom’s vice minister of tourism.
Speaking at the Misk Global Forum in Riyadh, Princess Haifa bint Mohammed Al-Saud, urged the Saudi youth to master new technologies and rely on credible sources of information.
She emphasized the importance of staying well-informed and stressed that success requires patience and perseverance, the Saudi Press Agency reported.
Saudi Arabia’s Vision 2030 initiative is one of the most ambitious plans to transform the Kingdom and prepare it for the future. One of the key goals outlined in the program is empowering the youth by providing them with job opportunities and access to technology.
“Nothing is impossible in Saudi Arabia. We are fortunate that Saudi Arabia has proven that progress and development are achievable,” said Princess Haifa.
She added that the Kingdom’s transformative journey is unprecedented, both regionally and internationally.
Saudi Arabia’s job creation efforts are showing positive results, with the latest report from the General Authority for Statistics revealing that the unemployment rate among Saudi nationals has fallen to 7.1 percent.
This marks a 0.5 percentage point decrease from the previous quarter and a 1.4 percentage point drop compared to the same period last year.
The report also highlighted a significant improvement in the unemployment rate among Saudi women, which saw a sharp quarterly decline of 1.4 percentage points, reaching 12.8 percent by the end of the second quarter.
The eighth edition of the Misk Global Forum, held under the theme “By Youth for Youth,” began in Riyadh on Nov. 18. The two-day event brought together young leaders from the Kingdom and around the world, creating a platform for dialogue and collaboration.
The Misk Foundation, a nonprofit organization established in 2011 by Crown Prince Mohammed bin Salman, plays a key role in fostering the young generation in Saudi Arabia by developing an environment conducive to creativity and innovation through initiatives such as Misk City, Misk Art Institute, Manga Productions, the Science Center, and Misk Schools.
In September, Saudi Arabia’s Tourism Minister Ahmed Al-Khateeb announced that the Kingdom is allocating substantial funds to boost the tourism industry and create jobs, especially for young people and women.
In August, a report by professional services firm PwC revealed that countries in the Middle East, including Saudi Arabia, are undergoing rapid transformation, driven by a growing youth population eager to embrace change and innovation.
The report also highlighted that the young generation in Saudi Arabia is increasingly aware of sustainable development goals and noted that organizations like the Misk Foundation are supporting the youth through a wide range of initiatives across sectors including education, innovation, arts, and culture.
Saudi Arabia’s endowment investment funds set record with over $267m in net assets
RIYADH: Net assets of licensed endowment investment funds in Saudi Arabia reached a record SR1 billion ($266.67 million) in 2024, marking a 29.3 percent increase from the previous year.
According to the General Authority for Endowments, this growth follows the 2023 record, which surpassed the half-billion riyal mark.
The increase in assets was attributed to the licensing of five new entities, bringing the total to 34 endowment investment funds, 27 of which are public and seven private.
Endowment funds in the Kingdom play a crucial role in driving sustainable development by providing the financial foundation for long-term projects that address critical societal needs.
These reserves are established through investments where the principal amount is preserved while the earnings are used to support various charitable and development initiatives.
This model ensures a continuous flow of resources for vital sectors such as education, health care, and infrastructure, as well as social welfare.
In Saudi Arabia, endowment funds are designed to align with the Kingdom’s economic development goals and are Shariah compliant.
They are used to finance projects that contribute to public welfare, including building educational institutions, supporting healthcare initiatives, and funding infrastructure projects that benefit communities across the Kingdom.
Strategic investment management ensures these funds’ sustainability, which allows the endowment to generate ongoing revenue for its initiatives while maintaining the original capital intact.
The Saudi government, through the General Authority for Endowments, has streamlined the process for licensing and managing these funds, enhancing transparency and enabling them to contribute more effectively to long-term development goals.
These reserves are also governed by regulations set by the Capital Market Authority, which oversees the creation of investment products that are aligned with the country’s broader objectives for economic and social progress.
By focusing on sectors such as education and health care, endowment funds in Saudi Arabia support the growth of human capital, improve the quality of life, and contribute to the achievement of Vision 2030, which aims to diversify the economy and reduce dependency on oil.
The funds also address the country’s growing demand for infrastructure and social services, particularly in urbanizing areas like Riyadh and Jeddah, where population growth is driving a need for sustainable development solutions.
TAQA-led consortium signs 25-year PPAs for 3.6 GW power plants in Saudi Arabia
RIYADH: Saudi Power Procurement Co. has inked two 25-year power purchase agreements with a consortium comprising Abu Dhabi National Energy Co., or TAQA, Japan’s JERA Co., and the Kingdom’s Al Bawani Capital.
The deals follow the consortium’s successful bid earlier this month to develop two gas-fired power plants, Rumah 2 and Al Nairyah 2, with a combined capacity of over 3.6 gigawatts on a build, own, and operate basis in Saudi Arabia, the Emirates News Agency reported.
Both plants, each with a 1.8 GW capacity, will feature advanced combined cycle gas turbine technology and support the integration of carbon capture systems, aligning with Saudi Arabia’s energy transition goals under Vision 2030.
The projects support the Kingdom's energy mix goals, which aim to meet power demand with a balanced split of 50 percent renewable energy and 50 percent gas technology by the end of this decade.
Farid Al-Awlaqi, CEO of TAQA’s Generation business, said: "TAQA has ambitious growth targets of 150 GW by 2030, and today's announcement marks a major milestone for 2024 with the addition of a further 3.6 GW of low-carbon gas-fired power capacity in the Kingdom of Saudi Arabia, making it five greenfield projects in the Kingdom under development in TAQA’s portfolio.”
He added: “In addition to signing the PPAs, we are taking on the role as the lead developer and will oversee the operations and maintenance of these two world-class plants, demonstrating our expanded operational capabilities.”
The CEO said the announcement of these two greenfield power projects reinforces TAQA's role as a sustainable developer and operator in key markets.
The two plants will be developed by special purpose entities jointly owned by TAQA with 49 percent, JERA with 31 percent, and Al Bawani with 20 percent.
Operation and maintenance of the facilities will also be managed by these entities.
"In line with JERA’s goal to achieve net zero by 2050, the award of these two high-efficiency independent power projects, featuring state-of-the-art HL class gas turbines, reinforces JERA’s commitment to decarbonizing thermal power generation,” said Steven Winn, chief global strategist, JERA.
Fakher Al-Shawaf, group CEO of Al Bawani Holding, emphasized that the partnership with TAQA and JERA on these “state-of-the-art" power plants marks a transformative milestone for Al Bawani, reinforcing its commitment to advancing the Kingdom’s energy diversification initiatives.
“This project represents our dedication to sustainable practices and our commitment to advancing the goals of Vision 2030,” he added.
The plants align with the Saudi Green Initiative, which aims for net-zero greenhouse gas emissions by 2060 through the circular carbon economy, with the timeline potentially accelerating as technology advances.
Saudi-Djibouti committee holds 6th session in Riyadh to boost trade ties
RIYADH: Logistics, trade, and investment ties between Saudi Arabia and Djibouti will further prosper after the countries held the sixth session of their joint committee in Riyadh.
The meeting, which took place on Nov. 18, was chaired by the Kingdom’s Minister of Transport and Logistic Services Saleh Al-Jasser, and the African nation’s Minister for Foreign Affairs and International Cooperation Mahamoud Ali Youssouf, the Saudi Press Agency reported.
According to Al-Jasser’s opening speech, the meeting embodied the deep relationship between the two countries, specifically since the efforts made are just the starting point toward enhancing trade and investment in various vital sectors, including logistics.
It also aligned well with the significant progress in the volume of trade between the Kingdom and Djibouti, which reached around SR7 billion ($1.86 billion) in 2023, thereby contributing to expanding prospects for sustainable growth as well as bolstering trade relations between both nations, the minister highlighted.
During his speech, Al-Jasser also highlighted that these figures represent an additional pillar of close and growing trade cooperation between the two sides.
He underscored that the previous session of the Saudi-Djiboutian joint committee witnessed many efforts to enhance bilateral relations and expand cooperation between both countries.
Oil Updates – prices gain on supply outages, caution over Russia-Ukraine war
TOKYO: Oil prices edged up on Tuesday, extending the previous day’s rally driven by a halt in production at Norway’s Johan Sverdrup oilfield, though investors remained cautious amid fears of an escalation in the Russia-Ukraine war.
Brent crude futures for January delivery rose 15 cents, or 0.2 percent, to $73.45 a barrel by 7:30 a.m., while US West Texas Intermediate crude futures for December delivery were at $69.31 a barrel, up 15 cents, or 0.2 percent. The more active WTI January contract rose 13 cents, or 0.2 percent, to $69.30.
Both benchmarks climbed more than $2 a barrel on Monday after Norway’s Equinor said it has halted output from its Johan Sverdrup oilfield, Western Europe’s largest, due to an onshore power outage.
Work to restart production was under way, an Equinor spokesperson said, but it was not immediately clear when it would resume.
Additionally, Kazakhstan’s biggest oil field Tengiz, operated by US major Chevron, has reduced oil output by 28 percent to 30 percent due to repairs, helping to further tighten global supplies. Repairs were expected to be completed by Saturday, the country’s energy ministry said.
“A halt of production at the 755,000 barrels per day Johan Sverdrup field in Norway due to a power outage, and a drop in production at the Tengiz field in Kazakhstan provided further upside,” said ING analysts in a note.
“In addition, geopolitical risks between Russia and Ukraine have increased after the US said it would allow Ukraine to carry out long-range missile strikes on Russia.”
Russia had unleashed its largest airstrike on Ukraine in almost three months on Sunday, causing severe damage to the country’s power system.
In a significant reversal of Washington’s policy, President Joe Biden’s administration allowed Ukraine to use US-made weapons to strike deep into Russia, two US officials and a source familiar with the decision said on Sunday.
The Kremlin said on Monday that Russia would respond to what it called a reckless decision by the Biden administration, having previously warned that such a decision would raise the risk of a confrontation with the US-led NATO alliance.
Investors are wary, said Toshitaka Tazawa, an analyst at Fujitomi Securities, “assessing the direction of the Russia-Ukraine war after the weekend’s escalation.”
Meanwhile, traders began shifting WTI trades to the January contract ahead of the expiration of the December contract on Wednesday.
WTI flipped to contango for the first time since February on Monday, with January delivery trading at a premium to the December contract in a sign that supply tightness was easing.
