PARIS: France’s Vinci Airports on Thursday sealed a deal to acquire a majority share in London’s Gatwick airport, Britain’s second biggest, for 2.9 billion pounds (3.22 billion euros, $3.67 billion).
Vinci said it would hold a 50.01-percent stake in Gatwick, which is Europe’s eight biggest airport with a total passenger traffic of 45.7 million in 2018, by the first half of next year.
The other 49.99 percent will be held by Global Infrastructure Partners, the current owners.
Gatwick was forced to close its only runway repeatedly between last Wednesday and Friday due to reports of mystery drone sightings nearby, impacting nearly 140,000 passengers.
“The transaction represents a rare opportunity to acquire an airport of such size and quality and fits extremely well with Vinci Concessions’ long-term investment horizon,” a company statement said.
Gatwick “operates the busiest single runway in the world. In 2017, it hit a world record of 950 flights in a day. The airport constantly innovates in all areas of operations (for example passenger self-baggage drop, aircraft queing systems, parking products) and reaches very high level of operational efficiency,” the statement said.
“The whole Vinci Airports network will benefit from Gatwick Airport’s world-class management and operational excellence, which has allowed it to deliver strong and steady growth in a very constrained environment,” Nicolas Notebaert, Vinci Airports chief said.
With the latest acquisition, Vinci Airports will control 46 airports in 12 countries with a total traffic of 228 million passengers a year.
The French firm recently acquired airports in Brazil, Japan and Serbia.
France’s Vinci to buy majority stake in London’s Gatwick
France’s Vinci to buy majority stake in London’s Gatwick
- Vinci said it would hold a 50.01-percent stake in Gatwick, which is Europe’s eight biggest airport
- With the latest acquisition, Vinci Airports will control 46 airports in 12 countries with a total traffic of 228 million passengers a year
UAE to hit $1tn non-oil trade target 4 years ahead of schedule, says official
RIYADH: The UAE is set to achieve its 4 trillion dirhams ($1.089 trillion) target for non-oil foreign trade within two years and ahead of the original 2031 goal, according to the country’s vice president.
In a post on X, Sheikh Mohammed bin Rashid Al-Maktoum highlighted the country’s rapid economic progress, stating that key indicators have surpassed global benchmarks.
This acceleration in trade is mirrored in other areas of the economy. The UAE reported a 4 percent growth in gross domestic product in 2024, with non-oil sectors contributing 75.5 percent of the overall output as diversification efforts gained momentum.
“Our non-oil foreign trade increased by 18.6 percent year-on-year in the first quarter of this year (global average 2-3 percent) — Its volume in the first quarter of this year amounted to 835 billion dirhams. Our non-oil exports grew exceptionally by 41 percent on an annual basis,” Al-Maktoum stated.
He continued: “Our goal is to achieve non-oil foreign trade for the UAE amounting to 4 trillion dirhams by 2031 ... We will reach it within two years ... (four years before the scheduled date).”
Al-Maktoum, who also serves as prime minister, noted that non-oil exports recorded an exceptional year-on-year growth of 41 percent, signaling the country’s strengthening role in international trade.
He further noted that the non-oil sector now contributes 75.5 percent to the national economy, highlighting the country’s successful diversification strategy.
“These are new development indicators for the UAE,” he said, reflecting on the resilience and dynamism of the country’s economy despite global challenges.
Al-Maktoum credited UAE President Sheikh Mohamed bin Zayed Al-Nahyan for leading the country’s transformative economic journey, which he described as achieving “exceptional milestones in the history of the UAE.”
GCC growth forecast raised to 4.4% amid oil rebound, diversification push: ICAEW
RIYADH: Gulf Cooperation Council economies are expected to grow 4.4 percent in 2025, up from an earlier forecast of 4 percent, as rising oil output and resilient non-oil sector activity offset global trade headwinds.
In its latest economic update, prepared with Oxford Economics, the Institute of Chartered Accountants in England and Wales said Saudi Arabia and the UAE will lead regional growth despite weaker crude prices and rising geopolitical uncertainty.
The revision comes amid stronger-than-expected gains in OPEC+ production and continued investment in infrastructure, tourism, and technology. In May, the International Monetary Fund said that the GCC region’s economy will grow by 3 percent in 2025, driven by gains in the non-oil sector.
The analysis by ICAEW affirms the progress of the economic diversification efforts undertaken by GCC member states, including Saudi Arabia and the UAE, aimed at strengthening their non-oil sectors and reducing reliance on crude revenues.
Hanadi Khalife, head of Middle East at ICAEW, said: “The GCC economies are showing remarkable adaptability amid shifting global trade dynamics.”
She added: “Investments in tourism, technology, and infrastructure continue to pay dividends, strengthening resilience and laying the groundwork for long-term growth.”
The report noted Brent crude is expected to average $67.3 a barrel in 2025, increasing fiscal pressure across the bloc. Qatar and the UAE are likely to maintain budget surpluses, underscoring diverging fiscal positions within the region.
Scott Livermore, economic adviser at ICAEW and chief economist and managing director at Oxford Economics Middle East, said the upgraded GCC economic growth forecast was due to faster OPEC+ output increases and sustained non-oil momentum in key economies like Saudi Arabia and the UAE.
“While uncertainty and trade shifts may place pressures on fiscal policy, the region’s two key economies are expected to continue to progress toward economic diversification and attract global capital at an accelerated pace,” added Livermore.
The impact of the US 10 percent tariff on imports from GCC countries is expected to be limited, given the region’s low US export exposure and the exemption of energy products.
Overall, non-oil sectors in the GCC are forecast to grow by 4.1 percent in 2025, supported by strong domestic demand, investment momentum, and diversification initiatives.
ICAEW added that the region is also favorably positioned to absorb any trade rebalances resulting from tariff headwinds and geopolitical tensions.
Saudi Arabia outlook
Saudi Arabia’s economy is expected to witness growth of 5.2 percent in 2025, according to ICAEW.
The non-oil sector in the Kingdom is projected to grow by 5.3 percent in 2025, while the oil economy is also forecast to expand by 5.2 percent this year.
The report added that Saudi Arabia’s oil production is averaging 9.7 million barrels per day, while non-oil sectors, including construction and trade, are contributing to the ongoing growth momentum.
ICAEW further stated that Saudi Arabia recorded an economic growth of 3.4 percent year on year in the first quarter, driven by a 4.9 percent expansion in non-oil activities.
“The rebasing of national accounts boosted the non-oil sector’s share of GDP, reinforcing the Kingdom’s diversification drive. However, weaker oil prices are expected to widen the fiscal deficit to 3.4 percent of the gross domestic product,” said ICAEW.
In May, a separate report released by the General Authority for Statistics revealed that Saudi Arabia’s economy expanded by 2.7 percent year on year in the first quarter, driven by strong non-oil activity.
Commenting on the GDP figures at that time, Minister of Economy and Planning Faisal Al-Ibrahim, who also chairs GASTAT’s board, said the contribution of non-oil activities to the Kingdom’s GDP reached 53.2 percent — an increase of 5.7 percent from previous estimates.
The minister added that Saudi Arabia’s economic outlook remains positive, supported by structural reforms and high-quality, state-led projects across various sectors.
The ICAEW report noted that despite potential risks, investor sentiment remains strong, with credit rating agency S&P Global upgrading the Kingdom’s credit rating to A+.
In March, S&P Global said that Saudi Arabia’s strong rating is driven by the economic and social transformation taking place in the Kingdom.
In February, Fitch Ratings also affirmed Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating at ‘A+’ with a stable outlook, citing the Kingdom’s strong fiscal and external balance sheets.
UAE growth driven by investments
The UAE economy is projected to expand by 5.1 percent in 2025, driven by a recovery in oil output and a 4.7 percent rise in non-oil GDP, according to ICAEW.
“Tourism remains a key growth driver, with international visitor spending expected to contribute nearly 13 percent of GDP in 2025. In the first quarter, Dubai welcomed 5.3 million international visitors, up 3 percent year on year, consolidating its position as a leading tourism hub,” said the report.
Strategic investments are also fueling momentum in the UAE, including a $1.4 trillion investment pipeline and new AI-focused collaborations following President Trump’s visit to the Emirates in May.
Sheikh Mohamed bin Zayed, president of the UAE, on the sidelines of Trump’s visit, said that this planned $1.4 trillion investment in the US over the next decade underscores a strong partnership with Washington.
The UAE president added that investments would span critical sectors such as technology, artificial intelligence, and energy.
“While rising tariffs are likely to suppress global inflation, a weaker US dollar may push up import prices in the UAE — particularly from non-dollar trade partners — offsetting some of the disinflationary effects,” concluded ICAEW.
Earlier this month, the Central Bank of the UAE revealed that the Emirates’ GDP reached 1.77 billion dirhams ($481.4 million) in 2024, recording 4 percent growth, with non-oil sectors contributing 75.5 percent of the total.
CBUAE added that the Emirates is expected to witness economic growth of 4.5 percent in 2025, before accelerating further to 5.5 percent in 2026.
Oil Updates — prices rise further as Israel-Iran extends into 4th day
HONG KONG: Oil prices extended gains Monday as Israel and Iran pounded each other with missiles for a fourth day and threatened further attacks, stoking fears of a lengthy conflict that could reignite inflation.
Gold prices also rose back toward a record high thanks to a rush into safe havens, but equities were mixed amid hopes that the conflict does not spread through the Middle East.
Investors were also gearing up for key central bank meetings this week, with a particular eye on the US Federal Reserve and Bank of Japan, as well as talks with Washington aimed at avoiding Donald Trump’s sky-high tariffs.
Israel’s surprise strike against Iranian military and nuclear sites on Friday — killing top commanders and scientists — sent crude prices soaring as much as 13 percent at one point on fears about supplies from the region.
Analysts also warned that the spike could send inflation surging globally again, dealing a blow to long-running efforts by governments and central banks to get it under control and fanning concerns about the impact on already fragile economies.
“The knock-on impact of higher energy prices is that they will slow growth and cause headline inflation to rise,” said Tony Sycamore, a market analyst at IG.
“While central banks would prefer to overlook a temporary spike in energy prices, if they remain elevated for a long period, it may feed through into higher core inflation as businesses pass on higher transport and production costs.
“This would hampercentral banks’ ability to cut interest rates to cushion the anticipated growth slowdown from President Trump’s tariffs, which adds another variable for the Fed to consider when it meets to discuss interest rates this week.”
Both main oil contracts were up around one percent in Asian trade.
But Morningstar director of equity research Allen Good said: “Oil markets remain amply supplied with OPEC set on increasing production and demand soft. US production growth has been slowing, but could rebound in the face of sustained higher prices.
“Meanwhile, a larger war is unlikely. The Trump administration has already stated it remains committed to talks with Iran.
“Ultimately, fundamentals will dictate price, and they do not suggest much higher prices are necessary. Although the global risk premium could rise, keeping prices moderately higher than where they’ve been much of the year.”
Tokyo closed 1.3 percent higher, boosted by a weaker yen, while Hong Kong reversed early losses and Shanghai, Seoul, Singapore and Wellington also advanced.
Taipei, Jakarta and Manila retreated while Sydney was flat.
London, Paris and Frankfurt were all higher in early trade.
Gold, a go-to asset in times of uncertainty and volatility, rose to around $3,450 an ounce and close to its all-time high of $3,500.
There was little major reaction to data showing China’s factory output grew slower than expected last month as trade war pressures bit, while retail sales topped forecasts.
Also in focus is the Group of Seven summit in the Canadian Rockies, which kicked off Sunday, where the Middle East crisis will be discussed along with trade in light of Trump’s tariff blitz.
Investors are also awaiting bank policy meetings, with the Fed and BoJ the standouts.
Both are expected to stand pat for now but traders will be keeping a close watch on their statements for an idea about the plans for interest rates, with US officials under pressure from Trump to cut.
The Fed meeting “will naturally get the greatest degree of market focus,” said Chris Weston at Pepperstone.
“The Fed should remain sufficiently constrained by the many uncertainties to offer anything truly market-moving and the statement should stress that policy is in a sound place for now,” he added.
In corporate news, Nippon Steel rose more than three percent after Trump on Friday signed an executive order approving its $14.9 billion merger with US Steel, bringing an end to the long-running saga.
Oil and gas important in times of conflict, Saudi Aramco CEO says
KUALA LUMPUR: The importance of oil and gas can’t be underestimated at times when conflicts occur, something that was currently being seen, the head of Saudi oil giant Aramco told an energy conference on Monday.
Aramco CEO Amin Nasser delivered his speech to the Energy Asia Conference in Kuala Lumpur by a video link.
Oil prices jumped last week after Israel launched strikes against Iran on Friday that it said were to prevent Tehran from building an atomic weapon. The fighting intensified over the weekend.
“(History has) shown us that when conflicts occur, the importance of oil and gas can’t be understated,” Nasser said.
“We are witnessing this in real time, with threats to energy security continuing to cause global concern,” he said, without directly mentioning the fighting between Israel and Iran.
Nasser also said that experience had shown that new energy sources don’t replace the old, but added to the mix. He said the transition to net-zero emissions could cost up to $200 trillion, and renewable sources were not meeting current demand.
“As a result, energy security and affordability have at last joined sustainability as the transition’s central goals,” he said.
Aramco is a key part of the Saudi economy, generating a bulk of the Kingdom’s revenue through oil exports and funding its ambitious Vision 2030 diversification drive.
ACWA Power advances $1.8bn capital increase plan to boost global expansion, says CFO
RIYADH: Saudi utility giant ACWA Power is moving forward with its SR7 billion ($1.8 billion) capital increase as part of a broader strategy to expand its footprint in energy transformation, water desalination, and green hydrogen production, according to its chief financial officer.
In an interview with Al-Ekhbariya, Abdulhameed Al-Muhaidib described the capital raise as a critical step to reinforce the company’s leadership both domestically and internationally in sustainable infrastructure.
ACWA Power’s investment portfolio currently stands at around SR400 billion, encompassing over 78 gigawatts of production capacity and more than 9.5 million cubic meters per day in water desalination capacity. In line with long-term objectives, the company’s board approved a plan two years ago to triple assets under management to over SR937.5 billion by 2030.
The initiative also aligns with Saudi Arabia’s national goal of achieving a balanced energy mix by 2030, targeting an equal split between gas and renewable sources for electricity generation.
“The company decided to increase its capital through a rights issue rather than expanding into debt markets, with the aim of strengthening its financial position and enhancing credit flexibility. A large portion of the proceeds will be used to expand its project portfolio both inside and outside the Kingdom,” said Al-Muhaidib.
He noted that 60 percent of ACWA Power’s current investments are located in the Kingdom, with the remaining 40 percent spread across international markets. Between 75 percent and 85 percent of the new capital will be allocated to greenfield projects, while acquisitions will account for no more than 20 percent.
“ACWA Power’s infrastructure projects rely primarily on debt, with shareholders’ equity covering 20 percent to 25 percent of the financing structure. The company will continue this financing strategy while maintaining net debt at approximately SR20 billion, despite the significant growth expected through 2030,” he added.
Highlighting the company’s geographical expansion, Al-Muhaidib said ACWA Power added new projects worth SR34 billion in 2024 across Saudi Arabia, Egypt, Azerbaijan, Uzbekistan, and China.
He also pointed out the firm’s active presence in China, with more than 90 employees based in its Shanghai office to support growth in that market.
ACWA Power successfully achieved nine financial closings in 2024, amounting to SR34.6 billion. The CFO said a dedicated internal team has been established to streamline project execution from inception to operation.
He confirmed that the Capital Market Authority has approved the capital increase, with the final offering price set to be announced during the company’s general assembly on June 30.
“Seventy-seven percent of shareholders have submitted their subscription pledges,” Al-Muhaidib noted, adding that the high participation rate underscores investor confidence in the company’s long-term strategy.
ACWA Power reported a net profit of SR1.75 billion in 2024, a 5.74 percent increase year on year, according to a Tadawul filing issued in February. The gain was attributed to higher revenues from operations and maintenance, increased electricity sales, and improved earnings from equity-accounted investees, capital recycling, and net finance income.
