PARIS: Fifty years ago at the Paris air show, France’s transport minister and Germany’s economy minister signed an agreement that would change aviation history.
The year was 1969 and Europe needed a smaller, lighter and more cost-effective passenger aircraft than American rivals. Five years later, the A300B2 was born, a short-to-medium range plane with two engines, despite safety concerns in an era when three engines was the standard minimum.
Fast-forward to 2019, Airbus is celebrated as a success of European cooperation, one of two kings of global civil aviation along with Boeing. Around the world, an Airbus takes off or lands every two seconds.
It now produces passenger planes ranging in size up to the A380 jumbo jet, helicopters, fighter jets and is even involved in space exploration.
Its story has been marked by setbacks, political turbulence and production problems but Airbus management believes it can confidently look forward to the next half century.
“Airbus produces half of the world’s large commercial aircraft and has thriving helicopter, defense and space businesses,” said CEO Guillaume Faury, who in April replaced Tom Enders who served five years at the helm.
“We employ 130,000 highly-skilled people globally and are a powerful engine of productivity, exports and innovation for Europe.”
The firm delivered its last thousand planes in just 30 months. But in the early days, it took nearly twenty years to produce a thousand aircrafts.
It faced criticism for developments like fly-by-wire controls, which improve handling, and flight envelope protection, which stop the plane performing maneuvers outside its performance limits.
Apart from technological advances, cracking America was a key ingredient in creating the global giant. The A300 made a strong impression on Frank Borman, the former Apollo astronaut who headed Eastern Air Lines and championed the idea of buying more economical planes.
In 1984, Airbus launched the A320, a single-aisle, medium-haul aircraft to challenge Boeing, which until then had dominated the largest segment in the civil aviation market.
The aircraft paved the way for the more fuel efficient A320neo which has become the backbone of the company, strengthening its hold on the key market segment after Boeing’s 737 MAX planes were grounded after two deadly crashes in March and October.
Despite a failed deal with British defense firm BAE Systems in 2012, Airbus’ partnership with Canadian Bombadier’s C Series program in 2018 enhanced its position as a global force.
France and Germany still hold 11 percent stakes in Airbus through holding companies with a smaller 4 percent stake held by the Spanish government. The rest of the shares are traded on the stock exchange.
But production hasn’t always run smoothly. The firm announced in January it would scrap production of its A380 passenger giant by 2021 due to lack of orders.
The double decker jet earned plaudits from passengers but failed to win over enough airlines to justify its massive costs.
Key clients have also hit trouble as some airlines hit financial difficulty with Europe’s third biggest low-cost airline Norwegian saying it was further delaying deliveries of Airbus and Boeing 737 MAX planes it had ordered.
The company in April reported a slump in first quarter net profits which fell 86 percent from the same period in 2018 at 40 million euros ($45 million).
Airbus is also under investigation in France, Britain and the United States after disclosing transaction irregularities in 2016, while US President Donald Trump has threatened the European Union with new tariffs if it does not end subsidies to Airbus.
But analysts see Airbus as having an opportunity to profit from the booming airline market, particularly in Asia, and from the global grounding of Boeing’s 737 MAX series plane after two recent deadly crashes involving the popular new airliner.
Airbus’s boss Guillaume Faury said the firm aims to continue being a leader in aviation innovation.
“The aerospace industry stands on the cusp of a technological revolution to match anything in its history,” he said.
“European aerospace should aspire to lead this coming revolution in innovation and the transition to a more sustainable aviation sector.”
From European dream to global giant: Airbus marks half century
From European dream to global giant: Airbus marks half century
- Its story has been marked by setbacks, political turbulence and production problems but Airbus management believes it can confidently look forward to the next half century
- The aircraft paved the way for the more fuel efficient A320neo which has become the backbone of the company
In speech to Congress, Trump reassures investors that new visa scheme would not tax foreign assets
- Taxing foreign assets was a concern despite big enthusiasm for new scheme, pundits had told Arab News
- “This move certainly removes a significant barrier for Saudi and Gulf investors who were previously wary of US residency due to FATCA’s global tax implications,” Al-Ansari tells Arab News.
RIYADH: President Donald Trump assured that investors entering the US under the newly introduced $5 million “Gold Card” visa program will not be subject to taxes on their foreign assets.
This assurance comes as Trump and his administration seek to attract high-net-worth individuals from around the world by offering a direct pathway to US residency and citizenship.
Addressing Congress on March 4, Trump outlined the program’s structure. “They (investors) won’t have to pay tax from where they came, the money that they’ve made, you wouldn’t want to do that. But they have to pay tax (in the US) and create jobs,” he said.
His remarks came as a reassurance to prospective investors who may have been concerned about the Foreign Account Tax Compliance Act, which has deterred some wealthy individuals from seeking US residency due to global taxation concerns.
Arab News raised this concern in a previous article following Trump’s announcement of the new initiative.
Now that the president has cleared that doubt and reassured investors that their assets abroad won’t be taxed, Salman Al-Ansari, a geopolitical analyst and former US investor, emphasized that the Gold Card exemption is a game-changer.
“This move certainly removes a significant barrier for Saudi and Gulf investors who were previously wary of US residency due to FATCA’s global tax implications,” he told Arab News in an interview.
Al-Ansari added that this exemption “is a clear indication that his administration is responsive to global investor concerns.”
However, he noted that despite this strong incentive, long-term concerns about possible changes in US tax policy are likely to remain. “Investors in the region understand that tax policies can change with different administrations, so some may still approach with caution, opting for structures that offer flexibility in case future regulations become less favorable,” Al-Ansari added.
Read: Will Trump strike gold with wealthy Arabs through new residency program?
The new initiative will replace the existing EB-5 visa program, which was originally designed to grant permanent residency to investors who contributed at least $1 million to a US business that created or sustained at least 10 jobs for American workers.
Trump emphasized to Congress that the initiative would address talent retention by allowing investors to fund and support highly skilled graduates from top US universities, preventing them from being forced to leave the country.
The US faces stiff competition from other nations with established golden visa programs, particularly Gulf nations like Saudi Arabia, which have successfully attracted high-net-worth individuals through similar initiatives.
On whether Saudi investors will become more selective about US investments due to domestic taxation under the Gold Card visa, Al-Ansari noted: “The exemption of foreign assets is a strong incentive, but the fact that income generated within the US is still taxable means that Saudi investors will likely be more strategic in their choices.”
He added: “They may favor sectors that offer higher tax efficiencies, such as real estate, energy, or industries benefiting from tax incentives.”
However, Al-Ansari said that as long as the US provides a stable business environment and competitive opportunities, taxation within the country is a reasonable tradeoff.
“The key factor for Saudi investors will be the ease of doing business and whether the Gold Card visa comes with additional facilitations that make investments more attractive beyond the tax benefits,” he concluded.
By structuring the Gold Card visa to exempt foreign assets from US taxation, Trump’s administration is positioning the program as an attractive alternative to other golden visa schemes worldwide.
Investors from the Gulf, who have already benefited from similar residency programs in their home countries, may now see the US as an increasingly viable destination for expanding their businesses and securing long-term financial stability.
As highlighted in a previous report by Arab News, the initiative is being closely watched due to its potential to attract substantial foreign capital, especially from countries like Saudi Arabia, the UAE, and Qatar.
Despite global competition from established golden visa programs, the US remains an appealing destination for investors, due to its business environment, talent pool, and real estate opportunities.
With the added benefit of no taxation on foreign assets, the Gold Card program is seen as a highly attractive option for investors looking to expand their businesses and secure long-term financial stability in the US.
Direct flights from Stuttgart to Jeddah to begin later this year
RIYADH: Direct flights from Stuttgart, Germany, to Jeddah, will begin in the second half of 2025 and operate twice a week, the Saudi Air Connectivity Program has announced.
Inaugurated in collaboration with the Saudi Tourism Authority and Jeddah Airports Co., the route is set to utilize an A321neo aircraft with a capacity of 224 seats, according to the Kingdom’s press agency.
This move aims to increase the capacity of travelers and visitors from Europe to Saudi Arabia, aligning with the government’s aviation goal of transporting 330 million passengers across over 250 destinations, as well as 4.5 million tonnes of air cargo, by 2030.
Majid Khan, CEO of ACP, said the collaboration with German low-cost carrier Eurowings — a wholly owned subsidiary of the Lufthansa Group — is advancing well in enhancing air connections between Saudi Arabia and Europe.
He further expressed confidence in forming a long-term partnership with the airline to broaden the network of flight routes in the future, offering travelers new opportunities to experience the Kingdom’s historical and cultural sites.
This falls in line with ACP’s goal to boost tourism in Saudi Arabia by enhancing air connectivity between the Kingdom and international destinations, broadening existing flight routes, and establishing connections to new global markets.
As the driving force behind the National Tourism Strategy and Saudi aviation strategy, ACP promotes collaboration and partnerships between crucial public and private sector players in the tourism and aviation sectors. Its objective is to enhance the Kingdom’s status as a premier global hub for air travel connectivity.
Jordan’s move to ease residency rules will attract investment, say experts
RIYADH: Jordan’s recent move to ease residency requirements for foreign investors is set to drive capital inflows, particularly into real estate, according to industry experts.
A recent decision by the country’s Cabinet will reduce financial barriers for foreign residents and property owners seeking to renew their residency, the Jordan News Agency, also known as Petra, has reported.
Among the key amendments, the government scrapped a 10,000 Jordanian dinar ($14,100) deposit requirement for foreign property owners who have lived in Jordan for more than two years.
Meanwhile, non-property owners applying for a five-year residency will see their required deposit halved to 10,000 dinar.
The changes mark a significant shift in Jordan’s investment strategy, aligning with regional trends that leverage residency incentives to attract long-term foreign capital. The policy adjustments are expected to stimulate real estate activity, benefiting adjacent industries such as construction, legal services, and financial consultancy.
According to Petra, Ali Murad, chairman of the Jordanian-European Business Association stated that the decision is a crucial economic measure that will inject liquidity into the local market and strengthen the real estate sector.
“Shifting residency requirements from bank deposits to property ownership will incentivize foreign investors to purchase real estate, boosting demand for construction and commercial projects,” Petra reported him saying.
Other experts believe that Jordan’s revised policy could make it a more competitive destination for international buyers looking for investment opportunities beyond traditional financial markets.
Fadi Al-Majali, chairman of the Jordanian Expat Business Association said that removing the deposit hold requirement for property owners enhances the attractiveness of real estate investment in the country, Petra reported.
The statement went on to say that Al-Majali believes “these amendments will encourage more foreign investors to acquire properties, thereby increasing market demand and supporting the continued development of the real estate and construction sectors.”
Iraqi investors, who have historically played a key role in Jordan’s property market, are also expected to benefit.
Majid Al-Saadi, chairman of the Iraqi Business Council in Amman, welcomed the policy shift according to the Jordan News Agency, emphasizing that it allows investors to allocate more capital into Jordan’s retail, healthcare, and education sectors.
While the new measures are expected to drive investment in the near term, experts argue that Jordan could further enhance its appeal by adopting long-term residency programs similar to the UAE’s “golden visa” initiative.
Gulf states have successfully used such programs to attract high-net-worth individuals, professionals, and entrepreneurs, creating a stable foreign investor base.
Closing Bell: Saudi main index closes in red at 11,811
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 87.75 points, or 0.74 percent, to close at 11,811.11.
The total trading turnover of the benchmark index was SR7.08 billion ($1.88 billion), as 47 of the listed stocks advanced, while 198 retreated.
The MSCI Tadawul Index decreased by 9.34 points, or 0.62 percent, to close at 1,490.08.
The Kingdom’s parallel market Nomu dipped, losing 258.75 points, or 0.82 percent, to close at 31,296.73. This comes as 34 of the listed stocks advanced while 49 retreated.
The best-performing stock was Tanmiah Food Co., with its share price surging by 4.7 percent to SR127.
Other top performers included Malath Cooperative Insurance Co., which saw its share price rise by 4.30 percent to SR13.58, and Almasane Alkobra Mining Co., which saw a 3.70 percent increase to SR56.
Mouwasat Medical Services Co. saw the biggest decline of the day, with its share price dropping 9.34 percent to SR75.70.
Walaa Cooperative Insurance Co. fell 8.02 percent to SR18.82, while Al-Majed Oud Co. dropped 7.42 percent to SR132.20.
On the announcements front, Al-Majed Oud Co. released its financial results for 2024, with net profits reaching SR156.9 million, up by 5.5 percent compared to the previous year.
In a statement on Tadawul, the company attributed the increase to a surge in sales through geographic expansion and opening new stores, as well as launching new products and an uptick in the e-commerce business.
In another announcement, Jabal Omar Development Co. declared its annual financial results for 2024.
The company’s net profit in 2024 reached SR200 million, up from SR37.4 million in the previous year, marking a 433.8 percent surge.
The firm said in a statement that this surge was attributed to a growth in revenue by SR575 million, driven by the improved operations of two new hotels, Address Jabal Omar and Jumeirah Jabal Omar, along with a significant rise in hotel occupancy and commercial center revenues.
Additionally, the company recognized SR748 million in other operating income from the sale of land in the Jabal Omar project. This surge was achieved despite a rise in general and administrative expenses.
The firm’s shares traded 3.07 percent lower on the main market to close at SR25.30.
Basic Chemical Industries Co. also announced its financial results for the previous year, with net profits reaching SR40.3 million, down by 8.1 percent compared to 2023.
In a statement on Tadawul, the company attributed the decrease in profit to an increase in general and administrative expenses, zakat tax, and a drop in profits from the sale of fixed assets and other operating income.
The firm’s shares traded 1.56 percent lower on the main market to close at SR28.40.
Saudi Arabia’s M&A market sees 63% rise in Feb
RIYADH: Saudi Arabia approved 26 mergers and acquisitions applications in February, a month-on-month surge of 62.5 percent, highlighting a competitive business climate.
The Kingdom’s General Authority for Competition confirmed the agreements, spanning acquisitions, mergers, and joint ventures, following comprehensive market assessments to ensure fair competition.
Acquisitions led the approvals, comprising 73 percent of the total, followed by joint ventures at 19 percent, and mergers at 8 percent, according to GAC data.
Saudi Arabia mandates economic concentration approvals for M&A deals to prevent monopolies and market distortions.
The rise in approvals aligns with GAC’s broader strategy to foster fair competition, combat anti-competitive practices, and enhance market efficiency, ultimately boosting investor confidence.
Among the approved acquisition requests, Spark Education Platform secured all stakes in three educational institutes in the UAE and Bahrain.
The mergers category included UAE-based Aurora Spirit’s consolidation with US-based Berry Global, while London-based law firm Herbert Smith Freehills merged with US-based Kramer Levin.
In the joint ventures segment, Ajlan & Bros Mining partnered with Moxico KSA Ltd. to launch a zinc-copper project in Khnaiguiyah, southwest of Riyadh. Additionally, Abu Dhabi Future Energy Co. formed a joint venture with France’s EDF International SAS and Nesma Co. to develop a solar energy project in Madinah.
This follows a surge in mergers and acquisitions across the country, with 202 economic concentration requests approved in 2024 — the highest on record — marking a 17.4 percent increase and underscoring the Kingdom’s efforts to enhance its competitive business environment.
The Kingdom’s M&A momentum stands in contrast to the global downturn in deal-making. A December report from GlobalData indicated that worldwide deal volume fell 8.7 percent year on year in the first 11 months of 2024, with the Middle East and Africa region experiencing a relatively modest 5 percent decline.
GAC continues to evaluate economic concentration requests — including mergers, acquisitions, and joint ventures — to safeguard competitive market dynamics. It also monitors various sectors for potential competition law violations, ensuring a level playing field for businesses.
