OSLO: Some want to save the planet even in the afterlife.
In Oslo, a funeral home offers the dearly departed a trip to their final resting place in an eye-catching electric hearse, as electric vehicles take over the roads in the Scandinavian country.
"Many people drive an electric car in Norway and some want to leave this planet in a green way," says undertaker Odd Borgar Jolstad, demonstrating his customised Tesla in the tranquility of the Grefsen cemetery overlooking the capital.
"So this is our little contribution to the environment," he smiles.
Rich or not, young and old, hip urbanites and rural dwellers alike: Norwegians, including Crown Prince Haakon, are increasingly switching to electric cars.
The choice is especially green in this country, where most of the electricity produced is environmentally friendly, derived from hydro power.
From the affordable Nissan Leaf to the luxurious Tesla, more than half of new cars sold in the country in March were run on batteries rather than fuel.
"We will probably pass 50 percent" for the full year as well, says Christina Bu, secretary general of the Norwegian EV (electric vehicle) Association.
That is unprecedented in Norway and elsewhere, and the share is expected to increase further with the arrival of new models offering ever-increasing range.
While the Nordic country is the biggest oil producer in Western Europe, it is officially aiming for all new cars sold to be zero emission by 2025.
"There are of course some challenges but it's definitely possible," Bu says.
To meet that goal, Norway will have to switch into higher gear for its recharging infrastructure, setting up stations along motorways, in rural zones and private parking lots, she notes.
But do Norwegians, who owe their immense wealth to North Sea oil, really have a greater environmental conscience than others?
Probably not — the speedy electrification of the country's automotive fleet is attributed mainly to generous state subsidies.
Electric cars are almost entirely exempt from the heavy taxes imposed on petrol and diesel cars, which makes them competitively priced.
A VW Golf with a standard combustion engine costs nearly 334,000 kroner (34,500 euros, $38,600), while its electric cousin the e-Golf costs 326,000 kroner thanks to a lower tax quotient.
Per Kolner, a retired business leader in his late 60s, is already on his fifth electric car.
He bought his first one because of the high cost of city road tolls.
"First it was actually the cost," he says, standing in front of his spanking new Tesla 3.
"Tolls kept popping up all around and on my way to and from my work every day I had to pass them four times, which made about 10 to 15 dollars a day just in toll fees."
Electric cars have long been able to whiz through toll plazas without paying.
But even denizens of this wealthy state grumble about the cost.
As Norway's car fleet grows increasingly cleaner and is therefore subjected to fewer taxes, the state's revenue from car-related taxes is now 2.6 billion euros lower than in 2007, according to the government.
Some benefits have already disappeared: road tolls are no longer completely free, just reduced, and the same goes for parking and recharging stations in public parking lots.
Electric cars are also allowed to use bus lanes freely. However, as their large numbers slow down bus traffic, in the most congested parts of Oslo they can use bus lanes only if there are at least two or more people in the vehicle.
The duration of the exemptions — guaranteed until 2021 — is increasingly being questioned.
"We subsidise electric vehicles in Norway because they have somewhat lower CO2 emissions than conventional cars," notes Bjart Holtsmark, a researcher at Statistics Norway.
"But there are a lot of other social costs related to car driving: congestion, accidents, noise and so forth. And with respect to those types of problems there are very small differences related to these types of cars."
According to Norway's biggest insurer Gjensidige, new electric cars are involved in 20 percent more accidents involving personal injuries than diesel models, in part because of their faster acceleration.
Meanwhile, electric cars are attracting more than just private consumers, with commercial clients following the trend as well as taxis and postal and fire services, among others.
But on Oslo's streets, the electric hearse still raises eyebrows.
"Often, when we drive around, people walking by — and even some drivers — take out their phones to take pictures," says Jolstad, wearing a dark suit as befits the job he has held for three decades.
From princes to undertakers, Norway’s motorists go electric
From princes to undertakers, Norway’s motorists go electric
- Norwegians, including Crown Prince Haakon, are increasingly switching to electric cars
- Electric cars have long been able to whiz through toll plazas without paying
New expansion increases Riyadh airport’s capacity to 7m passengers
RIYADH: The first phase of the Terminal 1 expansion at King Khalid International Airport in Riyadh was inaugurated on Jan. 8, enhancing the airport’s capacity to accommodate up to 7 million passengers per year.
The ceremony was attended by Saudi Arabia’s Minister of Transport and Logistics Services Saleh Al-Jasser, who also serves as chairman of the General Authority of Civil Aviation.
Saudi Arabia’s aviation sector has experienced significant growth, marked by record passenger numbers, an expanding fleet, and new international partnerships—all aligning with the country’s Vision 2030 objectives.
King Khalid International Airport, in particular, has remained the top airport in the Kingdom for several months in 2024, achieving the highest compliance and operational standards. The expansion of Terminal 1 follows the completion of Terminals 3 and 4 in November 2022.
In his remarks, Al-Jasser emphasized that the phased expansion will increase Terminal 1’s annual passenger capacity from 3 million to 7 million. This development is part of a broader initiative to enhance both Terminals 1 and 2, contributing to Saudi Arabia’s Vision 2030 goals to strengthen the nation’s transportation infrastructure, improve the passenger experience, and stimulate economic growth through enhanced air connectivity.
“This expansion not only boosts the terminal’s operational capacity but also reinforces Riyadh’s role as a global hub for international travel and trade,” Al-Jasser said.
He further noted that the project would bolster tourism and economic activity while optimizing the overall passenger experience.
The newly expanded Terminal 1 features a host of modern amenities, including 38 check-in counters, 10 self-service kiosks, 26 passport control counters, and 10 automated gates. In addition, the terminal offers 24 boarding gates and 40 passport control counters in the arrivals area, complemented by 11 self-service gates designed to streamline passenger flow.
When combined with the upcoming enhancements to Terminal 2, the total capacity of both terminals is expected to reach 14 million passengers annually.
The expansion also includes upgrades to commercial spaces, air circulation systems, energy efficiency measures, and enhanced safety protocols.
Al-Jasser also highlighted the transformative potential of the recently unveiled master plan for King Salman International Airport.
The plan aims to position Riyadh as a premier global destination for events, while further establishing the city as a key player in international travel and commerce.
Ayman Abu Abah, CEO of Riyadh Airports Co., opened the ceremony by underscoring the importance of Terminal 1’s expansion. He reiterated that the project aligns with global operational standards and strengthens Saudi Arabia’s position as a vital air transport link between continents.
The inauguration event was attended by several prominent figures, including the President of GACA and the CEO of Airports Holding Company.
This expansion marks a significant milestone in Saudi Arabia’s ambitious efforts to build world-class transportation infrastructure, in line with the National Transport and Logistics Strategy outlined in Vision 2030.
Banking sector in Kuwait, Qatar and UAE to stay stable in 2025: S&P Global
RIYADH: Banks in Kuwait, Qatar, and the UAE are expected to maintain stability in 2025, supported by strong capital buffers, favorable economic conditions, and supportive government policies, according to a new analysis.
In Kuwait, S&P Global forecasts improved asset quality, driven by a stronger economy and lower interest rates.
The banking sector is well-positioned to deal with potential geopolitical stress in the region, with stronger lending growth offsetting the negative impact of lower interest rates on profitability, it added.
S&P Global’s analysis echoes the views shared by Fitch Ratings in November 2024, which stated that the standalone credit profiles of Islamic banks in Kuwait are expected to remain stable in 2025, supported by favorable operating conditions.
“After an estimated 2.3 percent contraction in 2024, we expect Kuwait’s GDP growth will rebound to 3 percent in 2025 as OPEC+ oil production restrictions are gradually eased, and project implementation and reform momentum improves,” said Puneet Tuli, S&P Global Ratings credit analyst.
The report added that accelerated reforms following last year’s political changes could improve the pace of reform and growth prospects for the economy, “which in turn would support higher lending growth for the banking system.”
According to the report, the credit losses in the Kuwaiti banking sector are approaching cyclical lows.
S&P Global added that banks are likely to resort to write-offs to limit the rise in the nonperforming loan ratio, supported by strong provisioning buffers.
The analysis further noted that banks in Kuwait operate with robust capital buffers and typically retain 50 percent or more of their profits, which supports their capitalization.
The US-based agency also highlighted that Kuwaiti banks’ funding structures benefit from a solid core customer deposit base and a net external asset position.
“Deposits from government and public institutions have experienced some volatility in the past, as these entities seek to diversify their deposits among local and foreign banks. However, we believe that government support to systemically important banks will be forthcoming if needed,” said S&P Global.
It added: “Private sector deposits from corporations and households have been stable and dominate Kuwaiti banks’ funding base.”
Qatar’s outlook
In Qatar, S&P Global expects continued strong performance for banks in 2025, driven by strong capitalization and ample liquidity. The rise in liquefied natural gas production, along with its impact on the non-hydrocarbon economy, is expected to support credit growth in the next two to three years.
The report added that local funding sources will play an increasing role in supporting credit growth among Qatari banks, driven by slower public sector deleveraging.
S&P Global also noted that the Qatari government’s strong support for its banking sector is expected to mitigate the risk of external debt outflows in the event of escalating geopolitical risks.
“Geopolitical tensions in the Middle East are high but we currently do not expect a full-scale regional conflict, and we anticipate macroeconomic conditions in Qatar will remain broadly stable,” said S&P Global Ratings credit analyst Juili Pargaonkar.
Forecast for the UAE
In the UAE, S&P Global forecasts improved asset quality metrics and lower credit losses in 2025, driven by a robust domestic economy.
The agency expects banks in the emirates to maintain strong capital buffers, robust funding profiles, and continued government support in 2025, which will underpin their resilience.
The analysis also noted that banks in the UAE have experienced a significant increase in deposits over the past three years, which will help sustain their strong growth momentum in 2025.
“Deposit growth has improved in recent years as private corporations and retail depositors prioritized saving over spending, and higher interest rates provided better yields on deposits,” said S&P Global.
It added: “We expect strong deposit growth to continue through 2025, given the non-oil economy remains supportive, leading to stronger cash flow generation from corporations.”
Saudi domestic tourism driving travel sector growth, Almosafer CEO says
RIYADH: Saudi Arabia’s domestic tourism is fueling a significant expansion in the Kingdom’s travel sector, with domestic bookings now making up over 40 percent of Almosafer’s overall travel market, according to CEO Muzzammil Ahussain.
This growth is underscored by a 45 percent year-on-year increase in domestic flight bookings in 2024, alongside a 39 percent rise in room night bookings, according to Almosafer’s latest travel trend report, released during the third Saudi Tourism Forum held in Riyadh.
The surge is linked to the country’s expanding tourism offerings and enhanced connectivity through low-cost carriers, with family and group travel seeing a particular boost, rising over 70 percent, the report added.
“The country has invested heavily in creating offerings and events to support domestic tourism,” Ahussain told Arab News on the sidelines of the event. “We see continued strength and sustainability in this, so we remain focused on domestic tourism.”
Almosafer, a Saudi travel company and part of Seera Group, is benefiting from this trend as domestic tourism becomes more sustainable. “In the report, over 40 percent of all of our bookings are now domestic,” Ahussain explained. “That doesn’t mean international travel is slowing down; overall travel is growing.”
He said flight prices dropped 7 percent year on year, prompting higher spending in destinations. “People are spending more on hotels, staying longer, and spending on experiences and events,” Ahussain said. “So overall, total spend is increasing.”
Despite the growth, challenges remain. Almosafer CEO said that the limited hotel supply during peak times, such as Riyadh season, leads to higher rates and makes it difficult for travelers to find accommodations.
“We’ve already seen a number of initiatives to improve hotel capacity and rooms across the country,” Ahussain said, adding that such improvements would make domestic tourism more attractive at all levels, from luxury to economy.
The company’s ongoing efforts to enhance partnerships with regional authorities and airlines are also key to this growth, and Almosafer said it collaborates closely with the Saudi Tourism Authority and regional bodies like the Aseer Investment Authority.
“We’ve had a number of signings at the Saudi Tourism Forum with different authorities from around the country to promote and market key destinations,” he added.
Ahussain also highlighted the strong partnerships Almosafer has with low-cost carriers like flynas and flyadeal, as well as its new partnership with Riyadh Air, which is set to launch later in 2025.
Looking ahead, Ahussain is optimistic about the impact of global events, such as Expo 2030 and the 2034 FIFA World Cup, on the Kingdom’s tourism sector. “These projects and events, as we saw with Expo 2020 Dubai, help build a brand for a city or country, and that brand creates awareness,” Ahussain said.
He continued: “When people come, whether domestically or internationally, we are working to build a foundation that supports them throughout their travel — before, during, and after these events.”
Almosafer is also preparing for an initial public offering as part of its long-term strategy, with a target IPO date in 2025 or 2026.
“In November 2023, Seera Group announced that Almosafer would be targeted for an IPO in two to three years,” he said.
“We’re still on track with that plan and working toward it.”
With domestic tourism growing rapidly, Almosafer is enhancing its digital offerings through partnerships aimed at streamlining travel services.
During the forum, Almosafer signed a memorandum of understanding with the Saudi Tourism Authority to integrate digital platforms, enhancing access to travel services.
Ahussain explained that the partnership also aimed to improve Sara Al, the smart guide for Saudi tourism, by adding booking services for flights and accommodations.
Egypt’s inflation drops to 23.4% in December amid falling food prices
- Banking sector shows strong resilience with record capital adequacy
RIYADH: Egypt’s annual inflation rate slowed to 23.4 percent in December 2024, down from 25 percent in November, according to figures from the Central Agency for Public Mobilization and Statistics.
The consumer price index for the country stood at 239.7 points in December, reflecting a deceleration largely driven by a drop in food prices.
Key food categories saw notable price decreases, with vegetables falling by 14 percent, dairy products, cheese, and eggs decreasing by 0.7 percent, fish and seafood dropping by 0.6 percent, and meat and poultry experiencing a slight reduction of 0.1 percent.
However, other sectors showed price increases, putting upward pressure on the overall inflation rate.
For example, telephone and fax services surged by 11 percent, fruit prices rose by 7.5 percent, and medical products, devices, and equipment saw a 5.5 percent increase.
Other notable price hikes included postal services (up 3.6 percent), hotel services (up 3.2 percent), and recreational and cultural services (up 2.8 percent).
Meanwhile, costs for telephone and fax equipment grew by 2.6 percent, while actual housing rentals increased by 1.6 percent. Hospital services saw a rise of 1.4 percent, with furniture, carpets, and floor coverings up by 1.3 percent.
Smaller price increases were recorded in oils and fats, electricity, gas, and fuel materials (up 0.7 percent), transportation services (up 0.5 percent), and basic foodstuffs like grains and bread (up 0.3 percent). Sugar and sugary foods, as well as private transportation costs, also saw slight increases of 0.2 to 0.3 percent.
Banking sector
Egypt’s banking sector continues to demonstrate stability and resilience, playing a vital role in maintaining the country’s economic, financial, and monetary stability, according to the Central Bank of Egypt’s latest Financial Soundness Indicators.
The sector’s capital adequacy ratio reached 19.1 percent by the end of Q3 2024, comfortably surpassing the regulatory minimum of 12.5 percent. This marks a 0.5 percent improvement from the previous period, highlighting the sector’s growing financial health.
In terms of asset quality, nonperforming loans represented just 2.4 percent of total loans, with provisions coverage for these loans standing at a strong 87.4 percent.
Liquidity levels remained robust, with local currency liquidity at 32.1 percent and foreign currency liquidity at 77.7 percent, well above the regulatory requirements of 20 percent and 25 percent, respectively.
The banking sector’s loan-to-deposit ratio was recorded at 61.3 percent by the end of Q3 2024, reflecting conservative lending practices. Meanwhile, profit margins remained impressive, with a return on equity of 32.2 percent for the 2023 fiscal year.
Saudi Arabia’s flynas begins Jeddah-Djibouti flights; flyadeal launches 5 routes
RIYADH: Saudi low-cost airline flynas launched its first direct flight between Jeddah and Djibouti on Jan. 8, further expanding its network in Africa.
According to a press statement, the inaugural celebration was held at King Abdulaziz International Airport and was attended by Djibouti’s Ambassador to the Kingdom Dya-Eddine Said Bamakhrama and representatives from flynas and Jeddah Airport Co.
The inaugural flight was welcomed at the African country by Faisal Al-Qabbani, Saudi Arabia’s ambassador to Djibouti, and Hassan Humad Ibrahim, theDjibouti’s minister of infrastructure and transport.
The expansion is part of the airline’s “We Connect the World to the Kingdom” initiative and supports Saudi Arabia’s National Civil Aviation Strategy, which aims to expand connectivity to 250 international destinations and reach 330 million passengers.
The initiative is also expected to strengthen the Kingdom’s National Tourism Strategy, which aims to attract more than 150 million tourists by the end of this decade.
In the statement, flynas said it will operate three weekly flights from Jeddah to Djibouti.
Flyadeal launches five new routes
In a separate statement, Saudi low-cost airline flyadeal said that it launched five routes from its operating bases of Dammam, Riyadh, and Jeddah, marking the start of a major expansion drive that includes entry to Pakistan next month.
According to the statement, the routes include 14 domestic flights a week from Dammam to Najran, Tabuk, and Yanbu.
The airline said that it launched flights from Riyadh and Jeddah to the Jordanian capital, Amman, with a total of 10 flights a week.
The statement added that preparations are also underway for the start of twice-weekly flights to Pakistan’s financial capital, Karachi, from Riyadh and Jeddah, effective Feb. 2.
“Expanding our domestic and international networks has been the focus of our planning team in recent months to provide leisure and business travelers with more choice, options and more importantly, greater air connectivity,” said Steven Greenway, CEO of flyadeal.
He added: “As more aircraft join flyadeal’s fleet during 2025, we will continue to inject additional capacity into our three bases with new routes and extra frequencies, part of a system wide expansion plan over the next 12 months.”
Launched in 2017, flyadeal currently serves almost 30 year-round and seasonal destinations in Saudi Arabia and selected Middle East, European, and North African cities. The airline operates a fleet of 36 Airbus A320 narrowbody aircraft.
