NEW YORK: Boeing provided a fresh batch of incriminating documents on the 737 MAX to regulators and congressional investigators, only hours after announcing a leadership shakeup, officials confirmed Tuesday.
The document dump came just before Christmas, when many officials already are on holiday, and “appear to point to a very disturbing picture” about Boeing’s response to safety issues regarding the 737 MAX, a congressional aide said in an email Tuesday.
The aide said Boeing sent the documents “late in the evening” Monday to congressional staff investigating the issues with the aircraft, which has been grounded since March following two crashes that killed 346 people.
The aerospace giant has faced scrutiny over its decision to keep flying the plane after the first crash and to brush off safety concerns of some employees, and over whether it sacrificed safety in the race to develop a plane to compete with an Airbus jet.
US regulators also have been criticized for a too-cozy relationship with the company it is charged with overseeing.
The Federal Aviation Administration confirmed it received what appear to be the same documents Monday afternoon, a few hours after Boeing ousted Dennis Muilenburg as chief executive amid his much-criticized handling of MAX crisis.
Boeing said it “proactively” contacted the FAA and Congress “as part of our commitment to transparency,” a company spokesman said in email.
“As with prior documents referenced by the committee, the tone and content of some of these communications does not reflect the company we are and need to be.”
The spokesman also highlighted changes Boeing has made “in the past nine months to enhance our safety processes, organization and culture.”
That references the period after the Ethiopian Airlines crash in March. The first 737 MAX crash of a Lion Air flight in Indonesia happened five months earlier.
The latest revelations make it clear that despite shaking up its leadership, Boeing will continue to face questions well into 2020 over the actions that led to the crashes as it tries to win approval to return the MAX to service and to restore its damaged reputation.
The document dump — which surfaced on a normally tranquil Christmas Eve — came hours after Boeing announced it was replacing Muilenburg with Chairman David Calhoun, saying the company needed to “restore confidence” and “repair relationships with regulators, customers and all other stakeholders.”
FAA Chief Steve Dickson ripped Boeing in October after the company only provided the agency with revealing documents months after unearthing the records.
In one text message exchange that surfaced in those documents, a Boeing pilot described a problem on a simulator with a flight handling system that has been implicated in both crashes.
The aide with the House Transportation Committee declined to release the latest papers on Tuesday and said committee staff were still reviewing the documents.
“The records appear to point to a very disturbing picture of both concerns expressed by Boeing employees about the company’s commitment to safety and efforts by some employees to ensure Boeing’s production plans were not diverted by regulators or others,” the aide said in an email.
The panel is led by Democratic Representative Peter DeFazio, who grilled Boeing executives at an October hearing at which some lawmakers called for Muilenburg to resign.
DeFazio on Monday called Muilenburg’s ouster “long overdue,” and said the company “made a number of devastating decisions that suggest profit took priority over safety.”
The CEO shakeup at the company drew muted response Tuesday from Wall Street analysts, a bombshell that came only days after the company took the monumental step of halting production on the 737 MAX and a day after it suffered a setback on a high-profile NASA mission.
Bank of America Merrill Lynch said it had “mixed feelings” in light of Calhoun’s lengthy tenure on the Boeing board.
“We wonder if appointing from within, especially an insider that has been with the company for 10 years, signals more of the same from Boeing vs an outside appointee who may have offered more of a change of pace and culture,” the bank said in a commentary.
JPMorgan Chase said Muilenburg had struggled as a public voice for Boeing in response to the tragedies and in communication with regulators and customers.
“We expect David Calhoun to do better on both scores. This is something,” JPMorgan said in an analysis.
“But Boeing’s failures on the MAX are more than poor communication so it will be important for Mr. Calhoun to show early how he intends to act differently.
“This is particularly important since he has been a director since 2009 and therefore part of this situation from the start, even if in an oversight role.”
Boeing document dump shows ‘disturbing’ picture on 737 MAX: official
https://arab.news/zrp29
Boeing document dump shows ‘disturbing’ picture on 737 MAX: official
- Aerospace giant has faced scrutiny over its decision to keep flying the plane after the first crash
- The first 737 MAX crash of a Lion Air flight in Indonesia in October 2018
Closing Bell: GCC stock markets up in wake of Trump’s election win
RIYADH: Following Donald Trump’s victory in the US presidential election, stock markets across the Gulf Cooperation Council saw a strong rally.
Markets posted gains, with Saudi Arabia’s Tadawul All Share Index finishing 0.31 percent up to close at 12,130.80 points on Thursday. This came after Crown Prince Mohammed bin Salman congratulated Trump on winning the election in a phone call on Wednesday, according to the Saudi News Agency.
Dubai’s Financial Market mirrored the upward momentum, climbing 0.60 percent. Abu Dhabi’s Securities Exchange also saw a lift, finishing the day up 0.44 percent.
Bahrain’s Bourse recorded a rise of 0.52 percent, while Kuwait’s main market similarly rose, closing with a 0.10 percent gain.
However, the Muscat Securities Market in Oman saw a 0.17 percent decrease, while the Qatar Stock Exchange was closed for a public holiday.
The total trading turnover of the benchmark index on TASI was SR7.53 billion ($2 billion) as 113 of the listed stocks advanced, while 111 retreated.
Similarly, the MSCI Tadawul Index increased by 2.03 points, or 0.13 percent, to close at 1,521.79.
The Kingdom’s parallel market Nomu also climbed by 415.36 points, or 1.44 percent, to close at 29,269.00. This comes as 49 of the listed stocks advanced while as many as 22 retreated.
The best-performing stock of the day was Rasan Information Technology Co., whose share price surged by 7.13 percent to SR78.10.
Other top performers include Miahona Co., and Theeb Rent a Car Co., with Miahona’s share price climbing 6.75 percent to SR29.25 and Theeb’s rising 6.59 percent to SR79.30.
Naseej International Trading Co. and Al Moammar Information Systems Co. also posted rises.
The worst performer was Saudi Arabian Mining Co., whose share price dropped by 4.09 percent to SR53.90.
Other worst performers were Abdulmohsen Alhokair Group for Tourism and Development, whose share price fell by 3.18 percent to SR2.74, and ACWA Power Co., which saw a 2.95 percent drop to SR441.20.
On an announcement front, ACWA Power Co. announced its results for interim financial results for the first nine months of 2024, ending on Sept. 30, with revenues surging by 13.3 percent to reach SR1.74 billion, compared to SR1.542 billion in 2023.
The increase was primarily driven by higher revenue from electricity sales, operation and maintenance services, and additional income from development projects and construction management, the company said on Tadawul.
BinDawood Holding Co. also disclosed its financial results for the third quarter, with revenues slightly increasing by 0.189 percent to reach SR1.361 compared to the same quarter last year.
The company closed Thursday’s trading session at SR7.02, a 0.29 percent increase.
Saudi Steel Pipe Co. also released its financial results for the nine months of the year, recording SR381 million in revenues, a 20.18 percent increase compared to the same period last year.
The company closed today’s trading session at SR71.40, decreasing by 1.27 percent.
The United International Transportation Co. disclosed a 37.052 percent increase in revenues for the first nine months to reach SR505.8 million, compared to SR369.07 million during the same period last year.
This was primarily driven by the expansion of a long-term lease fleet and the resulting higher lease revenues.
The company closed at SR84, with its stock valie declining by 1.55 percent.
ACWA Power reports 16% profit increase amid record project launches
RIYADH: ACWA Power, the Saudi-listed energy and water desalination company, has announced a 16 percent increase in its profits for the first nine months of 2024, underpinned by significant progress in its power and water production projects.
For the period, ACWA Power’s net profit attributable to equity holders reached SR1.25 billion ($334 million), a rise fueled by a 12.5 percent increase in operating income, which reached SR2.36 billion.
This marks a strong improvement from the same period in 2023. According to a company press release, the growth was primarily driven by an investment gain from the restructuring of a project, alongside a capital recycling gain.
ACWA Power’s CEO, Marco Arcelli, highlighted the company’s commitment to growth, noting that its portfolio now includes 26 projects — the largest in its 20-year history.
“These projects reflect both the speed at which we are realizing our growth, through swift financial closes, and the scale of future cash flows from a diverse and young portfolio,” Arcelli said.
He reiterated the company’s focus on providing reliable, cost-effective energy and water, aiming to create positive impacts across all its operations.
Over the past nine months, ACWA Power successfully achieved financial closure on seven major projects worth SR31 billion. These include Saudi Arabia’s Taiba and Qassim Combined Cycle Gas Turbine projects, the Tashkent Solar PV project in Uzbekistan, and the Hassyan Seawater Reverse Osmosis plant in the UAE.
The company’s expansion in power generation is also evident, having added 2.4 GW of capacity during the same period, including the Ar Rass Solar PV project, a 700 MW solar plant that was completed in just 18 months.
On the renewable energy front, ACWA Power secured a 5 GW Power Purchase Agreement for the Aral Wind project in Uzbekistan, as well as 5.5 GW of solar photovoltaic capacity as part of Saudi Arabia’s fourth round of Public Investment Fund projects.
In water desalination, the company signed a Water Purchase Agreement for the 410,000 cubic meters per day Hamriyah Independent Water Project in the UAE.
Abdulhameed Al-Muhaidib, ACWA Power’s Chief Financial Officer, expressed confidence in the company’s future, stating, “In the first nine months of 2024, we saw strong project mobilization, achieving financial closure on seven projects worth SR31 billion. We also began generating revenue from 2.2 GW of projects that reached partial or full commercial operation.”
He added: “Our diversified asset base, visible growth pipeline, and resilient business model, combined with our focus on operational excellence, give us confidence in achieving sustainable, long-term financial performance.”
UAE banking sector’s net international reserves grow 11% by July 2024
RIYADH: The UAE’s banking sector saw a significant increase in its net international reserves, which rose by 11.1 percent— or 127.5 billion dirhams ($34.3 billion) — during the first seven months of 2024.
By the end of July, the reserves totaled 1.273 trillion dirhams, up from 1.145 trillion dirhams at the close of 2023.
According to the Central Bank of the UAE’s June statistical bulletin, the central bank’s share of these reserves stood at 771.6 billion dirhams at the end of July, reflecting a 14.6 percent increase compared to 673.42 billion dirhams at the end of 2023. Meanwhile, the net international reserves of banks operating in the UAE amounted to 501.6 billion dirhams, marking a 6.22 percent rise from 472.2 billion dirhams at the end of last year.
The bulletin also highlighted a notable increase in the central bank’s gold reserves, which grew by 23.5 percent year on year to 21.28 billion dirhams by July’s end, up from 17.226 billion dirhams in July 2023. Over the first seven months of 2024, gold reserves increased by 17.3 percent, from 18.147 billion dirhams at the close of 2023.
In terms of banking operations, the value of transfers processed through the UAE Financial Transfer System exceeded 11.13 trillion dirhams during the first seven months of 2024, reflecting a 17 percent year-on-year growth from 9.5 trillion dirhams in the same period in 2023.
Monthly remittance values were as follows: 1.512 trillion dirhams in January, 1.449 trillion dirhams in February, 1.565 trillion dirhams in March, 1.592 trillion dirhams in April, 1.78 trillion dirhams in May, 1.42 trillion dirhams in June, and 1.81 trillion dirhams in July.
Additionally, the central bank’s data revealed that the value of cheques cleared via image technology totaled 765.08 billion dirhams across more than 13 million cheques during the first seven months of 2024.
The bulletin also showed that cash deposits at the central bank reached 111.4 billion dirhams during the period, while cash withdrawals totaled 120.3 billion dirhams.
MODON signs contracts worth over $533m to establish industrial complexes in Makkah, Al-Kharj
JEDDAH: Agreements to invest over SR2 billion ($533 million) in new industrial complexes will bring growth and job opportunities to Saudi Arabia’s cities of Makkah and Al-Kharj, advancing Vision 2030.
The Saudi Authority for Industrial Cities and Technology Zones, or MODON, signed two contracts with Albaddad Holding to establish complexes within the second industrial cities in both boroughs.
The inking ceremony took place under the patronage of the Saudi Minister of Industry and Mineral Resources, Bandar Alkhorayef.
Under the contracts, the company is responsible for developing the infrastructure and constructing ready-made and prefabricated buildings to create a fully integrated complex that supports industrial objectives.
It will also improve production efficiency and enhance added value and sustainable growth opportunities, according to the Saudi Press Agency.
The agreements were signed by MODON’s CEO, Majed Rafed Al-Argoubi, and Zayed bin Hussein Al-Baddad, CEO of Albaddad Holding, in the presence of the company’s chairman, Al-Fateen bin Hussein Al-Baddad.
The initiative aligns with MODON’s vision to be the preferred destination for investment growth and the leading partner for industrial and technology ecosystems, fostering an enabling environment that enhances business sustainability and contributes to national economic development.
These efforts support the goals of Saudi Arabia’s National Industrial Strategy and the Vision 2030 objective of transforming the Kingdom into a leading industrial powerhouse.
The Makkah project is MODON’s first privately developed complex, spanning over 1.3 million sq. meters with an investment of SR1.75 billion.
It aims to localize promising industries through advanced production technology, create 5,000 jobs, and boost national exports, with up to 60 percent of its output targeting markets in Africa, Europe, the Americas, and countries including Syria, Lebanon, and Jordan, as well as Iraq.
MODON has also launched several development projects in the second industrial city of Makkah, which is over 4.3 million sq. meters in size, including integrated infrastructure enhanced with essential services and innovative products.
This includes a new 200 megavolt-amperes substation to foster a competitive industrial environment promoting growth and sustainability.
The Al-Kharj industrial complex, spanning over 307,000 sq. meters with an investment of SR375 million, is expected to create approximately 1,000 jobs, supporting industries such as construction, exhibitions, and sports as well as cultural and entertainment events.
It will also enhance the iron, aluminum, glass, and PVC textile industries, with plans to export 60 percent of its production to neighboring Gulf countries.
Through these efforts, MODON is driving industrial growth in the Kingdom by developing and managing distinguished industrial cities and technology zones in collaboration with the public and private sectors.
Currently, the developed land area across 37 industrial cities in Saudi Arabia exceeds 215 million sq. meters, housing approximately 6,882 industrial facilities.
Logistics and healthcare startups to get boost from Saudi government, assistant deputy minister says
Logistics and healthcare startups to get boost from Saudi government, assistant deputy minister says
RIYADH: Saudi Arabia is set to launch multiple programs to boost its rapidly expanding startup ecosystem, focusing on the healthcare and logistics sectors, according to a senior official.
Speaking to Arab News on the sidelines of Biban 24 in Riyadh, the Assistant Deputy Minister of Entrepreneurship at the Ministry of Communications and Information Technology, Mohammed Al-Ariefy, highlighted that these programs will be unveiled at the forum in the coming days.
These initiatives are designed to empower startups with resources and opportunities that align with the Kingdom’s ambitions to lead tech-driven industries and accelerate growth in its digital economy.
“We’re planning to launch multiple programs at Biban that focus on partnerships within logistics and healthcare. One of these is a hackathon that we’re calling the Tech Challenges, which will be launched in the next two days at Biban,” Al-Ariefy said.
He continued: “But we utilize Biban, not only to launch or sign MoUs (memorandum of understanding), but to be a part of this great ecosystem, and (we are) thanking Monsha’at for their great support and organizing such beautiful events (that) are very vibrant and very active.”
He added that these tech challenges aim to identify real-world business challenges within specific sectors, like logistics and healthcare, that these companies or industries face.
Once these challenges are identified, the Ministry of Communications and Information Technology helps create or support startups aimed explicitly at developing solutions.
Al-Ariefy further outlined a strategic focus within the ministry on growing the technology sector by supporting both large corporations and agile startups.
“The technology sector has big tech large corporations, big technology companies that are growing and performing very, very well, and we will continue to work with them and closely,” he said.
Al-Ariefy added: “Then we have the entrepreneurs. If we take one example, there are many startups that started just three or four years ago, and now they have 1,000 employees, and they are contributing to the GDP and to the technology sector and the Kingdom significantly.”
The ministry’s overarching vision is to grow the tech sector’s contribution to the economy, which requires a dual approach, retaining the growth momentum of established companies while also fostering an environment where startups can flourish.
Al-Ariefy underscored that startups in particular are seen as crucial because their speed and flexibility make it easier for them to expand and adapt, adding jobs and increasing economic output at a faster pace.
“Startups tend to scale faster, run (more) agile, so it is easier to grow faster and easier to help us increase the contribution to the economy from digital companies, as well as technology jobs,” he said.
Al-Ariefy highlighted the startup zone at Biban 24, which is focused on promoting and supporting new companies by providing them with opportunities to network, connect with potential investors and customers, and collaborate with other businesses.
The ministry also seeks to promote sector-agnostic technological advancement across real estate, finance, healthcare, and sustainable construction by enabling startups to adopt deep-tech and emerging systems that are reshaping these industries.
“We focus on the technology side. We focus on introducing more emerging and deep technology, providing support that helps startups or founders adopt those technologies, whether they choose to adopt it in proptech or in real estate, health, education or in any other sector,” he said.
