DUBAI: Qatar Airways is planning to cut a significant number of jobs because travel has been disrupted by the coronavirus pandemic, and told cabin crew to prepare for redundancies, according to a company notice seen by Reuters.
The state-owned airline, one of few global carriers still operating scheduled services, said in March it was burning through its cash reserves and would eventually seek government aid.
“We have to face a new reality, where many borders are closed, rendering many of our destinations closed and aircraft grounded as a result, with no foreseeable outlook for immediate, positive change,” Chief Executive Akbar Al-Baker said in the notice to cabin crew.
“The truth is, we simply cannot sustain the current numbers and we need to make a substantial number of jobs redundant — inclusive of Cabin Crew.”
A Qatar Airways spokesman confirmed a number of roles were being made redundant due to the impact of COVID-19.
“The unparalleled impact on our industry has caused significant challenges for all airlines and we must act decisively to protect the future of our business,” the spokesman told Reuters.
Neither the notice or the spokesman said how many jobs would be cut.
A Qatar Airways spokesman had no immediate comment when contacted by Reuters outside of normal business hours on Tuesday.
Affected employees would be paid their contractual dues and any owed overtime, the notice said, and those who are not able to immediately return to their home countries would be provided with housing and a living allowance until such a return was possible.
The airline said last month some staff would have their wages halved for at least three months though would be later paid back.
Qatar Airways Group, which counts the airline among its assets, had 46,684 employees at the end of its last reported financial year in March 2019.
Rivals Emirates and Etihad Airways have temporarily slashed wages as they try to weather the crisis, while budget carrier Air Arabia earlier on Tuesday said it had laid off 57 employees.
Qatar Airways planning substantial job cuts: Company notice
https://arab.news/jsh42
Qatar Airways planning substantial job cuts: Company notice
- Airline said in March it was burning through its cash reserves and would eventually seek government aid
Closing Bell: Saudi main index closes in red at 12,414
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 19.53 points, or 0.16 percent, to close at 12,414.40.
The total trading turnover of the benchmark index was SR7.01 billion ($1.87 billion), as 102 stocks advanced, while 122 retreated.
The MSCI Tadawul Index decreased by 4.85 points, or 0.31 percent, to close at 1,543.76.
The Kingdom’s parallel market, Nomu, rose 0.17 percent gaining 54.22 points to close at 31,250.59. This comes as 33 stocks advanced, while 47 retreated.
The best-performing stock was Ash-Sharqiyah Development Co. with its share price surging by 6.74 percent to SR22.82.
Other top performers included the Zamil Industrial Investment Co., which saw its share price rise by 4.61 percent to SR35.20, and Americana Restaurants International PLC - Foreign Co., which saw a 4.44 percent increase to SR2.59.
The worst performer of the day was Kingdom Holding Co., whose share price fell by 2.97 percent to SR10.46.
The Co. for Cooperative Insurance and SABIC Agri-Nutrients Co. also saw declines, with their shares dropping by 2.3 percent and 2.27 percent to SR153.20 and SR112, respectively.
On the announcements front, Arab National Bank announced its annual financial results for 2024 with net profits before zakat and income tax reaching SR5.7 billion up by 21.1 percent compared to the previous year.
In a statement on Tadawul, the company said the surge was driven by higher net special commission income, fee and commission income, trading gains, and dividend income. It was also supported by lower impairment charges on real estate and reduced allowance charges for expected credit losses and other provisions.
“However, this growth was partially offset by an increase in the costs related to salaries and employee related expenses, depreciation and amortization, other general and administrative expenses and premises related expenses, along with a decline in net gains on non-trading instruments, net other operating income and net exchange income,” the statement added.
ANB’s total comprehensive income amounted to SR4.6 billion in 2024, and total operations profit reached SR9.5 billion.
In today’s trading session, the shares of Arab National Bank traded 0.37 percent lower on the main market to close at SR21.44.
Azad Properties, NHC join hands to develop Souq7 Riyadh
RIYADH: Saudi Arabia’s Azad Properties and the NHC have agreed to develop the Souq7 Riyadh project, reflecting a public-private partnership aligned with Vision 2030 goals.
In an interview with Arab News on the sidelines of the 2025 RLC Global Forum, Ayman Al-Burti, CEO of Azad Properties emphasized that partnerships are a key pillar of his company’s expansion strategy.
The agreement comes amid Saudi Arabia’s drive to bolster the private sector and foster sustainable partnerships for development. It also underlines the Kingdom’s rapid real estate advancements, driven by innovative, eco-conscious urban developments and substantial infrastructure investments.
“One of our most exciting recent collaborations is with the NHC, with whom we have signed a MoU to develop Souq7 Riyadh,” Al-Burti said.
He added that the 700,000 sq. meter project will establish a dynamic commercial hub in the Al-Khuzam suburb, showcasing the company’s dedication to creating spaces that drive economic growth.
“This initiative builds on the success of Souq7 Jeddah, a project that transformed traditional retail by integrating innovation and community engagement. With the NHC, we aim to replicate this success in Riyadh, offering new opportunities for both local businesses and global brands,” Al-Burti said.
The CEO of the real estate developer highlighted that when Azad Properties was founded in 2017, it had a clear mission of creating spaces deeply rooted in the needs and aspirations of their communities, contributing to their success in the Saudi real estate market.
He added that today, under the umbrella of AWJ Holding, they manage 12 properties across the retail, logistics, and commercial sectors, each designed to reflect both the history and the evolving needs of the surrounding districts.
“Guided by Saudi Vision 2030, we have built destinations that inspire and elevate daily life. This is what differentiates Azad. We are not just building projects; we are contributing to a brighter, more sustainable future for Saudi Arabia,” he said.
Speaking about their plans to list on the Saudi market, he stated that the dates and timelines will be announced in due course.
“While the timeline for the public listing will be announced at a later stage, we are finalizing our plans and focusing on key milestones. These include optimizing our portfolio, enhancing corporate governance, and increasing stakeholder engagement,” he said, adding that their aim is to ensure a smooth and successful initial public offering preparation process that supports our long-term growth and strategic objectives.
He pointed out that they have announced the appointment of PwC, a global leader in IPO advisory services, to support their journey toward going public. “These efforts are in line with our 5-year strategy and efforts to enhancing our organizational, operational, and governance frameworks to meet the highest IPO standards,” he said.
Al-Burti added that their strategy focuses on strengthening their diversified portfolio, which includes lifestyle retail, logistics, and commercial properties.
“Beyond portfolio management, we are also strengthening our digital infrastructure and incorporating sustainability principles across our developments. This positions Azad Properties as a forward-thinking leader in the real estate market,” he said.
The executive also emphasized that competition is something they welcome, as it drives innovation and raises industry standards. He added that Azad Properties sees its role as contributing to the Kingdom’s broader vision of becoming a world-class destination with diverse offerings in the sector.
“Saudi Arabia’s real estate sector is undergoing a transformation in line with Vision 2030. We are proud to play a part in that change by offering developments that add to the richness and variety of destinations across the Kingdom. Together with other players in the market, we are enhancing the appeal of Saudi Arabia as a hub of cultural, commercial, and lifestyle excellence,” he said.
As for Azad Properties’ approach to the environment amid the company’s expansion plans, he stated that sustainability is integrated into every phase of their projects.
He emphasized that the company focuses on creating lasting impact through solutions that preserve resources, enhance energy efficiency, and reduce waste while ensuring their developments remain adaptable to future needs, fully aligning with Saudi Arabia’s Vision 2030 goals.
The CEO highlighted that the recent announcements are just the beginning of what lies ahead.
“One of Azad’s key areas of expansion is in the logistics and commercial sectors, aligning with Saudi Arabia’s major efforts to develop free zones and enhance its logistics infrastructure under Vision 2030.”
He also underlined that these initiatives are designed to diversify the economy, attract foreign investment, and create opportunities for businesses to expand their operations in the Kingdom.
“Our strategy involves expanding our portfolio through targeted projects that support both local and international business needs. With more collaborations on the horizon, we remain focused on delivering developments that align with Vision 2030 and enhance the Kingdom’s position as a leading destination for investment and innovation,” he concluded.
Azad has developed the Souk7 Jeddah project, which spans over 700,000 sq. meters, with a rental area exceeding 400,000 sq. meters. The project includes more than 4,000 stores spread across 114 buildings, with an estimated cost of SR 1.5 billion ($400 million).
It aims to generate annual retail sales exceeding SR2 billion and create more than 24,000 jobs for Saudi youth, contributing to the country’s economic growth and aligning with the Kingdom’s promising vision.
Saudi property firm RASM eyes global partnerships, CEO says
RIYADH: Saudi property management firm RASM is exploring international partnerships as part of its strategy to strengthen its market position and drive growth in the Kingdom’s expanding real estate sector, said a top official.
In an interview with Arab News, Artin Malatjalian, CEO of the newly launched firm, shared that RASM is considering working with companies in the same field and may announce details later this year, although he refrained from revealing any names.
The firm specializes in regional malls, community centers, and mixed-use developments, with a focus on meeting the needs of investors, owners, and retailers.
The launch of RASM highlights the growth of Saudi Arabia’s real estate sector, which is expected to reach a market value of $101.62 billion by 2029, with a compound annual growth rate of 8 percent from 2024.
“We are contemplating the idea of partnering with an international player in the same field. I will not mention the names, but we are considering three major ones on a global scale” said Malatjalian, adding that “this will take us to the next level.”
The CEO emphasizing his company’s speed, market presence, and dynamic decision-making, but pointed out that the firm could not be a “center of excellence” without international collaborations.
“I would reckon that sometime by the second half of this year, we can start announcing new alliances with all of those international service providers,” said Malatjalian.
Sharing that the company’s long-term goal is to go public, the CEO said, “It will take us three to five years to reach a stage where we can start looking at filing for an IPO in the market.”
However, in the short term, RASM is focused on attracting top talent, with its senior-level team expected to be fully operational by June.
The firm is already managing Red Sea Mall in Jeddah and is overseeing the development of The Point, a new project in Abha that is currently under construction.
RASM also plans to establish a presence in Riyadh, the Eastern region, Makkah, and Madinah, he added.
Beyond real estate, the company is exploring partnerships with technology firms to enhance its offerings and differentiate itself in the property management sector.
GCC grocery market shifts toward value-led retail: Oliver Wyman
- 51% of Saudi consumers prioritize value, including price and promotions, when selecting their primary retailer
- 56% of UAE consumers and 33% of Saudis prioritize speed and convenience when grocery shopping
RIYADH: Gulf Cooperation Council retailers faced increasing pressure to stand out as competition in the region’s retail sector intensifies, according to a recent report.
US-based management consulting firm Oliver Wyman highlighted the rising significance of value-led grocery retailing in the region in a recent analysis titled “The Affordability Imperative: Capitalizing on Value-Led Grocery Retail in the GCC.”
“As the grocery retail landscape in the Gulf Cooperation Council becomes increasingly saturated, the need for differentiation has never been more critical,” the report said, adding that shifting consumer priorities and rising demand for affordability provide an opportunity for retailers to reshape the market by adopting cost-conscious strategies.
Saudi Arabia’s grocery sector undergoes transformation
The Kingdom, the largest market in the GCC, provided a critical case study in the transformation of grocery retail. According to a 2024 survey by Oliver Wyman on Saudi Arabia’s consumer trends, more than half of the nation’s households experienced a shift in income levels throughout the year.
“Around 31 percent of households reported a drop in income during 2024, with 11 percent seeing declines of more than 50 percent,” the study said, adding that 40 percent of consumers saw a decrease in their savings, while only 23 percent managed to increase theirs.
Consumers prioritize affordability in shopping choices
Consumers have responded by adopting new shopping behaviors. Nearly 48 percent of surveyed individuals compare prices before making purchases, while 46 percent actively seek out stores offering lower prices.
The Oliver Wyman Customer Perception Map Survey found that 51 percent of Saudi consumers prioritize value, including price and promotions, when selecting their primary retailer.
Private-label products have gained traction as a cost-saving measure, with 80 percent of consumers reporting regular purchases.
The study added 68 percent of shoppers expressed interest in discount grocery retailers and 97 percent of those familiar with international discount brands, such as German-based supermarkets Aldi and Lidl, said they would consider shopping at these stores if available locally.
Three key strategies driving success in value-led grocery retail
The study identified several fundamental strategies employed by successful international value-led grocery retailers.
One is maintaining an attractive proposition through competitive pricing, a strong private-label presence, and a streamlined product assortment. This approach allows retailers to maximize cost efficiency while appealing to budget-conscious shoppers.
Another factor is operational excellence, which can be achieved by optimizing supply chains, enhancing private-label and fresh product management, and fostering a cost-effective corporate culture.
Lastly, leading discount retailers prioritize rapid expansion by maintaining a low capital expenditure model, leveraging deep market knowledge, and reinvesting profits into further growth.
The two-step approach to long-term success
The report highlighted a two-step approach used by successful value-led retailers.
The first step focuses on establishing a strong value perception through low prices, limited assortments, and simple store formats. Once a solid foundation is built, the second step involves enhancing offerings by improving product quality, diversifying selections, and upgrading the shopping experience.
While affordability is a key factor in value-led grocery retail, successful retailers differentiate themselves through pricing models, product assortment, operational efficiency, and customer engagement.
International discount chains influence GCC market trends
Internationally recognized brands such as Aldi and Lidl rely on an “everyday low pricing” strategy, while retailers like Belgium-based Colruyt implement a lowest-price guarantee within their market areas.
Discount retailers commonly utilize private-label products, automation, and digital engagement tools to drive sales.
The GCC region presents distinct opportunities and challenges for value-led grocery retailers, the report said.
Challenges and opportunities in the GCC grocery sector
The market is shaped by a variety of demographics. In the UAE, expatriates comprise 89 percent of the population, significantly impacting consumer behavior. In Saudi Arabia, the growing middle class influences spending patterns and drives demand for new products.
Traditional grocery stores, or “baqalas,” continue to compete with modern trade, which accounts for 83 percent of fast-moving consumer goods sales in the UAE and 52 percent in the Kingdom.
Private-label market penetration remains underdeveloped, standing at 3 percent in the UAE and 1 percent in Saudi Arabia, leaving significant room for growth.
Price levels vary across the region, requiring a tailored approach, while centralized sourcing could help retailers manage costs.
Consumer behavior in the region is also influenced by a strong preference for service-oriented shopping, with 56 percent of UAE consumers and 33 percent of Saudis prioritizing speed and convenience in their grocery shopping experiences.
Emerging models for value-led grocery expansion
Oliver Wyman’s report identified four potential models for value-led grocery retail expansion in the GCC.
The neighborhood discount focuses on small, local stores offering essential products at low prices and is exemplified by retailers such as Turkiye’s BIM and Egyptian discount supermarket chain Kazyon.
The basic discount adopts a no-frills approach with a limited product range and competitive pricing, similar to UK-based Netto and Poland’s Biedronka supermarket chains.
The mature discount builds on strong value and operational efficiency foundations while enhancing private-label dominance, fresh product offerings, and store aesthetics, as seen with Aldi and Lidl.
The full-basket value-led model offers a comprehensive grocery solution catering to bulk shoppers and price-sensitive consumers, represented by brands such as Colruyt and Finland’s S-Market.
The research said that while the neighborhood discount example is the most scalable due to its accessibility and simplicity, the full-basket value-led model offers the highest long-term profitability.
Retailers in the GCC face operational challenges
A comparative analysis of profit and loss statements between Western and GCC grocery retailers revealed structural differences.
Value-led retailers in Europe achieve high sales productivity and net operating profit after taxes through optimized cost structures, whereas GCC retailers face inefficiencies in supply chain management and lack the scale to maximize gross margins.
“Despite the difficulties associated with value-led grocery retail in the GCC today, the precedents set in European markets demonstrate that the landscape can shift rapidly once value-driven concepts begin to gain traction,” the report said.
Key strategies for success in the GCC market
To successfully implement value-led grocery retail models in the GCC, Oliver Wyman outlined key dimensions for consideration.
Retailers should focus on competitive pricing, efficient product assortments, and compelling promotions to attract consumers.
Streamlining supply chain operations and leveraging digital technology will enhance cost management and operational efficiency. Growth strategies should be aligned with demographic insights and geographic expansion plans to ensure scalability.
The future of value-led grocery retail in the GCC
The study underscores the growing significance of value-led grocery retail in the region. As disposable incomes fluctuate and consumer preferences shift toward affordability, retailers have a unique opportunity to establish themselves in this evolving sector.
By leveraging global best practices, adapting to regional nuances, and prioritizing operational efficiency, value-led grocery retailers can reshape the industry and drive long-term growth.
Middle East M&A value surges 52% to reach $29bn in 2024: Bain & Co.
RIYADH: Saudi Arabia and the UAE led a surge in mergers and acquisitions across the Middle East in 2024, with total deal value reaching $29 billion, according to a Bain & Co. report.
Sovereign wealth funds and government-related entities were the driving force behind the 52 percent increase from the previous year, with the Kingdom and the UAE accounting for the majority of the region’s deal value.
The Middle East recorded the highest M&A deal value growth in 2024 compared to other regions, with North America seeing a 2 percent rise, although still posting a total of $1.2 trillion — while Europe recorded a 9 percent rise to $528 billion.
Deals involving energy and natural resources remained dominant in the Middle East market, representing nearly 80 percent of the total value.
The largest transaction of the year was Saudi Aramco’s $8.9 billion acquisition of Rabigh Refining and Petrochemical Co., underscoring the continued focus on energy-related deals, according to the report.
Gregory Garnier, partner at Bain & Co. and head of the Private Equity and Sovereign Wealth Fund practice in the Middle East, described 2024 as “a transformative year” for the region’s M&A activity.
“With continued support from government entities and strong cross-regional investments, particularly in Europe, the Middle East is well-positioned to continue driving high-value strategic acquisitions, especially in energy transition and technology sectors,” he added.
The report also highlighted that advanced manufacturing and technology emerged as growing areas of investment, with technology-related M&A deals doubling in value.
Middle Eastern investors have expanded their reach into European markets, with deal values for targets rising 120 percent in 2024.
In contrast, investment activity in the Asia-Pacific region saw a steep decline, with strategic deal values dropping by 78 percent over the same period.
Local firms are also growing interest in joint ventures, particularly in industrial sectors such as renewable energy.
This surge in activity in the Middle East was driven by sovereign wealth funds, economic diversification, and investor-friendly reforms, with the Kingdom and the UAE leading in energy, tech, and industrial acquisitions.
Diversification efforts beyond oil also contributed to the region’s M&A growth, with investment strategies such as those of Saudi Arabia’s Public Investment Fund signaling a clear intent to establish a strong presence across multiple sectors.
PIF completed three joint ventures focused on solar and wind projects last year, reinforcing the country’s commitment to diversifying its energy investments.
The sovereign wealth fund entered joint ventures with Envision Energy and Vision Industries to manufacture wind turbine components, and with JinkoSolar and Vision Industries to establish a solar cell and module production facility.
Additionally, PIF partnered with China Energy Engineering Corp., ACWA Power, and Saudi Aramco Power Co. to construct a 2 gigawatt solar power plant.
The Middle East’s strong M&A performance contrasts with a period of sluggish dealmaking worldwide.
According to Bain & Co., global M&A activity has remained historically low relative to gross domestic product over the past three years, as high interest rates and regulatory hurdles constrained dealmaking.
Germany was among the countries to experience a decline in M&A activity, posting a 7 percent drop, while India saw deal value decrease by 16 percent year-on-year.
However, the report suggests that 2025 could mark a turning point as these inhibitors ease and companies increasingly turn to M&A and divestitures to navigate shifting profit pools amid technological disruption and a post-globalization economy.
