DUBAI: Emirates, one of the world’s biggest long-haul airlines, said on Sunday it will raise debt to help it through the coronavirus pandemic and may have to take tougher measures as it faces the most difficult months in its history.
The state-owned airline, which suspended regular passenger flights in March due to the virus outbreak that has shattered global travel demand, said that a recovery in travel was at least 18 months away.
It reported a 21 percent rise in profit for its financial year that ended on March 31, but said the pandemic had hit its fourth quarter performance and it would tap banks to raise debt in its first quarter to lessen the impact on cash flows by the virus.
The airline, which has been promised financial aid from its Dubai state owner, did not say how much it expected to raise.
“The COVID-19 pandemic will have a huge impact on our 2020-21 performance,” Chairman Sheikh Ahmed bin Saeed said in a statement.
“We continue to take aggressive cost management measures, and other necessary steps to safeguard our business, while planning for business resumption.”
In an internal email sent to staff on Sunday and seen by Reuters, Sheikh Ahmed said the months ahead would be the most difficult in the airline’s 35-year history.
“At some point, if our business situation doesn’t improve, we will have to take harder measures,” he said in the email.
Emirates did not immediately respond to an emailed request for comment on the internal email.
Emirates Group, which counts the airline among its assets, said it will not pay an annual dividend to its shareholder, Dubai’s state fund. Its cash assets stood at $7 billion, it said.
Dubai Ruler Sheikh Mohammed bin Rashid Al-Maktoum said in the group’s annual report released on Sunday that he was confident Emirates would emerge from the crisis strong, and a global leader in aviation.
Dubai said in March that it would inject funding into the airline. Emirates said in the annual report that Dubai would financially support the airline if it was required.
The airline made a profit of $299.5 million in the year to March 31, up from $237.17 million a year earlier, it said. However, it cautioned that the virus outbreak had hit its final quarter.
Revenue contracted 6.1 percent to $25.05 billion as the number of passengers carried fell 4.2 percent to $15.3 million.
In March, Emirates also temporarily cut staff pay due to the coronavirus pandemic.
It is not clear when Emirates will resume normal flights. Rival Qatar Airways has said it would begin rebuilding its network from this month, while Abu Dhabi’s Etihad Airways plans to resume regular flights from June.
International connectivity is crucial for Emirates’ Gulf hub model, which transformed Dubai six years ago into the world’s busiest international airport. It does not operate domestic flights and most of its passengers transit through its hub.
Emirates sister company dnata saw profit drop by 57 percent in the year through March 31 to $168.277 million, which the company attributed to investments in its catering and airport services divisions and weak demand in its travel business.
Dnata has laid off some employees so that they could be eligible for unemployment schemes, Sheikh Ahmed said in the internal email.
Dnata is reviewing its operations in Australia after it was excluded from a government job protection scheme there due to its foreign state ownership.
Profit at the Emirates Group, which also includes dnata, fell 28 percent to $462.9 million. Revenue was down 4.8 percent to $28.318 billion.
Unfavorable currency exchange rates cost the Group $272.294 billion in profit, it said, while it saw some respite from cheaper oil prices.
Emirates to raise debt as it braces for most difficult months ever
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Emirates to raise debt as it braces for most difficult months ever
- The airline, which has been promised financial aid from its Dubai state owner, did not say how much it expected to raise
- Dubai Ruler Sheikh Mohammed bin Rashid Al-Maktoum said in the group’s annual report released on Sunday that he was confident Emirates would emerge from the crisis strong
Saudi Aramco to tap bond market amid low gearing at around 5%, CEO says
- Amin Nasser said the oil giant’s gearing ratio, a financial metric that compares a company’s debt to its equity, is currently around 5%
- He reaffirmed the company’s commitment to maintaining high dividends
RIYADH: Saudi Aramco will continue tapping bond markets in the future despite maintaining one of the lowest gearing ratios in the energy industry, according to a top official.
In an interview with Bloomberg, Aramco President and CEO Amin Nasser said the oil giant’s gearing ratio, a financial metric that compares a company’s debt to its equity, is currently around 5 percent. That’s significantly lower than the industry average, where many peers operate with levels between 15 and 20 percent.
“Our gearing today is around 5 percent — still one of the lowest gearing, you know. It’s almost half of the average compared to other energy industry players in the market, and we will continue to tap into that additional bond markets in the future,” Nasser said.
He continued: “But we have a low gearing ratio, which still, as you consider it, is very low compared to any players in the markets.”
The low gearing ratio, which reflects strong financial discipline and limited reliance on debt, is part of what enables Aramco to maintain stability amid market fluctuations.
Gearing is commonly used by analysts and investors to assess a company’s financial leverage, with lower ratios often indicating a stronger balance sheet and reduced financial risk.
In the interview, Nasser also reaffirmed the company’s commitment to maintaining high dividends. “We have a strong balance sheet, and our dividend is one of the highest, the highest globally. We’re expecting to pay dividends that go to the majority shareholder and other shareholders, which is the government, of $85.4 billion this year.”
He said the company benefits from having spare capacity, which allows it to bring more barrels to the market. “For every million barrels, that will have a huge impact on our net income. I would say it will give you a $10 cushion for every million barrels that you put into the market.”
Nasser added: “We have today close to 3 million barrels of spare capacity, so other companies do not have that to cushion any drop in prices. For us, we do have that spare capacity that is healthy, strong, and when you put it, it allows you to increase significantly your net income.”
He emphasized the company’s ability to withstand lower oil prices due to its operational efficiency and robust infrastructure.
“We are the lowest cost producer. Our extraction cost is $3, and it still is $3. And with low extraction cost, healthy balance sheet, and our investment that is continuing to be capturing opportunities that we have,” Nasser said.
Closing Bell: Saudi main index closes in red at 10,990
- Parallel market Nomu dropped 123.20 points to close at 26,809.75
- MSCI Tadawul Index declined by 0.70 percent to 1,403.80
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, as it shed 62.35 points, or 0.56 percent, to close at 10,990.41.
The total trading turnover of the benchmark index was SR10.20 billion ($2.72 billion), with 169 of the listed stocks advancing and 74 declining.
The Kingdom’s parallel market Nomu also dropped 123.20 points to close at 26,809.75.
The MSCI Tadawul Index declined by 0.70 percent to 1,403.80.
The best-performing stock on the main market was Saudi Reinsurance Co. The firm’s share price soared by 9.31 percent to SR50.50.
The share price of East Pipes Integrated Co. for Industry increased by 7.83 percent to SR124.
Arabian Drilling Co. also saw its stock price edging up by 5.12 percent to SR84.20.
Conversely, the share price of Makkah Construction and Development Co. declined by 5.65 percent to SR96.80.
On the announcements front, Al Moammar Information Systems Co., also known as MIS, said that it signed a contract valued at SR58.93 million with the Saudi Data and Artificial Intelligence Authority to operate and maintain the National Unified Visa Platform.
In a Tadawul statement, the company stated that the contract is valid for 36 months, with no related parties involved in the deal.
MIS added that the contract is expected to have an impact on the company’s financial results starting from the third quarter of this year.
The share price of MIS rose by 1.66 percent to SR134.80.
Al Kathiri Holding Co. said that its subsidiary, Saraya Al Diyar Investment Co., has entered into a long-term lease agreement valued at SR143.1 million with the Aseer Municipality to build and operate a mixed-use hotel and commercial complex in Abha.
Under the deal, Saraya Al Diyar Investment Co. will establish a four-star hotel with 180 keys, as well as retail and entertainment facilities in the project that spans a total area of 53,000 sq. meters.
The new contract is in line with Al Kathiri Holding’s strategic direction to diversify its investment portfolio and expand into promising, high-impact sectors, aligning with the goals of Saudi Vision 2030, the company said in the statement.
Al Kathiri Holding Co.’s share price was unchanged at SR2.08 by the end of Thursday’s trading.
Saudi Arabia’s Jeddah airport soars to top three in Middle East airport rankings
- KAIA followed Dubai International Airport and Qatar’s Hamad International Airport in the regional rankings
JEDDAH: King Abdulaziz International Airport has secured third place in the 2024 Airport Connectivity Index for the Middle East, marking a significant milestone in Saudi Arabia’s ascent as a global aviation hub.
The ranking was announced at the Air Connectivity Conference 2025, held in Shanghai, where the Airports Council International Asia-Pacific and Middle East unveiled its annual index.
KAIA followed Dubai International Airport and Qatar’s Hamad International Airport in the regional rankings.
This recognition underscores both KAIA’s growing operational capacity and Saudi Arabia’s broader Vision 2030 goal of transforming the Kingdom into a leading logistics and transportation center. As part of that strategy, Saudi Arabia aims to handle 330 million passengers annually, connect to 250 international destinations, and transport 4.5 million tonnes of cargo by 2030.
Mazen Johar, CEO of Jeddah Airports Co., said the latest ranking reflects the airport’s progress in expanding its air network and enhancing connectivity.
“This milestone demonstrates our commitment to operational excellence and aligns with our strategy to establish KAIA as a pivotal global hub,” he said in a statement to SPA.
Johar noted that the airport’s improved ranking is a result of sustained efforts to boost competitiveness, upgrade infrastructure, and elevate passenger experience in line with national transport goals.
KAIA also held the third spot in the 2023 edition of the index, announced during ACI’s annual assembly in Riyadh.
As part of its long-term development plans, JEDCO is implementing upgrades aligned with the National Transport and Logistics Strategy. These enhancements aim to increase KAIA’s passenger capacity to 114 million annually by the end of the decade.
In 2024, KAIA served 49.1 million passengers — up 14 percent from 2023 — marking the highest annual passenger volume recorded by any airport in the Kingdom. The busiest day was December 31, when over 174,600 passengers passed through the airport. December also set a monthly record, with traffic exceeding 4.7 million passengers.
In the Asia-Pacific rankings, Shanghai Pudong International Airport claimed the top spot, followed by Incheon International Airport in South Korea and Guangzhou Baiyun International Airport. Hong Kong International Airport was recognized as the most improved airport in terms of connectivity across both regions.
Headquartered in Hong Kong with a regional office in Riyadh, ACI Asia-Pacific and Middle East represents airports in some of the world’s fastest-growing aviation markets. The Airport Connectivity Index— developed with PwC in 2023 and refined in its third edition — measures network scale, frequency, destination economic weight, and connection efficiency.
According to ACI, air connectivity in the Middle East grew 28 percent year on year, while Asia-Pacific saw a 13 percent increase, reflecting a 14 percent average growth across both regions. These gains signal a robust post-pandemic recovery and the continued momentum of global air travel.
Saudi EXIM Bank targets African markets with 4 new MoUs
- Deals come as Saudi exports to Africa surged 20.6% year on year to SR7.84 billion in March
- Saudi delegation held in-depth discussions with leaders of several international financial institution
RIYADH: Saudi Arabia is accelerating the expansion of its non-oil exports into African markets, with the Saudi Export-Import Bank securing four new strategic agreements to strengthen trade and investment ties across the continent.
Saudi Export-Import Bank CEO Saad bin Abdulaziz Al-Khalb signed memoranda of understanding with Africa50, the Ghana Export-Import Bank, Blend International Limited, and Guinea’s Ministry of Planning and International Cooperation, the Saudi Press Agency reported.
The deals were finalized on the sidelines of the African Development Bank Group’s annual meetings, held in Cote d’Ivoire from May 26 to 30.
The newly signed deals come as Saudi exports to Africa surged 20.6 percent year on year to SR7.84 billion ($2.09 billion) in March 2025, reflecting growing trade ties between the Kingdom and the continent.
Al-Khalb said the bank’s participation in the meetings aims to deepen international trade relations and forge partnerships that support Saudi non-oil export growth in African markets.
The SPA report added: “He stated that the memoranda of understanding are an extension of the bank’s efforts to promote trade exchange, stimulate development projects, and enable local exporters to export their services and products to African markets through effective and extended partnerships, contributing to supporting sustainable development goals and enhancing economic integration.”
He also described the gathering as a valuable opportunity to boost economic cooperation and engage with officials from export credit agencies and financial institutions across African countries.
The agreements were signed by Saudi EXIM CEO Saad bin Abdulaziz Al-Khalb, along with Alain Ebobisse, CEO of Africa50; Sylvester Mensah, CEO of the Ghana Export-Import Bank; Ravi Gupta, managing director of Blend International Limited; and Ismail Nabeh, minister of planning and international cooperation of Guinea.
The MoU with Africa50 is aimed at enhancing cooperation in infrastructure projects by partnering with Saudi companies. The agreement with the Ghana Export-Import Bank will focus on exploring cooperation opportunities and enhancing bilateral exports of services and products.
Meanwhile, the MoU with Blend International Limited is aimed at targeting broader trade opportunities and international partnerships. The deal with Guinea’s Ministry of Planning and International Cooperation seeks to bolster development projects and investment in priority sectors, enabling Saudi exports of engineering services and industrial supplies.
Also, on the sidelines of the event, Al-Khalb and his delegation held in-depth discussions with leaders of several international financial institutions, focusing on expanding trade ties and boosting the flow of Saudi non-oil exports into African markets.
Asia’s first Saudi sukuk ETF launched in Hong Kong
- Launch coincided with the opening of the Capital Markets Forum
- ETF is managed by Premia Partners, with BOCHK Asset Management Ltd. serving as investment adviser
RIYADH: Hong Kong has launched Asia’s first exchange-traded fund tracking Saudi sovereign sukuk, marking a major development in financial cooperation between East Asia and the Middle East.
The Premia BOCHK Saudi Arabia Government Sukuk ETF, listed on the Hong Kong Stock Exchange, follows the iBoxx Tadawul Government & Agencies Sukuk Index. It includes both riyal- and US dollar-denominated sukuk issued by the Saudi government and related agencies.
The ETF is traded under stock codes 3478 for the Hong Kong dollar counter and 9478 for the US dollar counter. It has been approved by the Securities and Futures Commission of Hong Kong. It offers quarterly US dollar distributions, with fees capped at 0.35 percent and an expected annual tracking difference of around -2 percent.
The launch coincided with the opening of the Capital Markets Forum, a two-day event hosted by Saudi Tadawul Group and Hong Kong Exchanges and Clearing Ltd., aimed at boosting cross-border investment.
This year’s forum, held under the theme “Powering Connections,” focuses on strengthening economic and capital market ties between the Middle East and East Asia.
The ETF is managed by Premia Partners, with BOCHK Asset Management Ltd. serving as investment adviser.
Speaking at the forum, Mohammed Al-Rumaih, CEO of the Saudi Exchange, said the CMF is becoming “a leading global platform for collaboration and dialogue on the future of capital markets and economic transformation.”
“We aim to strengthen ties with both local and international investors and to reinforce the Saudi capital market’s position as a leading global hub, serving as a bridge between capital markets in the East and West,” Al-Rumaih said.
Bonnie Y. Chan, CEO of Hong Kong Exchanges and Clearing Ltd, said that the partnership with Saudi Tadawul Group underscores the strong ties between the two exchanges.
“This second edition of the forum will serve as a dynamic platform to connect our broad base of investors and issuers, while encouraging deeper dialogue and collaboration among the capital-raising hubs of Mainland China, Hong Kong, and the Middle East,” Chan said.
The forum featured a series of keynote speeches and panel discussions focused on global economic trends, investment strategies, financial innovation, and the integration of sustainability into financial markets.
As part of the event, the Corporate Access Program enabled direct engagement between investors and senior executives from listed companies and capital market institutions across the region, fostering greater transparency and dialogue.
Commenting on the ETF’s launch, Faris Al-Ghannam, CEO of HSBC Saudi Arabia said: “The corridor between China and Saudi Arabia is becoming even more compelling. The resilient activity in the Kingdom’s private and capital markets in Q1 reflect Saudi Arabia’s position as a refuge for foreign investors from global volatility. The Kingdom’s continued liberalization of its foreign investment regulations is also creating new opportunities for investors in Asia and globally.”
He said: “Chinese and Saudi Arabian corporates in sectors such as energy, technology and infrastructure are reinvigorating the Silk Road. We expect this trend to continue as tariff uncertainty persists and corporates double down on managing risks and building resilience in their supply chains.”
The launch of the ETF, alongside the Capital Markets Forum, reflects Saudi Arabia’s commitment to elevating its capital markets on the global stage. These efforts align with the Kingdom’s Vision 2030 strategy to enhance financial sector integration and attract foreign investment.
At the same time, Hong Kong continues to strengthen its role as a vital conduit for capital flows between East and West, reinforcing its position as a leading international financial hub.
