NEW DELHI: The Indian government said on Twitter it has received multiple bids for its stake in state-run carrier Air India, the auction for which ended on Monday evening.
“Multiple expressions of interest have been received for strategic disinvestment of Air India. The transaction will now move to the second stage,” according to a tweet from the secretary, Department of Investment and Public Asset Management.
Tata Sons, India’s autos-to-steel conglomerate, is expected to have submitted an initial bid for the loss-making airline, sources aware of the matter said.
A Tata spokesperson declined to comment.
A group of more than 200 Air India employees have also submitted an initial bid for the carrier in partnership with a private financier, Business Standard newspaper reported earlier on Monday.
Prime Minister Narendra Modi’s government in January renewed its push to sell its entire interest in the loss-making airline, which has been kept aloft by a bailout since 2012.
An effort to auction a majority stake almost two years ago drew no bids, forcing the government to ease terms. It has also extended the deadline multiple times this year due to COVID-19 and further eased the terms to attract bidders.
The airline industry around the world has been hammered by a slump in travel due to restrictions aimed at containing the coronavirus.
Tata already operates two airlines in India – full-service carrier Vistara, which is in partnership with Singapore Airlines, and budget airline AirAsia India along with Malaysia’s AirAsia Group.
A successful bidder would win control of Air India’s 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas.
It would also get 100 percent of the low-cost arm Air India Express and 50 percent of AISATS, which provides cargo and ground handling services at major Indian airports, the bid document showed.
India receives multiple initial bids for state-run carrier Air India
https://arab.news/veg8p
India receives multiple initial bids for state-run carrier Air India
- Prime Minister Narendra Modi’s government in January renewed its push to sell its entire interest in the loss-making airline
- The airline industry around the world has been hammered by a slump in travel
Women leaders, innovators take center stage at Forbes Summit in Riyadh
RIYADH: Women’s leadership and achievements were the focus of a dynamic summit in Riyadh, where a series of panel discussions and workshops highlighted empowerment, career success, and navigating the changing business landscape.
The Forbes Middle East Women’s Summit, a two-day event held at the Riyadh International Convention & Exhibition Center, concluded on Dec. 19, celebrating the significant contributions of women across the region.
The summit featured two primary stages: the Empowerment Arena and the She Leads Hub. Discussions at the Empowerment Arena explored vital topics, including advancing healthcare as part of Vision 2030, promoting women’s leadership, and redefining entrepreneurship.
At the She Leads Hub, panels delved into strategies for professional success, enhancing well-being and sustainability, and empowering women in leadership positions.
Notable attendees included Princess Doaa bint Mohammed, CEO of Al Mohra Education Co. and former supreme president of the Arab Women’s Authority, and Princess Lamia bint Majed Saud Al-Saud, secretary-general and board member of Alwaleed Philanthropies.
Mishaal Ashemimry, the first female aerospace engineer in the Gulf Cooperation Council and founder of MISHAAL Aerospace, delivered an inspiring open mic session titled “The Hard Decisions You Have to Make to Pursue Your Passion.” She urged attendees to take bold steps in their careers, despite the obstacles they may face.
Speaking to Arab News, Ashemimry shared that her passion for space began during a family trip to the desert of Unaizah, a governorate in Al-Qassim.
“I looked up to the sky. I was called upon by the stars because I was very curious about them. I couldn’t get enough answers about the stars, so I decided, well, I gotta go to space to understand this stuff, and the only way to go to space is to make a rocket,” she said.
Ashemimry, who overcame numerous challenges from people who doubted and underestimated her, emphasized that resilience, determination, and perseverance are essential for success in business.
“You will fail and you will stumble. You will face people who will be against you. You need to believe in yourself and be determined enough to achieve what you want,” she added.
American-Jordanian abstract artist Aida Murad, one of the summit’s featured artists, presented a colorful collection of paintings. In an interview with Arab News, Murad shared her experiences as both an artist and entrepreneur in Saudi Arabia.
“I feel very empowered here. It’s a high-value-based culture, so when your values align, things become much easier. People and companies are also highly accessible here — more so than in other countries where I’ve done business. I think it’s because there’s a genuine eagerness to invite value-aligned individuals to Saudi Arabia,” she said.
Murad also highlighted the importance of adaptability and building connections as key strategies for business expansion.
She added: “Create a target list. It sounds simple, but it’s often the most basic things that people overlook. Take the time to read your audience. There are moments when they’re overwhelmed and others when they’re more available — timing is everything.”
Furthermore, she underscored the significance of understanding Saudi Arabia’s unique business culture. “There are countless events here for networking — attend them. It’s straightforward, but here, business isn’t conducted over emails as much as it is in person or through WhatsApp. Understanding how people communicate and conduct business here is crucial to building meaningful connections.”
Saudi sports sector value to reach $22bn by 2030, driven by investments and global events
RIYADH: Saudi Arabia’s sports sector market value is projected to hit $22.4 billion by 2030, up from $8 billion, driven by a surge in investments and a growing focus on the industry.
According to the report released by SURJ Sports Investments, a company under the Public Investment Fund, the Kingdom has hosted over 100 major international events across 40 different sports since 2019.
This growth supports Vision 2030’s goal of developing the Kingdom into a global sport and entertainment hub, with Middle East and North Africa sports market revenue projected to rise from $4.79 billion in 2024 to $5.57 billion by 2029, as per data from Statista.
Major events hosted by the Kingdom include the FIFA Club World Cup, the Saudi Cup horse race, and various Formula 1 races held in Jeddah.
“These efforts culminated in December with the Kingdom officially winning the right to host the 2034 FIFA World Cup,” said Danny Townsend, the CEO of SURJ Sports Investments.
Saudi Arabia’s commitment to sports development is evident in financial investments. SURJ’s report highlighted that the sector’s contribution to the Kingdom’s gross domestic product grew from $2.4 billion in 2016 to $6.9 billion in 2019.
Annual contributions are projected to reach $16.5 billion by 2030, accounting for 1.5 percent of the national GDP. Additionally, sports investments are expected to generate over 100,000 jobs in the next decade.
Key achievements in the sector include the launch of the Professional Fighters League Middle East and North Africa, supported by SURJ Sports Investments, marking the first regional mixed martial arts league.
“This initiative opens new avenues for athletes from Saudi Arabia and the Middle East to compete in this discipline,” Townsend added.
The sector also saw a rise in infrastructure spending, with plans for $2.7 billion to develop and renovate facilities by 2028, according to the report.
The growing enthusiasm for sports among Saudi citizens has been pivotal. Participation rates in physical activities have increased, with 50 percent of the population now exercising regularly, up from 13 percent in 2015.
This shift has been supported by initiatives like the “Sports for All Federation,” which engaged over 295,000 participants in community programs in 2023 alone.
Female participation has also increased by 400 percent since 2015, and women now make up 45 percent of community sports club members. A total of 97 female coaches were registered in 2023, reflecting a 61 percent year-on-year increase.
Saudi Arabia’s investment in esports and digital gaming is another growth frontier. The country has earmarked $38 billion for the sector, with the goal of contributing $13.3 billion to the national GDP by 2030.
Hosting major events like the Esports World Cup has cemented the Kingdom’s status as a leader in the industry.
“As we approach 2025, the focus will remain on continuing efforts to achieve more accomplishments,” the CEO said.
Saudi Arabia becoming global leader in tackling labor market challenges: GLMC report
RIYADH: Saudi Arabia is emerging as a global leader in addressing labor market challenges, skill development, and workforce requalification, according to a report from the Global Labor Market Conference.
The inaugural report, issued by the conference hosted by the Kingdom’s Ministry of Human Resources and Social Development, emphasized the government’s initiatives to bridge the gap between academic qualifications and market demands.
These efforts include enhancing education and training programs and preparing young job seekers for the rapidly evolving global labor landscape.
The findings align with Saudi Arabia’s Vision 2030 goals, which aim to reduce unemployment from 11.6 percent in 2017 to 7 percent by the end of the decade. The strategy focuses on developing national talent, requalifying the workforce, and driving economic diversification to solidify the Kingdom’s global competitiveness.
“Saudi Arabia has made significant strides in increasing access to education, improving quality, and promoting inclusive learning opportunities,” the report said.
The report, based on input from 14,000 participants across 14 countries, highlighted growing global concerns about workforce readiness. Over half of respondents expressed fears that their current skills could become obsolete in the near future, underlining the urgent need for upskilling to meet the demands of a rapidly changing labor market.
“Respondents, in fact, identified cognitive skills, management skills, as well as socio-emotional skills as the three most critical competencies to succeed in the current labor market.” the report stated.
The study also highlighted increasing automation as a significant threat to employment across various sectors. It emphasized the growing importance of expertise in science, technology, engineering, and mathematics for success in technology-driven industries.
Although men continue to dominate STEM-related fields, the report highlighted progress in narrowing the gender gap in some countries. “For instance, India has a female graduation rate of 26 percent, followed by Saudi Arabia at 21 percent,” it said.
The report added that these figures surpass those of European countries and the US, where rates range between 10 and 13 percent. “However, the percentage of STEM degrees obtained by women has stagnated, except in Saudi Arabia,” it stated.
The second annual Global Labor Market Conference will take place in Riyadh from Jan. 29 to 30, 2025. The event is expected to host over 5,000 attendees, including labor ministers from 40 countries, executives, international experts, and public-sector leaders from more than 50 nations.
Discussions will center on global labor market challenges and opportunities, further cementing Saudi Arabia’s leadership in workforce development.
Fitch revises Oman’s outlook to positive, downgrades Egypt’s economic outlook
RIYADH: Fitch Ratings has revised Oman’s long-term foreign currency issuer default ratings to positive from stable and affirmed the IDR at BB+, driven by the availability of fiscal tools to combat future shocks.
According to its latest report, the US-based credit rating agency said that the Gulf country’s ratings were supported by higher gross domestic product per capita, the positive impact of recent budget reforms and decreasing government debt per GDP.
While Fitch maintains a positive outlook on Oman, its IDR remains lower than that of its regional neighbors, including Saudi Arabia and the UAE. In February, Fitch affirmed the Kingdom’s IDR at A+ with a stable outlook, while the UAE received an AA- rating.
According to the rating agency, a BB rating indicates an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time. However, it also suggests that the company or entity has some financial flexibility to meet its obligations despite the increased risk.
“High dependence on oil revenue, modest financial buffers given high exposure to volatile hydrocarbon prices, and Oman’s net external debtor position weigh on the ratings,” said Fitch.
Saudi Arabia’s A+ rating indicates the Kingdom’s strong capacity to pay financial commitments and signifies low default risk.
The analysis added that Oman’s positive outlook also reflects greater confidence in the resilience of public finances and the availability of more fiscal tools to respond to shocks than in the past.
The US-based agency said the Gulf country’s overall GDP is expected to expand by 1.8 percent in 2024, driven by the growth of the non-oil economy.
“We project overall GDP growth of 1.8 percent in 2024, after 1.2 percent in 2023, supported by non-oil growth of 3.7 percent, while hydrocarbon GDP was hindered by OPEC+ quotas. Domestic consumption, robust foreign investment and tourism will maintain non-oil growth above 3 percent in 2025 and 2026,” added Fitch.
The analysis added that Oman’s budget surplus is expected to narrow to 0.7 percent of GDP in 2025 and to turn into a minor deficit of 0.2 percent in 2026, assuming that the average price of Brent oil will reach $70 per barrel next year, and $65 per barrel in 2026.
In November, Moody’s also upgraded Saudi Arabia’s long-term local and foreign currency issuer and senior unsecured ratings to Aa3 from A1.
Moody’s gives Aa3 ratings to countries with very low credit risk and the best ability to repay short-term debt.
Fitch downgrades Egypt’s economic growth prospects
In a separate report, Fitch Ratings downgraded Egypt’s economic growth outlook to 3.7 percent for the fiscal year 2024/2025, down from a previous projection of 4.2 percent, driven by disruptions in the Suez Canal.
The US-based agency added that Egypt’s economy is expected to accelerate to 5.1 percent in 2025/26, up from its previous forecast of 4.7 percent.
Fitch said that this expected economic growth is driven by the possible normalization of Red Sea navigation and a stronger performance of the services sector due to easing geopolitical risks.
In November, speaking at the Rome MED-Mediterranean Dialogues conference, Egypt’s Minister of Foreign Affairs Badr Abdelatty said that the country had incurred losses amounting to $8 billion due to a significant drop in the Suez Canal revenues.
The analysis added that the country’s economy is recovering; however, the pace is slower than previously projected.
In October, the International Monetary Fund said that Egypt’s economy is set to expand by 2.7 percent in the current fiscal year before accelerating to 4.1 percent next year.
Earlier this month, another report by Fitch Ratings said that general business and operating conditions for financial institutions in Egypt are expected to improve next year.
In that report, Fitch said that improved investor confidence and healthy foreign currency liquidity conditions are some of the major factors that could strengthen the banking sector in Egypt in 2025.
FIFA World Cup 2034 to bring positive momentum to Saudi Arabia’s stock market
RIYADH: As Saudi Arabia prepares to host the FIFA World Cup in 2034, stock market performance is expected to improve, according to a report.
In its latest analysis, SNB Capital said hosting the major event would also increase the Kingdom’s non-oil gross domestic product by 4 percent to 5 percent in the medium term, estimated between four to eight years.
The firm made this prediction after comparing the growth of the equity markets in South Africa, Russia, and Qatar when they hosted the mega football gala in 2010, 2018, and 2022, respectively.
According to the analysis, hosting the FIFA World Cup in 2034 is expected to significantly impact the Saudi economy, further accelerating the growth driven by Vision 2030 — a national program aimed at diversifying the Kingdom’s economy beyond oil dependence.
“The decision for the host is usually made roughly seven to 12 years in advance. Post announcement, equity markets generally performed well with South Africa showing the strongest return, followed by Qatar and Russia. Therefore, we expect the Saudi market to outperform emerging markets in the coming period,” said SNB Capital.
It added: “FIFA 2034 also reflects positively on the equity market, leading to positive market return, valuation expansion as well as resilience and quick recovery from any potential global market headwinds.”
In the short term, between one to four years, Saudi Arabia will have extensive infrastructure spending, including stadiums, transportation networks, and urban development.
In this period, the infrastructure and construction sectors will be the primary beneficiaries, which include steel, cables, and cement companies in the Kingdom.
In the medium term, between four to eight years, these projects will be near completion, and construction companies will benefit during this period.
In the long term, between eight to 12 years, the tourism and hospitality sectors will receive gains, while the retail industry, including discretionary retailers and car rental companies, is also poised to receive benefits.
In November, experts told Arab News that Saudi Arabia could expect a GDP boost of between $9 billion and $14 billion from the event, as well as the creation of 1.5 million new jobs and the construction of 230,000 hotel rooms developed across five host cities.
SNB Capital estimates that the total cost of hosting the World Cup in Saudi Arabia will be around $26 billion. This cost is considered relatively low, as much of the required infrastructure investment is already part of the Kingdom’s Vision 2030 plans. Additionally, hosting the World Cup follows Expo 2030, another major global event.
In the previous editions of the tournament, Qatar spent a staggering $243 billion, while expenses to host the event in South Africa came in at $7.2 billion.
Brazil’s 2014 hosting involved a spend of $19.7 billion, while Russia invested $16 billion in 2018.
Earlier this month, the bid evaluation report released by FIFA showed that Saudi Arabia is set to deliver a World Cup in 2034 that saves $450 million on costs.
The bid evaluation report added that revenue from ticket and hospitality will surpass FIFA’s baseline projections by 32 percent, or $240 million.
FIFA added that online and licensing revenue streams are forecast to outperform by $7 million, compared to baseline figures.
SNB Capital also echoed similar views and said that the World Cup is expected to improve the outlook of broadcasting and event management companies.
The analysis revealed that FIFA 2034 will boost Saudi Arabia’s tourism sector, leading to higher revenues from the industry.
The event is also expected to create permanent and temporary jobs across various sectors in the Kingdom, reducing unemployment and boosting disposable income.
“A successful hosting of the World Cup will also leave a legacy of high-quality infrastructure which will help Saudi to cater to the potential pickup in tourism demand beyond 2034,” added SNB Capital.
