Boeing grounds 777s after engine fire in Colorado

Boeing confirmed Feb. 22, 2021 that dozens of its 777 aircraft were grounded globally after the engine of a United Airlines plane caught fire and scattered debris over a suburb of Denver, Colorado.(File/AFP)
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Updated 23 February 2021
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Boeing grounds 777s after engine fire in Colorado

  • The recent incident prompted United and other airlines to ground planes with the same Pratt & Whitney engine
  • While no one was injured in the Denver incident, the episode is the latest setback for Boeing

NEW YORK: Dozens of Boeing 777 planes were grounded worldwide Monday following a weekend scare on a United Airlines’ plane that suffered engine failure and scattered airplane debris over suburban Denver.
The incident on the flight out of Denver — which quickly returned to the airport after part of the engine caught fire and broke off — prompted United and other airlines to ground planes with the same Pratt & Whitney engine.
While no one was injured in the Denver incident, the episode is the latest setback for Boeing, which only recently resumed deliveries of the long-grounded 737 MAX following two fatal crashes of that plane.
Aviation experts said the incident especially raised questions about Pratt & Whitney and United over engine maintenance.
“It’s nothing like the MAX,” said Teal Group aviation analyst Richard Aboulafia. “After all these years of service it is unlikely to be a design issue with the engine, certainly it is something to do with maintenance.”
The Denver incident followed a Japan Airlines 777 incident in December involving the same type of engine, as well as an engine problem in February 2018 on a United flight.
“There might be a common theme” among the three incidents “but until the investigation is complete, we don’t know that,” said Scott Hamilton of Leeham News, an aviation news site.
Boeing said all 128 of the 777s with Pratt & Whitney engines were grounded following Saturday’s emergency landing of United flight 328 to Hawaii.
Of the 128 planes, only 69 were in service while 59 were in storage.
Besides United, which removed 24 planes from service, affected carriers included Japanese carriers, Japan Airlines and All Nippon and South Korean airlines, Asiana and Korean Air.
Egyptian state newspaper Al Ahram reported Monday that national carrier Egyptair is grounding four planes with this type of engine. However, those aircraft were not presently in service, a source close to the manufacturer said.
British Transport Secretary Grant Shapps announced a temporary ban on jets with Pratt & Whitney 4000-112 series engines from entering UK airspace.

A video shot from inside the United aircraft — which had 231 passengers and 10 crew on board — showed the right engine ablaze and wobbling on the wing of the Boeing 777-200.
Residents in the Denver suburb of Broomfield found large pieces of the plane scattered around their community.
The US Federal Aviation Administration (FAA) has ordered extra inspections after the incident.
FAA chief Steve Dickson said a preliminary safety data review pointed to a need for additional checks of the jet engine’s fan blades, unique to the model and only used on 777 planes.
FAA officials met with Pratt & Whitney and Boeing representatives Sunday evening, he added.
The US National Transportation and Safety Board (NTSB) said a preliminary investigation indicated two fan blades fractured on the number 2 engine on the plane.
“The airplane sustained minor damage,” the NTSB said Sunday. “The examination and documentation of the airplane is ongoing.”
In a briefing Monday, NTSB chair Robert Sumwalt reiterated that two fan blades were damaged but there had been “no structural damage” to the plane.
“Our mission is to understand not only what happened but why it happened, so that we can keep it from happening again,” he said.
Pratt & Whitney said it was cooperating with the NTSB probe and “will continue to work to ensure the safe operation of the fleet.”
United said it was removing the aircraft from its schedule, “and will continue to work closely with regulators to determine any additional steps.”
Japan’s transport ministry earlier said it had ordered stricter inspections of engines after a Japan Airlines 777 plane flying from Haneda to Naha experienced trouble with “an engine in the same family” in December.

The engine failure is unwelcome news for Boeing, which also faces a fresh investigation in Holland after a Boeing 747-400 cargo plane showered a small townwith debris injuring two people — the same day as the Denver incident.
“We have started a preliminary investigation,” said Luisa Hubregtse of the Dutch Safety Board. “However, at this stage it’s too early to draw any conclusions.”
Boeing only recently resumed deliveries of the 737 MAX following a 20-month global grounding after two tragic crashes killed 346 people.
The MAX began returning to commercial service in late 2020, a time when airline travel remains depressed due to the coronavirus pandemic.
Boeing executives said last month they expect it will take about three years for activity to return to pre-pandemic levels.
Michel Merluzeau, an expert at consultancy AIR, agreed the latest problem did not appear to result from poor plane design.
“It’s not really a problem for Boeing,” he said. “It’s more an issue of maintenance — how United or Pratt & Whitney is maintaining engines that have been in use for a while.”
Hamilton of Leeham News said the episode “is an embarrassing headline, but as a practical issue, it will have no impact on Boeing.”
Noting the weak demand for longer-service planes during Covid-19, Hamilton predicted some carriers could opt to retire the planes rather than return them to service.
Shares of Boeing fell 2.1 percent to $212.88, while Pratt & Whitney’s parent company Raytheon Technologies fell 1.7 percent to $73.00.
United rose 3.5 percent to $49.70, joining other carriers in rallying after a positive note from Deutsche Bank about the industry’s prospects amid improving Covid-19 trends.
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Saudi Arabia’s Debt Capital Market set to reach $500bn by end of 2025: Fitch Ratings

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Saudi Arabia’s Debt Capital Market set to reach $500bn by end of 2025: Fitch Ratings

RIYADH: Saudi Arabia’s Debt Capital Market is expected to hit $500 billion by the end of 2025, fueled by the Kingdom's economic diversification efforts under Vision 2030, according to Fitch Ratings.

In its latest report, Fitch highlighted several factors contributing to this growth, including the government’s need for deficit funding, maturing obligations, and continued reforms.

The DCM, which involves the trading of securities like bonds and promissory notes, serves as a key mechanism for raising long-term capital for both businesses and governments.

Fitch also noted that the DCM in the Gulf Cooperation Council region had surpassed the $1 trillion mark by November 2024, bolstered by strong oil revenues. The agency predicts continued growth, with the GCC region expected to remain one of the largest emerging-market issuers of dollar-denominated debt through 2025.

“Saudi Arabia’s sukuk market maintains a strong credit profile, with 97.4 percent of Fitch-rated Saudi sukuk rated investment-grade and 98 percent of issuers holding a stable outlook. Notably, no Fitch-rated Saudi sukuk or bonds defaulted in 2024,” said Bashar Al-Natoor, global head of Islamic finance at Fitch Ratings.

He added: “2025 has started strong, with a growing pipeline of issuances. We expect the market to surpass $500 billion by year end, driven by Vision 2030 initiatives, robust government support, and favorable funding conditions.”

Fitch’s analysis further said that Saudi Arabia became the largest dollar-denominated debt issuer in emerging markets (outside of China) and the world’s largest sukuk issuer in 2024. The Kingdom’s DCM grew by 20 percent year on year in 2024, reaching $432.5 billion in outstanding debt.

The report also emphasized the increasing importance of environmental, social, and governance debt in the region, with $18.6 billion in outstanding ESG-related bonds in 2024.

Saudi banks have significantly expanded their international DCM activities since 2020, aligning with their growth strategies and foreign-currency requirements. Additionally, corporates are diversifying their funding sources, moving beyond traditional bank loans, according to Fitch.

In another report, Fitch projected that global ESG sukuk issuances will exceed $50 billion in outstanding debt by 2025, driven by major Islamic finance markets like Saudi Arabia and Indonesia. The agency noted a 23 percent year-on-year growth in global ESG sukuk, which reached $45.2 billion in 2024, outpacing the 16 percent growth in global ESG bonds.


Saudi Cabinet approves cooperation agreement with WEF to secure minerals for development

Updated 04 February 2025
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Saudi Cabinet approves cooperation agreement with WEF to secure minerals for development

RIYADH: Saudi Arabia’s Cabinet has authorized the Ministry of Industry and Mineral Resources to sign a cooperation agreement with the World Economic Forum to secure critical materials for global development.

According to the Saudi Press Agency, the Cabinet — chaired by Crown Prince Mohammed bin Salman — gave the green light for the deal among a host of decisions.

Strengthening the mining sector is a crucial goal outlined in the Kingdom’s Vision 2030 agenda, as the nation is steadily spearheading its economic diversification journey by reducing its reliance on crude revenues. 

Speaking at the Future Minerals Forum in Riyadh in January, Alkhorayef said that Saudi Arabia seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the Kingdom’s plans to establish mining as the third pillar of its industrial economy. 

At that time, the minister added that Saudi Arabia’s mining sector is the fastest growing globally, with the country holding an estimated mineral potential worth $2.5 trillion. 


New International Retail Council launched in Riyadh

Updated 04 February 2025
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New International Retail Council launched in Riyadh

RIYADH: An International Retail Council designed to unite top experts, decision-makers, and industry stakeholders has been launched at an industry event in Riyadh.

Announced at the Retail Leaders Circle Global Forum, event chairman Panos Linardos said the new body will tackle upcoming challenges and opportunities facing the sector across the globe.

This year’s gathering, taking place from Feb. 4 to 5, comes as the Kingdom’s retail sector continues to show strong resilience and sustained growth, with total sales reaching SR37.4 billion ($9.97 billion) in the third quarter of 2024, despite ongoing global economic uncertainties. 

Retail sales in the Kingdom are forecast to reach $161.4 billion by 2028, according to data platform Statista, while the e-commerce sector is projected to surpass $13.2 billion by 2025.

Setting out the importance of the new council, Linardos said: “The IRC is not just another industry initiative — it is a forward-thinking response to an evolving global landscape.” 

He added: “Retail is more interconnected than ever, yet faces growing complexity in regulation, technology, and consumer behavior. The IRC will unite leaders, visionaries, and experts to facilitate global dialogue, drive innovation, and shape policies that will define the industry’s next era.” 

During his speech, the chairman highlighted that the IRC will initially focus on four key pillars shaping the future of commerce: luxury goods, retail real estate, cross-border trade, and grocery businesses.

Linardos also shed light on how geopolitical changes, economic volatility, supply chain challenges, and the rapid growth of artificial intelligence, as well as digital commerce, are transforming the retail industry at an unprecedented rate. 

“The rules of global trade are being rewritten, cross-border commerce is evolving, and consumer expectations are shifting faster than ever before. In this moment of transformation, the need for collaborative leadership, innovation, and a strategic vision for the future of retail has never been greater,” he said.

The chairman added that the discussions at the forum will reflect shared goals and help lay the groundwork for actionable solutions.

Held under the theme “Rebuilding a Shared Future,” the event commenced with the “Business Outlook: Navigating A New Global Order” session. 

It explored how geopolitical tensions, economic instability, and fast-paced technological advancements are affecting global commerce, with international business leaders sharing strategies to turn volatility into opportunity while fostering resilience and innovation.

Another session titled “A New Leadership Order: Building Growth in Turbulent Times” followed, highlighting the importance of leadership in overcoming economic challenges, boosting productivity, and promoting sustainable growth.

Industry experts shared strategies during the session for navigating complex business environments and using strategic adaptability to succeed in a constantly changing marketplace.

Discussions also centered on the transformative impact of social commerce, which is changing how consumers shop, engage with brands, and interact online.

With e-commerce in the Middle East expected to reach $57 billion by 2026, the importance of marketplaces in meeting shifting consumer expectations is crucial. 

Chief Content Officer at EMARKETER Zia Daniell Wigder presented a report created in collaboration with the RLC Global Forum which offered a data-driven roadmap for the future of e-commerce in the Gulf Cooperation Council, providing valuable insights into consumer trends, market dynamics, and opportunities for sustainable growth in the region.

AI was another key focus of the day, with several sessions exploring its transformative impact on the retail sector. 

Industry leaders discussed how the technology is being leveraged to enhance personalization, optimize supply chains, and improve operational efficiencies at scale.

According to a new report released by Knight Frank, Riyadh and Jeddah are driving a major transformation in Saudi Arabia’s lifestyle retail sector, reshaping the retail scene with 394,900 sq. meters of upcoming developments, all scheduled for completion by 2027.

The report further disclosed that the planned developments include food and beverage outlets, entertainment options, and lively public spaces.

Both major Saudi cities currently provide 670,500 sq. meters of lifestyle retail space, reflecting a 12 percent surge over the past year.

In Riyadh, the average lease rate for retail spaces is SR2,360 per sq. meter, with a 96 percent occupancy rate, while in Jeddah, lease rates average SR2,030 per sq. meter, with an occupancy rate of 70 percent.


E-commerce share in Saudi Arabia’s retail sector to hit 46% by 2030: Visa official 

Updated 04 February 2025
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E-commerce share in Saudi Arabia’s retail sector to hit 46% by 2030: Visa official 

RIYADH: Saudi Arabia’s consumer retail spending is projected to experience significant growth in the coming years, with e-commerce expected to account for 46 percent of the overall retail sector by 2030, according to a Visa executive.

Speaking to Arab News at the Retail Leaders Circle in Riyadh on Feb. 4, Ali Bailoun, regional general manager of Visa, highlighted that Saudi Arabia currently represents 44 percent of the total retail spending in the Gulf Cooperation Council region.

Bailoun’s remarks reflect Saudi Arabia’s ongoing shift toward a more diversified, digitally-driven economy, where e-commerce plays a pivotal role.

E-commerce in Saudi Arabia

Earlier this month, data from the Ministry of Commerce revealed that Saudi Arabia’s e-commerce sector continues to show strong growth. As of the fourth quarter of 2024, the Kingdom now has 40,953 registered e-commerce businesses, marking a 10 percent year-on-year increase.

“In line with Vision 2030, we see Saudi growing or doubling the payment volume by 2030. Even if you look at e-commerce, we expect e-commerce to grow to 46 percent by 2030. So, we see growth and we see potential. And you can see this on the ground,” said Bailoun. 

He added: “Today, you can go anywhere in Saudi Arabia, and you can use your card and make any payments in any retail shop.” 

Bailoun noted that e-commerce in Saudi Arabia currently accounts for 29 percent of all consumer retail payments in 2024, and is projected to rise to 46 percent by the end of this decade.

He also highlighted that cross-border transactions represent 15 percent of consumer retail payments in Saudi Arabia for 2024.

Supporting these insights, a September 2024 report from Saudi Arabia’s Small and Medium Enterprises Authority indicated that the Kingdom’s retail sector is poised to double between 2020 and 2025, with an annual compound growth rate of 15 percent.

Furthermore, a December report from Statista projected that credit card penetration in Saudi Arabia will reach 46.83 percent, continuing a trend of growth observed over the past 15 years.

Technological advancements

Bailoun suggested that data should be used wisely by retailers to enhance the growth of cross-border business. 

“My recommendation always to retailers is data. You need to find a way to collect and optimize your data and then customize these solutions,” said Bailoun. 

He added: “You need to work with data, not only yourself. You need to look at the market. You need to look at the region and start building up on the data you have to customize the solutions or build up these solutions.” 

The Visa official further said that the implementation of advanced technologies like Artificial Intelligence is also crucial to elevate the growth of both physical and e-commerce retail sectors. 

“Today when you look at social media, sometimes you like something and you read more about it. Then it becomes it pops up in different areas. It is all AI,” he said. 

A recent report by market research firm IMARC echoed similar sentiments, emphasizing the growing role of technology in shaping the e-commerce retail sector.

According to the report, the increasing use of data analytics and AI algorithms to personalize shopping experiences is a key driver of the market. “The expanding use of data to recommend products based on a user’s browsing and purchase history is making it easier for customers to discover items they may be interested in,” the report stated.

IMARC also highlighted that Saudi Arabia’s e-commerce market was valued at $22.9 billion in 2024, with projections indicating it will reach $708.7 billion by 2033, reflecting a compound annual growth rate of 12.8 percent.

Visa’s Saudi operations

He also talked about Visa’s close cooperation with STC Bank, which recently received a non-objection certificate from the Saudi Central Bank to commence its banking operations in the Kingdom. 

“We are a payment technology network. We work and we enable all players in the ecosystem; be it a traditional bank, digital bank, a wallet, a merchant, or maybe a telco provider. We work and we operate and enable the whole ecosystem,” said Bailoun. 

He added: “STC was a wallet. They’ve converted to become a digital bank. We’ve been working with them when they were a wallet, we will continue working with them when they become a bank again. We enable them to do payment credentials, which means they can issue a card under the Visa brand, and they go and do payments anywhere and everywhere in the world.” 

Calling Saudi Arabia one of the strategic markets of Visa, Bailoun also outlined some of the major initiatives taken by the payment card services company in the Kingdom. 

In October 2024, Visa opened its fifth innovation center globally in Riyadh in the King Abdullah Financial District. 

“Today, if you have a problem statement. If you have anything you want to solve or cater for, we sit down together with many partners, we co-create and come up with a solution in that innovation center,” said Bailoun. 

He added: “In addition, we have some best practices and some experiences that we’ve taken from around the world; be it on the gaming, on AI or gen AI. We have something on urbanization. In the innovation center, we have also added something that will cater for the new cities the likes of Neom, the likes of Qiddiyah.” 

Bailoun also detailed Visa’s major partnerships in the Kingdom with retailers including Cenomi Retail and Marriot Bonvoy. 

“With Cenomi, we have signed a deal to work on two parts; the loyalty platform and we have also worked on something called co-brand. So, Cenomi will have a co-brand credit card. The more you spend on their card, the more loyalty you get, and then you can redeem within the group,” said the Visa official. 

He added: “Marriott Bonvoy is a group of hotels. It’s a loyalty platform, one of the big platforms globally. The card is issued in partnership with Visa and Bonvoy. So, the more you spend, the more you will get points to redeem in Bonvoy hotels.” 


Closing Bell: Saudi Arabia’s main index closes in green at 12,434

Updated 04 February 2025
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Closing Bell: Saudi Arabia’s main index closes in green at 12,434

RIYADH: Saudi Arabia’s Tadawul All Share Index rebounded on Tuesday, as it gained 56.90 points or 0.46 percent to close at 12,433.93.

The main index witnessed a total trading turnover of SR6.30 billion ($1.68 billion), with 155 stocks advancing and 70 retreating. 

The Kingdom’s parallel market, Nomu, also gained 139.99 points to close at 31,197.37. 

The MSCI Tadawul Index edged up by 0.44 percent to close at 1,548.61.

The best-performing stock on the main market was Kingdom Holding Co. The firm’s share price increased by 8.89 percent to SR10.78. 

The share price of Allied Cooperative Insurance Group increased by 7.25 percent to SR16.86.

National Medical Care Co. also saw its stock price climb by 4.63 percent to SR162.60.

Conversely, the share price of Al-Babtain Power and Telecommunication Co. declined by 4.02 percent to SR44.20. 

On the announcements front, Arab National Bank said that it completed the issuance of riyal-denominated additional Tier 1 sukuk through a private placement in the Kingdom. 

The sukuk issuance was completed under the financial institution’s SR11.25 billion additional Tier 1 capital sukuk program, at a value of SR3.35 billion.

Arab National Bank saw its share price increase by 0.09 percent to close at SR21.52 

Bank Albilad said that its net profit in 2024 reached SR2.8 billion in 2024, representing a rise of 18.47 percent compared to the previous year. 

In a Tadawul statement, the financial institution said that the increase in net profit was driven by an 8 percent rise in net income from investing and financing assets, despite return on deposits and financial liabilities increased by 20 percent. 

The share price of Bank Albilad, however, declined by 0.51 percent reaching SR38.65.