Employees need to give two-weeks notice during probation under new UAE employment laws
Updated 08 June 2022
Arab News
RIYADH: Under the amended labor laws in the UAE, private sector employees now need to give a minimum 14-day notice period to their employers if they plan to resign during probation, according to the government.
Employees are required to give a one-month notice if they wish to join another employer in the UAE, head of labor complaints at the Ministry of Human Resources and Emiratization said, noting that there was no notice required earlier from either party to terminate the employment.
Ahmad Al Shehi was speaking at a forum organized by the Labour Standards Development Authority in Sharjah, Khaleej Times reported.
The UAE has also introduced changes to family leave entitlements, discrimination laws, termination of employment and “non-compete” clauses in employment contracts.
Earlier, non-competition clauses were allowed, without a maximum length, Shehi said, explaining that “the maximum permitted length was generally considered to be 12 months.”
However, the new laws allow non-competition clauses to be used and last up to two years.
“The new laws have put in place a few standards that protect both the employer and the employee. The clauses for non-competition must not harm either party in a severe way,” he added.
Saudi Arabia keen to get more women in the workforce
Saudi women in tourism and hospitality sectors underline power of workforce diversity, experts explain
Updated 28 sec ago
Reem Walid
RIYADH: Tourism and hospitality in Saudi Arabia are experiencing a remarkable transformation driven by the increased participation of women, thanks to inspirational leaders and strong government action.
This shift is significant considering that tourism is one of the few global industries where women already constitute the majority of the workforce.
Saudi Arabia is keen to get more women in the workforce, and the Kingdom has already surpassed its Vision 2030 ambition of achieving 30 percent female participation in the labor market.
Indeed, the goal has now been upscaled to 40 percent — double the rate seen in 2010, according to World Bank figures.
Tourism and hospitality is seen as a sector where women can thrive, and the Kingdom is working hard to create more opportunities in this area.
According to EHL Insights, just five years ago, Saudi females faced significant barriers when it came to working in hospitality companies, and women had to go to great lengths to convince their families to allow them to pursue education or employment opportunities in this industry.
This has changed thanks to the economic and cultural shifts spearheaded by the Vision 2030 initiative, and according to data issued by R Consultancy Group in March, 45 percent of the sector’s workforce now comprises female professionals – 925,000 workers.
“There are several inspirational female leaders that have helped to strategically shape both the Saudi tourism sector and the regional tourism sector more broadly such as Princess Haifa bint Mohammed Al-Saud, vice minister of tourism, and Basmah Al-Mayman, regional director of the UN World Tourism Organization,” Anne-Laure Malauzat, partner at Bain & Co. in the Middle East, told Arab News.
She went on to stress that on the ground in Saudi Arabia, there is a massive presence of women across different parts of the tourism and hospitality sectors, from the architects designing the Kingdom’s key airports, passport control officers, and cab drivers as well as hospitality leaders and tourist guides.
“Examples of these success stories include Sarah Gasim, senior vice president — head of KSA Hotels and Hospitality at JLL — who managed hotel complexes in the past. (She) is a published author and lectured on hospitality, helping to shape future generations in the sector,” Malauzat said.
From Red Sea Global’s point of view, spokesperson Zainab Hamidaddin Al-Hanoof Al-Hazzani told Arab News that women bring unique perspectives, skills, and insights to roles such as hospitality management, customer service, marketing, and event planning, which significantly enhance the overall quality of service and customer satisfaction.
Tourism and hospitality is seen as a sector where women can thrive, and the Kingdom is working hard to create more opportunities in this area. (SPA)
“Their diverse perspectives, enhanced service delivery, and inclusive workplace contributions are driving innovation and economic growth, making them indispensable to its success,” she said.
Al-Hazzani claimed that women are actively shaping the future of the tourism and hospitality industry in Saudi Arabia, adding: “This is particularly true at RSG where women play a pivotal role in elevating guest experiences, fostering cultural diversity, and contributing to the overarching success of our projects.
For example, our Elite Graduate Program has provided employment opportunities for 250 individuals, with 30 women advancing to management positions.”
Opportunities and challenges for women in the tourism and hospitality sector
The tourism and hospitality sector in Saudi Arabia is undergoing a significant transformation, with a growing focus on cultural tourism, luxury experiences, and heritage preservation which presents a wealth of opportunities for women.
Laila Kuznezov, director, Implementation Practice at management consulting firm Oliver Wyman told Arab News that from leadership roles in hotel management to careers in event planning, cultural tourism experiences, and hospitality education, women can leverage their “unique skills and perspectives” to shape the future of Saudi tourism.
“By empowering women in tourism and hospitality, they are not only creating a more inclusive workforce, but also sending a powerful message to the world. With a diverse pool of talent contributing to the industry, they can create a world-class visitor experience that reflects the Kingdom’s rich heritage, culture tapestry, and forward-thinking vision for the future,” Kuznezov added.
Speaking on the key constraints women face in entering the labor force and securing employment, Kuznezov shed light on how many of the barriers in Saudi Arabia are similar to those faced globally.
By empowering women in tourism and hospitality, they are not only creating a more inclusive workforce, but also sending a powerful message to the world.
Laila Kuznezov, director, Implementation Practice at Oliver Wyman
“A gender wage gap persists, and women at certain education levels, particularly those with only a secondary school leaver’s certificate, have much lower participation rates than men. A huge opportunity lies in capitalizing on the highly skilled female workforce in Saudi Arabia,” she explained.
The director also noted that: “We need to see more women as CEOs, CFOs, and senior managers across all industries, particularly in highly productive sectors driven by technology and knowledge. Encouraging female entrepreneurship is also crucial. The talent and ambition are there – it’s about providing continued support and fostering a culture that actively supports and promotes women in transformative roles.”
She continued to clarify that the recent rise in female labor force participation is a positive indicator, but the next step is ensuring these women secure high-quality jobs that leverage their full capabilities.
“It is also important to support gains for women at all levels and geographic areas. A key focus in Saudi Arabia is ensuring access to the training and childcare options needed for success, especially for women who have been out of the workforce for long periods of time, are first-time job holders, or have lower education levels,” Kuznezov emphasized.
“Since Saudi women tend to stay closer to their hometowns, geographically dispersed training programs and readily available childcare are crucial to expanding regional employment opportunities,” the director further said.
According to Kuznezov, Saudi Arabia is embracing a progressive approach by developing and enabling regulations to promote new forms of work, such as freelancing, part-time work, platform and gig economy work, and remote working.
“These models offer women increased flexibility and more channels to enter and participate in the workforce, which should contribute to continuing the positive trends of increased participation and reduced unemployment for women,” she said.
Women participation’s impact on Vision 2030
Female participation in the tourism and hospitality sector has helped support the Vision 2030 agenda on multiple fronts, believes Bain & Co.’s Malauzat.
“From a talent perspective, enabling the sector transformation through their leadership, skills, and contribution across all parts of the tourism and hospitality lifecycle,” she said.
FASTFACT
In Saudi Arabia, there is a massive presence of women across different parts of the tourism and hospitality sectors, from the architects designing the Kingdom’s key airports, passport control officers, and cab drivers as well as hospitality leaders and tourist guides.
“From a consumer understanding perspective, women globally take an estimated 80 percent of consumer-related decisions so having women represented in the sector is critical to ensure a real understanding of consumers in this space,” the partner affirmed.
She concluded: “From a gender equity perspective, this has been an important contributing factor to helping the Kingdom achieve its overall aspirations for female participation in the labor market nationally.”
From RSG’s lens, according to Al-Hazzani, by actively promoting gender diversity in the workforce within the tourism and hospitality sector, the firm is taking significant strides towards realizing the vision outlined in Vision 2030.
“This initiative aligns seamlessly with the broader objective of cultivating a vibrant and inclusive economy that harnesses the full spectrum of talent and capabilities within the nation,” Al-Hazzani said.
“Recognized as a fundamental driver of economic diversification, the tourism and hospitality sector in particular benefits immensely from the integration of female talent. Their presence not only fuels the sector’s growth but also enhances its competitive edge and long-term viability through delivering an enriched tourism experience and driving innovation,” she added.
The spokesperson justified that by prioritizing gender diversity in the tourism and hospitality workforce, RSG is not only embracing Vision 2030’s ideals but also paving the way for other sectors to do the same.
“Our dedication to inclusivity not only strengthens our economy but also reaffirms our collective commitment of creating a more prosperous and equitable society,” Al-Hazzani concluded.
Saudi banks’ aggregate profit hits 14-month high; mortgage lending up
Bank profits come amid increased mortgage lending, with sector seeing a 13 percent rise in new home loans
Updated 11 min 6 sec ago
Dayan Abou Tine
RIYADH: Saudi banks aggregate profit reached a 14-month high of SR7.33 billion ($1.96 billion) in May, marking an annual 16 percent rise, newly released data has revealed.
According to the Saudi Central Bank, also known as SAMA, these figures represent profits before zakat and taxes.
Cumulatively, from the beginning of the year to the end of May, banks recorded a total profit of SR34.78 billion, compared to SR31.12 billion during the same period last year.
In June, a McKinsey report underscored that high hydrocarbon prices, rapid economic expansion, and low unemployment – along with favorable demographics, ambitious public investments, and moderate inflation – has collectively bolstered robust balance sheets and strong margins among these banks.
This region has been enjoying an evolving regulatory environment marked by greater openness, new frameworks for innovation, and measures to improve the ease of doing business.
All Gulf Cooperation Council countries maintain their currencies pegged to the US dollar, causing regional interest rates to closely mirror movements in Washington. In 2023, as the Federal Reserve’s monetary policy increased financing costs in the GCC, both local and global bank profits surged.
Concurrently, headline inflation was moderate, estimated at 2.6 percent in 2023 and projected to decrease to 2.3 percent in 2024 according to McKinsey.
According to the firm, all GCC banks outperformed their counterparts in developed and many emerging markets, remaining on a rapid growth trajectory. They primarily rely on stable domestic deposits, which have proven resilient during economic downturns.
In comparison to April, banks’ profits before zakat and tax rose by 9 percent, marking the highest monthly increase in the past five months.
Recent data on mortgage figures is a testament to the sustainable demand in housing coupled with an agile and efficient regulatory environment.
Elias Abou Samra, CEO at Rafal Real Estate Development Co.
McKinsey nevertheless highlighted the potential risk to the GCC banking sector if interest rates were to fall and bank managers were to be complacent.
This complacency might deter them from pursuing ambitious transformation initiatives that are crucial for long-term sustainability and growth.
The firm warned that the current high-interest-rate environment, which has bolstered bank profitability, may not persist indefinitely.
If inflationary pressures in the US ease, the Federal Reserve could adjust its monetary policy, potentially lowering interest rates, and thus reduce bank profits.
The advice is for bank executives to not assume that high profits are the new norm and instead prepare for potential future declines in profitability.
It suggests that banks should use their current strong financial position to invest in transformative changes and cost reductions. By doing so, they can enhance efficiency and resilience, ensuring they remain competitive even when interest rates decrease.
The International Monetary Fund praised SAMA’s efforts to safeguard the Kingdom’s financial stability in a June report. It has emphasized that the central bank continues to advance the modernization of regulatory and supervisory frameworks.
Significant progress has been made in developing its financial safety net framework, encompassing bank resolution, emergency liquidity assistance arrangements, and deposit protection fund.
Mortgage lending up
Banks’ profits come against a backdrop of increased mortgage lending in May, with the sector seeing an annual 13 percent rise in new home loans.
Figures released by SAMA showed that the SR7.67 billion signed off in the fifth month of the year marked a 16-month high.
Lending for houses accounted for 67 percent of total new bank mortgages, a decrease from 69 percent compared to the same month last year.
Meanwhile, loans for apartments increased to 28 percent from 25 percent, while land constituted the smallest portion at 5 percent, down from 6 percent.
Elias Abou Samra, the CEO at Rafal Real Estate Development Co., said: “Recent data on mortgage figures is a testament to the sustainable demand in housing coupled with an agile and efficient regulatory environment.”
He added: “We believe that the market has priced in higher-for-longer interest rates and the buyers are convinced that waiting for normalization of interest rates to buy new homes could be offset by a larger increase in prices.”
Abou Samra added that after a period of wait-and-see, the housing market in the Kingdom is now beginning to regain some of the momentum and activity it had shown before interest rates rose.
FASTFACT
The region has been enjoying an evolving regulatory environment marked by greater openness, new frameworks for innovation, and measures to improve the ease of doing business.
Essentially, potential buyers have overcome their initial hesitancy, likely influenced by elevated borrowing costs, and are now actively pursuing homeownership, thereby boosting their demand for bank credit.
The highest growth rate during this period was observed in apartment lending rising by 24.15 percent. In comparison, house lending grew by 9.17 percent, while land saw a growth of 6.54 percent.
“Another important factor is the availability of new products and typologies, particularly in the multi-family segment, that meets the aspiration of young Saudi families and resident expats. We are moving into a higher level of sophistication on the demand and supply side of the equation,” Abou Samra said.
A survey conducted by global property consultancy Knight Frank revealed in a March report a notable shift in expat preferences, with 68 percent expressing a strong inclination towards owning an apartment rather than a villa. This preference is particularly strong among those aged 35-55.
The firm also noted that many respondents are moving from villas to apartments, influenced by factors like the higher costs of the former, affordability concerns, and potentially differing cultural preferences compared to Saudi nationals.
Additionally, the appeal is further highlighted by the fact that 53 percent of surveyed expats expressed a preference for owning a two- or three-bedroom apartment. This inclination is likely due to the smaller family sizes typically found among them compared to Saudi nationals.
A 2024 study by Deloitte revealed that in Riyadh, around 80 percent of apartment transactions the previous year fell within the SR250,000 to SR1 million range, primarily serving the low to mid-income segments.
It noted that north Riyadh has become a prominent residential area, while the south zone has seen significant transaction growth due to affordable housing options.
In Jeddah, there is increasing demand for upper-middle to high-end residential properties, particularly in the northern part, which has experienced notable price increases.
In the Dammam metropolitan area, the report indicated that the residential supply is concentrated in the northern regions, targeting the midscale population segment with apartments priced mostly below SR930,000.
When asked about the potential risks of increased demand further driving up prices, especially given the lack of foreseeable interest rate reductions, Abou Samra said that he believes his real estate company has navigated through the challenges posed by high interest rates, noting a slowdown in growth over the past 18 months.
He expressed confidence in the sustainability of current demand levels, stating that a slowdown is not anticipated in the near future. The CEO also emphasized the importance of maintaining a balanced market to prevent excessive increases in land prices.
Startup ecosystem busy with venture investments and strategic acquisitions
Updated 20 min 46 sec ago
Nour El-Shaeri
CAIRO: From educational technology to digital content and cryptocurrency, the startup ecosystem is buzzing with activity as significant venture investments and strategic acquisitions take place across various sectors.
Saudi-based Jeel, an edtech startup for children, adolescents, parents, and educators, has secured a seven-figure funding from RZM Investment and a group of prominent angel investors.
Jeel plans to strengthen its presence in the business-to-business and business-to-government sectors by offering its services to institutions and governments.
“Our goal is to broaden our scope and impact in digital content by partnering with institutions and governments, thereby driving growth in the sector,” said a Jeel spokesperson.
The funding will also be used to add new languages to the Jeel app, aiming to attract more users from various Arab countries and expand into new markets within the region.
“We are committed to providing a superior user experience by integrating new features and continually improving our app,” the spokesperson added.
Additionally, the company will launch a comprehensive online store to facilitate the purchase of Jeel app-related products and services, providing users with a seamless experience and contributing to the company’s revenue growth.
“With this investment, Jeel reaffirms its commitment to providing innovative and purposeful digital content for children, adolescents, parents, and educators, with a focus on enhancing and enriching the Arabic language,” the spokesperson added.
This strategic investment will enable Jeel to further its mission of delivering high-quality educational and entertaining digital content, positioning itself as a leader in the industry, the release stated.
CoinDCX acquires BitOasis to strengthen MENA presence
CoinDCX, India’s largest crypto exchange, has announced the acquisition of BitOasis, a UAE-based virtual assets trading platform.
This strategic move follows CoinDCX’s investment in BitOasis in August 2023 as the company aims to strengthen its presence in the Middle East and North Africa.
The acquisition will empower BitOasis to expand its presence across the MENA region, leveraging its newly acquired license in Bahrain and its platform reopening in Dubai.
Established in 2018, CoinDCX claims it boasts a robust user base of over 15 million and facilitates average quarterly trading volumes exceeding $840 million in spot in 2024.
“Building on six years of success, CoinDCX aims to become the go-to trading platform for crypto worldwide,” said Sumit Gupta, co-founder of the firm.
Jeel plans to strengthen its presence in the business-to-business and business-to-government sectors by offering its services to institutions and governments. (Supplied)
“For us, investor protection has been paramount, and we have distinguished ourselves in India with unwavering compliance,” he added.
BitOasis, founded in 2016 by Ola Doudin, Tarek Kaylani, and Daniel Robenek, is the first and largest crypto asset exchange in the MENA region. It is available in 15 countries across the region, allowing its users to buy, hold and sell over 60 cryptocurrencies.
The company claims to have processed over $6 billion in trading volume and secured more than $40 million in funding from leading regional and global investors.
“CoinDCX’s acquisition marks an exciting new chapter for BitOasis, one that propels us forward on much stronger ground,” said Doudin, CEO of BitOasis.
“Trust and regulatory compliance have been key pillars in our mission to drive crypto adoption across MENA,” she added.
The acquisition will enable BitOasis to offer a broader product portfolio, enhanced crypto services, increased liquidity, and improved trading options.
“Users can expect an overall enhanced experience with access to a wider range of tokens and better trading options,” Doudin added.
Sumit Gupta emphasized that BitOasis’ brand and leadership team will remain unchanged following the acquisition, fostering seamless synergy and collaboration between both organizations.
“Joining forces with BitOasis aligns perfectly with our vision of establishing a formidable foothold across the MENA region, catering to a diverse range of retail and institutional clients,” Gupta said.
EdVentures invests $400k in Egyptian online education platform El Kheta
Egyptian EdVentures, the investment arm of Nahdet Misr Group specializing in educational technology, has announced a $400,000 investment in El Kheta, an online platform for Egyptian students.
El Kheta offers reinforcement lessons, exams, and interactive videos from the new Egyptian curriculum, providing students with a customized and flexible educational experience.
“We firmly believe in the potential of the El Kheta platform to revolutionize the online education sector in Egypt,” said Dalia Ibrahim, founder and chairwoman of Nahdet Misr for Entrepreneurship EdVentures.
“We are committed to supporting talented entrepreneurs in the educational technology sector and helping them achieve their vision of creating a better and easier educational experience for everyone,” she added.
The El Kheta platform offers students the ability to choose their preferred curricula and create study plans that suit their needs.
Services include reinforcement lessons, interactive educational videos, homework assignments, and direct communication with teachers.
This personalized approach aims to improve students’ academic performance and overall success. “Our goal is to empower youth and expand the scope of online education opportunities for school students in Egypt,” Ibrahim said.
Germany’s Mitgo Group launches $20m fintech Capy
Germany-based holding company Mitgo Group has launched a $20 million fintech startup called Capy, targeting the MENA market.
This investment package will be distributed over the next three years. The initial tranche will be allocated towards developing the platform’s first version, with a particular focus on early and accelerated payment solutions.
In the first quarter of 2024, Mitgo Group announced the introduction of fintech services for publishers in the affiliate market, including cashback services, media buying, loyalty programs, and buy-now-pay-later services.
This new direction is being launched on the foundation of the recently acquired UAE-based embedded finance platform, Embedded.
Since the acquisition, Embedded has received additional funding and comprehensive support, and it has been relaunched as Capy within Mitgo’s global holding company.
Middle East airlines see 9.7% passenger demand growth: IATA
Updated 05 July 2024
Nirmal Narayanan
RIYADH: Middle Eastern airlines saw a 9.7 percent annual growth in passenger demand in May fueled by an increase in Asia-related travel, according to an industry body.
In its latest report, the International Air Transport Association said that the total capacity of airlines in the region posted a growth of 9 percent year-on-year in May.
Moreover, the Middle East region handled 9.4 percent of the overall passengers globally in May, a figure that remained unchanged from the previous month.
Countries in the Middle East, including Saudi Arabia, have been strengthening their aviation sector over the past few years as they continue their economic diversification journey by reducing their decades-long dependence on oil.
Saudi Arabia’s national aviation strategy aims to triple the number of passengers compared to 2019, handling 4.5 million tons of cargo, and establishing more than 250 direct destinations from the Kingdom’s airports to global locations.
In May, a report released by the Kingdom’s General Authority of Civil Aviation revealed that the sector contributed $21 billion to the Kingdom’s gross domestic product in 2023.
The IATA report notes that the Asia – Middle East route “ranks second only to within Asia in terms of RPK (revenue passenger kilometers) levels” as it highlighted the strength of travel between the two regions.
It went on: “The route pair has regained 2019 levels and set new records to-date for the whole 2024, standing 32 percent above the corresponding value of 2019 thus demonstrating strengthening flight demand between the two regions. Contributing factors to this disproportionate demand are geopolitical tensions and war in Ukraine which would divert passengers through the Middle East to reach Asia as a safer route.”
The Russia-Ukraine war was also cited as a potential influence on the continued growth of the Europe-Middle East route, which saw an April-May RPK increase for two years in a row, reversing the previous historic pattern of a decline between these months, noted the report.
“In the coming months, it will become clearer to what extent these trends could be related to the Russia-Ukraine war,” said IATA.
Earlier this month, another report released by IATA revealed that Middle Eastern airlines witnessed a 15.3 percent year-on-year demand growth for cargo in May, driven by growing e-commerce and maritime issues.
The report also added that the total cargo capacity of carriers in the region increased by 2.7 percent in May compared to the same month of the previous year.
IATA further pointed out that the Middle East region handled 13.5 percent of the overall cargo globally, a figure that remained unchanged from the previous month.
Global outlook of passenger demand
According to the report, global passenger demand – measured in RPK – rose by 10.7 percent in May compared to the same period of the previous year.
Similarly, total capacity, measured in available seat kilometers, also rose by 8.5 percent year-on-year in the fifth month of the year.
“Airlines filled 83.4 percent of their seats, a record for the month. With May ticket sales for early peak-season travel up nearly 6 percent, the growth trend shows no signs of abating,“ Willie Walsh, director-general of IATA.
He added: “Airlines are doing everything they can to ensure smooth journeys for all travelers over the peak northern summer period.”
Asia-Pacific region leads passenger demand
According to the report, airlines operating in the Asia-Pacific region led passenger demand globally, marking a 27 percent growth in May compared to the same month in 2023.
IATA noted that the total capacity of airlines in the APAC region rose by 26 percent year-on-year, while the load factor increased to 81.6 percent.
Moreover, Asia-Pacific airlines handled 31.7 percent of the passengers globally in May, followed by Europe and North America at 27.1 percent and 24.2 percent, respectively.
Airlines from the Latin American region witnessed a passenger demand growth of 15.9 percent in May compared to the same month of the previous year. Moreover, the total capacity of these carriers also rose by 9.7 percent.
Similarly, the load factor among airlines in Latin America hit 85.1 percent in May, the highest among all regions.
On the other hand, African airlines saw a 14.1 percent year-on-year increase in demand, while the total capacity of these carriers surged by 8.2 percent during the same period.
The load factor among African airlines also rose to 72.3 percent in May, representing an annual rise of 3.7 percentage points.
This was the fastest increase in load factor among all regions, although Africa still has the lowest load factor overall.
Similarly, European airlines witnessed a passenger demand growth of 11.7 percent year-on-year in May.
Additionally, the total capacity of these carriers rose by 11.3 percent in May compared to the year-ago period, while their load factor edged up by 0.03 percentage points to 84.7 percent.
However, the passenger demand growth among North American carriers stood at 8.7 percent, the lowest among all regions.
Even though the capacity of airlines in North America edged up by 7.7 percent year-on-year in May, the load factor declined by 1.2 percentage points to 84 percent during the same period.
On the other hand, IATA revealed that domestic traffic globally increased by 4.7 percent in May compared to the same month in 2023, while the load factor rose by 3.8 percentage points to 84.5 percent.
IATA also noted it is optimistic about the future growth of passenger demand globally.
“Overall, the increase in trip bookings made in May and the first half of June for travel during the second half of June and the whole of the month of July suggests that air traffic and demand in both domestic and international segments are expected to maintain a positive trend,” said the industry body.
Saudi growth
Riyadh Air is set to take to the skies in 2025. File
Boosting Saudi Arabia’s aviation sector is a key pillar of the Kingdom’s Vision 2030 economic diversification plan, and in May a new roadmap was unveiled which will seek to boost the business travel sector.
Saudi Arabia’s aviation sector contributed $21 billion to the Kingdom’s gross domestic product in 2023 while generating an additional $32.2 billion in tourism receipts.
Speaking at the Future Aviation Forum in Riyadh in May, Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, said Saudi Arabia’s aviation sector in 2023 saw its number of passengers reach a record 112 million, up from 88 million in 2022, marking a 27 percent year-on-year increase.
As part of the plan to boost the sector further, the Kingdom is set to see its newest airline – the Public Investment Fund-backed Riyadh Air – take to the skies in 2025, with an aim of flying to 100 countries by 2030.
Oil Updates – prices on track for 4th straight week of gains
Updated 05 July 2024
Reuters
SINGAPORE: Oil prices were little changed in Asian trade on Friday but were on track for a fourth straight week of gains and holding near their highest levels since late April on hopes of strong summer fuel demand and some supply concerns, according to Reuters.
Brent crude futures, which have risen 7 percent over the last four weeks, slipped 2 cents to $87.41 a barrel by 3:43 a.m. Saudi time.
US West Texas Intermediate crude futures, which have climbed 9 percent over the past four weeks, inched up to $83.97, up 9 cents from Wednesday’s close. With the US market shut for the Fourth of July holiday on Thursday, trading was thinned and there was no settlement for WTI.
Oil rose this week on strong summer demand expectations in the US, the world’s largest oil consumer.
“Market sentiment has been supported this week by strong mobility indicators and intensifying geopolitical tension in the Middle East,” analysts at ANZ Research said in a note on Friday.
The US Energy Information Administration reported a massive 12.2 million barrels draw in inventories last week, compared with analysts’ expectations for a draw of 700,000 barrels.
US data on Wednesday showed that first-time applications for US unemployment benefits increased last week while jobless numbers also rose, which analysts said could potentially hasten interest rate cuts by the US Federal Reserves and support oil markets.
On the supply side, Reuters reported on Thursday that Russia’s oil producers Rosneft and Lukoil will sharply cut oil exports from the Black Sea port of Novorossiisk in July.
Meanwhile, Saudi Arabia’s Saudi Aramco cut the price for the flagship Arab Light crude it will sell to Asia in August to $1.80 a barrel above the Oman/Dubai average, underscoring pressure faced by OPEC producers as non-OPEC supply grows.
Traders were also tracking the war in Gaza and elections in France and the United Kingdom, analysts said.
