Saudia takes off to Beijing, opening new chapter in bilateral ties

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Saudia Director General Ibrahim Al-Omar said this is part of the company’s continuous efforts to expand its global network, which now comprises over 100 destinations. AN photos
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A traditional dance was performed at the Beijing airport to welcome the first Saudia flight.
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Chinese artists enthralled the audience at a ceremony held at a local hotel in Beijing.
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Updated 06 August 2023
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Saudia takes off to Beijing, opening new chapter in bilateral ties

BEIJING: In another major step toward strengthening bilateral relations between Saudi Arabia and China, the Kingdom’s flag carrier Saudia launched its first direct flight between Jeddah and Beijing last week.    

This move falls in line with Saudi Aviation Strategy, which recognizes the need to increase air connectivity with key markets such as China while accommodating increasing demand from international tourists seeking to discover the Kingdom. 

The southern city of Guangzhou was the only destination for passengers visiting China from Saudi Arabia until now.    

Over the last seven months, Saudia has introduced as many as 25 new destinations, with the latest launch being the first air route between Saudi Arabia and the Chinese capital.   

The company will operate two flights from Jeddah to Beijing every Monday and Friday. While passengers from Riyadh can also directly travel to the Chinese capital every Sunday and Wednesday.  

Calling the inauguration of the new route to China a major milestone, Saudia Director General Ibrahim Al-Omar said this is part of the company’s continuous efforts to expand its global network, which now comprises over 100 destinations.   

“This affirms Saudia’s commitment to contribute to the National Aviation Strategy, which aims to reach 250 destinations by 2030,” Al-Omar said.   

HIGHLIGHTS

The inaugural flight SV886 took off at around 01:15 a.m. on Friday from Jeddah’s King Abdul Aziz International Airport for the Chinese capital with over 290 passengers onboard.

Most of the passengers were Chinese, Brazilians, and Saudis, in addition to travelers from various other countries.  

After nearly 10 hours, Saudia’s Boeing 787-9 aircraft made its historic touchdown at Beijing Daxing International Airport, also known as Beijing New Airport.

Upon its arrival, the Saudi plane was given a water cannon salute.    

For nearly an hour, another ceremony was held at the Beijing airport celebrating the inauguration of the Beijing-Jeddah route.   


Saudia has been in a race to increase its presence globally ever since Crown Prince Mohammed bin Salman launched the National Transport and Logistics Strategy in 2021.  

With the introduction of its direct flight to the capital city of China, Saudia aims to tap into a market of more than 1.4 billion people who can explore the Kingdom’s historical sites, tourist and entertainment attractions, international sports events, and cultural diversity.  
Commenting on the inauguration, Chinese Ambassador to Saudi Arabia Chen Weiqing told Arab News that the new flights will push communications between the two friendly countries forward.    

“China and Saudi Arabia have played and will continue to play a pivotal role in regional and global economic development. We have increasing common interests. We also have common cultural and social values,” Weiqing said.   

He added: “I’m very optimistic that these ties will even become stronger. In this regard, I would like to thank Saudia for its efforts in facilitating connections between the two peoples.”   

Historic touchdown  

The inaugural flight SV886 took off at around 01:15 a.m. on Friday from Jeddah’s King Abdul Aziz International Airport for the Chinese capital with over 290 passengers onboard. Most of the passengers were Chinese, Brazilians, and Saudis, in addition to travelers from various other countries.   

After nearly 10 hours, Saudia’s Boeing 787-9 aircraft made its historic touchdown at Beijing Daxing International Airport, also known as Beijing New Airport. Upon its arrival, the Saudi plane was given a water cannon salute.    

For nearly an hour, another ceremony was held at the Beijing airport celebrating the inauguration of the Beijing-Jeddah route.   
Speaking to Arab News, the airport’s Deputy General Manager Kong Yue stressed that the routes between Saudi Arabia and China are very important and that the two countries are very strong partners.   

“In December 2022, our president, Xi Jinping, visited Saudi Arabia, and that was another strength element between the two countries. We believe these routes will help us have more communication in business and travel, and that is important to us,” he said.   

Global connectivity   

Saudia’s inaugural flight was made possible through a strategic collaboration with the Air Connectivity Program, which seeks to promote growth and development within the tourism and aviation sectors. This demonstrates Saudia’s commitment to leveraging partnerships to enhance global connectivity.   

“This new route reinforces Saudi Arabia’s bilateral ties with China, not only in the aviation industry but also in vital sectors like trade, business, tourism, education, and culture,” the company said in a press release.   

Saudia aims to help the Kingdom meet its target of welcoming over 100 million international visitors and pilgrims by 2030.

The national carrier, which rose by 11 spots in Skytrax’s World Best Airlines ranking for 2023, also aims to develop human capital by creating quality jobs, nurturing local talent, and enhancing workplace diversity. It wants to increase the number of corporate, leisure, and religious travelers who hold huge potential for passenger and cargo growth.   

Inauguration ceremony 

Diplomats and dignitaries from different countries attended on Saturday the inauguration ceremony for connecting Saudi Arabia with the Chinese capital at the Four Seasons hotel in Beijing.   
Abdulrahman Al-Harbi, ambassador of Saudi Arabia to China, said in his speech that these routes will pave the way for more economic, trade, and cultural cooperation between Saudi Arabia and China.  
“As a leading company, Saudia is steadily working to contribute to the goals of Saudi Vision 2030, especially in the tourism sector, in which Saudi Arabia is planning to attract 1 million visitors by 2030, including guests from China,” he said, adding that one of the main tasks of Saudia is to introduce Saudi Arabia to the world.  

Al-Omar, on the other hand, said that the first air route between Saudi Arabia and China through Guangzhou was announced on March 27, 2011.  

“Today, we are celebrating the second destination, and this is a chance to underscore the strong mutual ties between the two countries, with all the strategic and commercial partnerships. These routes will also reinforce the two nations' communications and cultural exchange, along with other vital sectors, such as trade, business, investment, tourism, and education,” he said.  

Al-Omar further said that the operational rates of his company during 2022 affirm a growth in the air traffic between the two countries, as “1.5 million guests have traveled.”

“The increasing investments between Saudi Arabia and China are an indicator of the development and prosperity of their relations,” he said.  

The air carrier has announced the launch of a new service that provides guests with even easier access to the Kingdom through a digital integration system that links transit visas with flight tickets.  

He also noted that the “Your Ticket, Your Visa” service will allow guests to stay in the Kingdom for up to 96 hours, during which they can travel around the Kingdom and perform Umrah.  

Official carrier of PowerChina 

On the other hand, a memorandum of understanding was inked between Saudia and Power Construction Corporation of China. The agreement stipulates Saudia be the official transporter of the power giant's workers between the two countries. 

According to its website, the company has four brands operating in Saudi Arabia, which are PowerChina, Sinohydro, SEPCO Electric Power Construction Corp., and SEPCO III.  


Saudi Arabia’s expat fee waiver fuels industrial growth, boosting GDP by 14.7%

Updated 19 September 2024
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Saudi Arabia’s expat fee waiver fuels industrial growth, boosting GDP by 14.7%

JEDDAH: Saudi Arabia’s decision to waive fees for expatriate workers in the industrial sector has significantly contributed to a robust 14.7 percent increase in gross domestic product, soaring from SR392 billion ($104.5 billion) in 2019 to SR592 billion in 2023.

According to a report by the Economic Studies Center at the Federation of Saudi Chambers, this policy has not only spurred GDP growth but also enhanced non-oil exports, which have climbed to approximately SR208 billion, marking a 12 percent increase since 2019.

Effective until Dec. 31, this initiative is part of the Kingdom’s broader strategy to stimulate growth and attract investment in its industrial sector. The report also notes that the opening of new markets and the signing of various trade agreements have played crucial roles in this upward trend, with the local content value in non-oil sectors reaching SR1.14 trillion by the end of 2023.

Over 8,000 industrial firms have benefited from the waiver, which eliminated around SR5 billion in expatriate labor fees. The analysis highlights that this policy has encouraged industrial establishments to adopt innovative business models, localize advanced technologies, and attract skilled professionals, ultimately increasing the availability of products to meet local demand.

The number of products bearing the Saudi quality mark has also seen a rise, reflecting enhanced product quality. A comprehensive analysis conducted by the Saudi Press Agency evaluates the decision’s impact based on seven economic indicators, including GDP contribution, the growth of industrial establishments, and investment volumes.

Key findings indicate that the industrial sector’s GDP surged from SR392 billion in 2019 to SR592 billion in 2023, with a 14.7 percent contribution rate. The number of industrial establishments grew from 7,625 in 2019 to 11,868 in 2024, a growth rate of 55.6 percent, while investments in the sector increased by 54 percent, reaching SR1.5 trillion compared to SR992 billion.

Moreover, the report reveals a substantial rise in foreign investments due to government support measures, such as covering financial fees and implementing the local content system. The number of foreign factories jumped from 622 to 1,067, reflecting a 71.5 percent growth rate, while invested capital soared from SR43 billion to SR93 billion, marking a staggering 116.2 percent increase.

In terms of employment, the industrial sector employed around 1.2 million workers by the end of the first quarter of 2024, with 358,000 being Saudi nationals, resulting in a 28 percent Saudization rate. Workers in this sector accounted for 12.9 percent of all nationals employed in the private sector.

The report underscores that various government incentives have encouraged the private sector to increase Saudization, creating more job opportunities for citizens. The industrial sector emerged as the largest contributor to job creation for Saudis between Jan. 1, 2023, and March 31, witnessing a 59 percent increase with over 82,000 new jobs added.


Saudi EV market poised for significant growth by 2026, Petromin CEO predicts

Updated 19 September 2024
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Saudi EV market poised for significant growth by 2026, Petromin CEO predicts

RIYADH: Saudi Arabia is preparing for a substantial rise in electric vehicle sales as battery prices fall and infrastructure improves, according to an industry leader. 

In an interview with Arab News at the EV Auto Show in Riyadh, Kalyana Sivagnanam, CEO of Petromin Group—a Saudi-based provider of automotive, lubricant, and EV charging solutions—indicated that EV sales could soon approach parity with internal combustion engine vehicles within the next 12 to 18 months. 

“By 2026/2027, you’re going to see a massive surge in the sales of electric vehicles,” Sivagnanam stated, linking this growth to rapidly changing market conditions and declining battery costs. 

In certain markets like China, the price of EVs is already nearly equivalent to that of traditional vehicles, a trend expected to gain momentum in Saudi Arabia, he added. 

Sivagnanam pointed out that Saudi Arabia’s Vision 2030 has played a crucial role in nurturing the EV sector, attracting major global players such as Lucid Motors, which has commenced local manufacturing, as well as new entrants like Ceer and Hyundai. 

“The EV industry definitely in Saudi Arabia is looking very, very promising,” he remarked, noting that some forecasts predict EVs could make up 35 to 40 percent of the market by 2030. 

He also discussed the “chicken and egg” challenge of EV adoption, where limited charging infrastructure deters consumers from buying electric vehicles. 

The top executive stressed the significance of initiatives like the Public Investment Fund’s EVIQ program, designed to enhance the country’s EV charging infrastructure. “In the months and years to come, we can see how this will pave the way for more adoption of electric vehicles.” 

Electromin, a subsidiary of Petromin Corp., is closely monitoring the pace of EV sales to inform its expansion of charging stations. “Our ability to install chargers will depend on how fast the vehicles sell,” Sivagnanam explained. 

The CEO highlighted Electromin’s comprehensive services for fleet customers, providing decarbonization strategies as well as EV charger installation and maintenance. 

“For example, if you are a fleet company, you don’t want to go to somebody for chargers, somebody for maintenance, and someone else for your vehicles,” he said, emphasizing the need to streamline the transition to electric vehicles. 

Electromin has already made notable progress, establishing the first national AC charging network in Saudi Arabia, with chargers accessible in 52 cities. “Today, any customer in the Kingdom, doesn’t matter where he drives, he will find an AC charger,” Sivagnanam remarked. 

Although these are not fast chargers, they ensure that drivers can access charging facilities wherever they are, he added. 

The company has also provided Saudi Arabia’s first electric van to Pepsi, the inaugural electric bus to Red Sea, and a passenger bus to Riyadh Air. 

With growing government support and robust corporate initiatives, Saudi Arabia’s EV market is set for considerable expansion in the coming years. 

“What is very exciting about this journey is the way this country is focusing on sustainability and EV adoption,” the executive concluded.


Saudi Arabia’s EV growth outpaces global trends by 10x, says industry leader

Updated 19 September 2024
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Saudi Arabia’s EV growth outpaces global trends by 10x, says industry leader

RIYADH: Saudi Arabia is rapidly advancing in the electric vehicle sector for commercial transportation, outpacing many other countries, according to an industry leader. 

In an interview with Arab News during the EV Auto Show 2024, Gary Flom, president and CEO of National Transportation Solutions Co., praised the Kingdom’s swift development, noting that it has achieved in five years what took the US 25 years. 

“The speed of progress here is like light speed,” he remarked. 

“Everything here is accelerated — maybe 10 times when you look at Europe or the United States,” he added. 

As part of its Vision 2030 initiative, Saudi Arabia is focused on creating a comprehensive EV ecosystem to diversify its economy and reduce reliance on oil. The government aims for 30 percent of vehicles in Riyadh to be electrified by 2030. 

To meet this ambitious goal, significant investments are being made in EV infrastructure, including public charging stations and policies favorable to EV adoption. 

Additionally, the government is collaborating with international partners to build an EV supply chain that encompasses sourcing raw materials for batteries and enhancing manufacturing capabilities. 

Flom acknowledged the difficulties in transforming the passenger vehicle market but expressed optimism about the advancements in the commercial sector.

“It’s a lot easier to decarbonize the commercial sector because we know what the customer does,” he said. “We know where the vehicle goes, where it lives, and the payload it carries. We know how to design the charging infrastructure for it,” the executive said.

NTSC is leading these efforts with its decarbonization roadmap. According to Flom, this comprehensive plan aims to assist government and private fleet operators in transitioning from internal combustion engine fleets to electric and hydrogen-powered vehicles. The roadmap is designed to measure the carbon baseline of fleets, provide the necessary ecosystem for charging infrastructure, and manage the maintenance of electric commercial vehicles using advanced software.

“Our decarbonization Roadmap gives government fleets and private fleets a cost-effective, organized way to transition from ICE fleets to new energy fleets,” Flom said. This initiative also provides accredited carbon reduction data, which will be crucial for carbon credit trading in Saudi Arabia as the market for this system continues to grow.

Flom added: “We give them this plan over the next few years on how to decarbonize their fleet. And also we give them the accredited carbon reduction data so they can actually use it to trade carbon credits when that becomes available in Saudi Arabia.”

The roadmap has already resulted in strategic partnerships with key players in the transportation sector, including agreements with J&T Express, Saudi Bulk Transport (SBT-SENDDEX), and UPS. These collaborations, announced at the event, are instrumental in promoting advanced decarbonization strategies across the Kingdom. “Our collaboration with SBT-SENDDEX and Electromin reflects our commitment to advancing sustainable transportation with leading companies in KSA,” Flom said.

“By leveraging innovative decarbonization strategies, we aim to make a significant impact aligned with the UN Sustainable Development Goals,” he added.

In addition to strategic partnerships, NTSC has developed innovative technologies such as DarbConnect, a proprietary fleet management software. The platform uses Internet of Things technologies to provide real-time GPS tracking, predictive maintenance, and a range of data services, helping fleet operators enhance efficiency and reduce costs. “DarbConnect has proven to be a huge success,” Flom said.

“In less than two years, we signed up more than 330 B2B and B2G customers and gained about 35 percent market share of the entire commercial units and operation sector,” he added.

While the commercial sector is advancing quickly, Flom noted that decarbonizing the passenger vehicle sector presents more challenges due to the variability in individual vehicle use. Unlike commercial fleets, which have predictable routes and payloads, passenger vehicles are utilized for various purposes, complicating the establishment of a uniform charging infrastructure and user behavior model.

Looking ahead, Flom remarked that the company aims to become a regional leader in sustainable transportation, planning to export its expertise, roadmap, and technologies to the broader Middle East and North Africa region. “NTSC will become not only the leader for fleet management and sustainable multi-modal mobility, but we also look to export the same outside of Saudi Arabia,” said Flom.


Closing Bell: Saudi main index rises to close at 12,080

Updated 19 September 2024
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Closing Bell: Saudi main index rises to close at 12,080

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 159.53 points, or 1.34 percent, to close at 12,080.47.

The total trading turnover of the benchmark index was SR9.47 billion ($2.52 billion), as 152 of the stocks advanced and 73 retreated. 

The Kingdom’s parallel market Nomu slipped 25,337.96 points, or 1.01 percent, to close at 25,337.96. 

This came as 30 of the listed stocks advanced, while 41 retreated. 

The MSCI Tadawul Index gained 21.02 points, or 1.41 percent, to close at 1,507.65.  

The best-performing stock of the day was Etihad Atheeb Telecommunication Co., whose share price surged 7.95 percent to SR95.

Other top performers were Red Sea International Co. as well as Saudi Automotive Services Co.

The worst performer was Al-Baha Investment and Development Co., whose share price dropped by 5.88 percent to SR0.16. 

Other fallers were Saudi Enaya Cooperative Insurance Co. and Saudi Industrial Development Co.

On the announcements front, the United Cooperative Assurance Co. announced that it had received a confirmation statement that the firm’s activities are consistent with the specifications of Shariah, as stipulated by the relevant supervisory committee. 

Those include separation of accounts and investments for both shareholder and policyholder pools, and insurance policies.

Retal Urban Development Co. announced the selling of its 33.33 percent share of land in Al-Khobar City for SR21 million to Remal Park Fund, an affiliate company, to issue new units in the fund in addition to the existing units owned by the company.

A bourse filing revealed that the purpose of the transaction is to increase the leasable area of the project by merging the entire land of this transaction to the rest of the project’s holdings, which will reflect positively on both the company’s and the fund’s investment.

The transaction is expected to have a positive impact on Retal’s results for 2024 until 2028. This comes as the increase in the company’s investment returns will be a result from both maximizing the fund’s returns and the increase in the development management fees for the firm.


Volt Charge to boost Saudi EV infrastructure with next-gen mobile chargers

Updated 19 September 2024
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Volt Charge to boost Saudi EV infrastructure with next-gen mobile chargers

RIYADH: Saudi Arabia is set to advance its electric vehicle infrastructure with the introduction of next-generation mobile EV chargers by local manufacturer Volt Charge, revealed the company’s top executive. 

Elie Metri, CEO and executive board member of Volt Charge, told Arab News at the EV Auto Show in Riyadh that the firm is finalizing the prototype of its innovative mobile charger, in collaboration with its sister company QSS AI & Robotics. 

This comes as robust charging infrastructure is essential to Saudi Arabia’s plan to transition 30 percent of vehicles in Riyadh to electric by 2030, a crucial step in its broader strategy to cut city emissions by 50 percent and achieve carbon neutrality by 2060.  

“What we’re doing is merging two emerging technologies — robotics and EV charging. We are currently finalizing the first prototype of a charger that comes to you. You won’t have to go to your charger anymore,” Metri said. 

He described a scenario where drivers use a mobile app at a mall to summon a charger, which uses AI to identify their car, handle the connection, and manage payment. After charging, the unit returns to its main station.  

Metri noted that this represents a significant advancement in electric vehicle technology.  

The CEO added that the company is the first Saudi brand to manufacture entirely within the Kingdom, with a 7,000 sq. meters factory in Sudair City, a sizable facility for assembling or producing the chargers.  

He highlighted that localizing technology aligns with Saudi Arabia’s sustainability goals, explaining that the company’s commitment to green energy is demonstrated by its early investment in both robotics and EV chargers. 

“We’re localizing the technology. This means we believe heavily that Saudi Arabia is moving into green energy,” Metri said, adding that they began investing in robotics in 2017, “when it was virtually unheard of in the MENA region.”  

He also mentioned their ambitious plans for manufacturing, saying: “We’re building a factory that can make 40,000 chargers while there are very few cars in the Kingdom. But we believe that it’s going to come, and we hope to have a huge market share being a local company and local factory.” 

The CEO acknowledged the challenges faced in producing the EV chargers, particularly in procuring the necessary components. He noted that Saudi Arabia does not yet have a manufacturing hub like China, which complicates the supply chain. 

“Not all the technical components are available in the local market,” Metri explained. “If I want to manufacture a charger, it has 20 or 25 components, so I need to ship them from different parts of the world,” he said, adding that this creates challenges, but “we’re overcoming all of those.”  

Volt Charge, headquartered in Riyadh, specializes in manufacturing robust EV chargers designed for extreme climates. The company’s efforts were showcased at the Riyadh International Convention and Exhibition Center, highlighting Saudi Arabia’s commitment to sustainable mobility as part of Vision 2030. 

The EV Auto Show serves as a key platform for discussing the future of mobility, featuring interactive seminars, panel discussions, and showcases of EV technologies and charging solutions.