ADNOC, British company to build gas project in Egypt
ADNOC, British company to build gas project in Egypt /node/2459911/business-economy
ADNOC, British company to build gas project in Egypt
This progressive joint venture partnership will enhance Egyptian energy security and the economic potential of the region’s most populous Arab country. File
ADNOC, British company to build gas project in Egypt
Updated 14 February 2024
Arab News
RIYADH: Abu Dhabi National Oil Co. and British energy company BP on Wednesday signed an agreement to form a new joint venture in Egypt with a focus on natural gas.
As part of the agreement, BP will contribute its interests in three Egyptian development concessions and exploration agreements. Additionally, ADNOC will make a proportionate cash contribution for use in future growth opportunities, the British company said in a statement.
The JV will be a collaboration between BP, holding a 51 percent interest, and ADNOC, with a 49 percent stake.
The concessions to be included in the JV are Shorouk, where BP holds a 10 percent interest and contains the producing Zohr field operated by Belayim Petroleum; North Damietta, where BP holds a 100 percent interest and contains the producing Atoll field operated by Pharaonic Petroleum Co.; North El Burg, where BP holds a 50 percent interest and contains the undeveloped Satis field operated by PhPC; North El Tabya, and the Bellatrix-Seti East and North El Fayrouz exploration concession agreements.
The joint venture is expected to be completed in the second half of 2024, pending regulatory approvals.
Musabbeh Al-Kaabi, ADNOC executive director for low-carbon solutions and international growth, said the deal with BP “represents a significant step forward as ADNOC builds its international natural gas portfolio.”
“This progressive joint venture partnership will enhance Egyptian energy security and the economic potential of the region’s most populous Arab country,” Al-Kaabi added.
William Lin, BP’s executive vice president of regions, corporates and solutions, said the joint venture “offers a platform for international growth that advances our longstanding and strategic partnership with ADNOC that spans over five decades.”
Alongside partners, BP is a major player in Egypt, producing 70 percent of the country’s gas through its gas development projects in the West and East Nile Deltas.
JEDDAH: The Middle East’s aviation sector is pushing toward greater integration and collaborative innovation, with Saudi Arabia’s rapid expansion positioning it as the region’s benchmark, according to a senior International Air Transport Association official.
Kamil Al-Awadhi, IATA’s regional vice president for Africa and the Middle East, told Arab News that growth in the Gulf Cooperation Council is outpacing all other regions — and the Middle East could soon lead the global aviation industry.
His remarks came during IATA Aviation Day MENA 2025 — held for the first time in Saudi Arabia in Jeddah from May 6 to 7 — where industry leaders gathered to explore how regional collaboration and harmonized regulation can unlock aviation’s full potential.
Al-Awadhi credited the region’s resilience to unified political leadership and coordinated aviation strategies.
“After the COVID-19 pandemic subsided in 2022, airlines in the Middle East resumed smooth operations, as if airports had not been closed at all. In contrast, carriers in Europe and the US struggled for several months to return to normal operations,” he said.
Al-Awadhi added: “Saudi Arabia is not only expanding its aviation infrastructure, but it is also investing in its people. This is vital to meet the immediate skills requirements while developing a professional workforce able to deliver on Vision 2030.”
The official acknowledged the region’s operational strength but pointed to the lack of sufficient stakeholder dialogue. “The main goal of this event is to bring the region’s aviation sectors together to discuss their challenges and collectively work toward improvement,” the IATA official said.
Nick Careen, IATA’s senior vice president for operations, safety, and security, said the Middle East was poised to outpace global air traffic growth over the next two decades. “Looking ahead, global air travel is set to grow at 3.3 percent per year for the next 20 years. But the Middle East will grow faster at 4.8 percent,” he said during his keynote.
The event took place just days after IATA released its latest global passenger traffic data, showing industry-wide revenue passenger kilometers rose 3.3 percent year-on-year in March, reaching 738.8 billion — continuing the trend of subdued single-digit growth seen since 2023.
Nick Careen, IATA’s senior vice president for operations, safety, and security. Supplied
Careen emphasized Saudi Arabia’s pivotal role in the region’s aviation transformation. “The sector is not just moving forward — it’s moving forward at speed. And that should make everyone in this room take notice.”
He noted that aviation and aviation-related tourism contributed $90.6 billion to the Kingdom’s gross domestic product — representing 8.5 percent — and supported 1.4 million jobs. “More than 62,000 people are directly employed by airlines, and another 79,000 are working in the broader aviation ecosystem. In 2023, Saudi Arabia handled over 713,000 tonnes of air cargo,” he said.
According to Careen, this progress is being driven by Crown Prince Mohammed bin Salman’s Vision 2030 plan, which places aviation at the heart of economic diversification and international connectivity. “We have seen it in the development of new airports, the digital push, the workforce development, and the launch of national carriers like Riyadh Air,” he said.
Abdulaziz bin Al-Duailej, president of the General Authority of Civil Aviation, described the Middle East as an economy worth $9.48 trillion powered by a young population, adding: “Aviation here is not only enabling growth; it is leading transformation through strategic investment and collaboration.”
He continued: “By 2024, passenger traffic across the Middle East exceeded pre-pandemic levels by 9 percent — more than double the global growth rate. While Saudi Arabia’s civil aviation sector recorded a remarkable increase of over 24 percent compared to pre-pandemic levels.”
Caption
The Kingdom’s growth has been marked by major achievements. In 2024 alone, Saudi Arabia handled 128 million passengers, more than 900,000 flights, and 1.2 million tonnes of cargo. The government has ordered 500 new aircraft and attracted 21 new international airlines into its market.
“The Kingdom’s aviation market is opening rapidly. In the past year alone, 21 new international airlines have entered the Saudi market, and in the first quarter of 2025, foreign carriers carried 63 percent of international passengers,” Al-Duailej said, reaffirming the Kingdom’s willingness to engage globally to shape the sector’s future.
In its latest press release, IATA outlined three strategic priorities to help Saudi Arabia sustain its aviation gains: improving coordination with stakeholders, ensuring cost-effective infrastructure development, and building national talent.
“Given Saudi Arabia’s important role in shaping regional aviation policies, continued collaboration and consultation with users and stakeholders, along with alignment to global standards and best practices, are vital,” the organization said.
It also emphasized the need for cost-competitiveness. “As Saudi Arabia makes significant investments in airport infrastructure and digitalization, it is critical to work with the industry to ensure cost competitiveness,” IATA added.
On workforce development, the group noted: “Ensuring a skilled workforce across all areas of aviation will enable the Kingdom to fulfill its potential as a regional and global aviation hub.”
On the sidelines of the forum, IATA announced new training agreements with Saudi airlines, airports, and academic institutions. In the first phase, more than 1,000 graduates and aviation professionals will be trained in areas such as airport operations, safety, airline management, and ground handling.
Riyadh Airports Co. and Qassim University joined IATA’s network of regional training partners, alongside long-time collaborator Prince Sultan Aviation Academy. Together, the three will deliver over 60 programs covering technical, commercial, and interpersonal skills.
“The renewed agreement enables the academy to offer IATA training courses within the Kingdom and across the GCC region. All operational aviation requirements — including cabin crew, maintenance, ground services, and business training — are provided by PSAA,” said Khalid Bawazeer, the academy’s director of continuous studies, to Arab News.
“This requires preparation to meet the demand for increased training programs, whether conducted internally by the academy or through external courses such as those offered by IATA,” he added.
As part of the deal, sector awareness courses will also be offered to graduates of Riyadh Air and Saudia to nurture national talent for future leadership. Specialized Dangerous Goods training will be provided to operational staff from the Saudi Civil Aviation Academy.
SAL Logistics Services Co. marks its new agreemeent at the event. Supplied
In addition, SAL Logistics Services Co. has been accredited as a competency-based training and assessment center, and Saudi Ground Services has renewed its CBTA accreditation.
The IATA’s Careen acknowledged that despite the Kingdom’s progress, aviation development remains uneven across the Middle East due to persistent geopolitical instability.
He pointed to challenges in Yemen, Syria, Iraq, and Lebanon, where conflict and sanctions have suppressed growth. “Where aviation continues to demonstrate remarkable resilience in the face of political instability, it does far better in countries that are stable, peaceful and open,” the official said.
Careen called on governments and regulators to align efforts toward a more integrated and forward-looking aviation environment. “A Middle East characterized by open skies, harmonized regulations, and shared innovation,” he said, is critical to long-term success.
“To every government, airline, and civil aviation authority in this room, your success is everyone’s success. A rising tide lifts all boats, and in this case, all planes,” he said.
Ibrahim Al-Omar, director general of Saudia Group, the host of the event, said the forum was a valuable opportunity to showcase how Vision 2030 is reshaping regional aviation.
“With safety, innovation, and sustainability driving our progress, IATA Aviation Day MENA is a valuable platform to showcase how the Kingdom’s Saudi Vision 2030 is shaping the future of aviation not only across the Kingdom but the region and beyond,” he said in a statement released a day prior to the event.
Saudi POS spending hits $4bn, fueled by increased spending across all sectors
Updated 52 min 54 sec ago
Miguel Hadchity
RIYADH: Saudi Arabia’s point-of-sale transactions climbed 36.2 percent to SR15.4 billion ($4.1 billion) in the week ending May 3, driven by increased spending across all sectors.
The latest data from the Kingdom’s central bank, also known as SAMA, showed that education led the growth, registering the largest jump in transaction value, up 74.7 percent to SR239.7 million. The sector also saw a 32.4 percent rise in the number of transactions, reaching 192,000.
The clothing and footwear sector followed, recording a 51.2 percent increase in transaction value to SR917.6 million. Telecommunication spending ranked next, rising 45.1 percent to SR136.4 million, with transactions up 37.3 percent to 3.4 million.
Food and beverages — the sector with the biggest share of total POS value — recorded a 44.9 percent increase to SR2.4 billion.
Transportation spending rose 27.9 percent to SR852 million, while restaurants and cafes saw a 28.8 percent increase, totaling SR2.1 billion and claiming the second-biggest share of this week’s POS.
The smallest spending gains were on jewelry, rising by 12.6 percent to SR361 million, and construction and building materials, which increased by 13.1 percent to SR354.7 million.
The health and public utilities sectors also saw upward changes, increasing by 30.2 percent and 28.8 percent to reach SR953.3 million and SR56.5 million, respectively.
Spending on electronics followed the trend, rising 24 percent to SR189.3 million, and recreation and culture edging up by 38.6 percent to SR291.6 million.
Miscellaneous goods and services claimed the third-largest share of total transactions value, with an uptick of 41.3 percent to SR1.9 billion.
The top three categories — food and beverages, miscellaneous goods and services, and clothing and footwear — accounted for 41.5 percent of the week’s total spending, amounting to SR6.4 billion.
Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR5.2 billion, a 28.5 percent increase from the previous week.
Jeddah followed with a 27.2 percent rise to SR2.1 billion, while Dammam ranked third, up 28.1 percent to SR772 million. Hail saw the biggest increase, inching up 60.8 percent to SR268.9 million, followed by Tabuk with a 60.6 percent uptick to SR325.2 million.
Hail recorded 4.5 million deals in transaction volume, up 33 percent, while Tabuk reached 5.4 million transactions, rising 29 percent.
Lucid sticks to annual production forecast even as tariff woes hit automakers
Updated 07 May 2025
Reuters Arab News
LONDON: Lucid stuck to its 2025 production forecast on Tuesday despite the threat of tariffs forcing many automakers to pull back targets, while the luxury electric-vehicle maker reported first-quarter revenue below analysts’ expectations.
Demand for pure battery cars in the US has been slowing as consumers, hit with high interest rates and recession worries, gravitate toward cheaper hybrids.
Lucid — majority-owned by Saudi Arabia’s Public Investment Fund— lowered the prices of its vehicles and offered incentives, including cheaper financing, to entice customers to its Air sedans that start at about $70,000 in the US.
The company said it would produce nearly 20,000 vehicles this year, while Wall Street expects it to manufacture 18,370, according to an average of five analysts by Visible Alpha.
Revenue for the quarter ended March 31 was $235 million, compared with analysts’ average estimate of $248.9 million, data compiled by LSEG showed.
Lucid, which has been focusing on cutting costs, posted an adjusted net loss per share of 20 cents, narrower than the 27-cent loss a year ago.
The company is gearing up to expand its product line with a mid-size car expected to roll out next year, targeting a $50,000 price point, aiming to broaden its customer base and strengthen its position in the competitive EV sector.
Success of Lucid’s recently launched Gravity SUV, along with the midsize, is seen as crucial to its long-term outlook, as the company burns through cash ramping up production.
US automakers are grappling with tariffs imposed by President Donald Trump on vehicle and auto parts imports. The tariffs are expected to disrupt supply chains and raise prices of automobiles.
Automakers, including Tesla, have said they were reassessing their full-year targets in the face of tariff uncertainty.
Last week, Trump signed two orders to soften the blow of his auto tariffs, with a mix of credits and relief from other levies on materials.
In September 2023 it launched its first international manufacturing plant in Saudi Arabia.
Located in King Abdullah Economic City, the facility can currently assemble 5,000 Lucid vehicles annually during its first phase.
Once fully operational, it is expected to produce up to 155,000 electric cars per year.
Oil Updates — crude rises as market eyes US-China trade talks, lower US output
Updated 07 May 2025
Reuters
SINGAPORE: Oil prices rose on Wednesday, holding slightly above recent four-year lows, as investors focused on US-China trade talks and signs of lower US production.
Brent crude futures gained 76 cents a barrel, or 1.22 percent, to $62.91 a barrel by 10:08 a.m. Saudi time, while US West Texas Intermediate crude was up 84 cents, or 1.42 percent, at $59.93 a barrel.
Both benchmarks plunged to a four-year low recently after OPEC+’s decision to speed up output increases, stoking fears of oversupply at a time when US tariffs have increased concerns about demand.
“News that the US and China will start trade talks this weekend has Brent crude trading higher, extending a relief rally in oil,” said commodities strategists at ING on Wednesday.
“Yet while negotiations would help improve sentiment in the oil market, we’ll need to see significant progress on lowering tariffs to improve the demand outlook,” ING added.
Meanwhile, lower oil prices in recent weeks have prompted some US energy firms including Diamondback Energy and Coterra Energy to announce rig reductions, which analysts said should support prices over time by reducing output.
The latest announcements suggested output will weaken in the coming months, said ANZ Bank senior commodity strategist Daniel Hynes. “We warned last month that falling prices and declining drilling activity was raising the risk of US oil output falling.”
Crude stocks fell by 4.5 million barrels in the week ended May 2, market sources said, citing American Petroleum Institute figures on Tuesday.
US government data on stockpiles is due at 5:30 p.m. Saudi time. Analysts polled by Reuters expect, on average, an 800,000 barrel decline in US crude oil stocks for last week.
Prices also drew support from signs of demand improving. Consumers in China increased spending during the May Day celebration and as market participants returned after the five-day holiday.
In Europe, companies are expected to report growth of 0.4 percent in first-quarter earnings, an improvement over the 1.7 percent drop analysts had expected a week ago.
The Federal Reserve is widely expected to leave US interest rates unchanged on Wednesday as tariffs roil the economic outlook.
Closing Bell: Saudi main index closes in green at 11,434
Updated 06 May 2025
Nirmal Narayanan
RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward momentum for a second straight day, gaining 11.13 points, or 0.10 percent, to close at 11,434.08 on Tuesday.
The benchmark index recorded a total trading turnover of SR4.51 billion ($1.20 billion), with 83 stocks advancing and 152 declining.
Saudi Arabia’s parallel market Nomu, however, dropped 190.20 points to close at 27,952.79.
The MSCI Tadawul Index edged up 0.16 percent to 1,457.72.
The top performer on the main market was Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, which saw its share price surge 9.87 percent to SR15.58.
Shares of Bupa Arabia for Cooperative Insurance Co. rose 3.59 percent to SR178.80, while Saudi Ceramic Co. gained 3.17 percent to reach SR29.30.
Al-Etihad Cooperative Insurance Co. recorded the biggest decline of the day, with its share price slipping 7.69 percent to SR13.92.
On the announcements front, United Electronics Co., also known as EXTRA, reported a net profit of SR103.44 million for the first quarter of 2025, marking a 10.2 percent increase compared to the same period last year.
In a Tadawul filing, the company attributed the rise to growth in its retail and consumer finance segments. EXTRA’s share price rose 0.11 percent to SR90.90.
United International Holding Co. posted a net profit of SR57.81 million for the first quarter of 2025, up 10.42 percent year on year. The company said the increase was driven by a 25.3 percent rise in revenues, which reached SR174.65 million, compared to SR139.43 million in the same period last year. Its share price rose 0.59 percent to SR171.40.
Saudi Printing and Packaging Co. widened its net loss to SR24.4 million in the first quarter of 2025, compared to SR22.62 million a year earlier. The company blamed the deeper loss on lower revenues from its printing and packaging divisions. Shares dropped 2.83 percent to SR12.34.
Al-Etihad Cooperative Insurance Co. reported a net loss of SR11.91 million for the first quarter, reversing from a net profit of SR2.66 million in the year-earlier period. The insurer cited reduced revenue and a decline in gross earned premiums in the motor and medical segments as key reasons for the swing. Its stock closed down 7.69 percent at SR13.92.
Almoosa Health Co. announced a net profit of SR51.1 million for the first quarter of 2025, a surge of 272.99 percent year on year. The company said the sharp increase was driven by higher patient volumes and improved inpatient occupancy. Shares advanced 3.09 percent to SR167.
Saudi Arabian Mining Co., also known as Ma’aden, reported a net profit of SR1.54 billion for the first quarter of 2025, reflecting a sharp 57.88 percent increase compared to the same period in 2024.
In a statement to Tadawul, the mining giant attributed the profit growth to higher commodity prices across all its product lines.
The company’s revenue for the quarter reached SR8.51 billion, marking a 15.82 percent year-on-year rise.
“We are off to a great start in 2025. We are building on the momentum of last year and continuing our progress across all operations, with strong production results, safety improvements, exploration success, project advancement and portfolio consolidation,” said Robert Wilt, CEO of Ma’aden.
He added: “Looking ahead our strong financial position and focus on operational excellence positions us well to navigate the current market uncertainty. We will continue to drive value for our shareholders and develop mining as the third pillar of the Saudi economy.”
