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Lilium agrees deal to supply electric vertical take-off and landing aircraft to Saudia

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Updated 18 July 2024
NOOR NUGALI
Miguel Hadchity
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Lilium agrees deal to supply electric vertical take-off and landing aircraft to Saudia

  • Saudia will receive the first vehicle in 2026
Updated 18 July 2024
NOOR NUGALI Miguel Hadchity

MUNICH: German aerospace company Lilium NV is making its debut in Saudi Arabia with a groundbreaking deal to supply up to 100 electric vertical take-off and landing jets to Saudia, the Kingdom’s first national carrier.

The formalization of this agreement comes after a framework deal was initially arranged in late 2022, making Saudia the first airline in the region to invest in sustainable air mobility.

The Saudia Group and the German developer of fully electric vertical takeoff and landing aircraft have entered into an agreement to purchase 50 confirmed Lilium Jets, with an option for an additional 50 aircraft. 

Thursday’s signing ceremony took place at the German firm’s headquarters in Munich, attended by Arab News and key industry stakeholders.

CEO of Lilium, Klaus Roewe, underscored in his speech the significance of this partnership, stating: “It (the deal) signals a transformation and a readiness to shape the future.”

In an interview with Arab News on the sideline of the event, he described Saudia as a very important customer because it’s a “very high-ranking, high-class airline, a very demanding airline.”

Roewe added: “On the other side, it’s also representing a country which we believe is the perfect mirror of what Lilium wants to do, because Lilium is definitively the most advanced, the most innovative product.” 

The CEO went on to say that Saudi Arabia’s ambitions for its tourism and aviation sectors as outlined by the Vision 2030 economic diversification plan show a focus on sustainability and innovation.

“We believe it’s a perfect match between the Kingdom of Saudi Arabia and Lilium,” said Roewe.

Saudi Arabia will receive the first plane in 2026. 

The aircraft’s operations will be approved and conducted in accordance with the quality and safety standards of the General Authority of Civil Aviation, and it will be operated and managed through Saudia Private Aviation.

Ibrahim Al-Omar, the director general of Saudia Group, expressed his enthusiasm for the milestone, saying: “Our partnership with Lilium supports the ambitious goal of Vision 2030 by transforming the future of aviation in Saudi Arabia and beyond.”

He added that starting in 2026, the arrival of the first Lilium Jet will help transport 330 million travelers, providing faster and more efficient connections that exceed industry standards and expectations. This development is set to play a crucial role in key areas such as hygiene, entertainment, and business travel.

The director general said that the group is committed to leading aviation innovation with this collaboration with Lilium being “just the beginning.”

He added: “We will continue to explore new heights, offering the best to our guests and positively impacting regional and global aviation.” 

The German ambassador to Saudi Arabia, Michael Kindsgrab, highlighted in his address the transformative potential of this collaboration in advancing decarbonization and sustainability goals under the Kingdom’s Vision 2030. 

“One of the most important areas of this new cooperation is decarbonization and sustainability,” he said, adding: “This is truly a revolutionary concept, and we are very happy that Saudi Arabia, Saudia in this case, is at the forefront of launching this new technology.”

The ambassador said that this is a big event for Saudi Arabia and for Germany, with economic relations between two countries – with their shared focus on transformation, decarbonization and ecology – being some of the biggest common denominators in this relationship.

Roewe’s praised the collaboration between Lilium and Saudia, and said: “Our teams have been working together intensively after signing of the MoU in late 2022, and we received outstanding support and trust in the process for which we are enormously grateful and thank you for that.”

Saudia aims to integrate these electric vertical takeoff and landing aircraft into its fleet, revolutionizing domestic air transport with efficient, zero-emission solutions. 

The Lilium Jets, designed for regional high-speed travel with zero CO2 emissions, align with Saudi Arabia’s focus on sustainability and innovation under Vision 2030.

Lilium has the capacity to produce up to 80 aircraft per year. The aircraft features a 14-meter-long wing and an 80-meter-long body, with a maximum flight altitude of 3,000 meters. 

It boasts an operating distance of up to 175 kilometers and can reach speeds of 300 kms per hour. The airplane’s battery is recharged, not swapped, requiring 30-40 minutes to reach 80 percent capacity. 

The German ambassador to the Kingdom further elaborated on the economic implications of the deal, stating: “Today, we open another chapter for green mobility and green energy. This is truly a revolutionary concept, and we’re very pleased that Saudi Arabia, represented by Saudia, is at the forefront of launching this new technology.”

Saudia’s commitment to leading aviation innovation through its collaboration with the German firm sets the stage for continued exploration and advancement in sustainable aviation. 

The airline will play a pivotal role in shaping the future of air transport in the Middle East and beyond, reaffirming its position as a global leader in the aviation industry.

With this strategic initiative, Saudia and Lilium are poised to set new standards for sustainable aviation, driving forward the vision of a greener and more interconnected world through cutting-edge technology and collaborative partnerships.

Topics: main Lilium air mobility Saudia

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Aramco, China's BYD collaborate on new energy vehicle technologies

Updated 9 sec ago
MIGUEL HADCHITY 
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Aramco, China's BYD collaborate on new energy vehicle technologies

Updated 9 sec ago
MIGUEL HADCHITY 

RIYADH: Saudi energy major Aramco and Chinese electric vehicle manufacturer BYD have signed a joint development agreement to explore advancements in new energy vehicle technologies. 

The partnership, formalized between Saudi Aramco Technologies Co. and BYD, aims to develop solutions that enhance efficiency and reduce environmental impact, according to a joint statement. 

Bringing together the research capabilities of both companies, the collaboration is focused on innovation in low-carbon mobility. Aramco has been active in energy-related research, while BYD is a recognized player in EV and battery technologies.  

Saudi Arabia is continuing to develop its electric vehicle infrastructure under Vision 2030, which targets greater sustainability and economic diversification.   

Ali Al-Meshari, Aramco’s senior vice president of Technology Oversight and Coordination, said: “The collaboration between SATC and BYD aims to support energy efficiency improvements, and it builds on Aramco’s extensive research and development of new energy solutions.”  

He added: “Aramco is exploring a number of ways to potentially optimize transport efficiency, from innovative lower-carbon fuels to advanced powertrain concepts.” 

Al-Meshari emphasized the need for a multifaceted approach to support a practical energy transition and welcomed BYD’s role in the initiative. 

Luo Hongbin, senior vice president at BYD, highlighted the importance of collaboration in driving innovation.   

“At the crossroads of technological innovation and environmental protection, BYD always believes that true breakthroughs come from openness and collaboration,” he said.  

Hongbin added: “We expect that SATC and our cutting-edge R&D capabilities in new energy vehicles will break the boundaries of geography and mindset to incubate solutions that combine highly-efficient performance with a lower carbon footprint.”  

Hongbin expressed confidence that the partnership would contribute to broader climate action goals. 

BYD, a long-standing player in electric mobility, has expanded its presence in the automotive, energy storage, and rail transit sectors, contributing to green technology development. 

Aramco, one of the world’s largest integrated energy and chemicals companies, has been investing in technologies aimed at improving resource efficiency and supporting energy transition efforts. 

In January, the Electric Vehicle Infrastructure Co. — a joint venture between the Public Investment Fund and Saudi Electricity Co. — signed a deal with Al-Futtaim Electric Mobility, BYD’s local partner, to install high-speed EV chargers across the Kingdom.  

EVIQ plans to deploy more than 5,000 charging stations by 2030, reinforcing Saudi Arabia’s goal to become a regional hub for electric mobility. 

Global forecasts suggest electric and eco-friendly vehicles could account for half of all car sales by 2035, making the Kingdom’s investments in EV infrastructure a key step toward future mobility. 

Topics: byd car EV

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Oil Updates — crude falls as concerns about demand amid US tariff upheaval return 

Updated 40 min ago
REUTERS  
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Oil Updates — crude falls as concerns about demand amid US tariff upheaval return 

Updated 40 min ago
REUTERS  

SINGAPORE: Oil prices fell 1.5 percent on Monday as investors once again focused on concerns US tariffs on its trading partners will create economic headwinds that will reduce fuel demand growth, according to Reuters. 

Brent crude futures slipped 97 cents, or 1.4 percent, to $66.99 a barrel at 09:40 a.m. Saudi time after closing up 3.2 percent on Thursday. US West Texas Intermediate crude was at $63.72 a barrel, down 96 cents, or 1.5 percent, after settling up 3.54 percent in the previous session. Thursday was the last settlement day last week because of the Good Friday holiday.  

“The broader trend remains tilted to the downside, as investors may struggle to find conviction in an improving supply-demand outlook, especially amid the drag from tariffs on global growth and rising supplies from OPEC+,” said IG market strategist Yeap Jun Rong. 

OPEC+, the group of major producers including the Organization of the Petroleum Exporting Countries and allies such as Russia, is still expected to hike output by 411,000 barrels per day starting in May, though some of that increase may be offset by cuts from countries that have been exceeding their quotas. 

Prices also declined as some supply worries eased following signs of progress in nuclear talks between the US and Iran progressed on Saturday. 

In the talks, the US and Iran agreed to begin drawing up a framework for a potential nuclear deal, Iran’s foreign minister said, after talks that a US official described as yielding “very good progress.” 

The progress follows further sanctions by the US last week against a Chinese independent oil refinery that it alleges processed Iranian crude, ramping up pressure on Tehran amid the talks. 

Concerns about tightening Iranian oil supply and hopes for a trade deal between the US and the EU, pushed Brent and WTI up about 5 percent last week, their first weekly gain in three weeks. 

Still, markets remain worried about the effects of the aggressive US tariff policy and its trade war with China, with the dollar and Asian equity markets dropping on Monday. 

A Reuters poll on April 17 showed investors believe the tariff policy will trigger a significant slowdown in the US economy this year and next, with the median probability of recession in the next 12 months approaching 50 percent. The US is the world’s biggest oil consumer. 

Investors are watching for several US data releases this week, including April flash manufacturing and services PMI, for direction on the economy. 

“This week’s series of PMI releases could further underscore the economic impact of tariffs, with both manufacturing and services conditions across major economies expected to soften,” IG’s Yeap said, adding oil prices face resistance at the $70 level. 

Topics: Oil energy US OPEC China

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China warns countries against striking trade deals with US at its expense 

Updated 54 min 57 sec ago
REUTERS  
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China warns countries against striking trade deals with US at its expense 

Updated 54 min 57 sec ago
REUTERS  

BEIJING: China on Monday accused Washington of abusing tariffs and warned countries against striking a broader economic deal with the US at its expense, ratcheting up its rhetoric in a spiralling trade war between the world’s two biggest economies. 

Beijing will firmly oppose any party striking a deal at China’s expense and “will take countermeasures in a resolute and reciprocal manner,” its Commerce Ministry said. 

The ministry was responding to a Bloomberg report, citing sources familiar with the matter, that the Trump administration is preparing to pressure nations seeking tariff reductions or exemptions from the US to curb trade with China, including imposing monetary sanctions. 

President Donald Trump paused the sweeping tariffs he announced on dozens of countries on April 2, except those on China, singling out the world’s second-largest economy for the biggest levies. 

In a series of moves, Washington has raised tariffs on Chinese imports to 145 percent, prompting Beijing to slap retaliatory duties of 125 percent on US goods, effectively erecting trade embargoes against each other. Last week, China signalled that its own across-the-board rates would not rise further. 

“The United States has abused tariffs on all trading partners under the banner of so-called ‘equivalence’, while also forcing all parties to start so-called ‘reciprocal tariffs’ negotiations with them,” the ministry spokesperson said. 

China is determined and capable of safeguarding its own rights and interests, and is willing to strengthen solidarity with all parties, the ministry said. 

“The fact is, nobody wants to pick a side,” said Bo Zhengyuan, partner at China-based policy consultancy Plenum. 

“If countries have high reliance on China in terms of investment, industrial infrastructure, technology know-how and consumption, I don’t think they’ll be buying into US demands. Many Southeast Asian countries belong to this category.” 

Pursuing a hardline stance, Beijing will this week convene an informal UN Security Council meeting to accuse Washington of bullying and “casting a shadow over the global efforts for peace and development” by weaponizing tariffs. 

Earlier this month, US Trade Representative Jamieson Greer said nearly 50 countries have approached him to discuss the steep additional tariffs imposed by Trump. 

Several bilateral talks on tariffs have taken place since, with Japan considering raising soybean and rice imports as part of its talks with the US while Indonesia is planning to increase US food and commodities imports and reduce orders from other nations. 

CAUGHT IN CROSSFIRE 

Trump’s tariff policies have rattled financial markets as investors fear a severe disruption in world trade could tip the global economy into recession. 

On Monday, Chinese stocks inched higher, showing little reaction to the commerce ministry comments, though investors have generally remained cautious on Chinese assets due to the rising growth risks. 

The Trump administration also has been trying to curb Beijing’s progress in developing advanced semiconductor chips which it says could be used for military purposes, and last week imposed port fees on China-built vessels to limit China’s dominance in shipbuilding. 

AI chip giant Nvidia said last week it would take $5.5 billion in charges due to the administration’s curbs on AI chip exports. 

China’s President Xi Jinping visited three Southeast Asian countries last week in a move to bolster regional ties, calling on trade partners to oppose unilateral bullying. 

Beijing has said it is “tearing down walls” and expanding its circle of trading partners amid the trade row. 

The stakes are high for Southeast Asian nations caught in the crossfire of the Sino-US tariff war, particularly given the regional ASEAN bloc’s huge two-way trade with both China and the US. 

Economic ministers from Thailand and Indonesia are currently in the US, with Malaysia set to join later this week, all seeking trade negotiations. 

Six countries in Southeast Asia were hit with tariffs ranging from 32 percent to 49 percent, threatening trade-reliant economies that have benefited from investment from levies imposed on Beijing by Trump in his first term. 

ASEAN is China’s largest trading partner, with total trade value reaching $234 billion in the first quarter of 2025, China’s customs agency said last week. 

Trade between ASEAN and the US totalled around $476.8 billion in 2024, according to US figures, making Washington the regional bloc’s fourth-largest trading partner. 

“There are no winners in trade wars and tariff wars,” Xi said in an article published in Vietnamese media, without mentioning the US. 

Topics: US China trade tarrif Trump

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Closing Bell: Saudi benchmark index edges up to close at 11,626 

Updated 20 April 2025
Reem Walid
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Closing Bell: Saudi benchmark index edges up to close at 11,626 

Updated 20 April 2025
Reem Walid

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 73.62 points, or 0.64 percent, to close at 11,626.60. 

The total trading turnover of the benchmark index was SR3.57 billion ($953 million), as 199 of the stocks advanced and 37 retreated.    

Similarly, the Kingdom’s parallel market, Nomu, gained 264.47 points, or 0.92 percent, to close at 28,978.19. This comes as 46 of the listed stocks advanced while 34 retreated.    

The MSCI Tadawul Index gained 5.14 points, or 0.35 percent, to close at 1,474.53.     

The best-performing stock of the day was Alistithmar AREIC Diversified REIT Fund, whose share price surged 10.00 percent to SR7.26.   

Other top performers included Saudi Cable Co., whose share price rose 9.90 percent to SR135.40 as well as Saudi Printing and Packaging Co., whose share price increased 9.89 percent to SR11.56. 

Riyadh Cement Co. led the declines, dropping 3.15 percent to SR33.80.

Leejam Sports Co. slipped 2.03 percent to SR135.20, while Almoosa Health Co. edged down 1.21 percent to SR163.20. 

On the announcement front, Almarai Co. reported a first-quarter net profit of SR731.19 million for 2025, up 5.62 percent year on year, driven by a 6 percent rise in revenue, according to a Tadawul filing.

The company noted that higher energy costs partially offset the earnings growth. Almarai shares closed 1.90 percent higher at SR53.30. 

Jarir Marketing Co. posted a net profit of SR217.3 million in the first quarter of 2025, down 0.91 percent from the same period a year earlier, according to a Tadawul filing. 

The marginal decline came despite a 2.7 percent increase in both sales and gross profit, as well as a rise in other income, with higher selling and marketing expenses weighing on earnings. 

Its shares closed flat at SR12.82. 

Altharwah Albashariyyah Co. signed a binding agreement to acquire 100 percent of Amjad Watan through a mix of cash and share issuance, pending regulatory and shareholder approvals, the company said in a Tadawul filing. 

The deal includes SR7 million in cash, 95,804 shares worth SR5 million, and 536,501 conditional shares valued at SR28 million, to be transferred upon meeting performance targets. 

Shares of Altharwah Albashariyyah closed 3.57 percent lower at SR46.05. 

Topics: TASI MSCI NOMU

Gulf, China exchanges sign deal to boost commodity ties

Updated 20 April 2025
MOHAMMED AL-KINANI
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Gulf, China exchanges sign deal to boost commodity ties

Updated 20 April 2025
MOHAMMED AL-KINANI

JEDDAH: Relations between the Middle East and China’s derivatives markets are set to deepen following a new cooperation agreement signed between the Gulf Mercantile Exchange and the Shanghai Futures Exchange.

Under the agreement, GME — the Middle East’s leading international energy and commodities futures exchange — and SHFE — one of China’s primary commodity trading platforms — will collaborate on a range of strategic initiatives.

These include joint product development, market research, the exchange of insights on market trends, and investor education efforts, according to a joint statement released by both exchanges.

“This partnership is a key step toward strengthening alignment between China and the Gulf in commodities trading,” said Raid Al-Salami, managing director of GME.

“We value our cooperation with SHFE and look forward to the opportunities this agreement will unlock for both sides.”

The agreement comes on the heels of a strong performance year for GME. In January, the exchange reported a 12 percent increase in total trading volume for 2024, reaching 1.32 million contracts — up from 1.18 million the previous year. Front-month contract volumes surged 20 percent to a record 959,565 contracts, while total physical exposure rose by 11 percent, reflecting GME’s commitment to enhancing market accessibility and supporting sustainable growth.

Formerly known as the Dubai Mercantile Exchange, GME has a long-standing reputation as a key player in the region’s commodities sector. Established with the vision of creating internationally accessible derivatives markets for Middle East commodities, the exchange has continued to evolve in scope and ambition.

A major milestone came in 2024 when the Saudi Tadawul Group acquired a third strategic stake in the exchange. This acquisition led to a rebranding from DME to GME, signaling a renewed focus on building out commodity markets in Saudi Arabia and across the wider GCC as part of a long-term strategic roadmap.

With this new partnership, GME and SHFE are poised to play a central role in shaping the future of commodity trading between two of the world’s most dynamic economic regions.

Topics: Gulf Mercantile Exchange China commodities

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