RIYADH: The unavailability of certain key data has led Fitch Ratings to withdraw from categorizing Lebanon, as the agency no longer has sufficient information to maintain its assessment of the nation.
The global credit rating agency has affirmed Lebanon’s long-term foreign and local-currency issuer default ratings as restricted and has subsequently withdrawn the nation’s IDR and country ceiling.
Restricted default indicates a country has neglected specific financial obligations while continuing to meet others.
This means that the agency has confirmed Lebanon’s long-term debt ratings as restricted and ceased providing assessments and analysis for the country due to insufficient data.
Lebanon has been in default on its foreign-currency obligations since March 2020, significantly influencing its rating assessment.
The government’s failure to repay the Eurobond, which was due on March 9, 2020, led to its categorization as restricted default.
“The government has stopped servicing its outstanding stock of Eurobonds pending a debt restructuring,” the agency said.
The local-currency IDRs remain in restricted default due to the government’s failure to resume interest payments on Banque du Liban’s holdings of local-currency securities despite continuing to serve local-currency debt to private creditors.
Fitch also stated that the authorities have not initiated a local-currency debt restructuring.
The agency’s decision to withdraw Lebanon’s ratings was driven by the issuer’s cessation of publishing national accounts and fiscal data, which are now only available up to 2021.
This lack of up-to-date financial information has made it unfeasible for Fitch to maintain accurate ratings.
The agency added that Lebanon’s environmental, social, and governance relevance score for political stability and rights and for the rule of law, institutional and regulatory quality, and control of corruption stands at five.
This reflects the high impact of the World Bank Governance Indicators in Fitch’s Sovereign Rating Model.
“Lebanon has a low WBGI ranking at 14.8, reflecting the absence of a recent track record of peaceful political transitions, relatively weak rights for participation in the political process, weak institutional capacity, uneven application of the rule of law and a high level of corruption,” the agency added.
Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year
Updated 7 sec ago
Nour El-Shaeri
RIYADH: Saudi Arabia welcomed 116 million tourists in 2024, exceeding its annual visitor target for the second year in a row, the official data showed.
According to the Ministry of Tourism’s latest annual statistical report, the figure includes 29.7 million inbound tourists, an 8 percent increase year on year, and 86.2 million domestic trips, up 5 percent from 2023.
The milestone reflects the continued acceleration of the Kingdom’s Vision 2030 strategy, which positions tourism as a central driver of economic diversification.
After surpassing its original 100 million visitor goal six years ahead of schedule in 2023, Saudi Arabia has revised its ambitions upward, now aiming to attract 150 million tourists annually by 2030. This figure is split between 70 million international and 80 million domestic visitors.
In a post on X, Minister of Tourism Ahmed Al-Khateeb said: “The 2024 Annual Statistical Report showcases the sector’s remarkable growth and its role in enabling Saudi Vision2030, a record performance achieved with the support and guidance of the Kingdom’s visionary leadership.”
Total tourism spending in 2024 hit SR283.8 billion ($75.6 billion), with inbound tourists contributing SR168.5 billion, up 19 percent from 2023, while domestic tourist expenditure reached SR115.3 billion, a 1 percent rise.
“The tourism sector continued to achieve record growth, reaffirming its transformation into a key driver of economic development and a fundamental pillar in advancing and diversifying the national economy,” the minister said.
Inbound tourism also reached a record monthly peak in March with 3.2 million visitors. The average international tourist stayed 19 nights and spent SR5,669 per trip.
A standout development in 2024 was the continued rise in non-religious tourism, now representing 59 percent of inbound visits compared to 44 percent in 2019.
Leisure and holiday travel topped this category, with related spending reaching SR36.4 billion.
Makkah remained the top destination, drawing 17.4 million overnight visitors, and Egypt was the leading source market with 3.2 million arrivals.
Regional analysis revealed that Asia and the Pacific accounted for the largest share of inbound tourists, at 33 percent, followed by the Middle East and North Africa at 28 percent, and the Gulf Cooperation Council at 27 percent.
Europe contributed 8 percent, while both the Americas and Africa each made up 2 percent of total visitors.
The sustained growth reflects the Kingdom’s continued focus on developing its tourism infrastructure and global outreach.
The ministry noted that this report highlights the exceptional and accelerated growth achieved by the sector through targeted marketing campaigns and support programs, contributing to the sector’s record-breaking performance.
Air France eyes daily Paris-Riyadh flights amid soaring demand
New route reflects airline’s ambition to reestablish presence in Saudi market
It comes in response to growing demand to access Kingdom’s expanding economic opportunities
Updated 22 June 2025
Samia Hanifi
RIYADH: Air France is planning to operate daily flights between Paris and Riyadh, a senior airline official told Arab News in an exclusive interview.
The announcement follows the launch of the carrier’s first direct route between Paris-Charles de Gaulle and King Khalid International Airport.
Stefan Gumuseli, the airline’s general manager for India and the Middle East, outlined the importance of the new route for the Air France-KLM Group and said it reflects the airline’s ambition to reestablish its presence in the Saudi market.
The decision comes in response to growing demand from travelers and investors eager to access the Kingdom’s expanding economic opportunities.
The new route marks a strategic step for Air France as it expands operations in the region and aligns with the growing connectivity between Europe and Saudi Arabia.
As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations. Supplied
Talking to Arab News, Gumuseli said: “We’re starting with three weekly flights in mid-June, then gradually increasing to five. Our first major goal is to move to a daily service.”
He added that the market is not only outward-looking; the airline is also responding to rising inbound demand for Saudi Arabia, noting that it is experiencing almost exponential year-on-year growth.
Gumuseli also pointed to the Kingdom’s Vision 2030, which reflects a strong commitment to developing tourism, hospitality, and culture, supported by substantial ongoing investments. He said: “All these megaprojects are a clear sign that tourism is booming. We have a strong relationship with Saudi Arabia and are expanding our cooperation.”
His comments were echoed by Air France’s Senior Vice President for Benelux, Asia, India, the Middle East, and East Africa Bas Gerressen, who told Arab News: “Tourism is a very important factor, but we also need traffic, which has grown significantly over the past two years.
“The more connectivity there is between the two countries, the more economic exchange will flourish in both directions,” Gerressen added.
Air France-KLM has entered into codeshare agreements to strengthen its network connectivity.
“We also place our code on these flights. So, when you consider all that connectivity from both sides, demand can only grow,” Gerressen said.
He added: “I believe Saudi Arabia has many premium travelers, and we need to reach them in specific markets. We already have strong demand across our business, premium and economy classes.”
At the same time, the airline is leveraging its distinctive French identity.
The new route marks a strategic step for Air France as it expands operations in the region. Supplied
‘We position ourselves as a truly French brand — luxury, elegance, sophistication ... The French Touch. You can feel it the moment you board,” said Gerressen.
High-end products, gourmet in-flight dining, La Premiere lounges, and exclusive cabin experiences all reinforce this premium positioning. “We offer one of the best cabins in the region with our new first class, featuring a seat with five windows and just four seats in the entire cabin. It’s a revolution in the industry,” Gerressen added.
He emphasized the cabin crew’s vital role in shaping the passenger experience, highlighting their attentiveness and approachable demeanor.
As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations.
“Each new generation of aircraft reduces CO₂ emissions by up to 25 percent. Today, 28 percent of our fleet consists of these new aircraft, and our goal is to increase this figure to 80 percent by 2030,” Gerressen said.
The airline is also the world’s leading buyer of sustainable aviation fuel.
Gumuseli said: “We account for nearly 16 percent of global SAF usage, despite representing only 3 percent of total global kerosene consumption.”
Air France is investing in technology to enhance the passenger experience.
“We’ve decided to install high-speed Wi-Fi on board. In the event of a delay, passengers will receive updates about their connecting flights directly on their screens. With data and technology, we can truly personalize the service,” Gumuseli said.
“Our target customers include expatriates living in Saudi Arabia and tourists wishing to travel to Europe, North America, South America or Africa. Businesses are also a key audience, given the strong commercial ties between France and Saudi Arabia. We aim to serve all these segments,” said Gumuseli.
“Religious tourism should not be overlooked. Pilgrims can now combine Umrah with a more tourist-oriented experience,” he added.
Gerressen stressed the importance of the eVisa: “It is crucial. Simplifying the visa process will be essential in convincing more people to visit Saudi Arabia.”
Credit Oman insures $159m in non-oil exports Q1 amid sectoral gains
Growth in construction materials, petrochemicals, mining, and agriculture cited as key drivers
Mining sector experienced largest percentage growth, jumping 150% to 570,000 rials
Updated 22 June 2025
Nadin Hassan
RIYADH: Oman’s insured non-oil exports reached 61.2 million Omani rials ($159 million) in the first quarter of 2025, marking a 6 percent increase from the same period last year, according to Credit Oman.
The sultanate’s export credit agency, which provides trade insurance and guarantees to support domestic and international exchange, cited growth in construction materials, petrochemicals, mining, and agriculture as key drivers, the Oman News Agency reported.
This comes as Oman’s broader non-oil exports grew 8.6 percent year on year to 1.61 billion rials, now making up 28.6 percent of total exports. The growth reflects ongoing efforts to boost non-oil trade, support domestic industries, attract foreign investment, localize development initiatives, and offer incentives to the private sector.
The ONA report stated: “Khalil bin Ahmed Al Harthy, CEO of Credit Oman, explained that the volume of insured export sales in the building and construction materials sector witnessed a growth of 24 percent, with a total value of 27.16 million rials.”
Exports in the petrochemicals and plastics sector climbed 45 percent to 9.2 million riyals.
Oman’s broader non-oil exports grew 8.6 percent year on year to 1.61 billion rials, now making up 28.6 percent of total exports. File/ONA
The mining sector experienced the largest percentage growth, jumping 150 percent to 570,000 rials. Meanwhile, agricultural exports surged 96 percent to nearly 5 million rials, driven by increased demand and favorable market conditions.
Despite the overall growth, Al-Harthy noted setbacks in some sectors, including packaging, fisheries, and apparel, adding that the results still reflect the broader progress of the national economy and the government’s continued push for economic development.
“He pointed out that Credit Oman is making significant efforts to support Omani manufacturers and exporters, contributing to boosting their sales both locally and internationally by offering a range of insurance services and overcoming the challenges associated with Omani products entering global and new markets,” the OMA report added.
In its earlier outlook, Credit Oman projected strong growth potential for the country’s non-oil exports in 2025. The agency cited an estimated untapped export capacity of 5 billion rials, according to the International Trade Centre.
However, it emphasized that realizing this potential would depend on evolving global trade conditions, particularly the impact of emerging tariff and non-tariff barriers, geopolitical uncertainty, and shifts in global economic trends.
This growth comes after a challenging 2024, when Oman’s non-oil exports declined 16 percent due in part to a reclassification of high-value fuel-related goods into the oil and gas category.
The 2025 rebound suggests improved export diversification, aided by Credit Oman’s efforts and favorable conditions in sectors like agriculture and plastics.
Most Gulf markets trade up, unfazed by rising regional tensions as US strikes Iran
US forces struck Iran’s three main nuclear sites late on Saturday
Updated 22 June 2025
Reuters
LONDON: Most stock markets in the Gulf were trading higher on Sunday, relatively unscathed by escalating tension in the region following US strikes on Iranian nuclear sites, as investors assessed the potential economic impact of the conflict.
US forces struck Iran’s three main nuclear sites late on Saturday, and President Donald Trump warned Tehran it would face more devastating attacks if it does not agree to peace.
By around 0915 GMT, Saudi Arabia’s benchmark index TASI had edged 0.4 percent higher, helped by a 0.7 percent rise in the country’s biggest lender, Saudi National Bank. Qatar’s benchmark index QSI had gained 0.2 percent, reversing slight early losses.
“It is admittedly a bit surprising to see regional equities shrugging off the US strikes on Iran with relative ease, with opening losses having pared relatively rapidly,” said Michael Brown, Senior Research Strategist at Pepperstone.
Brown said that the markets had already discounted the probability of a US attack, and investors anticipated a swifter resolution to the conflict following the attacks.
The market is focused on whether the conflict spreads to other nations in the region, with there being no sign of that happening right now, he added.
Bahrain and Kuwait, home to US bases, made preparations on Sunday for the possibility of the conflict spreading to their territory, with Bahrain urging drivers to avoid main roads and Kuwait establishing shelters in a ministries complex.
Kuwait’s premier index reversed early losses to trade 0.3 percent higher by around the same time, while Bahrain’s main index was flat. The Omani share index MSX30 was up 0.5 percent.
Elsewhere in the Middle East, Egypt’s benchmark index EGX30 was trading 1.7 percent higher, while the main index in Tel Aviv was up around 1 percent to reach its all-time high.
Giga-projects power 6.4% jump in Saudi Arabia’s Q1 cement sales to 13.4m tonnes
Local sales accounted for nearly 13 million tonnes, while exports edged up to 408,000 tonnes
Al Yamama Cement led the domestic market with 1.68 million tonnes
Updated 22 June 2025
Dayan Abou Tine
RIYADH: Cement sales in Saudi Arabia climbed 6.4 percent year on year in the first quarter of 2025 to 13.4 million tonnes, driven by a construction surge tied to Vision 2030 megaprojects.
According to data from Al Yamama Cement covering the Kingdom’s 17 producers, local sales accounted for nearly 13 million tonnes, while exports edged up to 408,000 tonnes.
Al Yamama Cement led the domestic market with 1.68 million tonnes, followed by Saudi Cement at 1.33 million tonnes and Qassim Cement with 1.25 million tonnes.
Saudi Arabia is powering through the largest construction surge in its history, a pillar of the Vision 2030 diversification plan. A Bloomberg report this month valued the live roster of real estate and infrastructure schemes at roughly $1.3 trillion, ranging from Riyadh’s driverless metro grid and entertainment hubs like Qiddiya to the brand-new cities of NEOM on the Red Sea coast and New Murabba in the capital’s northwest.
Those giga-projects, along with heritage revamps such as Diriyah Gate and the Red Sea’s string of luxury resorts, have now moved well beyond site grading and piling.
Saudi Cement slipped nearly 5 percent to SR108 million. Saudi Cement
Gulf Construction, a trade journal for the building and construction industries, noted in May that major project packages are entering the concrete-intensive vertical-build phase, where tower cores, bridge piers, and precast facades consume significantly more cement and clinker than earlier earthworks.
In short, the Kingdom’s transition from drawing board to steel-and-concrete reality is fueling an insatiable appetite for building materials — and cement producers are gearing up their kilns to meet it.
Momentum kept building after March. Domestic sales jumped 42.9 percent year on year to 4.18 million tonnes in April, while exports rose 26.9 percent to 703,000 tonnes, according to Al Jazira Capital’s latest dispatch survey. Contractors are pouring concrete early, keen to stay ahead of the summer heat and tighten project timelines.
Profits do not rise equally
Higher volumes did not translate into across-the-board gains. International Cement Review’s CemNet bulletin said in June that sector-wide net profit fell 16 percent in the first quarter to about SR648 million ($173 million) despite stronger turnover.
Saudi giga-projects, along with heritage revamps such as Diriyah Gate, have now moved well beyond site grading and piling. Wikipedia
Yamama Cement posted about SR142 million in earnings — up 23 percent — while Saudi Cement slipped nearly 5 percent to SR108 million. Qassim Cement improved 27 percent to roughly SR94 million, but Al Jouf Cement stayed in the red at around SR15 million.
Producers faced an added challenge from Saudi Aramco’s fuel price revision, effective Jan. 1, which several companies warned would raise kiln fuel costs by around 10 percent.
Inventory cushions remain thick. Al Yamama figures show Yanbu holding 18.9 million tonnes of clinker at end-March, with Southern Province close behind on 18.1 million tonnes. Across the sector, stockpiles cover roughly nine months of normal domestic demand, allowing firms to throttle kilns if margins tighten.
Modern kilns slash fuel use
According to Global Cement’s April report, engineering firm Sinoma has finished erecting a new preheater tower as part of Yamama Cement’s relocation and upgrade project south of Riyadh.
The upgrade increases the former 10,000-tonne-per-day line to 12,500 tonnes, with Sinoma noting it had to dismantle, relocate, and integrate large equipment while installing the latest kiln technology.
Yamama Cement posted about SR142 million in earnings — up 23 percent. Supplied
Completion of the tower clears the way for commissioning and final handover of the higher-capacity, fuel-efficient plant.
The efficiency drive extends to the Red Sea coast, where Yanbu Cement’s 34 megawatts waste-heat-recovery system already supplies about a quarter of the plant’s electricity.
The upgrades are crucial because older kiln designs waste a great deal of fuel. According to the European Cement Association, long-dry kilns consume about one-third more energy than the latest preheater–pre-calciner models, while old wet kilns can burn up to 85 percent more.
By contrast, modern PH-PC lines require only about 3.3 gigajoules of heat to produce one tonne of clinker — roughly the energy contained in 30 litres of petrol. Transitioning from long-dry or wet kilns to PH-PC technology significantly reduces fuel consumption, lowers production costs, and cuts carbon emissions — all critical advantages as energy prices continue to rise.
With Saudi Aramco’s January fuel-tariff hike expected to raise kiln-energy bills by around 10 percent, plants that already sip less fuel will feel the pinch far less — and that cost edge is flowing straight into sharper export offers, reinforcing the Kingdom’s competitive position in nearby markets.
