ABU DHABI, Sept 16 : Wizz Air expects 15-20 percent growth in passenger volume next year, its CEO told Reuters, with new low-cost routes to the Middle East, such as from Europe to the UAE, adding an extra boost.

“Globally, we are expecting 15-20 percent (growth), but I think Abu Dhabi is going to grow beyond this,” Jozsef Varadi said.

Hungary-based Wizz Air, which carried a record 62 million passengers during the year ended in March 2024, set up operations in the UAE in 2019 as a joint venture with Abu Dhabi’s third biggest sovereign wealth fund ADQ.

In the Middle East, where concerns of a wider flare up of the war in Gaza have prompted international airlines to suspend flights or avoid air space, Wizz Air is monitoring every development, Varadi said.

He added that Wizz Air wants to develop Saudi Arabia as an inbound market rather than setting up a local carrier there.

The airline, which flies an all-Airbus fleet, last week announced it would deploy its first A321XLR, a single-aisle aircraft that will allow it to cover longer distances, to operate a route between London’s Gatwick airport and Saudi Arabia’s Jeddah starting from March 2025.

Another A321XLR aircraft will operate a daily flight between Milan Malpensa airport and Abu Dhabi starting from June next year.

“Certainly we are very excited about Jeddah,” Varadi said. “We are seeing that more European operations might be flown inbound to Saudi in the future.”

He said, however, that all new routes were subject to regulatory approvals and capacity constraints due to troubles with Pratt & Whitney engines, which forced

Wizz Air to ground part of its fleet, contributing to a 44 percent drop in first-quarter operating profit.

As the aviation sector struggles with delays from manufacturers Boeing and Airbus, European airlines have also faced a difficult first half of the year because of rising and softening demand after an initial post-pandemic boom.

Wizz Air’s London-listed shares dropped almost 42 percent over the last 12 months.

“I don’t think that the share price is reflective of the actual performance of the business,” said Varadi.

He said the market was over-reacting and Wizz Air was being “disproportionately affected” by factors such as geopolitics and problems with Pratt and Whitney’s engines.

Asked about fares, Varadi said summer data showed Wizz Air was not seeing as huge price declines as those that some rivals had flagged.

RIYADH: Saudi Arabia’s issuance of investment licenses to Egyptian businesses more than doubled in 2024, reflecting a significant boost in economic collaboration between the two nations, according to a senior minister.

At a meeting with Egyptian Prime Minister Mostafa Madbouly, organized by the Federation of Chambers in Riyadh, Saudi Investment Minister Khalid Al-Falih underscored Egypt’s increasing role as a key economic partner for the Kingdom. This follows Saudi Arabia’s exports to Egypt totaling $6.44 billion in 2022, while Egypt’s exports to the Kingdom reached $2.35 billion, as reported by the Observatory of Economic Complexity.

“During 2024, it (investment licenses) grew by more than 100 percent over the previous year, and Egyptian investors created more than 80,000 jobs in the Saudi economy,” the minister said.

He further emphasized the importance of the Egyptian market to the Kingdom, noting its broad involvement in sectors such as tourism, transportation, infrastructure, real estate development, agriculture, energy, and information technology.

“We, in the Kingdom, believe that strengthening cooperation with Egypt will benefit both the Saudi and Egyptian economies, which are, as I mentioned, the nucleus and heart of the Arab economy,” Al-Falih added.

The minister also pointed out that collaboration and integration between the two countries, along with leveraging their competitive advantages, would accelerate regional economic growth. He highlighted the relevance of this cooperation in light of global economic shifts supporting global supply chains, environmental preservation, and emerging sectors like information technology and artificial intelligence.

“The Saudi investor will not only provide Egypt with his investments but will be a partner with international companies that invest with him in the Kingdom and in all countries of the world. We aspire for Egypt to be an extension of investments in the Kingdom, giving us the weight of the large strategic market and the free trade agreements that Egypt enjoys,” he concluded.

During the meeting, Prime Minister Madbouly noted that Saudi Arabia remains the primary destination for Egyptian expatriates. “Our goal is to raise Egyptian exports from $35 billion to $145 billion,” he said.

Madbouly also emphasized Egypt’s efforts to resolve issues faced by Saudi investors, stating that many problems have been addressed, with ongoing work to tackle remaining challenges. He highlighted Egypt’s aim to attract more Saudi investments, especially with new incentives such as the golden license.

Egypt’s Minister of Investment and Foreign Trade, Hassan El-Khatib, who also attended the meeting, stressed the importance of listening to investors. “We know the challenges that the investor faces and find solutions to them,” he stated.

El-Khatib added: “The goal in this field is for me to have a clear investment policy that puts the competitiveness of the Egyptian economy at the heart of this strategy.”