PARIS: In striking the jewel of the French Riviera on a national holiday the truck attack on Nice delivered a new blow to France’s tourism sector already reeling from repeated terror attacks.
On Friday, several cultural events across France were canceled or postponed as a mark of respect for the 84 people killed when a gunman drove a 19-ton truck into a crowd of revellers following Bastille Day fireworks the previous evening.
President Francois Hollande declared the incident a “terrorist” attack.
The place of the attack was a top tourist destination: the palm-lined Promenade des Anglais along the Mediterranean coast in the city which is the number two destination in France behind Paris.
The attack was the third major strike against France in less than 18 months. It comes eight months after Daesh gunmen and suicide bombers attacked bars, restaurants, a concert hall and the national stadium in Paris, killing 130 people. In January last year 17 were killed in another attack at various sites including the offices of the Charlie Hebdo magazine and a Jewish supermarket in Paris.
Georges Panayotis, head of the MKG hotel and tourism consultancy, expressed concern about the effect the repeated attacks were having on the industry.
“This is no longer a classic terrorism situation where a couple of months is enough following an attack for economic activity to recover,” said Panayotis.
The successive attacks and high number of victims “will dissuade tourists for a certain time.”
The French government had just held this week its first meeting of a special government-industry committee headed by Foreign Minister Jean-Marc Ayrault to try to find ways to help the sector recover.
The number of tourists arriving on regular flights has fallen by 5.8 percent since January, including by 11 percent in Paris.
The number of hotel nights foreigners spend in Paris is expected to be down around 20 percent for the prime summer season, tourism minister Matthias Fekl said in a recent interview with TourMag.
The tourism industry is critically important for France, the world’s top tourism destination that welcomed nearly 84.5 million visitors last year. The sector accounts for 7 percent of the economy and directly and indirectly employs two million people.
Travel sector shares took a beating on Friday, including shares in hotel group AccorHotels and Europcar rental agency, which both fell around 4 percent in a Paris market down around 0.8 percent overall.
The attack on Nice may nip in the bud an increase in tourists to destinations outside Paris, which was partially supported by France’s successful hosting of the Euro 2016 football championships in June and July.
Tourist arrivals by plane outside of Paris were up by 11 percent in the first 10 days of July, thanks in part to a jump in last minute travelers from a number of European nations.
“We’ve had a flood of cancelations since last night,” said Denis Cippoloni, head of the hotel association in Nice.
“I went near the Promenade des Anglais this morning,” he said. “Usually it is lively and animated, but silence reigned.”
Organizers of several events that usually draw large numbers of tourists have changed their schedules.
At the 56th edition of the Jazz at Juan de Juan-les-Pins near Nice, a festival where the genre’s biggest stars have featured since it started in 1960, all concerts from Friday to Monday have been canceled.
And all events in the parallel Jazz Off festival, held on the streets of the same town and those of Antibes, have also been canceled.
Several firework displays planned for the weekend have been canceled or postponed.
Nice attack a new strike against French tourism
Nice attack a new strike against French tourism
Saudi Jameel Motors to enter South African market by distributing China’s Changan vehicles
RIYADH: Saudi Arabia’s Jameel Motors has entered the South African market, securing exclusive rights to distribute vehicles from Chinese company Changan.
The firm, owned by Saudi Arabia's Abdul Latif Jameel Group, has signed a deal to distribute SUVs, sedans, pickups, and electric vehicles in the African country, according to a statement.
South Africa, the continent’s largest automotive market, presents a strong long-term investment opportunity, driven by growing demand for affordable, tech-enabled vehicles.
The country saw a 18.3 percent year-on-year increase in new passenger car sales in the country in January.
In a statement, Jasmmine Wong, CEO — Mobility at Abdul Latif Jameel, said: “We are thrilled to announce Jameel Motors’ market entry to South Africa, especially as we do so with Changan Automobile, a forward-thinking automotive player with exceptional products.”
Wong added: “We are looking forward to driving long-term growth in the market and empowering drivers across South Africa with expanded and superior personal mobility choices.”
Jameel Motors’ commitment includes creating jobs and developing local dealerships, contributing to the country’s economic growth.
Under the terms of the newly signed agreement, Jameel Motors will initially focus on the distribution of Changan and Deepal products.
Changan offers sedans, SUVs, and pickup combustion engine models, while Deepal focuses on new energy cars.
Building on its strong track record, Jameel Motors is well-positioned to meet local customer preferences, with vehicles expected to be available for purchase in the fourth quarter of 2025.
Xiao Feng, general manager at Changan Automobile Middle East and Africa business unit, said: “This is a new milestone for our business in South Africa. Changan Automobile, as a leading Chinese automotive company, has been committed to building a world-class automotive brand.”
Feng added: “We are confident that, through the strategic cooperation with Jameel Motors, we will be a key player in the South African market.”
Jameel Motors in South Africa will be led by Marinus Venter, an expert with 18 years of experience in leading automotive brands.
“I am honored to join a business that is building on 70 years of automotive excellence, as we introduce Changan and Deepal vehicles to South Africa,” Venter said.
“By leveraging Jameel Motors’ extensive experience and Changan Automobile’s renowned focus on safety, quality, and technology, I believe we can effectively meet the diverse automotive demands of South African drivers and deliver a positive market experience,” the country manager at Jameel Motors South Africa added.
Saudi MSME lending hits $94bn driven by government-backed reforms
RIYADH: Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia grew by 27.62 percent year on year in 2024, totaling SR351.7 billion ($93.8 billion), according to official data.
The Kingdom’s central bank, also known as SAMA, revealed that 94.82 percent of these loans were provided by Saudi banks, while finance companies contributed 5.18 percent.
MSME lending made up 9.4 percent of banks’ and 18.9 percent of finance companies’ loan portfolios in 2024, reflecting growing alignment with the government’s Vision 2030 target of allocating 20 percent of credit to this vital sector.
In 2024, medium-sized enterprises received the largest share of credit facilities, totaling 53.23 percent, or SR187.21 billion.
Micro enterprises — those generating up to SR3 million in revenue with a workforce of no more than five employees — saw substantial growth, with credit increasing by 70 percent to SR42.32 billion, despite holding a smaller overall share.
Credit to small enterprises, which made up 34.74 percent of MSME financing, rose by 32.4 percent to SR122.17 billion during the same period.
The sharp increase in bank lending to Saudi Arabia’s SMEs aligns closely with the Kingdom’s Vision 2030 objective of raising the sector’s contribution to gross domestic product to 35 percent.
To help achieve this target, Saudi banks are increasingly extending credit to small businesses, supported by government-backed incentives such as the Kafalah loan guarantee program, which operates under the supervision of Monsha’at.
Through Kafalah, the government guarantees up to 80 percent of loans extended to eligible SMEs, significantly reducing the risk for commercial banks and encouraging broader lending.
The SME Bank plays a complementary role by targeting underserved and high-risk segments through alternative financing solutions, such as debt-based crowdfunding.
In its latest move, the institution allocated SR240 million in partnership with fintech platforms Manafa, Lendo, and Tameed, enabling short-term, flexible financing of up to SR1 million for qualifying MSMEs.
Together, these efforts are expanding access to capital across the SME landscape, supporting entrepreneurship, job creation, and economic diversification.
According to the latest report by Monsha’at, in the fourth quarter of 2024, the Kingdom saw a 67 percent quarter-on-quarter surge in new commercial registrations, totaling more than 160,000 new businesses, bringing the total to over 1.6 million registered enterprises nationwide.
The rise was particularly strong in e-commerce, with a 10 percent increase in new digital business registrations, pushing the total number of e-commerce firms to 40,953 by the end of the year.
Riyadh province led the growth, accounting for 39 percent of all new registrations, followed by Makkah with 17 percent, the Eastern Province with 16 percent, and smaller but growing contributions from regions like Qassim and Asir.
This surge in new business formation reflects increasing entrepreneurial activity across the Kingdom — a trend aligned with goals to diversify the economy and build a thriving private sector.
The synchronized rise in both entrepreneurial activity and credit availability reflects a maturing SME ecosystem and a coordinated national strategy to fuel private sector-led growth.
New laws simplifying Saudi business registration to take effect
RIYADH: Saudi Arabia is set to introduce significant changes to its business registration system when the new Law of Commercial Register and Law of Trade Names take effect on April 3.
Abdulrahman Al-Hussein, the Ministry of Commerce’s official spokesperson, highlighted that one of the major changes includes the abolition of subsidiary registers, making a single commercial register sufficient, the Saudi Press Agency reported.
The laws, announced in September, also eliminate the requirement to specify the city of registration, meaning a single commercial registration will be valid across all regions of the Kingdom, Al-Hussein added.
The changes come as Saudi Arabia saw a 60 percent increase in commercial records in 2024, with 521,969 issued compared to the previous year, according to the Ministry of Commerce.
The moves also align with the Kingdom’s economic diversification efforts, aimed at reducing reliance on oil and increasing the private sector’s contribution to the gross domestic product from 40 percent to 65 percent by 2030.
Al-Hussein said the Law of Commercial Register “cancels the expiration date for the commercial register, requiring only an annual confirmation of the data.”
He underlined that the commercial registration number will now serve as the establishment’s unified number, starting with “7.”
Existing subsidiary registers will have a five-year grace period to comply with the new regulations.
Additionally, the updated Trade Names Law now permits the reservation and registration of trade names in English, including letters and numbers, a shift from the previous rule, which only allowed Arabic names without foreign characters or digits.
The change also allows trade names to be managed separately from the establishment, enabling their ownership transfer. It prevents the registration of identical or similar names for different businesses, regardless of their activities.
Al-Hussein added that this law includes provisions for reserving family names as trade names and sets standards for prohibited or misleading names.
The Saudi Cabinet approved these changes on Sept. 17, with the government aiming to streamline business operations and improve the overall working environment.
In a post on his X account at the time, Commerce Minister Majid bin Abdullah Al-Qasabi emphasized that the changes would streamline the procedures for reserving and registering trade names, thus protecting and enhancing their value, in line with the economic and technological advancements outlined in Vision 2030.
Saudia launches direct flights to Bali
RIYADH: Saudia has launched a scheduled service to Bali with three weekly flights from Jeddah, marking the airline’s second regular destination in Indonesia after Jakarta.
The inaugural flight, SV856, departed from King Abdulaziz International Airport in Jeddah on March 31, operated by a Boeing B787 Dreamliner.
Saudia stated in a release that flight times have been coordinated to connect with its wider domestic and international network, as well as with services operated by members of the SkyTeam alliance.
The addition of Bali is part of a broader plan announced in February to introduce 11 new destinations in 2025, including Vienna, Venice, and Larnaca, as well as Athens, Heraklion, Nice, Malaga, and El-Alamein.
The expansion comes as the airline posted a 16 percent year-on-year increase in international passenger traffic in 2024 — growth that aligns with Saudi Arabia’s National Tourism Strategy, which targets 150 million visitors annually by 2030, and aims to create 1.6 million jobs.
Saudia is working to enhance its competitive position and international connectivity by adding both scheduled and seasonal destinations, the release stated.
The Bali route will be served by its Boeing B787 Dreamliner aircraft, which features advanced technologies, in-flight entertainment tailored for a wide range of passengers, spacious seating, and other onboard services.
Currently operating a fleet of 147 aircraft from Boeing and Airbus, Saudia plans to expand capacity and route coverage with the addition of 118 new planes.
As part of its 2025 network expansion strategy, Saudia also plans to add Antalya in Turkiye and Salalah in Oman, increasing its global footprint to over 100 destinations across four continents.
The move supports the Kingdom’s Air Connectivity Program, which has introduced more than 60 new direct routes since its launch in 2021.
With more than 530 daily flights, Saudia’s ongoing international development plan aims to increase its global market share and strengthen connectivity between Saudi Arabia and the world.
According to the General Authority of Civil Aviation, flight operations in the Kingdom reached approximately 905,000 in 2024, reflecting an 11 percent year-on-year increase.
This included 474,000 domestic flights and 431,000 international flights. Air connectivity expanded by 20 percent, linking Saudi Arabia to over 170 destinations worldwide.
Middle East airlines witness 3.3% passenger demand growth in February: IATA
RIYADH: Airlines operating in the Middle East recorded a 3.3 percent year-on-year increase in passenger demand in February, with total flight capacity rising 1.3 percent during the same period, an industry report showed.
The latest data from the International Air Transport Association revealed global passenger demand, both domestic and international, increased by 2.6 percent over the second month of the year.
This growth comes as many Middle Eastern countries focus on boosting the aviation sector to help diversify their economies away from oil dependency, with Saudi Arabia seeking to triple passenger numbers by 2030 compared to 2019 levels.
Commenting on the latest report, Willie Walsh, director general of IATA, said: “February traffic hit an all-time high, and the number of scheduled flights is set to continue increasing in March and April.”
The association added that the total load factor among carriers in the Middle East region stood at 82 percent in February, representing a rise of 1.6 percentage points compared to the same month in 2024.
The load factor is a metric used in the aviation sector that measures the percentage of available seating capacity that has been filled with passengers.
A high load factor signifies that an airline has sold most of its available seats.
IATA also reported that carriers in the Middle East handled 9.4 percent of global passengers in February, a figure that remained unchanged from January.
Earlier this month, a report by consulting management firm Oliver Wyman stated that the fleet of commercial airlines in the Middle East is expected to grow at a compound annual growth rate of 5.1 percent from 2025 to 2035, reaching 2,557 aircraft.
It added that this growth rate in the Middle East is nearly double the annual global growth rate, which is projected at 2.8 percent during the same period.
Affirming the progress of the aviation sector in the Middle East, Saudi Arabia is set to see its newest airline – the Public Investment Fund-backed Riyadh Air – take to the skies later this year, with the aim of flying to 100 countries by 2030.
In October, Riyadh Air signed an agreement to purchase 60 Airbus A321neo single-aisle aircraft.
In the same month, the company announced plans to order wide-body aircraft capable of seating more than 300 passengers in 2025.
According to IATA, international passenger demand growth increased by 5.6 percent in February compared to the same period in the previous year.
However, international passenger demand growth was down compared to January, which witnessed a 12.3 percent rise.
The report added that global domestic demand declined by 1.9 percent year on year in February.
Africa witnessed a 6.8 percent rise in overall passenger demand, including both domestic and international, followed by Latin America at 4.6 percent, Europe at 4.3 percent, and Asia-Pacific at 4.2 percent.
Air carriers operating in North America experienced a 3.2 percent decline in passenger demand.
International passenger demand
Airlines operating in the Asia-Pacific region led international passenger demand globally, marking a 9.5 percent growth in February compared to the same month in 2024.
The total capacity of airlines in the APAC region rose by 8.3 percent year on year, while the load factor stood at 85.7 percent.
APAC airlines handled 33.5 percent of global passengers in February, followed by Europe at 26.7 percent and North America at 22.9 percent.
The report further indicated that international passenger demand among Middle East airlines increased by 3.1 percent in February compared to the same month in the previous year.
The association also noted that the capacity of airlines in the Middle East region increased by 1.3 percent, while the load factor stood at 81.9 percent in February, representing a rise of 1.4 percentage points compared to the same month in 2023.
According to IATA, international passenger demand among European air carriers rose by 5.7 percent year on year in February, while capacity increased by 4.9 percent during the same period.
North American air carriers saw a 1.5 percent decline in international passenger demand growth, with capacity also decreasing by 3.2 percent.
International passenger demand growth among Latin American airlines grew by 6.7 percent year on year in February, while capacity climbed by 9.9 percent.
African airlines saw demand growth of 6.7 percent among international travelers.
The capacity of these carriers also rose by 4 percent in February compared to the same month in 2024.
Air cargo demand growth
In a separate report, IATA revealed that air cargo demand declined slightly by 0.1 percent in February compared to the same period in the previous year, marking the first decline since mid-2023.
Overall, cargo capacity, measured in available cargo tonne-km, decreased marginally by 0.4 percent year on year in February.
The report added that international cargo capacity edged up by 1.1 percent over the month.
“February saw a small contraction in air cargo demand, the first year-on-year decline since mid-2023. Much of this is explained by February 2024 being extraordinary — a leap year that was also boosted by Chinese New Year traffic, sea lane closures, and a boom in e-commerce,” said Walsh.
He added: “Rising trade tensions are, of course, a concern for air cargo. With equity markets already showing their discomfort, we urge governments to focus on dialogue over tariffs.”
Airlines operating in the APAC region drove cargo demand growth in February.
According to IATA, cargo demand growth among APAC airlines increased by 5.1 percent year-on-year, while capacity rose by 2.7 percent during the same period.
Air carriers in the Middle East region witnessed an 11.9 percent year-on-year decrease in air cargo demand in February, the slowest among the regions.
The capacity of air carriers in the Middle East also decreased by 4 percent in February.
“North American carriers saw a 0.4 percent year-on-year decrease in demand growth for air cargo in February. Capacity decreased by 3.5 percent year-on-year,” said IATA.
The air cargo demand growth among European airlines dropped marginally by 0.1 percent in February compared to the same month in 2024, while capacity slightly edged down by 0.2 percent.
Air carriers operating in the Latin American region witnessed a 6 percent year on year cargo demand growth in February, the strongest rise among all regions. The capacity of these airlines also rose by 7.6 percent during the same period.
“African airlines saw a 5.7 percent year-on-year decrease in demand for air cargo in February. Capacity decreased by 0.6 percent year-on-year,” added IATA.
Looking at trade indicators, IATA said that the industrial production index rose 3.2 percent year-on-year in February, the highest growth in two years, while world trade expanded by 5 percent.
In February, the Purchasing Managers’ Index for global manufacturing output stood at 51.5, indicating growth.
The PMI for new export orders rose slightly to 49.6 from the previous month, remaining just shy of the 50-mark, which is the growth threshold.
The report added that jet fuel prices averaged $94.6 per barrel in February, representing a 2.1 percent decline compared to January.
