Riyadh Air Teases Follow-Up Aircraft Orders After Boeing Purchases - Bloomberg

Riyadh Air Teases Follow-Up Aircraft Orders After Boeing Purchases - Bloomberg

Riyadh Air plans to expand its fleet with additional aircraft orders following its initial purchase of Boeing Co. long-range jets last year, as the startup Saudi carrier seeks to establish itself alongside regional incumbents like Emirates and Qatar Airways.

“We need a very large fleet, we’re going make a number of additional orders,” Chief Executive Officer Tony Douglas said in an interview with Bloomberg Television on Monday. “We will be making a narrowbody order, we’ll probably be doing another large order after that to build us up to scale.”

Backed by Saudi Arabia’s wealth fund, the airline plans to start operations in a year’s time. Riyadh Air already bought 39 Boeing 787-9 jets, with options for 33 more, last year, and the carrier introduced its concept at the 2023 Paris Air Show, including its dark purple aircraft livery. Saudi Arabia is seeking to expand its aviation industry and pull in more tourists, expanding its airline capacity beyond the pilgrimage travel that now forms the backbone of the country’s inbound travel.

Douglas, who previously ran Abu Dhabi flag carrier Etihad Airways, said he’s “very conscious” of possible delays to aircraft deliveries, as both Boeing and Airbus SE struggle with production amid record demand and supply issues at the two planemakers.

Boeing, in particular, has been forced to reduce output following an accident on an airborne aircraft earlier this year. Douglas said the overhaul being done at the US manufacturer will act as a reset for leadership, adding that a new management team “has to stay absolutely focused and get back to basics.”

#AbuDhabi's IHC to buy back up to $1.4bln of its shares

Abu Dhabi's IHC to buy back up to $1.4bln of its shares

IHC, Abu Dhabi's largest listed company, said on Monday it would buy back up to 5 billion dirhams ($1.36 billion) of its shares as it reported that first-quarter profit almost doubled.

The conglomerate said its profit for the first three months of the year rose to 8.02 billion dirhams from 4.27 billion a year earlier, while revenue grew to 19.29 billion from 15.74 billion in the first quarter of 2023, driven by strong performances in core divisions including real estate and construction, and technology.

IHC is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of UAE President Sheikh Mohammed bin Zayed.

Mideast Stocks: Most Gulf markets muted as Mideast tension rises

Mideast Stocks: Most Gulf markets muted as Mideast tension rises

Most stock markets in the Gulf were subdued on Monday amid rising fears the Israel-Hamas conflict could still widen in the region after the prospect of a Gaza ceasefire deal diminished. The Israeli military has conducted airstrikes on areas in eastern Rafah near neighbourhoods that received evacuation orders, igniting concerns of a full-blown assault in the city, long threatened by Israel.

The Qatari benchmark index slipped 0.5%, with most of its sectors posting losses, led by industry, materials and finance. Qatar National Bank, the region's largest lender, shed 0.4% and Industries Qatar slid 0.9%.

In Abu Dhabi, the benchmark index fell marginally, with Agility Global dropping 2.8% and conglomerate Multiply Group falling 2.1%. The emirate's biggest developer Aldar Properties, however, rose 2.8%.

Saudi Arabia's benchmark index ended flat as gains in healthcare, consumer discretionary, industry and real estate countered losses in finance, consumer staples and IT stocks. Saudi National Bank, the kingdom' biggest lender, slipped 2.5% and SABIC Agri-Nutrients slid 2.1%, while Middle East Pharmaceutical added 2.3%. Bupa Arabia for Cooperative Insurance surged 10% to 275 riyal a share, its highest level since listing in 2008, after the health insurer posted a 90.6% jump in its quarterly net profit.

Dubai's benchmark index ended 0.3% higher, rising for the third straight session, helped by gains in consumer staples, real estate, finance and utilities sectors. The blue-chip developer Emaar Properties rose 1.9% and Emirates NBD, the emirate's largest lender, added 1.2%.