Emirates and Dubai, each propels other to greater heights: Tim Clark
Sir Tim Clark, President of Emirates Airline, has said that the Emirates Group, under the leadership of H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, is without a doubt one of the most successful aviation entities on the planet.
“Emirates is the world’s largest and most profitable all-international airline, and dnata is one of the biggest providers of air transport-related services. With operations spanning six continents, we are an influential force in global air transport,” he said in a statement marking the 39th anniversary of the founding of the airline.
“Our meteoric rise is no accident. What we have is the result of a brilliant masterplan, architected and driven by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.”
“How Sheikh Mohammed started Emirates with US$10 million seed capital is legendary," Tim Clark further added. “His marching orders to the small team tasked with setting up the airline back in 1985 were crystal clear – look good, be good, stand on your own feet, and don’t expect protection or subsidies.”
He went on to say, “The Emirates management team has always kept those words close to our hearts. Emirates won global attention and brought the world to Dubai by being the best there is. In turn, Dubai’s successful economic diversification initiatives and growth drove international visitation and increased demand for Emirates’ services. In short, Emirates and Dubai propel each other to greater heights.”
President Emirates Airline noted, “39 years and heaps of international accolades later, we’re proud to have delivered billions in dividends to our owners, and billions more in total economic impact to Dubai.”
According to the latest report by Oxford Economics, aviation contributed 27 percent to Dubai’s GDP in 2023, generating AED137 billion in gross value added (GVA). Of that figure, the Emirates Group’s core impact was AED75 billion – representing 15 percent of Dubai’s GDP. “This value comprises the direct impact of our business operations, the indirect impact generated through our myriad of suppliers and partners in the aviation ecosystem, and the induced impact from the goods and services consumed by our 81,000-strong workforce and their dependents in the UAE.”
Aviation is a strategic enabler for Dubai and vital to the city’s ambition to become a top global destination for tourism, commerce, and investments. “In 2023, Dubai welcomed over 17 million visitors, and Emirates carried 54 percent of all international visitors who travelled to Dubai by air, generating a further GVA of AED23 billion in aviation-supported tourism impact.”
This means, he stated, Emirates’ total economic contribution in 2023 was AED98 billion in GVA, or a whopping 19 percent of Dubai’s Gross Domestic Product.
“Looking ahead, Oxford Economics forecasts that Emirates Group’s contribution to Dubai’s economy will reach AED144 billion, representing 24 percent of Dubai’s projected GDP in 2030.”
“These figures don’t even account for the massive new Al Maktoum International airport which will be the world’s largest when complete, and Emirates’ new home from the mid-2030s onwards,” Tim Clark said, adding that the new airfield and supporting aviation infrastructure around Dubai World Central will unlock capacity for the Emirates Group’s continued growth trajectory. “Crucially, it will enable us to meet travel demand to Dubai and across our network, and power the next phase of Dubai’s growth.”
Thursday, 24 October 2024
#Saudi Oil Export Revenue Slumps to Lowest in Over Three Years - Bloomberg
Saudi Oil Export Revenue Slumps to Lowest in Over Three Years - Bloomberg
Saudi Arabia’s revenue from oil exports has slumped to the lowest in more than three years as sluggish demand growth weighs on crude prices.
Income from the sale of crude oil and refined products dropped to $17.4 billion in August, a 6% slide from the previous month, according to the state statistics agency. That’s the lowest level of monthly revenue since June 2021.
The Saudi economy is still largely dependent on oil income for growth, even more so now that the country has embarked on an ambitious plan to expand its technology, tourism and manufacturing industries. The massive investment required to realize Crown Prince Mohammed bin Salman’s plan to transform the economy relies on oil revenue to fund initiatives aimed at decreasing reliance on income from hydrocarbons.
That effort has been complicated by falling oil prices and lower production. Global benchmark Brent crude is down about 1% this year and is trading around $75 a barrel. Growth in oil consumption has been sluggish, particularly in China, one of the most important import markets, while new supply from countries like the US — now the world’s top producer — is outpacing demand growth and weighing on prices.
The Organization of Petroleum Exporting Countries and its allies have been restricting output to prop up the market. That’s limited the amount of crude that Saudi Arabia, the leader of the alliance, can sell. The wider OPEC+ group, which includes producers like Russia, is set to roll back some of those cuts in December, though it’s left the door open to keeping those limits in place if needed to avoid oversupply.
Oil is down 3% since the end of August.
Saudi Arabia’s revenue from oil exports has slumped to the lowest in more than three years as sluggish demand growth weighs on crude prices.
Income from the sale of crude oil and refined products dropped to $17.4 billion in August, a 6% slide from the previous month, according to the state statistics agency. That’s the lowest level of monthly revenue since June 2021.
The Saudi economy is still largely dependent on oil income for growth, even more so now that the country has embarked on an ambitious plan to expand its technology, tourism and manufacturing industries. The massive investment required to realize Crown Prince Mohammed bin Salman’s plan to transform the economy relies on oil revenue to fund initiatives aimed at decreasing reliance on income from hydrocarbons.
That effort has been complicated by falling oil prices and lower production. Global benchmark Brent crude is down about 1% this year and is trading around $75 a barrel. Growth in oil consumption has been sluggish, particularly in China, one of the most important import markets, while new supply from countries like the US — now the world’s top producer — is outpacing demand growth and weighing on prices.
The Organization of Petroleum Exporting Countries and its allies have been restricting output to prop up the market. That’s limited the amount of crude that Saudi Arabia, the leader of the alliance, can sell. The wider OPEC+ group, which includes producers like Russia, is set to roll back some of those cuts in December, though it’s left the door open to keeping those limits in place if needed to avoid oversupply.
Oil is down 3% since the end of August.
Most Gulf markets ease on regional tensions | Reuters
Most Gulf markets ease on regional tensions | Reuters
Most stock markets in the Gulf were lower on Thursday as simmering geopolitical tensions in the Middle East kept investors on the sidelines.
Israeli strikes pounded Beirut's southern suburbs on Wednesday and Hezbollah said it fired precision guided missiles for the first time at Israeli targets, as U.S. Secretary of State Antony Blinken toured the region, pushing for a halt to fighting in both Gaza and Lebanon.
Israeli strikes were also reported to have hit the Syrian capital Damascus early on Thursday.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, with the country's biggest lender Saudi National Bank (1180.SE), opens a new tab losing 0.6% and Alinma Bank (1150.SE), opens new tab was down 1.2%.
The Saudi index posted a weekly loss of 0.2%.
Separately, the kingdom attracted foreign direct investment inflows of 96 billion riyals ($25.6 billion) in 2023, beating official targets, according to government data based on a new calculation methodology.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.1% lower, hit by by a 0.5% drop in conglomerate International Holding Co (IHC) (IHC.AD), opens new tab.
IHC said on Wednesday its subsidiary International Tech Group acquired an additional 46% stake in Emircon for 292 million dirhams ($79.51 million).
However, Abu Dhabi Commercial Bank (ADCB.AD), opens new tab climbed 2.5%, after beating forecasts with a 23% rise in third-quarter profit.
Dubai's main share index (.DFMGI), opens new tab concluded flat.
The Qatari index (.QSI), opens new tab fell 0.1%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab retreating 1%.
The Qatari index recorded its biggest weekly loss of 3.1% in a year.
Outside the Gulf, the Egyptian index (.EGX30), opens new tab rose 0.5%, with Talaat Mostafa Holding (TMGH.CA), opens new tab gaining 1.7%.
The blue-chip index posted first weekly gains in three weeks.
Egypt's economic growth will increase to 4.0% in the year to the end of June 2025 as austerity measures imposed under an International Monetary Fund programme run their course, a Reuters poll showed on Thursday.
Israeli strikes pounded Beirut's southern suburbs on Wednesday and Hezbollah said it fired precision guided missiles for the first time at Israeli targets, as U.S. Secretary of State Antony Blinken toured the region, pushing for a halt to fighting in both Gaza and Lebanon.
Israeli strikes were also reported to have hit the Syrian capital Damascus early on Thursday.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, with the country's biggest lender Saudi National Bank (1180.SE), opens a new tab losing 0.6% and Alinma Bank (1150.SE), opens new tab was down 1.2%.
The Saudi index posted a weekly loss of 0.2%.
Separately, the kingdom attracted foreign direct investment inflows of 96 billion riyals ($25.6 billion) in 2023, beating official targets, according to government data based on a new calculation methodology.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.1% lower, hit by by a 0.5% drop in conglomerate International Holding Co (IHC) (IHC.AD), opens new tab.
IHC said on Wednesday its subsidiary International Tech Group acquired an additional 46% stake in Emircon for 292 million dirhams ($79.51 million).
However, Abu Dhabi Commercial Bank (ADCB.AD), opens new tab climbed 2.5%, after beating forecasts with a 23% rise in third-quarter profit.
Dubai's main share index (.DFMGI), opens new tab concluded flat.
The Qatari index (.QSI), opens new tab fell 0.1%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab retreating 1%.
The Qatari index recorded its biggest weekly loss of 3.1% in a year.
Outside the Gulf, the Egyptian index (.EGX30), opens new tab rose 0.5%, with Talaat Mostafa Holding (TMGH.CA), opens new tab gaining 1.7%.
The blue-chip index posted first weekly gains in three weeks.
Egypt's economic growth will increase to 4.0% in the year to the end of June 2025 as austerity measures imposed under an International Monetary Fund programme run their course, a Reuters poll showed on Thursday.
#UAE's IHC unit plans copper trading hub in #AbuDhabi | Reuters
UAE's IHC unit plans copper trading hub in Abu Dhabi | Reuters
The UAE's International Resources Holding (IRH) said it plans to set up a copper trading hub in Abu Dhabi as the firm widens its push into critical minerals.
IRH, an arm of the United Arab Emirates' International Holding Company (IHC.AD), opens new tab, has a trading target of more than half a million metric tons of copper annually from next year, it said in a Linkedin post. It has said it is seeking to expand in copper mining after buying a 51% stake in Mopani Copper Mines in Zambia in a $1.1 billion deal.
"We are set to launch a copper trading hub in Abu Dhabi, targeting over 500,000 tons of green copper annually by 2025," IRH said. "This initiative will further cement the region's strategic importance in the global energy transition."
Oil-rich UAE and Saudi Arabia have been on an aggressive deals spree as part of a push to secure critical metal supplies from Africa and Latin America, a move that could also help them participate in the transition to green energy.
Sigma Lithium (SGML.V), opens new tab on Wednesday said it struck an agreement to ship 22,000 tons of lithium concentrates to IRH, its first deal with the Abu Dhabi firm.
The UAE's International Resources Holding (IRH) said it plans to set up a copper trading hub in Abu Dhabi as the firm widens its push into critical minerals.
IRH, an arm of the United Arab Emirates' International Holding Company (IHC.AD), opens new tab, has a trading target of more than half a million metric tons of copper annually from next year, it said in a Linkedin post. It has said it is seeking to expand in copper mining after buying a 51% stake in Mopani Copper Mines in Zambia in a $1.1 billion deal.
"We are set to launch a copper trading hub in Abu Dhabi, targeting over 500,000 tons of green copper annually by 2025," IRH said. "This initiative will further cement the region's strategic importance in the global energy transition."
Oil-rich UAE and Saudi Arabia have been on an aggressive deals spree as part of a push to secure critical metal supplies from Africa and Latin America, a move that could also help them participate in the transition to green energy.
Sigma Lithium (SGML.V), opens new tab on Wednesday said it struck an agreement to ship 22,000 tons of lithium concentrates to IRH, its first deal with the Abu Dhabi firm.
#SaudiArabia FII: #MBS’ Beach Party Looks to Show Neom Dream Is Real - Bloomberg
Saudi Arabia FII: MBS’ Beach Party Looks to Show Neom Dream Is Real - Bloomberg
Days before Saudi Arabia kicks off its flagship investment conference, a handpicked selection of guests will get the first glimpse of Crown Prince Mohammed bin Salman’s trillion-dollar bet that the kingdom has a future beyond oil.
An exclusive group of financiers, entertainers and influencers from around the world will this week descend upon Sindalah Island, the first project to open its doors at the planned city of Neom. The resort is now home to ultra-luxury hotels and unspoilt beaches, plus an 86-berth marina where the uber rich can dock their yachts and dive into the crystal clear waters of the Red Sea.
A lot is riding on the success of Sindalah and the wider area in the kingdom’s northwest that’s been re-branded as Neom and is expected to cost anywhere from $500 billion to $1.5 trillion to build — Crown Prince Mohammed’s boldest move yet. The opening comes days before the kingdom kicks off the eighth edition of its Future Investment Initiative, a Davos-style confab.
“There is still considerable effort to go in partnerships and investment, so timing with FII would make sense,” said Karen Young, a senior research scholar at Columbia University’s Center on Global Energy Policy. “If investors see some major infrastructure in place for power, water, transport, that would do a lot to instill confidence about government commitment to major installations in Neom.”
Designed to be everything from a futuristic port, a high-end tourist destination and a clean-energy hub to a venue for the FIFA World Cup and the Asian Winter Games, Neom has never been short of ambition.
It was to be the city of the future that sought to “revolutionize everyday life.” Not just a chance to reshape Saudi cities — replacing oil-burning power plants that belch carbon dioxide with renewable energy plants — but a bold promise to re-imagine how cities globally should look and function.
Yet, its development has been plagued by challenges related to transforming Crown Prince Mohammed’s vision into reality. Foreign investors have been slow to back the plans and the outlook for state coffers has been weaker than expected just a few years ago, with oil trading well below $100. As a result, budgets have been cut and development on some parts of the project has been delayed.
This story is based on interviews with over half a dozen people close to the project, who asked not to be identified as the information is private.
“These ambitious projects are big gambles,” said Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington. “My sense is that the Saudi government is prepared to shoulder the main financing burden for many giga-projects over the short term, with greater private-sector and foreign investment anticipated to materialize over the medium and long terms.”
In a statement, a spokesperson for Neom said that all of its five regions are “under active development.”
Days before Saudi Arabia kicks off its flagship investment conference, a handpicked selection of guests will get the first glimpse of Crown Prince Mohammed bin Salman’s trillion-dollar bet that the kingdom has a future beyond oil.
An exclusive group of financiers, entertainers and influencers from around the world will this week descend upon Sindalah Island, the first project to open its doors at the planned city of Neom. The resort is now home to ultra-luxury hotels and unspoilt beaches, plus an 86-berth marina where the uber rich can dock their yachts and dive into the crystal clear waters of the Red Sea.
A lot is riding on the success of Sindalah and the wider area in the kingdom’s northwest that’s been re-branded as Neom and is expected to cost anywhere from $500 billion to $1.5 trillion to build — Crown Prince Mohammed’s boldest move yet. The opening comes days before the kingdom kicks off the eighth edition of its Future Investment Initiative, a Davos-style confab.
“There is still considerable effort to go in partnerships and investment, so timing with FII would make sense,” said Karen Young, a senior research scholar at Columbia University’s Center on Global Energy Policy. “If investors see some major infrastructure in place for power, water, transport, that would do a lot to instill confidence about government commitment to major installations in Neom.”
Designed to be everything from a futuristic port, a high-end tourist destination and a clean-energy hub to a venue for the FIFA World Cup and the Asian Winter Games, Neom has never been short of ambition.
It was to be the city of the future that sought to “revolutionize everyday life.” Not just a chance to reshape Saudi cities — replacing oil-burning power plants that belch carbon dioxide with renewable energy plants — but a bold promise to re-imagine how cities globally should look and function.
Yet, its development has been plagued by challenges related to transforming Crown Prince Mohammed’s vision into reality. Foreign investors have been slow to back the plans and the outlook for state coffers has been weaker than expected just a few years ago, with oil trading well below $100. As a result, budgets have been cut and development on some parts of the project has been delayed.
This story is based on interviews with over half a dozen people close to the project, who asked not to be identified as the information is private.
“These ambitious projects are big gambles,” said Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington. “My sense is that the Saudi government is prepared to shoulder the main financing burden for many giga-projects over the short term, with greater private-sector and foreign investment anticipated to materialize over the medium and long terms.”
In a statement, a spokesperson for Neom said that all of its five regions are “under active development.”
#Saudi Arabian ETF Tracking Chinese Stocks Raises $1.3 Billion - Bloomberg
Saudi Arabian ETF Tracking Chinese Stocks Raises $1.3 Billion - Bloomberg
A Saudi Arabian investment firm will soon launch the country’s largest exchange traded fund to track Hong Kong-listed Chinese stocks, the latest sign of closer financial ties between China and the oil-rich kingdom.
The securities arm of Bank Albilad raised HK$10 billion ($1.3 billion) for its Albilad CSOP MSCI Hong Kong China ETF as of Wednesday, according to the social media account of the fund’s Chinese partner. The fund is bigger than any of its peers listed on the Saudi Arabian exchange, according to data compiled by Bloomberg. It will start trading next Wednesday.
The ETF will provide easier access in local currency to investors seeking exposure to Chinese stocks, and comes amid signs of growing ties between Beijing and Riyadh. Another ETF tracking Hong Kong-listed stocks is set for launch before year-end by Saudi Awwal Bank, one of the country’s biggest lenders.
The ETF will invest in Chinese equities through the Hong Kong-domiciled CSOP MSCI HK China Connect Select ETF, which counts e-commerce firm Meituan and sportswear maker Anta Sports Products Ltd. among its biggest holdings. The feeder fund has fully built positions via the master fund, a spokesperson at CSOP told Bloomberg news.
The amount raised is significantly more than the expected $400 million. Its size has eclipsed the combined market value of all nine ETFs trading in Saudi Arabia, including two that invest in US stocks, data compiled by Bloomberg show.
The strong subscription follows Beijing’s stimulus bonanza, which triggered a surge in Chinese equities last month. While the rally has pared some gains, investors are keenly awaiting stronger policy support steps, such as ramped-up fiscal spending. The Hang Seng China Enterprises Index, which tracks China’s biggest companies listed in Hong Kong, is still up more than 23% since a low in September.
The ETF marks another step for Beijing to strengthen ties with Gulf nations amid tensions with the West, and as Saudi investors step up their presence in Asia. Last year, the first ETF tracking Saudi stocks debuted in Hong Kong after raising more than $1 billion. In July, two ETFs focused on Saudi Arabian stocks were launched in China and surged on trading debut.
A Saudi Arabian investment firm will soon launch the country’s largest exchange traded fund to track Hong Kong-listed Chinese stocks, the latest sign of closer financial ties between China and the oil-rich kingdom.
The securities arm of Bank Albilad raised HK$10 billion ($1.3 billion) for its Albilad CSOP MSCI Hong Kong China ETF as of Wednesday, according to the social media account of the fund’s Chinese partner. The fund is bigger than any of its peers listed on the Saudi Arabian exchange, according to data compiled by Bloomberg. It will start trading next Wednesday.
The ETF will provide easier access in local currency to investors seeking exposure to Chinese stocks, and comes amid signs of growing ties between Beijing and Riyadh. Another ETF tracking Hong Kong-listed stocks is set for launch before year-end by Saudi Awwal Bank, one of the country’s biggest lenders.
The ETF will invest in Chinese equities through the Hong Kong-domiciled CSOP MSCI HK China Connect Select ETF, which counts e-commerce firm Meituan and sportswear maker Anta Sports Products Ltd. among its biggest holdings. The feeder fund has fully built positions via the master fund, a spokesperson at CSOP told Bloomberg news.
The amount raised is significantly more than the expected $400 million. Its size has eclipsed the combined market value of all nine ETFs trading in Saudi Arabia, including two that invest in US stocks, data compiled by Bloomberg show.
The strong subscription follows Beijing’s stimulus bonanza, which triggered a surge in Chinese equities last month. While the rally has pared some gains, investors are keenly awaiting stronger policy support steps, such as ramped-up fiscal spending. The Hang Seng China Enterprises Index, which tracks China’s biggest companies listed in Hong Kong, is still up more than 23% since a low in September.
The ETF marks another step for Beijing to strengthen ties with Gulf nations amid tensions with the West, and as Saudi investors step up their presence in Asia. Last year, the first ETF tracking Saudi stocks debuted in Hong Kong after raising more than $1 billion. In July, two ETFs focused on Saudi Arabian stocks were launched in China and surged on trading debut.
#SaudiArabia's FDI inflows at $26 bln in 2023, exceeding target | Reuters
Saudi Arabia's FDI inflows at $26 bln in 2023, exceeding target | Reuters
Saudi Arabia, the Arab world's biggest economy, attracted foreign direct investment inflows of 96 billion riyals ($25.6 billion) in 2023, beating official targets, according to government data based on a new calculation methodology.
The kingdom introduced a new methodology last year to collect and report FDI data in a bid to bolster the transparency and accuracy of the published statistics, which led to a significant upward revision in total figures for 2022.
The ministry of investment said in its latest report that actual FDI inflows last year were 16% more than the targeted 83 billion riyals under the National Investment Strategy (NIS), and equivalent to 2.4% of the country's nominal GDP.
Inflows were up 50% over 2022 figures, after excluding a one-off Aramco pipeline deal valued at 55 billion riyals in 2022.
Saudi Arabia is in the middle of a massive economic overhaul overseen by Crown Prince Mohammed bin Salman under the Vision 2030 plan to boost non-oil growth, expand the private sector and create jobs.
The National Investment Strategy is targeting FDI of $100 billion by 2030, or almost 6% of the country's GDP.
Total FDI stock stood at 897 billion riyals by the end of 2023, accounting for 22.5% of GDP and up 13% from the previous year.
The manufacturing, finance and insurance, construction, and wholesale and retail trade sectors were the top draws for FDI last year making up 78% of total FDI inflows in 2023, the report showed.
The government has said it would update existing investment laws, opens new tab in a bid to increase transparency and promote equal treatment of local and foreign investors.
Saudi Arabia, the Arab world's biggest economy, attracted foreign direct investment inflows of 96 billion riyals ($25.6 billion) in 2023, beating official targets, according to government data based on a new calculation methodology.
The kingdom introduced a new methodology last year to collect and report FDI data in a bid to bolster the transparency and accuracy of the published statistics, which led to a significant upward revision in total figures for 2022.
The ministry of investment said in its latest report that actual FDI inflows last year were 16% more than the targeted 83 billion riyals under the National Investment Strategy (NIS), and equivalent to 2.4% of the country's nominal GDP.
Inflows were up 50% over 2022 figures, after excluding a one-off Aramco pipeline deal valued at 55 billion riyals in 2022.
Saudi Arabia is in the middle of a massive economic overhaul overseen by Crown Prince Mohammed bin Salman under the Vision 2030 plan to boost non-oil growth, expand the private sector and create jobs.
The National Investment Strategy is targeting FDI of $100 billion by 2030, or almost 6% of the country's GDP.
Total FDI stock stood at 897 billion riyals by the end of 2023, accounting for 22.5% of GDP and up 13% from the previous year.
The manufacturing, finance and insurance, construction, and wholesale and retail trade sectors were the top draws for FDI last year making up 78% of total FDI inflows in 2023, the report showed.
The government has said it would update existing investment laws, opens new tab in a bid to increase transparency and promote equal treatment of local and foreign investors.