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IATA backs Saudi-led aviation surge amid regional integration push 

Special IATA backs Saudi-led aviation surge amid regional integration push 
IATA Aviation Day MENA was held for the first time in ֱ. Supplied
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Updated 07 May 2025

IATA backs Saudi-led aviation surge amid regional integration push 

IATA backs Saudi-led aviation surge amid regional integration push 

JEDDAH: The Middle East’s aviation sector is pushing toward greater integration and collaborative innovation, with ֱ’s rapid expansion positioning it as the region’s benchmark, according to a senior International Air Transport Association official. 

Kamil Al-Awadhi, IATA’s regional vice president for Africa and the Middle East, told Arab News that growth in the Gulf Cooperation Council is outpacing all other regions — and the Middle East could soon lead the global aviation industry. 

His remarks came during IATA Aviation Day MENA 2025 — held for the first time in ֱ in Jeddah from May 6 to 7 — where industry leaders gathered to explore how regional collaboration and harmonized regulation can unlock aviation’s full potential. 

Al-Awadhi credited the region’s resilience to unified political leadership and coordinated aviation strategies. 

“After the COVID-19 pandemic subsided in 2022, airlines in the Middle East resumed smooth operations, as if airports had not been closed at all. In contrast, carriers in Europe and the US struggled for several months to return to normal operations,” he said. 

Al-Awadhi added: “ֱ is not only expanding its aviation infrastructure, but it is also investing in its people. This is vital to meet the immediate skills requirements while developing a professional workforce able to deliver on Vision 2030.” 

The official acknowledged the region’s operational strength but pointed to the lack of sufficient stakeholder dialogue. “The main goal of this event is to bring the region’s aviation sectors together to discuss their challenges and collectively work toward improvement,” the IATA official said. 

Nick Careen, IATA’s senior vice president for operations, safety, and security, said the Middle East was poised to outpace global air traffic growth over the next two decades. “Looking ahead, global air travel is set to grow at 3.3 percent per year for the next 20 years. But the Middle East will grow faster at 4.8 percent,” he said during his keynote. 

The event took place just days after IATA released its latest global passenger traffic data, showing industry-wide revenue passenger kilometers rose 3.3 percent year-on-year in March, reaching 738.8 billion — continuing the trend of subdued single-digit growth seen since 2023. 




Nick Careen, IATA’s senior vice president for operations, safety, and security. Supplied

Careen emphasized ֱ’s pivotal role in the region’s aviation transformation. “The sector is not just moving forward — it’s moving forward at speed. And that should make everyone in this room take notice.” 

He noted that aviation and aviation-related tourism contributed $90.6 billion to the Kingdom’s gross domestic product — representing 8.5 percent — and supported 1.4 million jobs. “More than 62,000 people are directly employed by airlines, and another 79,000 are working in the broader aviation ecosystem. In 2023, ֱ handled over 713,000 tonnes of air cargo,” he said. 

According to Careen, this progress is being driven by Crown Prince Mohammed bin Salman’s Vision 2030 plan, which places aviation at the heart of economic diversification and international connectivity. “We have seen it in the development of new airports, the digital push, the workforce development, and the launch of national carriers like Riyadh Air,” he said. 

Abdulaziz bin Al-Duailej, president of the General Authority of Civil Aviation, described the Middle East as an economy worth $9.48 trillion powered by a young population, adding: “Aviation here is not only enabling growth; it is leading transformation through strategic investment and collaboration.” 

He continued: “By 2024, passenger traffic across the Middle East exceeded pre-pandemic levels by 9 percent — more than double the global growth rate. While ֱ’s civil aviation sector recorded a remarkable increase of over 24 percent compared to pre-pandemic levels.” 




Industry leaders gathered in Jeddah. Supplied

The Kingdom’s growth has been marked by major achievements. In 2024 alone, ֱ handled 128 million passengers, more than 900,000 flights, and 1.2 million tonnes of cargo. The government has ordered 500 new aircraft and attracted 21 new international airlines into its market. 

“The Kingdom’s aviation market is opening rapidly. In the past year alone, 21 new international airlines have entered the Saudi market, and in the first quarter of 2025, foreign carriers carried 63 percent of international passengers,” Al-Duailej said, reaffirming the Kingdom’s willingness to engage globally to shape the sector’s future. 

In its latest press release, IATA outlined three strategic priorities to help ֱ sustain its aviation gains: improving coordination with stakeholders, ensuring cost-effective infrastructure development, and building national talent. 

“Given ֱ’s important role in shaping regional aviation policies, continued collaboration and consultation with users and stakeholders, along with alignment to global standards and best practices, are vital,” the organization said. 

It also emphasized the need for cost-competitiveness. “As ֱ makes significant investments in airport infrastructure and digitalization, it is critical to work with the industry to ensure cost competitiveness,” IATA added. 

On workforce development, the group noted: “Ensuring a skilled workforce across all areas of aviation will enable the Kingdom to fulfill its potential as a regional and global aviation hub.” 

On the sidelines of the forum, IATA announced new training agreements with Saudi airlines, airports, and academic institutions. In the first phase, more than 1,000 graduates and aviation professionals will be trained in areas such as airport operations, safety, airline management, and ground handling. 

Riyadh Airports Co. and Qassim University joined IATA’s network of regional training partners, alongside long-time collaborator Prince Sultan Aviation Academy. Together, the three will deliver over 60 programs covering technical, commercial, and interpersonal skills. 

“The renewed agreement enables the academy to offer IATA training courses within the Kingdom and across the GCC region. All operational aviation requirements — including cabin crew, maintenance, ground services, and business training — are provided by PSAA,” said Khalid Bawazeer, the academy’s director of continuous studies, to Arab News. 

“This requires preparation to meet the demand for increased training programs, whether conducted internally by the academy or through external courses such as those offered by IATA,” he added. 

As part of the deal, sector awareness courses will also be offered to graduates of Riyadh Air and Saudia to nurture national talent for future leadership. Specialized Dangerous Goods training will be provided to operational staff from the Saudi Civil Aviation Academy. 




SAL Logistics Services Co. marks its new agreement at the event. Supplied

In addition, SAL Logistics Services Co. has been accredited as a competency-based training and assessment center, and Saudi Ground Services has renewed its CBTA accreditation. 

The IATA’s Careen acknowledged that despite the Kingdom’s progress, aviation development remains uneven across the Middle East due to persistent geopolitical instability. 

He pointed to challenges in Yemen, Syria, Iraq, and Lebanon, where conflict and sanctions have suppressed growth. “Where aviation continues to demonstrate remarkable resilience in the face of political instability, it does far better in countries that are stable, peaceful and open,” the official said. 

Careen called on governments and regulators to align efforts toward a more integrated and forward-looking aviation environment. “A Middle East characterized by open skies, harmonized regulations, and shared innovation,” he said, is critical to long-term success. 

“To every government, airline, and civil aviation authority in this room, your success is everyone’s success. A rising tide lifts all boats, and in this case, all planes,” he said. 

Ibrahim Al-Omar, director general of Saudia Group, the host of the event, said the forum was a valuable opportunity to showcase how Vision 2030 is reshaping regional aviation. 

“With safety, innovation, and sustainability driving our progress, IATA Aviation Day MENA is a valuable platform to showcase how the Kingdom’s Saudi Vision 2030 is shaping the future of aviation not only across the Kingdom but the region and beyond,” he said in a statement released a day prior to the event.


ֱ, Boeing agree deal on advanced air mobility 

ֱ, Boeing agree deal on advanced air mobility 
Updated 5 sec ago

ֱ, Boeing agree deal on advanced air mobility 

ֱ, Boeing agree deal on advanced air mobility 

RIYADH: US aircraft manufacturer Boeing has inked an agreement with ֱ to explore partnerships and investments in the advanced air mobility sector.

A  memorandum of understanding was signed in Washington, D.C. by a delegation from the Kingdom’s civil aviation sector, led by Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, according to a press statement. 

Strengthening the aviation sector is one of the crucial goals outlined in ֱ’s Vision 2030 agenda, as the Kingdom is trying to position itself as a global hub of business and tourism by the end of this decade. 

ֱ’s National Tourism Strategy aims to attract 150 million annual visitors by 2030, while also increasing the sector’s contribution to the Kingdom’s gross domestic product to more than 10 percent. 

Commenting on the MoU with Boeing, Sulaiman Al-Muhaimidi, GACA’s executive vice president for Aviation Safety and Environmental Sustainability, said: “This partnership with Boeing reflects GACA’s commitment to creating safer, smarter skies through advanced air mobility innovation. The effort further cements ֱ at the forefront of the future of aviation.” 

During the visit, the Saudi delegation visited the Federal Aviation Administration and the headquarters of Boeing in Washington, as well as the Dreamliner facility in Charleston, South Carolina, where the company builds the 787 Dreamliner. 

The authority added that collaboration opportunities in civil aviation, aircraft manufacturing and maintenance services, sustainability, and advanced technologies initiatives were among the many topics discussed during the visit to the US. 

GACA added that the visit also aimed to enhance cooperation with the US in knowledge exchange, technology transfer, and localization of the aviation industry, in line with the Kingdom’s goal of becoming “a global industrial and logistics hub in aviation as part of its economic diversification.” 

ֱ’s National Aviation Strategy targets doubling passenger capacity to 330 million annually from over 250 global destinations and increasing cargo handling to 4.5 million tonnes by 2030. 

“By engaging with global aviation regulators and manufacturers, GACA is supporting Vision 2030 objectives to strengthen ֱ’s role as a hub connecting three continents, delivering greater connectivity and travel experiences for the Kingdom’s passengers,” said Al-Duailej. 

He added: “With new Saudi airlines being launched, record aircraft orders, and a focus on innovation and sustainability, the visit highlights the unprecedented opportunities being created by the Kingdom and underscores the strong Saudi–US aviation partnership.” 

ֱ’s Riyadh Air, the second flag carrier of the Kingdom, is expected to commence its operations by this year. 

Announced in 2023 by Crown Prince Mohammed bin Salman, Riyadh Air is expected to contribute over $20 billion to the non-oil gross domestic product and create more than 200,000 direct and indirect jobs. 

In June, the airline’s CEO, Tony Douglas, told Bloomberg that it plans to launch a new international destination every two months once operations begin, as it prepares to take delivery of its first Boeing 787 Dreamliner. 

The carrier currently has four Boeing 787 Dreamliners in different stages of assembly at Boeing’s facility in Charleston, South Carolina.

In addition, Riyadh Air announced at the Paris Air Show in June that it will purchase up to 50 Airbus A350 long-range aircraft, with deliveries expected to start in 2030.


UAE’s construction output to hit $131bn by 2029: Knight Frank  

UAE’s construction output to hit $131bn by 2029: Knight Frank  
Updated 6 min 36 sec ago

UAE’s construction output to hit $131bn by 2029: Knight Frank  

UAE’s construction output to hit $131bn by 2029: Knight Frank  

RIYADH: The UAE’s construction output is projected to reach $130.8 billion by 2029, a 22 percent increase from 2024, as state-led projects drive growth, according to a new analysis. 

In its latest report, global consulting firm Knight Frank estimated output at $107.2 billion in 2024, with expansion forecast at about 4 percent annually.  

The rise in construction output reflects a broader trend across the Gulf Cooperation Council, where countries are steadily diversifying their economies and reducing reliance on crude revenues. 

A July Knight Frank report projected ֱ’s construction output to hit $191 billion by 2029, up 29 percent from 2024, on the back of giga-projects, housing demand, and office development. 

Commenting on the latest report, Faisal Durrani, partner, head of research of Knight Frank in the Middle East and North Africa, said: “The UAE construction industry is in a period of robust growth and transformation, driven by economic diversification, tourism and strategic infrastructure investments, particularly in housing, transport and smart cities.”  

According to the report, construction accounts for 62 percent of the UAE’s future project pipeline, ahead of transport at 12 percent, power at 7 percent, and water at 5 percent.  

Within construction, mixed-use schemes account for 42 percent, followed by residential real estate at 28 percent, data centers at 9 percent, and hospitality projects at 4 percent. 

The sector supports key national and emirate-level strategies, including “We the UAE 2031,” Dubai’s D33 agenda, the 2040 Urban Master Plan, and Abu Dhabi’s Vision 2030. 

“Abu Dhabi and Dubai dominate the UAE market, accounting for 85 percent of the total value of contracts awarded between 2020 and August 2025 – $151 billion in Abu Dhabi and $129.9 billion in Dubai,” added Durrani.  

In the second quarter of 2025, residential construction costs ranged from 4,200 dirhams ($1,144) per sq. meter for standard villas to 11,000 dirhams for high-end villas, while apartments averaged 4,300 dirhams, according to the Knight Frank report. 

The cost of constructing commercial buildings in the first half of this year ranged from 5,500 dirhams to 7,300 dirhams per square meter. 

Dubai led momentum, with 75 percent of its contract activity concentrated in construction. Oil and gas projects accounted for only 3 percent of awards, highlighting the emirate’s economic diversification.  

Upcoming developments include Palm Jebel Ali, The Oasis by Emaar, and Marsa Al Arab, as well as Therme Dubai, Naia Island, and DAMAC Lagoons’ Venice community, alongside expansions at Dubai Hills Estate. The emirate is also extending its metro system by 15 km with the Blue Line by 2029. 

“Continuous strategic economic development is reshaping Dubai’s commercial real estate landscape and the latest construction output figures reflect the strong fundamentals of the market,” said Moataz Mosallam, partner – Project & Development Services, MENA at Knight Frank.  

He said Dubai’s population is expected to rise from 3.4 million in 2020 to 5.8 million by 2040 under the Urban Masterplan, driving residential growth. He noted that about 8.2 million sq. feet of office space is due by 2028, but demand is likely to outstrip supply, keeping construction activity strong. 

In Abu Dhabi, construction made up 23 percent of awarded contracts, trailing oil and gas at 40 percent. The emirate is pursuing major infrastructure projects under its Economic Vision 2030, including a 150-km high-speed rail link to Dubai due by 2030 and a planned 131-km metro system. 

Major projects include a 150-km high-speed rail link to Dubai, expected to be operational by 2030, and the planned 131-km Abu Dhabi Metro, aimed at supporting the city’s growing population. 

“Some 890 residential units were delivered in Abu Dhabi in the first half of 2025, and approximately 33,074 are under construction and scheduled for delivery by 2029. Apartments are expected to comprise 71 percent of this future supply pipeline,” said Mosallam.  

Office supply is also set to surge, with nearly 175,000 sq. meters scheduled for 2027, following 51,000 sq. meters in 2025 and 43,000 sq. meters in 2026. 


Closing Bell: TASI ends higher at 10,808  

Closing Bell: TASI ends higher at 10,808  
Updated 21 September 2025

Closing Bell: TASI ends higher at 10,808  

Closing Bell: TASI ends higher at 10,808  

RIYADH: The Saudi stock market started the week higher on Sunday, with the benchmark Tadawul All Share Index adding 27.99 points, or 0.26 percent, to close at 10,808.68.   

Market activity saw 166 gainers against 76 losers, with a total of 272.83 million shares traded at a value of SR4.74 billion ($1.26 billion).  

The parallel market Nomu also advanced, rising 58.35 points, or 0.23 percent, to 25,349.27, with 41 stocks ending in positive territory while 38 declined.  

Meanwhile, the MT30 index, which tracks the performance of the 30 largest companies by market capitalization and liquidity, edged up 2.24 points, or 0.16 percent, to close at 1,401.03.  

On the sector front, MBC Group led the gainers, climbing 10 percent to SR35.42, continuing its rising streak from last Thursday after the Public Investment Fund’s acquisition.   

It was followed by Abdullah Saad Mohammed Abo Moati for Bookstores Co., which advanced 8.70 percent to SR40.98, and The Mediterranean and Gulf Insurance and Reinsurance Co., which increased 7.14 percent to SR16.80.   

East Pipes Integrated Co. for Industry rose 6.81 percent to SR117.60, while Arabian Contracting Services Co. gained 5.99 percent to SR92.95. 

On the other hand, Dar Alarkan Real Estate Development Co. fell 5.84 percent to SR15.79, while Saudi Real Estate Co. dropped 4.95 percent to SR15.17.   

Thimar Development Holding Co. slipped 3.51 percent to SR44, Saudi Ground Services Co. lost 2.63 percent to SR43.68, and Alahli REIT 1 Fund edged down 2.39 percent to SR6.54.  

On the announcement front, Saudi Vitrified Clay Pipes Co. said it signed an agreement to sell its second plant in Riyadh, which produces vitrified clay pipes and related fittings, for SR45 million to Al-Mutahidah Al-Namothajiya Industries Co.   

The company said the sale is expected to generate a capital gain of SR20.1 million and proceeds will be used to fund operating activities.  

Its shares closed at SR26.72, up 0.6 percent.  

Dar Al Majdiah Real Estate Co. clarified that the updated Executive Regulations of the White Land Fees, issued by the Ministry of Municipalities and Housing, will not have a material impact on its financials or operations.  

The company highlighted it had already settled SR1.7 million in fees and noted invoices of SR3.3 million remain under objection with authorities.  

Shares of Dar Al Majdiah ended at SR12.96, down 1.37 percent.  

Ladun Investment Co. also stated that the implementation of the newly amended White Land Tax Regulations will have no material impact on its financials.  

Shares of the company rose 5.45 percent to SR2.9.  

Separately, Al Moammar Information Systems Co. announced the signing of a SR60.54 million contract, including VAT, with Emdad Solutions for ICT to provide IT services over a 36-month period.   

The company said the agreement is expected to have a positive financial impact starting from the third and fourth quarter of 2025.  

Shares of MIS closed at SR134, gaining 0.6 percent.  


Singapore and Egypt to explore free trade agreement as leaders witness broad cooperation deals 

Singapore and Egypt to explore free trade agreement as leaders witness broad cooperation deals 
Updated 21 September 2025

Singapore and Egypt to explore free trade agreement as leaders witness broad cooperation deals 

Singapore and Egypt to explore free trade agreement as leaders witness broad cooperation deals 

RIYADH: Singapore and Egypt have agreed to explore the feasibility of a free trade agreement, with both countries seeking to deepen economic ties and leverage their respective strategic advantages.   

The agreement was reached during President Tharman Shanmugaratnam’s official visit to Cairo, where he met with Egyptian President Abdel Fattah Al Sisi ahead of the 60th anniversary of bilateral diplomatic relations in 2026.  

Singapore and Egypt have a longstanding foundation for economic cooperation, anchored by a Bilateral Investment Treaty signed in 1997 and in force since 2002. 

The agreement ensures fair and equitable treatment for investors, free transfer of returns, and access to international arbitration. 

 In 2006, both countries issued a Declaration of Intent to negotiate a Comprehensive Economic Cooperation Agreement, reflecting a shared ambition to deepen trade and investment links. These initiatives laid the groundwork for current discussions on a formal free trade agreement. 

According to the new statement issued by Singapore’s Ministry of Foreign Affairs, “Both Presidents agreed that it was timely to explore the feasibility of a free trade agreement between Singapore and Egypt to take advantage of the two countries’ complementary strengths and their strategic locations.”   

Bilateral ties, which began in 1965 when Egypt became the first Arab country to recognize Singapore’s independence, have since expanded across sectors, including health, maritime, education, and technical cooperation.  

President Tharman and President Al Sisi “welcomed the expansion of bilateral cooperation into new areas such as the health sector, agri-research, technical education, capacity building within government, and smart ports and the maritime sector.”   

They also witnessed the signing of several memoranda of understanding covering a range of areas including economy, maritime transport, health, agri-research, micro, small and medium enterprises and startup development, capacity building and social protection.  

One MoU on maritime field cooperation between Singapore Cooperation Enterprise and Egypt’s Ministry of Transport – Maritime Transport Sector aims to create “an interactive digital map for the MTS that includes logistics corridors, sea, in-land and dry ports, planned and operating logistic areas as well as licensed storage sector and industrial zones.”   

It also includes provisions for capacity building and exploring project funding.  

A second MoU on promoting economic partnership, signed between SCE and the Ministry of Planning, Economic Development and International Cooperation, “provides a broad framework of cooperation in the ports and maritime sectors, capacity building, cybersecurity and digitalization.”   

It will also “facilitate cooperation envisaged under a separate agreement between SCE and the General Authority for the Suez Canal Economic Zone on a feasibility study to transform West Port Said into a Smart Port.”  

In the area of enterprise development, an MoU between SCE and the Micro, Small and Medium Enterprises and Startups Development Agency will establish a framework for close cooperation with the aim of supporting inclusive and sustainable economic growth.  

Collaboration areas include the “digitalization of Egypt’s MSME National Platform, advisory on Egypt’s National Strategy for MSME and startups development, and capacity building.”  

The Ministry of Social and Family Development and Egypt’s Ministry of Social Solidarity signed an MoU on social protection, outlining cooperation in knowledge exchange, enhancing technical expertise and capacity building, strengthening institutional collaboration, and supporting policy development and best practices in the fields of social services, family and child development, women’s issues, and social enterprises.  

In health, the Ministry of Health and Egypt’s Ministry of Health and Population agreed to collaborate in fields such as the prevention and control of non-communicable diseases, management of hospital health information systems and quality assurance, innovative healthcare solutions, healthcare supply chain, research and development in medical biotechnology, aged care policy, green transformation and eco-friendly health facilities.  

Agricultural cooperation is also being advanced through an MOU between Temasek Life Sciences Laboratory and Egypt’s Agricultural Research Centre.   

It supports joint efforts to improve the productivity and resilience of large-scale rice cultivation” on reclaimed desert land and promotes the “development of climate-ready rice varieties that have increased tolerance for heat, salinity, droughts, floods, and diseases.”  

Finally, the Civil Service College and Egypt’s National Training Academy signed an MOU to strengthen public sector capability through the exchange of knowledge and expertise in the fields of public sector leadership, governance, and administration including facilitating thematic study visits by Egyptian officials to Singapore.  

President Tharman also thanked President Al Sisi for Egypt’s facilitation of Singapore’s humanitarian assistance for Gaza since November 2023.   

The ministry noted that “Singapore was the first foreign country that Egypt has allowed to deploy doctors in Egyptian hospitals to provide specialist medical care for Palestinian civilians.”  

To mark the upcoming diplomatic milestone, President Tharman extended an invitation for President Al Sisi to visit Singapore in 2026.  


Qatar’s economy rises 2% on non-oil strength

Qatar’s economy rises 2% on non-oil strength
Updated 21 September 2025

Qatar’s economy rises 2% on non-oil strength

Qatar’s economy rises 2% on non-oil strength

JEDDAH: Qatar’s economy expanded by 1.9 percent in the second quarter of 2025, fueled by a 3.4 percent rise in non-hydrocarbon sectors, official data showed.
The National Planning Council reported on Sept. 21 that real gross domestic product reached 181.8 billion Qatari riyals ($49.9 billion) at constant prices, up from 178.5 billion riyals in the same period last year. Non-hydrocarbon activities accounted for 65.6 percent of real gross domestic product, with value added climbing to 119.3 billion riyals from 115.4 billion riyals a year earlier.
The growth underlines the effectiveness of Qatar’s economic diversification initiatives under the Third National Development Strategy and Vision 2030, reflecting wider trends across the Gulf region.
A World Bank report released in June projected GCC economic growth of 3.2 percent in 2025 and 4.5 percent in 2026. 
Within the non-hydrocarbon economy, the fastest-growing sectors in Q2 2025 included agriculture, forestry, and fishing (up 15.8 percent); accommodation and food services (13.4 percent); arts, entertainment, and recreation (8.9 percent); wholesale and retail trade (8.8 percent); and construction (8.7 percent).
These gains reflect ongoing investment in tourism, services, and specialized infrastructure, further boosting the private sector’s role in the economy.
“In total, 11 of 17 economic activities recorded positive real growth in Q2 2025, demonstrating the resilience of Qatar's economic base. Service-related sectors such as accommodation, food services, and entertainment continued to expand strongly, reflecting sustained momentum in tourism and domestic demand,” the official news agency reported.