Almosafer becomes inaugural travel partner of Riyadh Air, CEO reveals

Special Almosafer becomes inaugural travel partner of Riyadh Air, CEO reveals
CEO of Almosafer Muzzammil Ahussain speaking to Arab News.
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Updated 25 January 2024
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Almosafer becomes inaugural travel partner of Riyadh Air, CEO reveals

Almosafer becomes inaugural travel partner of Riyadh Air, CEO reveals

RIYADH: Saudi travel company Almosafer has become the inaugural partner of the Kingdom’s new flag carrier, Riyadh Air, according to a senior executive. 

Speaking to Arab News on the sidelines of the second Saudi Tourism Forum in Riyadh, the CEO of Almosafer – which is part of Seera Group – Muzzammil Ahussain noted that the companies will work together to merge their technologies. 

The integration aims to ensure that Riyadh Air’s content will be available for customers on the company’s platform. 

“Today, we just finalized our collaboration with Riyadh Air. We are the first Saudi travel company to partner with Riyadh Air. We’ll be working very closely as they prepare for launch to test to integrate our technologies and make sure that Riyadh air content will be available on Almosafer for our customers,” Ahussain said. 

He added: “We want to work very early on with them to use and partner and make sure our technology works together. They will be using new technology to distribute their flights to customers around the world. We want to work with them to promote Saudi as a destination, to provide Almosafer services to the Riyadh Air guest.” 

The firm also renewed its partnership with Al Rajhi Bank, which is a significant loyalty partner, particularly with the Mokafaa program. 

The collaboration facilitates users in earning and spending their Mokafaa points on Almosafer.

Additionally, Ahussain highlighted the newly unveiled domestic travel trends report released by his company during the event, which uncovered a strong desire among Saudi travelers for various tourism experiences within the Kingdom in 2023.

Utilizing data insights compiled from the firm’s consumer platforms throughout 2023, the report reveals that more than 40 percent of the overall booking share comes from the domestic sector, with 83.3 percent of local travelers preferring luxury accommodations. 

“This is double pre-COVID levels. So pre-COVID, the domestic travel used to be around 20 percent of our bookings. Now it’s about 40 percent. Additionally, we’re seeing a lot of great insights into what people do,” Ahussain commented. 

He added: “So what people are actually spending more on the hotel, staying in four- and five-star properties. But if you notice in the last two, three years see a lot of growth in low-cost carriers for flying. People are saving on the flight and spending more on the hotel and destination, which is good for the overall ecosystem.” 

The top-visited domestic destinations were Makkah, Jeddah, and Riyadh, followed by Dammam, Madinah and the Red Sea.

“We’re seeing a lot of growth, and as the hotel supply increases in these new projects, we’re seeing a lot more demand,” he stated. 

Ahussain continued: “That’s the purpose of creating the new routes from flyadeal or Flynas to bring price down, create ease of travel, but then allow people to spend more in the destination.”  

Furthermore, the company’s CEO offered perspectives on what he anticipates in terms of the Kingdom’s tourism performance in 2024. This included discussions on the influx of visitors for Umrah and Hajj, leisure travel from Asia or Europe, and Saudi citizens’ traveling abroad. 

“All elements of our business are growing. We’re going to invest heavily in technology and human capabilities, in training, as well as in our corporate business, because corporate is a new growing sector in Saudi Arabia for corporate travel,” Ahussain stated. 

Aligning with Saudi Arabia’s Vision 2030 from a tourism perspective, Almosafer’s role as a travel company is to connect supply with demand, as it “focuses on providing technology and services to ensure demand can be seamlessly booked, generate demand, but also seamlessly book that demand and making a good experience.” 


Saudi Arabia raises $990m in sukuk issuances for January

Saudi Arabia raises $990m in sukuk issuances for January
Updated 21 January 2025
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Saudi Arabia raises $990m in sukuk issuances for January

Saudi Arabia raises $990m in sukuk issuances for January

RIYADH: Saudi Arabia’s National Debt Management Center has completed its riyal-denominated sukuk issuance for January, raising SR3.72 billion ($990 million).

In December 2024, the Kingdom raised SR11.59 billion through sukuk, while the amounts in November and October were SR3.41 billion and SR7.83 billion, respectively. Sukuk are Shariah-compliant debt instruments that provide investors with partial ownership of the issuer’s assets until maturity.

According to the NDMC, the January sukuk issuance was divided into four tranches. The first tranche, valued at SR1.25 billion, is set to mature in 2029. The second tranche, sized at SR1.40 billion, will mature in 2032, while the third tranche, worth SR1.03 billion, will mature in 2036. The fourth and final tranche was valued at SR28 million and will mature in 2039.

The consistent issuance of these Islamic bonds is in line with expectations outlined in a recent report by S&P Global, which projected that global sukuk issuance could reach between $190 billion and $200 billion in 2025.

The growth is largely expected to come from markets such as Saudi Arabia and Indonesia. S&P Global also reported that global sukuk issuances amounted to $193.4 billion in 2024, a slight dip from $197.8 billion in 2023.

Adding further optimism to the market, a report from Fitch Ratings released on Jan. 21 highlighted the expansion of the environmental, social, and governance sukuk market.

Fitch expects that outstanding global issuance of ESG sukuk will surpass $50 billion by 2025, with Saudi Arabia expected to play a significant role in this growth.

Meanwhile, a December analysis by Kamco Invest projected that Saudi Arabia would face the largest share of bond maturities in the Gulf Cooperation Council region between 2025 and 2029, with an estimated total of $168 billion.


ESG sukuk set to cross $50bn in 2025: Fitch Ratings

ESG sukuk set to cross $50bn in 2025: Fitch Ratings
Updated 21 January 2025
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ESG sukuk set to cross $50bn in 2025: Fitch Ratings

ESG sukuk set to cross $50bn in 2025: Fitch Ratings

RIYADH: The global issuance of environmental, social, and governance sukuk is expected to surpass $50 billion outstanding in 2025, driven by Islamic finance markets in countries including Saudi Arabia, according to an analysis. 

In its latest report, Fitch Ratings said the global value of Shariah-compliant bonds focused on ESG expanded by 23 percent year on year to $45.2 billion outstanding in 2024. This growth outpaced global ESG bonds, which saw a 16 percent increase. The analysis added that countries such as the UAE, Indonesia, and Malaysia would play a key role in driving the growth of ESG sukuk.

These bonds are investments in renewable energy and other environmental assets and are considered key debt instruments as the world moves toward a greener future. 

“The ESG sukuk market has a robust credit profile, with nearly all Fitch-rated ESG sukuk being investment grade,” said Bashar Al Natoor, global head of Islamic Finance at Fitch Ratings. 

He added: “Sukuk is now a key ESG funding tool in emerging markets, with growth expected amidst sustainability initiatives, funding needs, and a favorable funding environment. However, issuances remain concentrated in a handful of countries.”

ESG sukuk expansion also outpaced global sukuk growth, which witnessed a 10 percent increase in 2024. 

The US-based credit rating agency added that green and sustainable sukuk could help issuers opportunistically tap demand from ESG-sensitive international investors from the US, Europe, and Asia, as well as sukuk-focused Islamic investors from the Gulf Cooperation Council region. 

Several factors, including funding diversification goals, enabling regulations, sustainability initiatives, and net-zero targets pursued by sovereigns, banks, and corporations, as well as government-related entities, could boost the issuance of this debt product in 2025.

The analysis revealed that ESG sukuk is also likely to cross 15 percent of global dollar sukuk issuance in the medium term. 

The report also highlighted the impact of the adoption of Accounting and Auditing Organization for Islamic Financial Institutions’ Sharia Standard 62. 

“Risks facing ESG sukuk market growth include Shariah-compliance complexities, such as linked to AAOIFI Sharia Standard No. 62, weakening sustainability drives, geopolitical risks, and oil volatilities,” said Fitch Ratings. 

This AAOIFI guideline, which was published as an exposure draft in late 2023, aims to standardize various aspects of the sukuk market, including asset backing, ownership transfer, and trading procedures.

Earlier this month, S&P Global said that global sukuk issuance is projected to hit between $190 billion and $200 billion in 2025, driven by increased activity in key markets such as the Kingdom and Indonesia. 

In December, a report by Kamco Invest projected that Saudi Arabia would face the largest share of bond maturities in the GCC region from 2025 to 2029, reaching an estimated $168 billion.


WEF panel explores ways to drive economic growth in uncertain times  

WEF panel explores ways to drive economic growth in uncertain times  
Updated 21 January 2025
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WEF panel explores ways to drive economic growth in uncertain times  

WEF panel explores ways to drive economic growth in uncertain times  

DUBAI: The World Bank Group’s forecast suggests that between 2024 and 2026, countries that collectively account for more than 80 percent of the world’s population and global GDP will still be growing more slowly than they did in the decade before COVID-19.

Moreover, new trade barriers introduced have nearly tripled since 2019, according to the UN.

In this environment, how do global economies find growth? That was the question being explored by a World Economic Forum panel “Finding Growth in Uncertain Times” in Davos.

Moderated by WEF President and CEO Borge Brende, the panel featured Ngozi Okonjo-Iweala, director-general of the World Trade Organization; David Rubenstein, co-founder and co-chairman of global investment firm Carlyle; Marcus Wallenberg, chairman of Swedish bank Skandinaviska Enskilda Banken and Khaldoon Khalifa Al-Mubarak, group CEO, Mubadala Investment Company.

Okonjo-Iweala laid out four requirements for growth: maintaining or restoring macroeconomic stability and good management including fiscal consolidation; openness and predictability of global markets, which requires strengthening resilience in economies; “re-globalization,” which means decentralizing and diversifying supply chains; and lastly, adopting technology and AI, which will increase productivity and lower trade costs in a way that allows for double-digit growth in trade from now until 2040.

There are many questions about US policy with President Donald Trump stepping into office on Monday. Rubenstein addressed some of these questions and concerns saying that in just a day, Trump has issued several executive orders.

“I think you will see him (Trump) doing a lot of fairly robust things that might not have been anticipated before,” he said.

He went on to explain some of the new administration’s policies, such as tax cuts, aimed at spurring growth; imposing tariffs as a negotiation tool for greater trade cooperation; and increasing production of natural gas and oil, which is already at its highest in the country.

“The biggest impediments to growth,” not just for the US but globally, are the wars in the Middle East, Rubenstein said.

He added: “The US’s problems are not the biggest problems. The biggest challenge for economic growth around the world is the Global South, which, because of the challenges of the last 15 years went further behind the developed markets than desired.”

The US is feeling “fairly bullish” about the economy for the near future, and so, it has to ensure it is helping out other countries in terms of wars and access to technology, Rubenstein added.

Europe, on the other hand, is lagging behind with weak growth forecasts. This is partly due to Europe not being as competitive, according to Wallenberg.

He said: “Over the years, Europe has tended to perhaps not understand our competitive situation and the strategic position that we find ourselves (in) with a very strong United States and a very strong China, and therefore our competitiveness has been challenged.”

Wallenberg pointed out that Europe is a rather larger market, which means there is potential for scale. But first, it needs to revive its confidence as well as that of its consumers along with “a singular capital market that is unified” and “a number of institutions that can provide more risk capital,” among other things.

“We have all the ingredients to make it happen,” he said. “Now, we just have to stand up and get it done.”

Turning to the Middle East, Mubadala’s Al-Mubarak underlined the importance of sovereign wealth funds.

Because they are “highly capitalized” and have a “high liquidity position” as well as the ability to think and invest long term, sovereign funds are becoming more and more important to support global growth, he said.

He explained why the UAE is a good example of a growth story. For example, its capital Abu Dhabi was rated the safest city in the world for the seventh year running; it ranked fifth globally in AI competitiveness according to a Stanford study; and it recorded the largest inflow of high-net-worth individuals globally in 2024, he said.

The UAE sets the example of “growth in this new world,” particularly “how to create growth and diversify from one sector to a multi-faceted economy,” Al-Mubarak said.

 


Closing Bell: Saudi Arabia’s Tadawul ends slightly lower at 12,370 

Closing Bell: Saudi Arabia’s Tadawul ends slightly lower at 12,370 
Updated 21 January 2025
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Closing Bell: Saudi Arabia’s Tadawul ends slightly lower at 12,370 

Closing Bell: Saudi Arabia’s Tadawul ends slightly lower at 12,370 

RIYADH: Saudi Arabia’s Tadawul All Share Index closed slightly lower on Tuesday, dipping 0.08 percent, or 9.91 points, to settle at 12,369.63.  

Trading turnover on the main market reached SR6.92 billion ($1.84 billion), with 133 stocks advancing and 97 declining.  

The Kingdom’s parallel market, Nomu, also shed 27 points to close at 31,317.97, while the MSCI Tadawul Index slipped 0.17 percent to 1,549.08. 

The best-performing stock on the main market was Rasan Information Technology Co., with its share price rising 9.99 percent to SR88.10. 

Other top gainers included Saudi Cable Co., which rose 9.97 percent to SR128, and Walaa Cooperative Insurance Co., up 6.24 percent to SR22.80. 

Conversely, ACWA Power Co.’s share price fell 3.49 percent to SR420. 

On the announcements front, Al Jouf Cement Co. said it has signed a SR38 million agreement with Mohammed Shahi Al-Ruwaili Contracting to export various types of cement and clinker to Syria. 

According to a statement on Tadawul, the contract will be effective from Feb. 1 to Feb. 28, 2026. 

The company noted that the agreement's financial impact will be reflected in its performance from the first quarter of 2025 through the first quarter of 2026. 

Al Jouf Cement Co.’s share price rose 1.42 percent to SR11.46. 

Scientific and Medical Equipment House Co., known as Equipment House, announced securing a SR105.07 million tender to maintain and repair medical devices and equipment in hospitals and health centers under the Riyadh First Health Cluster. 

According to a Tadawul statement, the contract covers King Salman Hospital, Al Iman Hospital, and Imam Abdulrahman Al Faisal Hospital, as well as the Convalescent Hospital, and various dental complexes. 

The company noted that the financial impact of the deal will be reflected starting in the second quarter of this year. 

Scientific and Medical Equipment House Co.’s share price edged up by 0.19 percent to SR52.20.  

Aldrees Petroleum and Transport Services Co. reported a net profit of SR338 million for 2024, marking a 20.37 percent increase compared to the previous year.

The company attributed the profit growth to a 30 percent rise in revenues driven by stronger sales in its petrol and transport segments. 

Aldrees, listed on Saudi Arabia’s main index, also announced that its shareholders recommended a cash dividend of SR1.5 per share for 2024. 

The company’s share price rose 4.20 percent to close at SR129. 


Crude falls on US tariff reprieve, stronger dollar

Crude falls on US tariff reprieve, stronger dollar
Updated 21 January 2025
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Crude falls on US tariff reprieve, stronger dollar

Crude falls on US tariff reprieve, stronger dollar

LONDON: Oil prices fell on Tuesday as investors assessed US President Donald Trump’s plans to apply new tariffs later than expected while boosting oil and gas production in the US.

Brent crude futures were down $1.42, or 1.77 percent, to $78.73 per barrel at 1116 GMT. US West Texas Intermediate crude futures were down by $1.97, or 2.53 percent, at $75.91. There was no settlement in the US market on Monday due to a public holiday.

Pressuring prices on Tuesday was a stronger US dollar, as its strengthening makes oil more expensive for holders of other currencies.

Trump did not impose any sweeping new trade measures right after his inauguration on Monday, but told federal agencies to investigate unfair trade practices by other countries.

The US president also said his administration would “probably” stop buying oil from Venezuela.

Trump also promised to refill strategic reserves, a move that could be bullish for oil prices by boosting demand for US crude oil.

Also weighing on prices on Tuesday was the potential end to the shipping disruption in the Red Sea. Yemen’s Houthis on Monday said they will limit their attacks on commercial vessels to Israel-linked ships provided the Gaza ceasefire is fully implemented.