Saudi Arabia’s air mobility initiative boosts future transport in Mideast

It encompasses a range of solutions, from unmanned aircraft systems to vertical take-off and landing aircraft. These advancements prioritize safety, reliability, and sustainability in air transport, facilitating efficient mobility while addressing environmental considerations. SPA
It encompasses a range of solutions, from unmanned aircraft systems to vertical take-off and landing aircraft. These advancements prioritize safety, reliability, and sustainability in air transport, facilitating efficient mobility while addressing environmental considerations. SPA
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Updated 24 January 2024
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Saudi Arabia’s air mobility initiative boosts future transport in Mideast

Saudi Arabia’s air mobility initiative boosts future transport in Mideast

RIYADH: Saudi Arabia’s Advanced Air Mobility initiative is poised to revolutionize the Middle East’s aviation sector, establishing the Kingdom as a leader in sustainable technologies. 

Spearheaded by the General Authority of Civil Aviation, it encompasses a range of solutions, from unmanned aircraft systems to vertical take-off and landing aircraft. These advancements prioritize safety, reliability, and sustainability in air transport, facilitating efficient mobility while addressing environmental considerations. 

GACA President Abdulaziz bin Abdullah Al-Duailej underscored the authority’s active efforts to accelerate AAM in Saudi Arabia through initiatives such as implementing a groundbreaking test bed with NEOM and formulating the necessary regulatory framework. 

“Advanced Air Mobility is not merely a concept; it represents a paradigm shift in how we move, commute, and ultimately, how we live,” said Al-Duailej.  

He added that the AAM strategy and roadmap would delve into the underpinning technologies, identifying use cases and the regulatory framework required to ensure safety.  

Additionally, Al-Duailej mentioned exploring the economic opportunities it presents and its potential to revolutionize passenger mobility and cargo delivery. He highlighted its impact on emergency response, medical transport, and disaster relief. 

Furthermore, he noted that the AAM roadmap is very much aligned with the measures taken by Saudi Arabia to ensure a green future.  

“Transitioning to cleaner solutions such as electric-powered aviation is essential as we battle climate change. AAM pioneers are leading the change in developing electric and hybrid-electric aircraft, marking a significant step toward achieving a sustainable and green future,” said Al-Duailej. 

GACA Vice President of Aviation Safety and Environmental Sustainability Sulaiman bin Saleh Al-Muhaimidi explained that they are not just building a new mode of transport; instead, they are “creating the backbone for the next era of economic and social development in Saudi Arabia.”  

“Successful tests across Saudi Arabia’s diverse landscapes and climate conditions have laid the groundwork for advancements that promise to alleviate traffic congestion, improve emergency medical services, and contribute to the Kingdom’s ambitious goal of achieving net-zero carbon emissions by 2060,” he added.  

As the Kingdom pursues an ambitious journey to cultivate a diverse, sustainable, and thriving economy through Vision 2030, Saleh Al-Jasser, Saudi Arabia’s minister of Transport and the chairman of the board of GACA said that “AAM represents a revolution in the way we envision transport and mobility but also a magnificent opportunity to reshape our lives, economies, and the design of our cities.”  

The minister further noted that the advancements in the aviation sector will help Saudi Arabia to emerge as a global tourism destination.  

“Advanced Air Mobility will improve safety, enhance passenger experience, empower our tourism sector’s growth, and promote long-term environmental sustainability,” added Al-Jasser.  

Building on cooperation  

International cooperation constitutes a major aspect of the AAM journey in Saudi Arabia, as the Kingdom has signed several memorandums of understanding with countries like South Korea, Singapore and China.  

GACA is also establishing joint working groups with leading international original equipment manufacturers to ensure the country is prepared to embrace AAM as soon as its safety is appropriately proven.  

Additionally, Saudi Arabia has also concluded agreements with leading companies in designing and manufacturing AAM aircraft to ensure that the Kingdom achieves an advanced position in this field, especially in the safety and development sectors. 

Moreover, several Saudi research institutions are performing relevant studies and tests with the support of GACA on Unmanned Aircraft Systems, an integral part of the AAM roadmap.  

Contribution to GDP 

The implementation of the AAM strategy is projected to contribute “tens of billions of Saudi riyals” to the Kingdom’s gross domestic product and generate thousands of jobs by 2040, according to a report published by GACA. 

The aviation body revealed its intention to identify relevant stakeholders for the AAM roadmap soon and initiate collaboration within the ecosystem to prepare for early operations. 

The report further outlined key milestones achieved by Saudi Arabia, emphasizing the sustainable development shaping the Kingdom’s aviation landscape. 

In 2021, NEOM and Volocopter formed a joint venture with the goal of advancing advanced air mobility, positioning NEOM as a collaborative, global living lab for the future of transport.  

This partnership led to the successful testing of air taxi flights in NEOM in June 2023, conducted and completed by Saudi Arabia. 

The test campaign primarily focused on evaluating the flight performance of Volocopter aircraft in the local climate and environmental conditions. It also included testing the integration of these air taxis into the local unmanned aircraft system traffic management system. 

Volocopter’s electric vertical takeoff and landing aircraft are expected to play a crucial role in NEOM’s smart and sustainable multimodal mobility system. This is designed to operate on 100 percent renewable energy sourced from solar and wind energy. 

The eVTOL aircraft will serve as air taxis and emergency response vehicles in NEOM, offering advantages such as quieter operation, greater adaptability, and lower operational costs compared to traditional helicopters commonly used today. 


Oil Updates – crude heads for weekly loss as Chinese demand continues to underperform

Oil Updates – crude heads for weekly loss as Chinese demand continues to underperform
Updated 15 November 2024
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Oil Updates – crude heads for weekly loss as Chinese demand continues to underperform

Oil Updates – crude heads for weekly loss as Chinese demand continues to underperform

SINGAPORE: Oil prices fell on Friday on signs demand in China, the world’s biggest crude importer, continues to underperform amid its uneven economic recovery.

Brent crude futures were down 65 cents, or 0.9 percent, at $71.91 a barrel by 7:50 a.m. Saudi time. US West Texas Intermediate crude futures were down 62 cents, or 0.9 percent, at $68.08.

For the week, Brent is set to fall 2.7 percent while WTI is set to decline 3.3 percent.

“While oil prices have somewhat stabilized around the $71.00 level of support this week, the lack of a concrete bullish catalyst suggests that price recovery remains tepid for now,” Yeap Jun Rong, market strategist at IG, said in an email.

The prospect of higher supplies from the US and OPEC+ along with doubts over China’s economic recovery continue to be of concern, while the odds of a December rate cut are now “closer to a coin flip” under a less dovish Federal Reserve, Yeap added.

China’s oil refiners in October processed 4.6 percent less crude than a year earlier, falling year-on-year for a seventh month, amid the closures of some plants and reduced operating rates at smaller independent refiners, data from the National Bureau of Statistics showed on Friday.

The decline in run rates occurred as China’s factory output growth slowed last month and demand woes in its property sector showed few signs of abating even though consumer spending increased, government data showed.

Oil prices also fell this week as major forecasters indicated market fundamentals remained bearish.

The International Energy Agency forecast global oil supply will exceed demand in 2025 even if cuts remain in place from OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, as rising production from the US and other outside producers outpaces sluggish demand.

The Paris-based agency raised its 2024 demand growth forecast by 60,000 barrels per day to 920,000 bpd, and left its 2025 oil demand growth forecast little changed at 990,000 bpd.

OPEC this week cut its forecast for global oil demand growth for this year and 2025, highlighting weakness in China, India and other regions, marking the producer group’s fourth-consecutive downward revision to its 2024 outlook.

US crude inventories last week rose by 2.1 million barrels, the Energy Information Administration said on Thursday, much more than analysts’ expectations for a 750,000-barrel rise.

Gasoline stocks fell by 4.4 million barrels last week to the lowest since November 2022, the EIA said, compared with analysts’ expectations in a Reuters poll for a 600,000-barrel build.

​Distillate stockpiles, which include diesel and heating oil, also fell unexpectedly by 1.4 million barrels, the data showed.


Fortune Global Forum to be held in Riyadh in 2025

Fortune Global Forum to be held in Riyadh in 2025
Updated 15 November 2024
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Fortune Global Forum to be held in Riyadh in 2025

Fortune Global Forum to be held in Riyadh in 2025

RIYADH: American football legend Tom Brady tossed a football to Saudi Arabia's General Secretariat of Council of Ministers Fahd bin Abdulmohsan Al-Rasheed who announced that the 2025 Fortune Global Forum will be held in Riyadh.

The elite of the world's business leaders will converge on Riyadh next year as the Fortune Global Forum makes its inaugural appearance at the Saudi capital.

Al-Rasheed joked that if he fumbled the ball, it was Brady's fault and if he caught it he is “a great player.”

 

The event, organized by Fortune magazine, is attended by presidents, chairmen and CEOs, as well as prestigious economists.

Fahd bin Abdulmohsan Al-Rasheed, chairman of the Saudi Convention and Exhibitions General Authority, said for the past 30 years the forum had brought together “the titans of industry around the world to the forefront of economic development.”

Speaking at this year’s forum, which concluded in New York on Tuesday, he added: “And that forefront today is the Kingdom of Saudi Arabia.”

He urged delegates to visit the Kingdom’s business epicenter to see what it had to offer.


Saudi Arabia launches company to transform Asir into global tourism hub

Saudi Arabia launches company to transform Asir into global tourism hub
Updated 14 November 2024
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Saudi Arabia launches company to transform Asir into global tourism hub

Saudi Arabia launches company to transform Asir into global tourism hub

RIYADH: Saudi Arabia’s Asir region has launched a new tourism venture through a partnership with the aim of creating a holding company to transform the area into a global tourist destination.

The collaboration between Aseer Investment Co., a subsidiary of the Public Investment Fund, and Rikaz Real Estate, aligns with the goal of transforming Asir into a world-class tourist destination that combines authentic heritage with sustainable development, according to the Saudi Press Agency.

The holding company seeks to contribute to enhancing a tourism environment that enriches guests’ experiences with unique offerings, connecting visitors to local culture and community traditions, SPA reported.

It is also committed to promoting sustainable tourism by protecting the environment, developing local communities, and collaborating with artisans and local businesses to preserve the authenticity of Asir’s heritage.

In October, the Kingdom’s Abha city secured a new investment partnership to boost tourism by developing culturally rich dining and retail experiences. 

PIF firm Aseer Investment Co. signed the deal with Nimr Real Estate and the National Co. for Tourism, or Syahya, to propel the project, the Saudi Press Agency reported. 

This aligns with the objectives of developing Abha, which will offer a range of benefits, including retail stores that reflect the cultural heritage of the Asir region.

The partnership also seeks to be a model for multiple collaborations with private sector investors and create more regional job opportunities.

Investments in the region are expected to create between 14,000 and 18,000 job prospects and contribute to up to 6 percent of the non-oil gross domestic product within 10 years, as outlined by AIC Chief Executive Osama Al-Othman in February.

Saudi Arabia emerged as a leader in tourism growth among G20 nations, experiencing a 73 percent increase in international visitors in the first seven months of 2024 compared to 2019.

According to the UN World Tourism Barometer report in September, the Kingdom welcomed 17.5 million international tourists during this timeframe, showcasing its growing allure as a global travel destination.

This surge is part of the nation’s Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil revenues.

“Saudi Arabia cements its global leadership and takes the first spot among G20 countries in international tourist arrivals growth, with a 73 percent increase in the first seven months of 2024 compared to the same period in 2019,” stated the Saudi Tourism Ministry on X.

Under the National Tourism Strategy, the Kingdom aims to attract 150 million visitors by 2030 and increase the sector’s contribution to the nation’s gross domestic product from 6 percent to 10 percent.

These goals reflect the country’s commitment to strengthening its tourism sector and enhancing its global appeal.


IMF, Saudi Arabia announce new annual conference tackling global economic challenges

IMF, Saudi Arabia announce new annual conference tackling global economic challenges
Updated 14 November 2024
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IMF, Saudi Arabia announce new annual conference tackling global economic challenges

IMF, Saudi Arabia announce new annual conference tackling global economic challenges

RIYADH: The International Monetary Fund and Saudi Arabia will jointly organize a high-level annual conference in AlUla to discuss global economic challenges, it has been announced.

The AlUla Conference for Emerging Market Economies will bring together a select group of finance ministers, central bank governors, and policymakers, along with leaders from the public and private sectors, representatives from international institutions, and members of academia.

According to a joint statement by Kristalina Georgieva, managing director of IMF and the Minister of Finance Mohammed Al-Jadaan, the first edition of this series will be held from Feb. 16-17, 2025.

“The world is confronting deeper and more frequent shocks, including from conflicts, geoeconomic fragmentation, pandemics, climate change, food insecurity, and the digital divide,” according to the statement.

They continued: “If not addressed adequately, these shocks put at risk emerging market economies’ hard-won improvements in living standards. Such setbacks would affect large segments of the world population and put at risk global growth and macro-financial stability.”

The gathering will offer a platform to exchange views on domestic, regional, and global economic developments and discuss policies and reforms to spur inclusive prosperity and build resilience supported by international cooperation.

Recent economic issues affecting the global landscape include rising inflation rates, driven by supply chain disruptions and increased demand for goods post-pandemic.

Supply chain delays continue to impact the availability of essential products, causing bottlenecks in manufacturing and increasing costs.

Additionally, geopolitical conflicts, such as the war in Gaza, have disrupted energy supplies and food exports, leading to global food insecurity and fuel price volatility.

Concerns over the using the Red Sea shipping lane increased dramatically at the end of 2023, when Houthi militants stepped up attacks on vessels in the wake of the escalation of the Israel-Hamas conflict.

The effects of these challenges pose significant risks to economic stability, especially for emerging markets that are more vulnerable to such global shocks.

The AlUla conference is the latest example of the growing relationship between Saudi Arabia and the IMF, with the organization in April establishing its first office in the Middle East and North Africa region in Riyadh.

The facility was launched during the Joint Regional Conference on Industrial Policy for Diversification, jointly organized by the IMF and the Ministry of Finance, on April 24.

The new office aims to strengthen capacity building, regional surveillance, and outreach to foster stability, growth, and integration, thereby promoting partnerships in the Middle East and beyond, according to the Saudi Press Agency.

The work hub will promote closer collaboration between the IMF and regional institutions, governments, and other stakeholders, according to the SPA report.

The IMF also expressed its gratitude to the Kingdom for its financial contribution aimed at supporting capacity development in member countries, including fragile states.


Closing Bell: Saudi Arabia’s TASI ends in the red, trading volume hits $2.95bn

Closing Bell: Saudi Arabia’s TASI ends in the red, trading volume hits $2.95bn
Updated 14 November 2024
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Closing Bell: Saudi Arabia’s TASI ends in the red, trading volume hits $2.95bn

Closing Bell: Saudi Arabia’s TASI ends in the red, trading volume hits $2.95bn

RIYADH: The Tadawul All Share Index concluded the last session of the week at 11,791.18 points, down by 139.27 points or 1.17 percent.

The MSCI Tadawul 30 Index also saw a decline, dropping 19.18 points to close at 1,481.36, reflecting a 1.28 percent loss. In contrast, the parallel market Nomu finished Thursday’s trading at 29,467.71 points, up 262.18 points or 0.90 percent.

TASI reported a trading volume of SR11.10 billion ($2.95 billion), with 51 stocks advancing and 182 declining. The top performer of the day was Saudi Cable Co., which saw its share price surge by 5.10 percent to SR92.70.

Other strong performers included Shatirah House Restaurant Co., which gained 3.75 percent to reach SR21, and Arabian Mills for Food Products Co., which rose by 3.08 percent to SR53.60. Naseej International Trading Co. and Saudi Real Estate Co. also posted notable gains.

The worst performer was Saudi Real Estate Co., which dropped 4.94 percent to close at SR10. Alkhaleej Training and Education Co. and Red Sea International Co. also suffered significant losses, with their share prices falling by 4.90 percent to SR29.10 and 4.84 percent to SR68.80, respectively. Astra Industrial Group and Al-Omran Industrial Trading Co. were also among the day’s largest decliners.

On the parallel market, Nomu, Alqemam for Computer Systems Co. was the top gainer, rising by 9.57 percent to SR103. Other gainers included Dar Almarkabah for Renting Cars Co., which climbed 9.10 percent to SR42.55, and Horizon Educational Co., which rose by 7.58 percent to SR79.50. Mulkia Investment Co. and Knowledge Tower Trading Co. also saw significant increases.

On the losing side of Nomu, WSM for Information Technology Co. recorded the largest drop, with its share price falling by 6.18 percent to SR44. Osool and Bakheet Investment Co. and Natural Gas Distribution Co. also experienced notable declines, with their shares dropping by 5.37 percent to SR37.85 and 5 percent to SR57, respectively.