Saudi Arabia braces for Eid Al-Fitr rush with anticipated surge in airline passengers

Special Saudi Arabia braces for Eid Al-Fitr rush with anticipated surge in airline passengers
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Updated 10 April 2024
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Saudi Arabia braces for Eid Al-Fitr rush with anticipated surge in airline passengers

Saudi Arabia braces for Eid Al-Fitr rush with anticipated surge in airline passengers
  • Air travel between the UAE and Saudi Arabia alone has witnessed a noticeable surge

RIYADH: Buoyed by the millions of Umrah performers and worshippers throughout the holy month of Ramadan, Saudi Arabia braces for a surge in travel for Eid Al-Fitr. 

The spike is expected to result in a significant rise in the number of arriving and departing passengers from key Umrah airports. 

Air travel between the UAE and Saudi Arabia alone has witnessed a noticeable surge, driven by increasing demand from individuals wishing to perform Umrah rituals during the holy month of Ramadan. The demand generally reaches its peak during the last 10 days of the holy month. 

According to the UAE’s General Civil Aviation Authority statistics, flights between the UAE and Saudi Arabia increased by 13.3 percent in March, rising to around 383 weekly flights compared to approximately 338 in February, coinciding with the beginning of Ramadan. 

Saudi aviation management firm Matarat Holding predicts that overall travelers will reach 6.6 million this year, reflecting a 25 percent growth compared to the previous year. 

Khaled Al-Hamash, executive vice president of strategy at Matarat, told Arab News: “Those traveling on Umrah charter flights are 500,000 passengers and the rest are scheduled. Those traveling from and to international destinations are 4.7 million passengers and the rest are domestic.”   

This comes as the Kingdom witnessed a significant influx of travelers last year. According to data released by Saudi Arabia’s General Authority of Civil Aviation in May 2023, the number of passengers to and from its airports during Ramadan and Eid Al-Fitr exceeded 11.5 million people from the beginning of the holy month until the ninth of Shawwal. 

The success of last year’s hosting sets a precedent for this year’s Eid Al-Fitr celebrations, indicating the Kingdom’s readiness to facilitate travel and accommodate pilgrims during this festive period.  

The impact on traveling during Eid Al-Fitr this year is anticipated to be significant, suggesting that travel demand during the season will be much higher based on previous figures. 

“Eid holidays have traditionally been peak travel season for domestic and international travelers from Saudi,” Muzammil Ahussain, CEO of Almosafer, told Arab News.  

He added: “This year too we have witnessed an initial upsurge in bookings for the Eid travel season. With many preferring to finalize their travel plans closer to the holidays, we are anticipating even greater demand for flights and hotel stays.”  

Ahussain explained that many residents prefer shorter flights and are opting for staycation trips. This choice allows them to spend quality time with family while exploring popular tourist destinations within the country.  

“Trips to AlUla and Al Ahsa are particularly attractive to domestic travelers, with top destinations like Riyadh, Dammam, and Jeddah drawing travelers,” he said.  

For international trips, the CEO noted that destinations including Dubai, Cairo, and European capitals like Paris and London continue to be “all-time favorites” among travelers from Saudi Arabia.  

“This year, we are also witnessing a greater demand for travel to Turkiye and Thailand, as well as far-Eastern destinations like Korea and Japan,” he added.  

Capacity addition   

Given the high demand during the Eid Al-Fitr period, airlines strategically adapt to accommodate the surge in passengers, both domestically and internationally. 

This includes significant increases in seat capacity and flight frequency, ensuring smoother travel experiences for all passengers.  

Saudia, for instance, has significantly increased the number of seats both domestically and internationally for this year’s Eid compared to the previous year’s season.   

According to the Kingdom’s national carrier, the allocation of international sector seats rose by 36 percent to over 246,000 seats, with 602 flights, marking a 44 percent increase compared to Eid 2023.  

Additionally, the domestic sector experienced a surge in seat capacity, with an increase of 21 percent totaling more than 270,000 seats. This was accompanied by 1,300 flights, reflecting a 21 percent increase compared to the previous year’s Eid season.  

“Saudia is committed to providing a flexible operational plan throughout the year and during peak seasons. As we mark the end of Ramadan and the beginning of Eid Al-Fitr, we are seeing a high travel demand and are prepared to provide additional flights and increase seat capacity to address the growing demand,” Sulaiman Yaqoobi, chief operating officer at Saudia Group, told Arab News.  

He added: “We are also sharing the spirit of Eid with Saudia’s guests onboard and at AlFursan lounges by distributing sweets and broadcasting Eid Takbeer, as we always strive to give our guests the best experience possible.”  

Saudia is also capitalizing on this opportunity by offering a promotional deal, featuring a 25 percent discount for travel between Saudi Arabia, other Gulf Cooperation Council countries, and Egypt in the hospitality class.  

The booking window for this offer is from April 7 to April 30, with the travel period spanning from April 9 to Sept. 30, 2024.  

The Almosafer CEO highlighted that Dubai stands out as a “preferred destination” due to its proximity to Saudi Arabia and its visa-free status for Saudi passport holders, making travel there convenient, “which means people can travel with great ease.” 

According to the latest data from the UAE’s GCAA, flydubai increased its flights to the Kingdom by 40 percent from 93 weekly flights in February to 130 flights in March, while Etihad Airways also increased its flights by more than 22.2 percent, from 63 flights in February to 77 flights in March. 

Meanwhile, Emirates operated approximately 67 weekly flights to the Kingdom in March, covering Dammam, Jeddah, Madinah, and Riyadh, while Wizz Air Abu Dhabi operated about 21 weekly flights including Dammam and Madinah. 

Additionally, flights operated by Air Arabia reached approximately 88 weekly flights, the GCAA data showed. 

During Ramadan and the Umrah season, from March 11 to April 7, Etihad Airways successfully transported around 45,000 passengers to its destinations in Saudi Arabia. Most travelers visiting the Kingdom during this period were from the UAE, India, Pakistan, and Indonesia. 

Surge in flights   

The impact on traveling during Eid Al-Fitr is significant, with Saudi Arabia’s demonstrated ability to manage crowds and ensure the smooth operation of religious events providing reassurance to travelers.  

Furthermore, the distribution of passengers across key Umrah airports offers insights into the nation’s transportation infrastructure and connectivity.   

Jeddah’s King Abdulaziz International Airport emerges as the primary gateway for Umrah travelers, accommodating a staggering 81 percent of the anticipated passengers.  

“Although Jeddah’s King Abdulaziz International Airport has the most traffic, Madinah’s Prince Mohammed Bin Abdulaziz International Airport follows suit, handling 16 percent of the total traffic,” Al-Hamash said.  

He added: “Taif International Airport and Prince Abdul Mohsin Bin Abdulaziz International Airport in Yanbu serve as additional entry points.”  

Al-Hamash also outlined the anticipated number of arriving and departing flights, both chartered and scheduled, to and from major Umrah airports during the season, spanning from the first Ramadan to the sixth of Shawwal or until after Eid Al-Fitr.  

“The total expected number of flights surpasses 37,000, indicating a notable 19 percent increase compared to the previous year,” he said.  

Overall, the Umrah and Eid Al-Fitr holidays are playing a key role in reviving the hospitality industry, signaling a return to the robust performance recorded across the GCC region.


Oil Updates – crude heads for weekly gains on anxiety over intensifying Ukraine war

Oil Updates – crude heads for weekly gains on anxiety over intensifying Ukraine war
Updated 22 November 2024
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Oil Updates – crude heads for weekly gains on anxiety over intensifying Ukraine war

Oil Updates – crude heads for weekly gains on anxiety over intensifying Ukraine war

LONDON: Oil prices extended gains on Friday, heading for a weekly uptick of more than 4 percent, as the Ukraine war intensified with Russian President Vladimir Putin warning of a global conflict.

Brent crude futures gained 10 cents, or 0.1 percent, to $74.33 a barrel by 7:48 a.m. Saudi time. US West Texas Intermediate crude futures rose 13 cents, or 0.2 percent, to $70.23 per barrel.

Both contracts jumped 2 percent on Thursday and are set to cap gains of more than 4 percent this week, the strongest weekly performance since late September, as Moscow stepped up its offensive against Ukraine after the US and Britain allowed Kyiv to strike Russia with their weapons.

Putin said on Thursday it had fired a ballistic missile at Ukraine and warned of a global conflict, raising the risk of oil supply disruption from one of the world’s largest producers.

Russia this month said it produced about 9 million barrels of oil a day, even with output declines following import bans tied to its invasion of Ukraine and supply curbs by producer group OPEC+.

Ukraine has used drones to target Russian oil infrastructure, including in June, when it used long-range attack drones to strike four Russian refineries.

Swelling US crude and gasoline stocks and forecasts of surplus supply next year limited price gains.

“Our base case is that Brent stays in a $70-85 range, with high spare capacity limiting price upside, and the price elasticity of OPEC and shale supply limiting price downside,” Goldman Sachs analysts led by Daan Struyven said in a note.

“However, the risks of breaking out are growing,” they said, adding that Brent could rise to about $85 a barrel in the first half of 2025 if Iran supply drops by 1 million barrels per day on tighter sanctions enforcement under US President-elect Donald Trump’s administration.

Some analysts forecast another jump in US oil inventories in next week’s data.

“We will be expecting a rebound in production as well as US refinery activity next week that will carry negative implications for both crude and key products,” said Jim Ritterbusch of Ritterbusch and Associates in Florida.

The world’s top crude importer, China, meanwhile on Thursday announced policy measures to boost trade, including support for energy product imports, amid worries over Trump’s threats to impose tariffs.


Bitcoin approaches $100,000 on optimism over Trump crypto plans

Bitcoin approaches $100,000 on optimism over Trump crypto plans
Updated 22 November 2024
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Bitcoin approaches $100,000 on optimism over Trump crypto plans

Bitcoin approaches $100,000 on optimism over Trump crypto plans
  • Bitcoin has doubled this year, up 40 percent since US election
  • Trump, pro-crypto Congress seen clearing regulatory clouds

SINGAPORE/LONDON/NEW YORK: Bitcoin came within a whisker of closing above $100,000 for the first time on Thursday as the election of Republican Donald Trump as US president spurred expectations that his administration will create a friendly regulatory environment for cryptocurrencies.
The world’s largest cryptocurrency was trading between $98,000 and $99,000 in late afternoon trading in the US on Thursday, after briefly touching $99,073. Bitcoin has more than doubled in value this year and is up about 40 percent in the two weeks since Trump was voted in as the next US president and a slew of pro-crypto lawmakers were elected to Congress.
Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and to accumulate a national stockpile of bitcoin.
Crypto investors see an end to increased scrutiny under US Securities and Exchange Commission Chair Gary Gensler, whom Trump has said he will replace.
Trump also unveiled a new crypto business, World Liberty Financial, in September. Although details about the business have been scarce, investors have taken his personal interest in the sector as a bullish signal.
Billionaire Elon Musk, a major Trump ally, is also a proponent of cryptocurrencies.
Over 16 years after its creation, bitcoin appears on the cusp of mainstream acceptance.
“Everyone who’s bought bitcoin at any point in history is currently in profit,” Alicia Kao, managing director of crypto exchange KuCoin, said.
“But those who bought it early, when there were significant obstacles to doing so and there was the might of the world’s financial and governmental forces intent on crushing it, are the real winners. Not because they’re rich, but because they’re right.”
Bitcoin’s rebound from a slide below $16,000 in late 2022 has been rapid, boosted by the approval of US-listed bitcoin exchange-traded funds in January this year.
The Securities and Exchange Commission had long attempted to block ETFs from investing in bitcoin, citing investor protection concerns, but the products have allowed more investors, including institutional investors, to gain exposure to bitcoin.
Crypto rush
More than $4 billion has streamed into US-listed bitcoin exchange-traded funds since the election. This week, there was a strong debut for options on BlackRock’s ETF, with call options — bets on the price going up — more popular than puts.
“There is a persistent bid in the market,” said Joe McCann, CEO and founder of Asymmetric, a digital assets hedge fund in Miami. “$100,000 is a foregone conclusion.”
Crypto-related stocks have soared along with the bitcoin price and shares in bitcoin miner MARA Holdings were up nearly 2.3 percent on Thursday.
“Once you break out to new highs, you attract a lot of new capital,” John LaForge, head of real asset strategy at Wells Fargo Investment Institute, said.
“It’s like gold in the 1970s, where this new high is in a price discovery mode. You don’t know how high it’s going to go,” he said.
Yet the rise is not without critics.
Two years ago, the industry was wracked by scandal with the collapse of the FTX crypto exchange and the jailing of its founder Sam Bankman-Fried.
The cryptocurrency industry also has been criticized for its energy usage, with miners under scrutiny over their potential impact on power grids and greenhouse gas emissions due to their energy-intensive operations.
Crypto crime also remains a concern, with an analysis by crypto researchers Chainalysis finding that at least $24.2 billion worth of crypto was sent to illicit wallet addresses last year, including addresses identified as sanctioned or linked to terrorist financing and scams.
 


Saudi Arabia’s GACA ushers in new era of passenger experience with AI

Saudi Arabia’s GACA ushers in new era of passenger experience with AI
Updated 21 November 2024
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Saudi Arabia’s GACA ushers in new era of passenger experience with AI

Saudi Arabia’s GACA ushers in new era of passenger experience with AI

JEDDAH: Saudi Arabia’s aviation authority is revolutionizing the passenger experience by incorporating artificial intelligence into its services, in alignment with the nation’s strategic aviation plan, a senior Saudi official said.

At the 2024 Global Civil Aviation Forum in Shanghai, Abdulaziz bin Abdullah Al-Dahmash, vice president of the General Authority of Civil Aviation for Quality and Passenger Experience, highlighted the authority’s ongoing initiatives designed to improve passenger satisfaction.

A session dedicated to GACA’s role in enhancing the passenger experience featured international experts and focused on the authority's efforts to align with Saudi Arabia's aviation strategy and Vision 2030.

The discussion underscored Saudi Arabia's use of data analytics and AI to transform the aviation sector, supporting the National Aviation Strategy and the broader Vision 2030 objectives. This approach is part of the Kingdom's goal to achieve excellence in both aviation services and infrastructure.

The National Aviation Strategy serves as a roadmap to solidify Saudi Arabia’s position as a global leader in tourism, business travel, and logistics. Built around three core pillars — empowering national tourism, improving domestic aviation, and aligning with Vision 2030 — the strategy aims to enhance interconnectivity, increase the market share of national carriers, and expand airport infrastructure.

By leveraging its strategic location and investment potential, Saudi Arabia’s aviation strategy directly contributes to Vision 2030, which aims to strengthen services and bolster the travel and logistics sectors.

Al-Dahmash noted that to achieve the National Aviation Strategy’s ambitious goals, which include tripling passenger traffic to 330 million annually by 2030, Saudi Arabia is prioritizing major infrastructure projects.

This includes constructing new airports, such as the King Salman International Airport, and expanding existing ones to accommodate the surge in passenger numbers. Alongside this, there is a strong focus on improving operational efficiency and enhancing the overall passenger experience.

In this context, GACA is actively developing and implementing programs to meet evolving passenger expectations. One such innovation is the introduction of AI-powered systems that manage and monitor passenger flow, tracking wait times across Saudi airports.

Additionally, the “Bagless Traveler” initiative is transforming the travel process by enabling passengers to complete check-in and baggage handling from their accommodation. During its pilot phase, the service successfully assisted over one million passengers, with more than 2 million bags processed without incident.

Al-Dahmash also emphasized the importance of regulatory frameworks that GACA has implemented, noting that these efforts have significantly improved services at Saudi airports, leading to higher levels of passenger satisfaction. This success has garnered recognition, with several airports receiving local and international awards.

Moreover, GACA has presented its innovative passenger experience programs at global conferences, sharing its best practices with civil aviation authorities worldwide, demonstrating how others can leverage these advancements for similar success.


Closing Bell: Saudi main index slips to close at 11,840

Closing Bell: Saudi main index slips to close at 11,840
Updated 21 November 2024
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Closing Bell: Saudi main index slips to close at 11,840

Closing Bell: Saudi main index slips to close at 11,840
  • Parallel market Nomu gained 681.17 points, or 2.28%, to close at 30,540.28
  • MSCI Tadawul Index lost 4.52 points, or 0.30%, to close at 1,486.82

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 27.40 points, or 0.23 percent, to close at 11,840.52. 

The total trading turnover of the benchmark index was SR5.39 billion ($1.43 billion), as 98 of the stocks advanced and 131 retreated. 

The Kingdom’s parallel market Nomu gained 681.17 points, or 2.28 percent, to close at 30,540.28. This comes as 63 of the listed stocks advanced, while 23 retreated. 

The MSCI Tadawul Index lost 4.52 points, or 0.30 percent, to close at 1,486.82. 

The best-performing stock of the day was Al-Baha Investment and Development Co., whose share price surged 10 percent to SR0.33. 

Other strong performers included Saudi Reinsurance Co., with a 7.05 percent increase in its share price to SR43.30, and Saudi Chemical Co., which saw its share price rise 5.46 percent to SR10.24. 

Saudi Cable Co. recorded the largest decline, with its share price dropping 4.02 percent to SR97.90. 

CHUBB Arabia Cooperative Insurance Co. also saw its stock fall 3.13 percent to SR49.50. 

Naseej International Trading Co. experienced a 2.64 percent drop in its share price, which fell to SR92.30. 

On the announcements front, Saudi Awwal Bank has disclosed its intention to issue an SR-denominated Additional Tier 1 Sukuk through a private placement in the Kingdom, as part of its SR20 billion Additional Tier 1 Sukuk issuance program. 

According to a Tadawul statement, the bank has appointed HSBC Saudi Arabia as the sole lead manager for the proposed offer. The statement said the purpose of the issuance is to strengthen the bank’s capital base and support the achievement of its long-term strategic objectives. 

The amount and terms of the sukuk will be determined at a later stage, based on market conditions at that time. 

Saudi Awwal Bank closed the session at SR31.40, down 0.63 percent. 

The Saudi Investment Bank has announced the completion of its US dollar-denominated Additional Tier 1 capital sustainable sukuk offering under its Additional Tier 1 capital sukuk program. 

A bourse filing revealed that the offer is valued at $750 million, comprising 3,750 sukuk with a par value of $200,000 each and a return of 6.275 percent. 

The sukuk have a perpetual maturity, callable after five years. Settlement of the sukuk issuance is scheduled for Nov. 27, and the sukuk will be listed on the London Stock Exchange’s International Securities Market. 

Saudi Investment Bank closed the session at SR13.88, down 0.29 percent. 


Aramco to increase borrowing, focus on dividend growth, CFO says

Aramco to increase borrowing, focus on dividend growth, CFO says
Updated 21 November 2024
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Aramco to increase borrowing, focus on dividend growth, CFO says

Aramco to increase borrowing, focus on dividend growth, CFO says

RIYADH: Saudi Aramco plans to increase borrowing and focus on enhancing its dividend distribution strategy, revealed the company’s chief financial officer. 

In an interview with Bloomberg, Ziad Al-Murshed explained that this move is part of the company’s efforts to optimize its capital structure. 

Aramco is considered one of the pillars of the Saudi economy, encompassing the entire oil production chain, from hydrocarbon extraction to energy generation, as well as refining and commercial distribution activities.  

“You’ll see us do a couple of things. One is, just take on more debt compared to use of equity,” Al-Murshed said during the interview. 

“It’s nothing to do with the dividend, it is optimizing our capital structure so that we end up with a lower weighted average cost of capital,” he added. 

Aramco returned to the debt market earlier this year after a three-year hiatus, raising $9 billion in two separate issuances. In June, it launched a $6 billion offering of dollar-denominated bonds, followed by a $3 billion issuance of Islamic bonds in September.   

The CFO noted: “We had the luxury of sitting out those three years until the market became conducive.” 

Al-Murshed provided insight into how the company increased its dividend by 4 percent in each of the past two years and is now paying over $81 billion in base dividends. 

“We’re looking for it to be progressive over the years,” he said, adding that the company’s free cash flow supports this strategy. 

While the company plans to issue debt regularly, Al-Murshed emphasized that it will not be overly frequent and revealed that Aramco has no plans to sell more debt for the remainder of 2024. 

“We want to be active, but we don’t want to be too active,” he said. 

The CFO further clarified that the company’s decision to sell debt is primarily aimed at broadening its investor base. 

Al-Murshed did not specify whether Aramco would borrow to support its dividend payments, which are set to total $124 billion this year, exceeding the company’s earnings. 

Earlier this month, Aramco reported a net profit of SR103.37 billion ($27.52 billion) for the third quarter of 2024, exceeding analyst expectations, which had projected a median net income of $26.9 billion. 

However, in a statement released at the time, the company noted a 15.4 percent decline in net profit compared to the same period in 2023, attributed to challenging market conditions, including lower prices for crude oil, refined products, and chemicals. 

Aramco’s vision remains to be the world’s leading integrated energy and chemicals company, operating in a safe, sustainable, and reliable manner.