Saudi Arabia on the verge of launching trials for outer space tourism

The CEO of the Saudi Space Agency, Mohammed Al-Tamimi, discussed the expanding role of spaceports and satellite deployment on the opening day of the 2024 Future Aviation Forum in Riyadh. 
The CEO of the Saudi Space Agency, Mohammed Al-Tamimi, discussed the expanding role of spaceports and satellite deployment on the opening day of the 2024 Future Aviation Forum in Riyadh. 
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Updated 20 May 2024
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Saudi Arabia on the verge of launching trials for outer space tourism

Saudi Arabia on the verge of launching trials for outer space tourism

RIYADH: Saudi Arabia is on the verge of launching an initiative in space tourism, according to a top official.

The CEO of the Saudi Space Agency, Mohammed Al-Tamimi, discussed the expanding role of spaceports and satellite deployment on the opening day of the 2024 Future Aviation Forum in Riyadh. 

The first day of the event showcased significant developments in tourism, aviation, and space exploration. Key figures from various sectors emphasized the rapid growth and strategic initiatives driving the industry forward.

“Within a window of 60 days from now, there will be an announcement to do some trials here in Saudi Arabia about space tourism,” Al-Tamimi revealed.

He also projected a significant increase in satellite launches, with expectations to send “36,000 satellites over the coming six years,” tripling the current number.

“Right now, we have more than 10,000 active commercial civil aviation airports. When it comes to spaceports, more than 20-22 are active in 12 different countries,” Al-Tamimi said.

Saudi Arabia’s Tourism Minister Ahmed Al-Khateeb said “over 330 million people are employed in the tourism sector worldwide, or one out of every 10 workers.” 

He also celebrated the Middle East’s post-pandemic tourism surge, led by Saudi Arabia, which saw a “remarkable 22 percent growth compared to 2019.” 

Al-Khateeb attributed this success to value-driven travel options, shorter trips, and closer destinations. 

He praised the new e-visa system that enables travelers from 66 countries, representing over 80 percent of the global travel market, to visit Saudi Arabia easily.

In November 2023, the Gulf Cooperation Council approved the unified tourist visa, which will launch by 2025. Secretary-General Jassim Mohammed Al-Budaiwi announced it during the 40th meeting of the GCC interior ministers in Muscat, Oman. 

Similar to the Schengen scheme, this visa will allow tourists to travel across all six GCC member states.

The senior vice president of Boeing Co. and president of Boeing Global, Brendan Nelson AO, addressed the importance of transparency and integrity in the aviation industry. 

“It’s important that you are authentic, that you’re transparent, that you are open and honest with your customers, your investors, certainly with the flying public,” Nelson stated. 

In January this year, an Alaska Airlines Boeing 737 Max 9 experienced a fuselage rupture shortly after takeoff at an altitude of 4.8 km above Oregon. 

Nelson also discussed Boeing’s strategic decision to slow down production to stabilize supply chains despite the high commercial cost.

“We expect that we’ll have supply chain issues well through to the end of this year, possibly into early next year,” he said. 

Nelson emphasized Boeing’s commitment to sustainable aviation fuel, noting that currently, only “0.2 percent of global aviation fuel demand is being met by SAF.” 

He highlighted the aerospace manufacturer’s partnership with Saudi Arabia in various projects, including a joint venture with Saudi Arabia Military Industries and collaborations on aerospace-grade materials and advanced resins.

Tony Douglas, CEO of Riyadh Air, outlined the ambitious goals of the new airline, which is to become a major international carrier. 

“We’re going to connect to way over 100 different destinations by 2030,” Douglas announced, aiming to achieve in five years what took Qatar Airways over 20. 

He highlighted Riyadh Air’s advantage of starting without legacy systems, enabling a modern and technologically advanced approach. 

Douglas also shared updates on the airline’s progress, including the hiring of top-rated pilots and employees. A cabin crew fashion reveal is scheduled for the Paris Fashion Show next month, and a digital proposition unveiling is in October.

The 2024 Future Aviation Forum continues to highlight the dynamic advancements and strategic collaborations shaping the future of aviation and space exploration in Saudi Arabia and beyond.


Saudi Public Investment Fund begins selling green sukuk and bonds

Saudi Public Investment Fund begins selling green sukuk and bonds
Updated 03 September 2024
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Saudi Public Investment Fund begins selling green sukuk and bonds

Saudi Public Investment Fund begins selling green sukuk and bonds

RIYADH: A banking document released today shows that the Saudi Public Investment Fund has started receiving orders to purchase three-year sukuk and green bonds maturing in 2032, according to Reuters.

The document states that the indicative price for the sukuk sale is approximately 110 basis points above US Treasury bonds and 135 basis points above the same index for $500 million in green bonds.


Saudi Arabia’s 24Fintech conference kicks off in Riyadh, highlighting sector’s rapid growth and ambitious future

Saudi Arabia’s 24Fintech conference kicks off in Riyadh, highlighting sector’s rapid growth and ambitious future
Updated 03 September 2024
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Saudi Arabia’s 24Fintech conference kicks off in Riyadh, highlighting sector’s rapid growth and ambitious future

Saudi Arabia’s 24Fintech conference kicks off in Riyadh, highlighting sector’s rapid growth and ambitious future
  • Saudi fintech sector has witnessed a remarkable trajectory since 2018, attracting $1.84 billion in venture capital investments

RIYADH: The 24Fintech Conference commenced today in Riyadh, marking a pivotal moment for Saudi Arabia’s burgeoning financial technology sector.

This landmark event has drawn global leaders, industry experts, and policymakers to explore the Kingdom’s transformative journey and prospects in the financial technology landscape.

The Saudi fintech sector has witnessed a remarkable trajectory since 2018, attracting $1.84 billion in venture capital investments, according to the General Authority for Small and Medium Enterprises or Monsha’at. Over this period, 216 Saudi-based startups have received funding, directly employing more than 6,500 people.

Saudi Central Bank Governor Ayman Al-Sayari opened the conference with a keynote address highlighting the profound changes in the Kingdom’s financial system.

Al-Sayari underscored that the emergence of a thriving fintech sector has been driven by technological innovation and national initiatives through Vision 2030. This sector’s growth has led to notable benefits, including expanded access to the financial system and improved transaction speed and cost efficiency.

He emphasized that the central bank focuses on stabilizing growth while fostering an environment conducive to innovation through its risk-based supervision framework.

Al-Sayari further elaborated on the evolution of the financial system in Saudi Arabia, saying: “Over the past few decades, the financial system has evolved significantly from its early days characterized by the concentration of traditional banks.”

He detailed how the first wave of transformation brought a broader range of institutions and financial services, while the second surge saw an expansion into fintech and non-bank companies, spurred by private sector growth and innovation.

In a significant announcement at the conference, SAMA unveiled a new agreement with Samsung to launch Samsung Pay in Saudi Arabia by the fourth quarter of 2024. This partnership is part of SAMA’s broader efforts to enhance the digital payments ecosystem, aligning with the Financial Sector Development Program, a key initiative of Saudi Vision 2030.

The Samsung Pay service aims to offer an advanced and secure payment experience, enabling users to easily store and manage their digital payment cards within the Samsung Wallet application, according to SAMA.

The agreement is part of the central bank’s strategy to expand the use of fintech solutions across the Kingdom and promote financial inclusion.

Saudi Finance Minister Mohammed Al-Jadaan also addressed the conference, underscoring the Kingdom’s significant strides in the fintech sector.

“By the end of the second quarter of 2024, the number of fintech companies in the Kingdom reached 224, surpassing the Financial Sector Development Program’s target of 168 companies for the same quarter,” Al-Jadaan said.

He highlighted that Saudi Arabia’s goal is to increase the number of fintech companies to 525 by 2030, contributing $3.5 billion to the economy and creating 18,000 jobs. Al-Jadaan also reported that venture capital investment in fintech companies reached SR7.1 billion by the end of the second quarter of 2024.

Presently, the Kingdom boasts 224 active fintech companies, with the first half of 2024 alone seeing $186 million raised across 50 deals, according to MAGNiTT. This marks a significant leap from the $66 million in fintech funding secured during the same period last year, and a substantial increase from the previous year’s $13 million.

The minister highlighted Saudi Arabia’s advanced payment infrastructure, with electronic operations accounting for 70 percent of total retail transactions in 2023, up from 62 percent the previous year.

“This achievement meets the Financial Sector Development Program’s target for 2025. We aim to increase this share to 80 percent by 2030,” Al-Jadaan added.

Al-Sayari also touched on the substantial growth in digital monetary operations, saying: “The share of cashless transactions has reached 70 percent of total payments last year.” He credited this progress to extensive infrastructure developments and collaborative efforts by various stakeholders over the past few decades.

“Our focus as a central bank remains on stabilizing growth,” he added.

Al-Sayari also reflected on the broader impact of the Kingdom’s fintech advancements, stating: “The fintech sector’s growth has led to notable benefits, including expanded access to the financial system and improved speed and reduction of transaction costs.”

SAMA aims to stabilize growth while fostering innovation through its risk-based supervision framework. 

The governor added that these efforts have led to a 57 percent increase in Saudi fintech companies since 2023, now totaling 230, and have the potential to further boost the nation’s financial sector and economic growth.

The 24Fintech Conference serves as a platform for startups, academics, and industry leaders to collaborate on shaping the future of the industry. 

With its National Fintech Strategy and Vision 2030 objectives advancing, Saudi Arabia is investing in the 24Fintech Conference to showcase its commitment to leading global fintech innovation.

This event marks a pivotal step in Saudi Arabia’s journey toward a more technologically advanced and economically diverse financial sector.


Virgin Atlantic to launch daily Riyadh-London route in March 2025

Virgin Atlantic to launch daily Riyadh-London route in March 2025
Updated 03 September 2024
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Virgin Atlantic to launch daily Riyadh-London route in March 2025

Virgin Atlantic to launch daily Riyadh-London route in March 2025

RIYADH: UK carrier Virgin Atlantic is set to introduce a direct flight between Riyadh and London starting March 2025, following a new agreement with Saudi Arabia’s Air Connectivity Program. 

The service will feature daily flights from Heathrow to King Khalid International Airport, operated with Airbus A330neo aircraft. 

The inaugural flight is scheduled for March 30, 2025, and will also offer 30 tonnes of cargo capacity for exporting and importing goods such as fresh produce and pharmaceuticals between Riyadh, the UK, and the US, according to a press release. 

This marks Virgin Atlantic as the tenth airline to partner with ACP this year, highlighting the program’s efforts to enhance aviation links in the Kingdom, the Saudi Press Agency reported. The new route supports ACP’s goal of expanding air connectivity and linking new international destinations to Saudi Arabia. 

“The entry of Virgin Atlantic with flights between London Heathrow Airport and Riyadh will enhance air connectivity and support the growth of international tourism to the Kingdom of Saudi Arabia from the UK and Virgin Atlantic’s network in North America,” said Majid Khan, CEO of ACP. 

The airline said it will offer a daily service to Riyadh, supporting growth anticipated from Saudi Vision 2030, with air travel between the UK and the Kingdom expected to grow 24 percent from 2019 to 2035. 

The launch aligns with Saudi Arabia’s Vision 2030, aimed at increasing the country’s flight route capacity and attracting over 150 million visitors by 2030. It also underscores Saudi Arabia’s ambition to establish itself as a major aviation hub bridging the East and West. 

Established in 2021, ACP serves as the executive arm of the National Tourism Strategy and National Aviation Strategy, focusing on fostering partnerships in the tourism and aviation sectors to position Saudi Arabia as a leading global destination for air tourism. 


Saudi Arabia’s non-oil sector growth resumes as PMI rises to 54.8

Saudi Arabia’s non-oil sector growth resumes as PMI rises to 54.8
Updated 03 September 2024
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Saudi Arabia’s non-oil sector growth resumes as PMI rises to 54.8

Saudi Arabia’s non-oil sector growth resumes as PMI rises to 54.8

RIYADH: Saudi Arabia’s non-oil sector registered its first growth since February on Riyad Bank’s Purchasing Managers’ Index, as the Kingdom’s overall score saw a monthly rise of 0.4 points.

The economic tracker for August came in at 54.8 – up from 54.4 in July – in a sign that business activity in Saudi Arabia is continuing to expand.

The report highlighted a key trend of robust job creation, with employment numbers increasing at one of the sharpest rates in a decade. This uptick in hiring reflects increased efforts by companies to expand their operating capacity, driven by a combination of rising new orders and positive business expectations.

The index remained below its long-run average of 56.9 and continued to indicate a slower pace of expansion compared to recent years.

Chief Economist at Riyad Bank Naif Al-Ghaith noted the expansion of business activity came  despite the challenges posed by the competitive market environment.

He added: “Saudi Arabia’s non-oil sector continues to demonstrate economic resilience, underscored by a robust 4.4 percent increase in non-oil GDP in the second quarter of 2024, reflecting the ongoing success of the Kingdom’s diversification efforts.”

Despite the positive indicators, the analysis also pointed out that overall growth in non-oil private sector output was at one of its weakest levels since early 2022. This slowdown has prompted businesses to reduce their selling prices for the second consecutive month in an effort to reaccelerate demand. 

While margins were squeezed, the rise in purchase costs was weaker compared to the previous month, offering some relief to companies.

Al-Ghaith added: “The increase in new export orders, although slower than the overall growth, shows that Saudi companies are finding opportunities abroad despite facing tough competition in international markets.”

He went on to say: “This expansion in exports is crucial for the Saudi economy as it works to diversify away from oil dependency and strengthen other sectors.”

The report also highlighted that non-oil firms were more optimistic about future activity, with expectations for the year ahead rising to their highest levels since March. Companies are anticipating further growth driven by investment, tourism, and population growth, which are expected to bolster output in the coming months.

“The Kingdom’s Vision 2030 initiative, aimed at reducing reliance on oil revenues, is bearing fruit as the non-oil economy continues to grow driven by a combination of domestic reforms and global economic integration,” Al-Ghaith concluded.

Across the region

Egypt’s non-oil private sector witnessed a notable resurgence in August, achieving growth for the first time in three years. 

The latest data from the S&P Global Egypt Purchasing Managers’ Index revealed a climb to 50.4 from 49.7 in July, crossing the critical 50 threshold that separates growth from contraction. 

This improvement signals a positive shift in operating conditions for non-oil businesses, a milestone not reached since November 2020.

The increase in PMI was driven by several encouraging developments within the sector. 

Businesses ramped up their output levels, expanded inventories, and hired additional staff as confidence in the market rebounded. 

The demand recovery, although fragile, contributed to this uplift, with many firms reporting a more stable macroeconomic environment and a rise in export business. 

These factors collectively bolstered business activity, which grew for the first time in three years, though the pace of expansion remained marginal.

David Owen, senior economist at S&P Global Market Intelligence, said: “The August survey data point to a recovery in business conditions, as the PMI’s rise above 50.0 reflects an improvement in non-oil businesses for the first time since late 2020.”

He added: “The growth in output, employment, and purchasing activity demonstrates that firms are increasingly confident about expanding their operations and capacity. However, the landscape remains challenging, with ongoing weak client demand and mounting inflationary pressures.”

Despite these positive indicators, the sector faced significant challenges, particularly on the cost side. The Egyptian pound’s continued depreciation against the US dollar led to a sharp increase in input costs, exacerbating inflationary pressures. 

Businesses reported substantial rises in purchase prices, which in turn forced them to increase their selling prices to safeguard margins. 

The pace of inflation accelerated for the third consecutive month, with transport costs and staff wages also climbing as firms adjusted salaries to cope with rising living costs.

The data also pointed to a mixed outlook for new orders, which declined slightly for the second month, reflecting continued weaknesses in client demand. This decline was only marginal, indicating that while the market stabilizes, it has not yet fully recovered.

In contrast to Egypt’s modest recovery, Kuwait’s non-oil private sector displayed signs of a slowdown in August. 

Competitive pressures within the market led to only marginal increases in output and new orders, with the S&P Global Kuwait PMI slipping below the 50 mark for the first time in over a year and a half, settling at 49.7. 

Employment in Kuwait’s non-oil sector also decreased for the first time in four months, as slower growth in new orders prompted some firms to reduce their workforce.

Andrew Harker, economics director at S&P Global Market Intelligence, said: “Intense competition in the Kuwaiti non-oil private sector dampened growth in August. 

“While businesses managed to increase activity, the pace was slow, and the decline in new orders suggests that firms are facing significant challenges in maintaining profit margins amidst rising costs.”


SAMA grants sandbox permits to Saudi fintechs XSquare, NeotTek, and MoneyMoon 

SAMA grants sandbox permits to Saudi fintechs XSquare, NeotTek, and MoneyMoon 
Updated 03 September 2024
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SAMA grants sandbox permits to Saudi fintechs XSquare, NeotTek, and MoneyMoon 

SAMA grants sandbox permits to Saudi fintechs XSquare, NeotTek, and MoneyMoon 

JEDDAH: Saudi fintech startups XSquare, NeotTek, and MoneyMoon have received permits from the Saudi Central Bank to test their solutions in its regulatory sandbox.

The first two companies are authorized to launch an open banking platform, while the third firm is permitted to launch a peer-to-peer lending platform. 

The approval highlights the efforts of the central bank, also known as SAMA, to support sector development and underscores its commitment to promoting financial inclusion and innovation, the institution said in a statement.

With these additions, the total number of fintech companies currently operating under its regulatory sandbox increased to 19, adding that since its launch in 2018, the sandbox has permitted 50 fintechs to test and refine their offerings in a controlled environment, SAMA said in its release.

The Kingdom’s National Fintech Strategy, part of Vision 2030’s Financial Sector Development Program, targets the establishment of 525 firms in the industry, the creation of 18,000 jobs, and a $3.5 billion economic contribution by 2030. 

The financial authority has also released the second update under the Open Banking Framework, which focuses on the Payment Initiation Service.

This initiative is part of SAMA’s efforts to further bolster the Saudi fintech ecosystem and is expected to improve consumer experience and transaction efficiency while creating new opportunities for the Kingdom’s fintech sector to offer a broader range of products and solutions, as per a separate statement.

SAMA’s Open Banking Framework provides a set of guidelines and technical standards grounded in international best practices to foster financial technology innovation services in the Kingdom.

The second release of the framework establishes standardized procedures for offering Payment Initiation Services in a reliable and secure manner. It also outlines the responsibilities of all parties involved in delivering PIS.

Saudi Arabia’s financial technology startups have secured over $1.84 billion in venture capital investments since 2018, according to the latest official SAMA report.

Saudi Arabia’s General Authority for Small and Medium Enterprises, also known as Monsha’at, said that since the launch of the Fintech Saudi initiative, the sector has flourished and investments have been directed into 216 firms, which now employ over 6,500 people. 

This significant capital influx underscores the rapid growth of the nation’s fintech sector, now the largest in the Middle East and North Africa region.