PIF-owned Riyadh Air, China Eastern Airlines sign deal to enhance connectivity, digitalization 

PIF-owned Riyadh Air, China Eastern Airlines sign deal to enhance connectivity, digitalization 
Tony Douglas, CEO of Riyadh Air, was at the signing ceremony. Riyadh Air
Short Url
Updated 05 June 2024
Follow

PIF-owned Riyadh Air, China Eastern Airlines sign deal to enhance connectivity, digitalization 

PIF-owned Riyadh Air, China Eastern Airlines sign deal to enhance connectivity, digitalization 

RIYADH: Saudi Arabia’s newest carrier Riyadh Air has inked a deal with China Eastern Airlines to bolster future connectivity and enhance collaboration on digital transformation.

The agreement, signed at the International Air Transport Association Annual General Meeting in Dubai, marks a significant step for the Public Investment Fund-owned airline toward entering the vital Chinese market, according a press release.

The newly inked MoU also aligns with the Kingdom’s plans to increase passenger numbers and expand flight routes.   

“This MoU marks a significant milestone for Riyadh Air as China is a hugely important market for our future network. By closely collaborating with China Eastern Airlines, a leading player in the Chinese market, we can unlock new travel opportunities and drive economic growth across both countries,” CEO of Riyadh Air Tony Douglas said.

“We are particularly excited to explore synergies in digital innovation, where both airlines share a commitment to the future of travel,” Douglas added. 

The CEO went on to note that the collaboration extends beyond conventional connectivity, fostering collaboration on digital transformation, a critical area for the Chinese airline. 

He said: “Recognizing China Eastern’s ongoing digitalization efforts, Riyadh Air sees immense potential for knowledge sharing and technology development.” 

He concluded by highlighting that Riyadh Air’s pioneering approach perfectly aligns with China Eastern’s focus on digital transformation, creating a powerful partnership for the future.

Chairman of China Eastern Airlines Wang Zhiqing said: “The signing of this MoU outlines the broad direction for cooperation between the two companies in areas such as business and promotes exchanges in information technology and digital operations.”

Zhiqing added: “We are full of anticipation for the outcomes of this cooperation. China Eastern Airlines is committed to driving high-quality development through comprehensive digital empowerment, enhancing core competitiveness, and providing excellent products and experiences for our customers.”  

The chairman stressed that the agreement will ease passenger transfers between China and regions such as the Middle East, Europe, Africa, and South America. 

Earlier in June, the PIF-backed firm signed agreements with two major carriers, Singapore Airlines and Air China, to establish strategic partnerships and expand its global network.  

The deals signed at the time focused on interline connectivity, codeshare arrangements, and potential collaboration in frequent flyer programs as well as cargo services, customer experience, and digital innovation.  


Oil Updates — crude near 3-week high on supply fears, US stocks drop

Oil Updates — crude near 3-week high on supply fears, US stocks drop
Updated 26 March 2025
Follow

Oil Updates — crude near 3-week high on supply fears, US stocks drop

Oil Updates — crude near 3-week high on supply fears, US stocks drop
  • Brent, WTI hit three-week highs in the previous session
  • Trump press on Venezuelan, Iranian oil fans bullish sentiment
  • Russia, Ukraine agree to sea, energy truce

NEW YORK/SINGAPORE: Oil prices edged higher on Wednesday on supply concerns with the US stepping up efforts to limit Venezuelan and Iranian oil exports, while a bigger-than-expected drop in US crude inventories also lent support.

Brent crude futures gained 20 cents, or 0.3 percent, to $73.22 a barrel by 7:04 a.m. Saudi time, while US West Texas Intermediate crude futures rose 20 cents, or 0.3 percent, to $69.20 a barrel.

Both contracts hit their highest in three weeks in the previous session.

“Crude oil prices maintain their bullish bias after Trump’s sanctions on Venezuelan oil, raising supply-side concerns,” Priyanka Sachdeva, a senior market analyst at Phillip Nova, wrote in a market commentary on Wednesday.

On Monday Trump signed an executive order authorizing his administration to impose blanket 25 percent tariffs under the 1977 International Emergency Economic Powers Act on imports from any country that buys Venezuelan crude oil and liquid fuels.

Oil is Venezuela’s main export. China, already a target of US import tariffs, is its largest buyer.

Trade of Venezuelan oil to top buyer China stalled on Tuesday, as Chinese traders and refiners said they were waiting to see how the order would be implemented and whether Beijing would direct them to stop buying.

Washington last week also imposed a new round of sanctions on Iran’s oil sales targeting entities including Shouguang Luqing Petrochemical, a “teapot,” or independent refinery in east China’s Shandong province, and vessels that supplied oil to such plants in China, the top buyers of Iranian crude.

The market was also buoyed by American Petroleum Institute data that showed US crude inventories fell by 4.6 million barrels last week, a sign of healthy demand for fuel in the world’s largest economy.

Analysts polled by Reuters were expecting a decline of 1 million barrels.

Official US government data on crude inventories is due on Wednesday.

The upswing in oil prices is a temporary phenomenon, with the potential economic slowdown due to Trump’s tariffs keeping a lid on price gains, Phillip Nova’s Sachdeva said.

Further capping oil prices, the US reached deals with Ukraine and Russia to pause attacks at sea and against energy targets, with Washington agreeing to push to lift some sanctions against Moscow.

Kyiv and Moscow both said they would rely on Washington to enforce the deals, while expressing skepticism that the other side would abide by them.


Tesla says it will launch in Saudi Arabia in April

Tesla says it will launch in Saudi Arabia in April
Updated 16 min 14 sec ago
Follow

Tesla says it will launch in Saudi Arabia in April

Tesla says it will launch in Saudi Arabia in April
  • Elon Musk’s electric vehicle brand trades in other countries in the Middle East, but not in Saudi Arabia

RIYADH: US-based electric vehicle manufacturer Tesla will begin its operations in Saudi Arabia next month, the company has announced.

Scheduled to launch on April 10 at the Bujairi Terrace in Riyadh, the EV maker — led by CEO Elon Musk— has been active in several countries in the Middle East but is yet to establish its presence in the Kingdom, the largest market in the Gulf region. 

The upcoming launch of Tesla also aligns with Saudi Arabia’s broader strategy to reduce its dependence on crude revenues. 

The move is also expected to contribute to the Kingdom’s sustainable journey, with the nation targeting to achieve net-zero emissions by 2060. 

“You and your family are warmly invited to our launch event at the Bujairi Terrace on April 10. Explore our global bestselling lineup and step into a world powered by solar energy, sustained by batteries, and driven by electric vehicles,” the company said on its website. 

It added: “Experience the future of autonomous driving with Cybercab, and meet Optimus, our humanoid robot, as we showcase what’s next in AI (artificial intelligence) and robotics.” 

The company did not disclose when these electric vehicles will be available for purchase in Saudi Arabia.

Tesla’s entry into the Kingdom comes at a tumultuous time for the company, as it is facing a decline in sales across various markets like Europe and the US. 

According to data from the European Automobile Manufacturers Association, Tesla has witnessed a 42.6 percent drop in sales on the continent in 2025, even as overall purchases of electric vehicles in the region continue to rise. 

In the US, widespread protests have been organized against Tesla in recent months, following Musk’s appointment as the head of the Department of Government Efficiency under the Donald Trump administration. 

The Saudi government has actively promoted the EV industry to achieve economic diversification and sustainability. 

The Kingdom’s Public Investment Fund is the majority investor in Lucid Group, a startup competing with Tesla in the global market. 

In January, Lucid Motors became the first global automotive company to join the Kingdom’s “Made in Saudi” program. The milestone grants the firm the right to use the “Saudi Made” label on its products, representing the Kingdom’s focus on quality and innovation.


IMF reaches staff-level agreement with Pakistan on first review of $7 billion bailout

IMF reaches staff-level agreement with Pakistan on first review of $7 billion bailout
Updated 26 March 2025
Follow

IMF reaches staff-level agreement with Pakistan on first review of $7 billion bailout

IMF reaches staff-level agreement with Pakistan on first review of $7 billion bailout
  • Review will ensure “total access over the 28 months of around $1.3 billion,” the IMF said
  • Islamabad secured the $7 billion EFF last summer to help claw its way out of economic crisis

KARACHI: IMF staff and Pakistani authorities have reached a staff-level agreement on the first review under Pakistan’s Extended Fund Facility (EFF) and on a new arrangement under the Resilience and Sustainability Facility (RSF), the IMF said on Tuesday. 

Islamabad secured the $7 billion EFF last summer to help claw its way out of an economic crisis, with an immediate disbursement of about $1 billion.

“The strong implementation of the EFF-supported program continues, and the authorities remain committed to advancing a gradual fiscal consolidation to sustainably reduce public debt, maintaining a sufficiently tight monetary policy to keep inflation low, accelerating cost-reducing energy sector reforms to enhance its viability, and implementing Pakistan’s reform agenda to accelerate growth, while strengthening social protection and health and education spending,” the IMF said in a statement as it announced the staff-level agreement. 

The agreement comes after an IMF team led by Nathan Porter held discussions from February 24-March 14 in Karachi and Islamabad.

The review will ensure “total access over the 28 months of around $1.3 billion,” the IMF said.

“The staff-level agreement is subject to approval of the IMF’s Executive Board. Upon approval, Pakistan will have access to about $1.0 billion (SDR 760 million) under the EFF, bringing total disbursements under the program to about $2.0 billion.”

Porter said over the past 18 months, Pakistan had made significant progress in restoring macroeconomic stability and rebuilding confidence despite a challenging global environment. 

“While economic growth remains moderate, inflation has declined to its lowest level since 2015, financial conditions have improved, sovereign spreads have narrowed significantly, and external balances are stronger,” the statement said. 

Porter said it was critical to entrench the progress achieved over the past one and a half years, building resilience by further strengthening public finances, ensuring price stability, rebuilding external buffers and eliminating distortions in support of stronger, inclusive and sustained private sector-led growth.

The IMF program has played a key role in stabilizing Pakistan’s economy and the government has said the country is on course for a long-term recovery.

Meanwhile, the RSF will support Pakistan’s efforts in building resilience to natural disasters, enhancing budget and investment planning to promote climate adaptation, improving the efficient and productive use of water, strengthening the climate information architecture to improve disclosure of climate risks, and aligning energy sector reforms with mitigation targets.


Pakistani energy giants increase investment in Reko Diq copper-gold mine project to $1.25 billion

Pakistani energy giants increase investment in Reko Diq copper-gold mine project to $1.25 billion
Updated 25 March 2025
Follow

Pakistani energy giants increase investment in Reko Diq copper-gold mine project to $1.25 billion

Pakistani energy giants increase investment in Reko Diq copper-gold mine project to $1.25 billion
  • Reko Diq, one of the world’s largest underdeveloped copper-gold mine, is jointly owned by Canadian mining firm Barrick Gold Corp. and Pakistan
  • Feasibility study shows project has a mining life of 37 years and is expected to yield 13.1 million tons of copper and 17.9 million ounces of gold

KARACHI: Pakistani state-owned Oil & Gas Development Company Ltd. (OGDCL) and Pakistan Petroleum Ltd. (PPL) have increased their investments in the Reko Diq gold and copper mining project to $1.25 billion, the energy firms said in separate filings in the Pakistan Stock Exchange (PSX).
The OGDCL and PPL, each holding 8.33 percent stake in the multi-billion-dollar project through Pakistan Minerals (Private) Limited, have completed their feasibility studies. The third state-owned shareholder is Government Holdings (Private) Limited, according to the stock filings.
Each of the two oil and gas explorers have decided to increase their funding commitment with respect to the project, reflecting their pro rata share of total capital investment, inclusive of project financing costs, to $627 million. The financing cost is to be adjusted according to the actual project cost and inflation.
On Tuesday, the Economic Coordination Committee (ECC) of the federal cabinet also approved a summary regarding the Reko Diq project and changes in its overall development plan, the Finance Division said in a statement.
“The ECC took up a summary by the Petroleum Division regarding the Reko Diq Project and changes in its overall development plan and related financial commitments and project finance considerations due to inflation and enhanced scope of the project concerning capacity, energy mix, alternative water supply options and updated processing plants and machinery,” the statement read.
“The ECC noted the factors leading to the project escalations, and approved the proposals contained in the summary with the directions to the Ministries of Petroleum & Finance to continue close coordination with a view to ensuring timely implementation of all agreed actions.”
Reko Diq, one of the world’s largest underdeveloped copper-gold mine, is jointly owned by Canadian mining firm Barrick Gold Corp. and Pakistan. Out of the total shareholding of Reko Diq project, 25 percent is held by the provincial government of Balochistan — 15 percent on a fully funded basis through Balochistan Mineral Resources Limited and 10 percent on a free carried basis — and 50 percent is held by Barrick Gold Corporation which is the operator of the project.
As per the estimates, the increase in copper and gold prices has offset the impact of higher project costs, according to the two energy firms. The feasibility study of the project shows it has a mining life of 37 years and is expected to yield 13.1 million tons of copper and 17.9 million ounces of gold.
The project will be executed in two phases, with the phase one having an estimated capital outlay of $5.6 billion that is exclusive of the financing costs and inflation. It is planned to be funded through a limited-recourse project financing facility of up to $3 billion with the remaining funded through shareholder contributions, the OGDCL and PPL said.
The energy companies plan to fund the second phase through a mix of revenue generation from the project, additional project financing and shareholder contributions, if required. Under the updated feasibility study phase one is planned to process 45 million tons per annum (Mtpa) of mill feed from 2028. While phase two is planned to double the processing capacity to 90 Mtpa by 2034.
The project will leverage five of the currently identified 15 porphyry surface expressions within the current mining lease, highlighting substantial future growth potential. Negotiations for the proposed project financing are ongoing.


Closing Bell: Saudi main index closes in red at 11,706

Closing Bell: Saudi main index closes in red at 11,706
Updated 25 March 2025
Follow

Closing Bell: Saudi main index closes in red at 11,706

Closing Bell: Saudi main index closes in red at 11,706

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 71.87 points, or 0.61 percen,t to close at 11,706.21. 

The total trading turnover of the benchmark index was SR5.47 billion ($1.46 billion), with 72 of the listed stocks advancing and 161 declining. 

The Kingdom’s parallel market Nomu gained 3.11 points to close at 30,613.74, while the MSCI Tadawul Index edged down by 0.65 percent to 1,483.55. 

The best-performing stock on the main market was Umm Al Qura for Development and Construction Co. The firm’s share price surged by 7.69 percent to SR21.

The share price of Abdullah Saad Mohammed Abo Moati for Bookstores Co. increased by 3.54 percent to SR38, and Bawan Co. also saw its stock price rise by 2.9 percent to SR49.65.

Conversely, the share price of MBC Group Co. dropped by 5.51 percent to SR44.60. 

On the announcements front, Perfect Presentation for Commercial Services Co. said that its net profit for 2024 reached SR163.33 million, representing a rise of 26.33 percent compared to the previous year.

In a Tadawul statement, the company revealed that its gross profit increased by 19.26 percent year on year in 2024 to reach SR250.92 million. 

The share price of Perfect Presentation for Commercial Services Co. dropped by 1.19 percent to SR13.26.

Alamar Foods Co. said its net profit stood at SR35.01 million in 2024, representing a decline of 38.11 percent compared to the previous year. 

In a Tadawul statement, the food company revealed that the decline in net profit was due to weaker sales driven by ongoing regional geopolitical issues. 

The stock price of Alamar Foods Co. edged down by 1.39 percent to SR70.80.