Etihad Airways and China Eastern Airlines forge JV for enhanced air connectivity

Etihad Airways and China Eastern Airlines forge JV for enhanced air connectivity
The agreement was signed by both airlines in a ceremony at Etihad’s headquarters in Abu Dhabi, the UAE. Supplied.
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Updated 06 June 2024
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Etihad Airways and China Eastern Airlines forge JV for enhanced air connectivity

Etihad Airways and China Eastern Airlines forge JV for enhanced air connectivity

RIYADH: Travellers are set to enjoy enhanced air connectivity between the UAE and China as the Emirate’s flagship carrier, Etihad Airways, has formed a joint venture with China Eastern Airlines. 

Signed at Etihad Airways headquarters in Abu Dhabi, the first such commercial deal between a Middle Eastern and Chinese airline is scheduled for implementation in early 2025, according to a press release.  

The partnership aims to offer “seamless travel experiences” for passengers, connecting major Chinese cities like Shanghai, Beijing, Xi’an, and Kunming with key cities in the UAE and across the region. 

Antonoaldo Neves, CEO of Etihad Airways, said: “This JV marks a significant milestone in our partnership with China Eastern. The JV will allow Etihad and China Eastern to offer travelers enhanced travel options and exceptional value.”  

He said the JV will “unlock a new era of travel opportunities, while also boosting the economic growth of Abu Dhabi and the UAE.” 

Additionally, both airlines plan to implement full reciprocity to their existing frequent flyer programs in the final quarter of 2024. This will enable passengers to easily earn points and redeem rewards when flying with either airline, the release added. 

China Eastern Airlines Chairman Wang Zhiqing highlighted that this year marks the 40th anniversary of diplomatic relations between China and the UAE. 

“Both countries continue to develop and strengthen the high-value, strategic collaboration on the Belt and Road Initiative, and this momentum creates opportunities and motivation for deepening cooperation between China Eastern Airlines and Etihad Airways,” he said.  

Zhiqin added the signing of this JV signifies a new level of collaboration, and said: “China Eastern is eager to work with Etihad Airways to expand the cooperation in the various business areas, and thereby enhance the strategic partnership between both airlines." 

Meanwhile, Mohamed Ali Al-Shorafa, chairman of Etihad Aviation Group, praised the agreement as a significant milestone, emphasizing that this joint venture reflects a strong commitment to enhancing the relationship between the UAE and China, and promoting closer cultural and economic connections. 

“We look forward to welcoming a greater number of Chinese tourists to explore the rich cultural heritage and vibrant experiences that the UAE has to offer. This partnership is more than the expansion of routes; it is about creating lasting and meaningful connections between our two nations which will stand for decades to come.” the chairman said. 

China Eastern Airlines’ chairman pointed out that the cooperation between the airlines is highly complementary, covering a broad scope, and possessing great potential, given the strength of their global hubs. 

“We look forward to our collaboration creating more synergies, not only in facilitating passenger travel but also in building deeper economic, trade, and cultural exchanges between China and the UAE,” he concluded. 


Financial discipline crucial while pursuing economic diversification efforts: Qatari minister

Financial discipline crucial while pursuing economic diversification efforts: Qatari minister
Updated 14 sec ago
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Financial discipline crucial while pursuing economic diversification efforts: Qatari minister

Financial discipline crucial while pursuing economic diversification efforts: Qatari minister
  • Qatar’s minister of finance said Middle East countries have engaged in healthy competition as they pursue economic diversification
  • He was speaking during a panel discussion at the AlUla Conference for Emerging Market Economies

RIYADH: Maintaining financial discipline is crucial for countries in the Middle East as they work to diversify their economies and reduce reliance on energy revenues, according to a Qatari minister. 

During a panel discussion at the AlUla Conference for Emerging Market Economies organized by the Saudi Ministry of Finance and the International Monetary Fund, Ali bin Ahmed Al-Kuwari, Qatar’s minister of finance, said that countries in the Middle East have engaged in healthy competition as they pursue their economic diversification journeys. 

Saudi Arabia’s Vision 2030, Qatar’s Vision 2030, and the UAE’s Vision 2031 programs are focused on transitioning from a hydrocarbon-based economy to a knowledge-driven one.

These initiatives also aim to strengthen non-energy sectors, which include tourism, hospitality, manufacturing, and technology.

“While we build the diversification, it is very important to have a long-term view of how we see things change in terms of revenue and expenditure. The fiscal policy framework in Qatar builds different scenarios for revenue. We build discipline around the spending so the spending goes to the right places. We make sure that surpluses go in the right direction,” said Al-Kuwari. 

He added: “Surplus goes to the Qatar Investment Authority because it is Qatar’s revenue diversification engine. A part of the surplus also goes to the shock absorption buffer by enhancing the Qatar Central Bank reserves. Part of it is also reinvested in the economy itself to achieve diversification.” 

A panel discussion was held during the AlUla Conference for Emerging Market Economies on ‘Emerging Markets: Policy Challenges Amid Structural Shifts in the World Economy.’ AN Photo

According to the minister, countries including the Kingdom, the UAE, Bahrain, Kuwait, and Oman are all diversifying their economies effectively. 

“Saudi, UAE, Bahrain, Kuwait, Oman everyone is working together. It is a healthy competition. We are also complementing each other,” the minister said.

He also said that Qatar’s economic diversification is based on four sectors, including technology, low-carbon manufacturing, logistics, and tourism, adding that the nation has already started seeing the results. 

“In tourism, during the World Cup in 2022, we received 2.3 million visitors. In 2023, the year after the World Cup, visitors increased to 4 million, and in 2024, we welcomed 4 million,” said Al-Kuwari. The Qatari minister also said his country seeks to increase the production of liquefied natural gas by 80 percent in a phased manner by 2030, and it will help ensure a sufficient energy supply in the world. 

During the event, which was held in the historic city of AlUla and runs from Feb. 16— 17, Jin Liqun, president and chairman of the Asian Infrastructure Investment Bank, said the entity is closely cooperating with other multilateral development banks to assist the funding needs in emerging economies. 

“We do not work alone, as a new institution, we work with our peer institutions, and other members of the MBD family. We develop our policy lending to support the countries’ efforts toward net zero,” said Liqun. 

He added: “We provide local currency financing. We can help countries to avoid currency risks, and also we believe that it is important to introduce climate-resilient debt crisis financing. This provides temporary relief after climate disasters. We have a soft fund window to help reduce the costs of infrastructure investments.” 

Jin Liqun, president and chairman of the Asian Infrastructure Investment Bank, speaks during the panel discussion. AN Photo

Liqun further said that the Asian Infrastructure Investment Bank is assisting emerging economies in positioning themselves within the global green economy and accessing its value chains.

“The green transition is a major opportunity for emerging countries, especially countries in the Gulf Cooperation Council regions. This is a great opportunity for GCC countries to develop sustainable and resilient economies,” added Liqun. 

The Dean of the School of Economics and Business at the University of Chile, Jose De Gregorio, said emerging markets should continue doing what they are doing now but should also effectively address the potential risks as time progresses. 

“Emerging markets should keep doing things which they are doing now. However, there are risks which we have to take into account and be prepared for. First, fiscal policies are not as strong as they were fifteen years ago. Why? Because we have spent a lot of money during the previous crisis. The second one is the geopolitical thing,” added De Gregorio. 

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, said countries should possess a deep knowledge of their economies before making strategic fiscal policy decisions. 

“My experience has been that it is important for economies to understand their own economies and not just necessarily go in line with what everybody else is doing,” said Cardoso.


Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources

Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources
Updated 16 min 56 sec ago
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Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources

Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources

JEDDAH: Saudi Arabia’s Northern Borders region, home to an estimated SR4.6 trillion ($1.22 trillion) in mineral resources, is emerging as a key driver of economic growth and investment, according to the Ministry of Industry and Mineral Resources.

The region is a major hub for phosphate production, a critical component in global food security due to its use in agricultural fertilizers. Mining projects in Waad Al-Shamal, an industrial city dedicated to the sector, have positioned Saudi Arabia among the world’s leading phosphate producers and exporters.

As part of Vision 2030, the Kingdom is accelerating efforts to develop its mining sector and reduce its reliance on oil and gas. The ministry has identified mining as a key pillar of economic transformation, focusing on resource efficiency and attracting both local and international investment.

Jarrah bin Mohammed Al-Jarrah, spokesman for the ministry, said the region contains significant deposits of phosphate, coal, dolomite, limestone, and silica sand. It also has five phosphate ore sites and 29 active mining licenses, including 15 for building material quarries and 14 for mineral exploitation.

Beyond mining, the Northern Borders region is expanding its industrial footprint, with 61 factories operating across Arar, Tarif, and Rafha in sectors such as building materials, food processing, and chemicals, Al-Jarrah said.

The developments come as minister of industry and mineral resources Bandar bin Ibrahim Al-Khorayef began a visit to the region on Feb. 16 to assess industrial and development projects aimed at strengthening its role as a mining hub. His visit aligns with the ministry’s broader strategy to attract investment and position mining as a key sector in Saudi Arabia’s economic diversification.

Saudi Arabia’s mining ambitions have gained significant momentum in recent years. At a meeting in July, Alkhorayef highlighted that the estimated value of the Kingdom’s mineral wealth had surged from $1.3 trillion to $2.5 trillion by early 2024 — a 90 percent increase — driven by government investments in geological surveys, exploration, and private sector participation. 

The rise in valuation reflects a more comprehensive understanding of the country’s vast mineral potential, as well as increasing demand for critical minerals needed for global energy transitions.


Global financial leaders convene in Saudi Arabia to address emerging market risks

Global financial leaders convene in Saudi Arabia to address emerging market risks
Updated 16 February 2025
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Global financial leaders convene in Saudi Arabia to address emerging market risks

Global financial leaders convene in Saudi Arabia to address emerging market risks

RIYADH: Sovereign debt risks, structural reforms, and trade policies take center stage as global financial leaders and policymakers convened in Saudi Arabia for the first AlUla Conference for Emerging Market Economies. 

The high-profile summit comes amid ongoing economic turbulence, with leaders seeking solutions to enhance financial stability and resilience. 

The two-day event, hosted by the Saudi Ministry of Finance in partnership with the International Monetary Fund, is being held from Feb. 16— 17 in AlUla. The historic site is fast becoming a venue for strategic economic dialogues, underscoring Saudi Arabia’s efforts to assert itself as a key player in shaping financial policies for developing economies. 

The conference aligns with the Kingdom’s broader efforts to solidify its role as a hub for global economic dialogue and under Vision 2030, it continues to lead economic diversification initiatives, emphasizing collaboration and innovation to navigate global economic shifts. 

Saudi Minister of Finance Mohammed Al-Jadaan highlighted the conference’s role in addressing common economic challenges and fostering a more inclusive and resilient global economy. 

“Today, we will explore ways to address our shared challenges so we can build a stronger global economy that is durable and inclusive for all nations,” he said. 

Al-Jadaan stressed the importance of international cooperation, adding: “There is no pathway more effective than broad multilateral cooperation, and that work starts with conversations like the ones we are having at this conference.” 

One of the key challenges addressed during the opening ceremony was sovereign debt, which Al-Jadaan described as a threat to economic progress. 

“Since we all share the benefits, we should also work together to address structural risks like sovereign debt, which threatens development gains,” he said, adding that innovative solutions, including improving global debt restructuring frameworks, are necessary. 

IMF Managing Director Kristalina Georgieva echoed Al-Jadaan’s statements, emphasizing the importance of emerging markets in global economic stability. “You, the leaders in this room, have weathered the shocks of the past few years remarkably well, and your economies have delivered two-thirds of global growth,” she said. 

Georgieva called for the need for agility and resilience in the face of economic uncertainty. “Emerging markets will need to be agile, adaptable, and resilient,” she added, pointing to key areas such as inflation, high debt, and structural reforms that require urgent attention to improve competitiveness and productivity. 

She also praised Saudi Arabia’s leadership in establishing a dedicated space for emerging markets to discuss critical policy issues. “Minister Al-Jadaan not only identified a gap in terms of space for emerging markets to discuss policy issues of common interest, but he decided to close it,” she said. 

Georgieva spoke of the IMF’s newly established regional office in Riyadh, emphasizing its pivotal role in realizing this vision. The office — the first of its kind in the Middle East and North Africa — was inaugurated on April 24 last year during the Joint Regional Conference on Industrial Policy for Diversification, co-hosted by the IMF and the Saudi Ministry of Finance. 

She stressed the importance of mobilizing more resources for the IMF’s Poverty Reduction and Growth Trust. “The IMF needs more capacity to help vulnerable countries and to continue to adapt to evolving challenges.” 

Looking ahead, Al-Jadaan called for global economic cooperation that benefits all stakeholders. “We should be laser-focused on improving the lives of our people.

“We must find common ground to serve the common good and seek win-win solutions, fostering productive cooperation between East and West, South and North, to create a positive spillover for our neighbors and trading partners.” 

The conference is expected to generate actionable recommendations that will support emerging economies in enhancing financial stability and sustainable growth. Discussions will also explore how artificial intelligence and digital transformation can drive economic progress in developing economies. 

Participants are set to discuss strategies for economic resilience, aiming to strengthen cooperation between emerging and advanced economies for a more equitable and sustainable future. 


Housing prices drive Saudi Arabia’s inflation to 2% in January: GASTAT

Housing prices drive Saudi Arabia’s inflation to 2% in January: GASTAT
Updated 16 February 2025
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Housing prices drive Saudi Arabia’s inflation to 2% in January: GASTAT

Housing prices drive Saudi Arabia’s inflation to 2% in January: GASTAT
  • Housing rents rose 9.7% year on year, villa rental costs increased 7.7%
  • Furnishing and home equipment expenses witnessed a 2.4% year-on-year decline

RIYADH: Consumer prices in Saudi Arabia increased by 2 percent in January compared to the same month in 2024, primarily due to a rise in housing costs, official data showed. 

According to a report by the General Authority for Statistics, housing rents in the Kingdom rose 9.7 percent year on year in January, while villa rental costs increased 7.7 percent. 

The analysis said housing, water, electricity, gas, and other fuels saw a collective price increase of 8 percent. 

Despite rising inflation rates globally, countries in the Middle East region have shown resilience against intensifying spending costs. 

In December, the inflation rate in the UAE stood at 2.89 percent, 0.24 percent in Qatar, and 0.50 percent in Bahrain. 

In October, a report by the World Bank projected that the Kingdom’s inflation level is expected to remain steady at 2.3 percent in 2025, lower than the Gulf Cooperation Council average. 

“This increase (in housing prices) significantly impacted the continuation of the annual inflation rate for January 2025 due to the section’s weight, which amounted to 25.5 percent,” said GASTAT. 

The release also detailed several additional shifts in consumer prices. 

Food and beverage prices witnessed a moderate rise of 0.8 percent in January compared to the same month in the previous year. The rise in this section was attributed to an increase in the costs of vegetables, which rose by 5.6 percent. 

Personal goods and services expenses increased by 3.3 percent, influenced by a 21.6 percent rise in jewelry prices. 

Costs for restaurants and hotels rose by 0.8 percent year on year. 

Furnishing and home equipment expenses witnessed a 2.4 percent year-on-year decline. 

Prices for clothing and footwear decreased by 1.5 percent compared to the same month in the previous year, while transport expenses dropped by 1.9 percent. 

Saudi Arabia’s consumer price remained stable compared to December, with the index recording a marginal increase of 0.3 percent. 

According to GASTAT, housing rents increased by 0.3 percent compared to December, while food and beverage prices rose by 0.3 percent. 

Transportation prices increased by 0.5 percent compared to December, while costs of clothing and footwear rose by 0.1 percent. 

Prices for communication decreased by 0.3 percent month on month, while expenses for education declined by 0.1 percent. 

The prices of restaurants and hotels showed no significant change compared to the previous month. 

Wholesale Price Index

In a separate report, GASTAT said the Kigndom’s Wholesale Price Index rose by 0.9 percent in January compared to the same month of the previous year. 

The authority revealed that the rise was attributed to a 1.5 percent increase in the prices of other transportable goods and a 4.6 percent boost in the costs of agriculture and fishery products. 

Meanwhile, the prices of food products, beverages, tobacco, and textiles decreased by 0.3 percent year on year. 

The prices of metal products, machinery, and equipment also declined by 0.2 percent compared to January last year. 

In contrast to December, Saudi Arabia’s wholesale price index increased by 1.7 percent. 

GASTAT said this rise was due to a 4.1 percent price boost in other transportable goods, excluding mineral products. 

The cost of metal goods, machinery, and equipment decreased by 0.2 percent month on month, while the price of ores and minerals declined by 0.1 percent. 

Agricultural and fishery products stabilized, and no relative change was recorded in January compared to December. 


Saudi expat remittances surge to three-year high $38.5bn, SAMA reveals

Saudi expat remittances surge to three-year high $38.5bn, SAMA reveals
Updated 15 February 2025
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Saudi expat remittances surge to three-year high $38.5bn, SAMA reveals

Saudi expat remittances surge to three-year high $38.5bn, SAMA reveals
  • Surge largely attributed to the robust growth of the Saudi economy, driven by Vision 2030 projects

RIYADH: Expatriate remittances from Saudi Arabia surged to SR144.2 billion ($38.45 billion) in 2024, a 14 percent increase over the preceding year, according to recent data.

Figures from the Saudi Central Bank, also known as SAMA, revealed that this figure is the highest in three years. In December alone, non-Saudi transfers totaled SR14.02 billion, a 31.7 percent increase on the same month last year.

Remittances sent abroad by Saudi citizens reached a two-year high in 2024, totaling SR68.61 billion — a 10.74 percent increase compared with 2023, according to SAMA data. 

In December, these transfers surged to their highest monthly value in more than seven years, reaching SR7.66 billion.

Thamer Al-Harbi, an expert on remittances, told Arab News that this significant surge can be largely attributed to the robust growth of the Saudi economy, driven by Vision 2030 projects.

He flagged up the “high demands to get (laborers) from different levels and skills and from many parts in the world,” adding that the statistics underline an increase in non-Saudi workers.

As these projects continue to expand, they require skilled and unskilled workers from all over the world, leading to a significant increase in the foreign workforce.

He also explained that expatriates sending money “to their loved ones” during the holiday season largely drove the 31.7 percent annual surge in December.

Reflecting on how economic and regulatory trends in Saudi Arabia and the recipient countries affect remittance fluctuations, he said: “It is playing a role. For example, the stability of their currency will reflect on remittance through banking channels as they trust the currency and they get a good rate.”

The expert said that the top destinations for remittances from Saudi Arabia align closely with the largest expatriate communities in the Kingdom. 

FAST FACT

Remittances sent abroad by Saudi citizens reached a two-year high in 2024, totaling SR68.61 billion — a 10.74 percent increase compared with 2023, according to SAMA data.

Citing data from the General Authority for Statistics, he noted that the five largest expatriate groups in Saudi Arabia are from Bangladesh, India, Pakistan, Egypt, and the Philippines.

These same countries are among the primary recipients of remittances, particularly for person-to-person transfers. The strong presence of these communities, coupled with family obligations and economic ties, continues to drive significant money flows to these destinations.

“The fintech post-COVID played a role in easing the customer experience, speeding up the movement of money to global bank accounts, and saving time by allowing senders to use the service at home without visiting centers or waiting in long queues,” Al-Harbi added.

“Today, most of the apps even provide the service in different languages, which gives customers the confidence to do this by themselves,” he said.

To explain the surge in transfers by Saudis, Al-Harbi said that the Kingdom’s citizens usually transfer to relatives abroad in Europe or the US to pay for tuition and bills related to their properties. 

Advances in blockchain technology and compliance solutions driven by artificial intelligence are enhancing the efficiency and security of cross-border transactions, according to a report by IBS Intelligence released in July. These innovations are crucial for improving financial inclusion and supporting the growth of the digital economy in the Middle East. Several fintech companies are driving this transformation, particularly in the realm of cross-border payments.

These include Careem Pay, a digital wallet service from the popular ride-hailing app, which facilitates peer-to-peer and bill payments, and international money transfers.

Other companies operating in this space are Mamo, a Dubai-based financial services company; PayMe, a fintech based in Egypt; and Saudi company urpay.

Al-Harbi said that, in general, the Kingdom offers lower transfer fees compared ith other GCC countries and regions such as Southeast Asia and Africa, particularly for major remittance corridors.

This can be attributed to the high volume of transactions and the presence of numerous remittance service providers, which create a competitive market and help keep costs relatively low for expatriates sending money abroad. 

Al-Harbi said that economic and regulatory trends in Saudi Arabia and recipient countries play a crucial role in shaping remittance flows.

One key factor is currency stability. When a local currency is stable, expatriates are more likely to send money through official banking channels, because they trust that their funds will retain value and that they will receive favorable exchange rates.

Additionally, regulatory policies in Saudi Arabia and recipient nations influence remittance trends. Policies that allow smooth and secure money transfers encourage more transactions through formal channels, while stricter regulations or economic instability in recipient countries may push some expatriates to seek alternative methods.