Middle East carriers witness 15.3% air cargo demand growth in May: IATA

Middle East carriers witness 15.3% air cargo demand growth in May: IATA
Demand for air cargo routes between the Middle East and Europe grew at an annual rate of 33.8 percent in May. Shutterstock
Short Url
Updated 02 July 2024
Follow

Middle East carriers witness 15.3% air cargo demand growth in May: IATA

Middle East carriers witness 15.3% air cargo demand growth in May: IATA

RIYADH: Middle Eastern airlines witnessed a 15.3 percent year-on-year demand growth for cargo in May, driven by growing e-commerce and maritime issues, an analysis showed.

In its latest report, the International Air Transport Association said that airlines in the Middle East region handled 13.5 percent of the overall cargo globally, a figure that remained unchanged from the previous month. 

IATA also highlighted that the total cargo capacity of carriers in the region increased by 2.7 percent in May compared to the same month of the previous year. 

Countries in the Middle East region, including Saudi Arabia, have strengthened their aviation sector over the past few years as they continue to reduce their dependence on oil and continue their economic diversification journey. 

Saudi Arabia’s national aviation strategy outlines an ambitious plan aimed at handling 4.5 tonnes of cargo by the end of this decade, along with establishing more than 250 direct destinations from the Kingdom’s airports to global locations. 

“Air cargo demand moved sharply upwards in May across all regions. The sector benefited from trade growth, booming e-commerce and capacity constraints on maritime shipping,” said Willie Walsh, director-general of IATA.

The report revealed that the demand for air cargo routes between the Middle East and Europe grew at an annual rate of 33.8 percent in May.

Freight demand between the region and Asia expanded by 18.6 percent year-on-year in May. 

Global outlook

According to the release, the total demand for air cargo globally, measured in cargo tonne-kilometers, surged by 14.7 percent in May, compared to the same month of the previous year, marking the sixth consecutive month of double-digit year-on-year growth. 

IATA revealed that African airlines saw 18.4 percent year-on-year demand growth for air cargo over the period – the strongest of all regions. 

Moreover, demand for air cargo routes between the African and Asian markets increased by 40.6 percent in May compared to the same month of the previous year, marking the most robust performance among all trade lanes. 

The report added that African airlines’ air cargo capacity also surged by 21.4 percent year-on-year in the fifth month of the year. 

Similarly, the Asia Pacific region witnessed a year-on-year growth in air cargo handling in May at 17.8 percent. 

The capacity of Asia Pacific carriers also grew by 8.4 percent in May, compared to the same month of the previous year. 

On the other hand, European carriers witnessed a 17.2 percent year-on-year demand growth for air cargo. 

The report revealed that intra-European air cargo rose by 25.6 percent compared to May 2023, the fifth month in a row of double-digit annual growth, while demand increased by 33.8 percent on the Europe – Middle East routes. 

Similarly, air cargo capacity of European airlines surged by 11.9 percent in May compared to the same month of the previous year. 

Latin American carriers saw a growth rate of 12.7 percent year-on-year in May, while the capacity of these carriers increased by 8 percent during the same period. 

On the other hand, North American carriers witnessed a growth rate of 8.7 percent in air cargo handling, the weakest among all regions. The airlines’ capacity in this region also rose marginally by 2.5 percent in May compared to the same month of the previous year. 

“For Asia-North America, the largest trade lane by volume, the question remains what will happen following the US crackdown on e-commerce deliveries out of China. Rising costs and increasing transit times of shipments valued less than $800 could dampen US consumers’ appetite for e-commerce, which could have an impact on the whole air cargo sector,” the report warned. 

IATA optimistic about future growth

In the analysis, the airline trade association noted that it is optimistic about the future growth of air cargo transportation, as most countries have recorded positive Purchasing Managers’ Index figures in recent months. 

According to Investopedia, PMI measures the prevailing direction of economic trends in manufacturing. It is calculated based on a monthly survey of supply chain managers across 19 industries, covering both upstream and downstream activity. 

IATA revealed that PMI for global manufacturing output and new export orders indicated expansion at 52.6 and 50.04, respectively. 

“The month of May delivered small improvements in global production and trade figures, which continued optimism for new export orders and manufacturing output among purchasing managers,” said IATA in the report. 

Similarly, industrial production and global cross-border trade also increased month-on-month in April by 0.5 percent and 1.5 percent, respectively. 

“The outlook remains largely positive, with purchasing managers showing expectations for future growth. Some dampening, however, could come as the US imposes stricter conditions on e-commerce deliveries from China,” said Walsh. 

He added: “Increased costs and transit times for shipments under $800 may deter US consumers and pose significant challenges for growth on the Asia-North America trade lane –  the world’s biggest.” 

The report further noted that inflation figures showed a mixed picture in April. 

In April, the inflation rate in Japan and the EU fell to 2.8 percent and 2.7 percent, respectively, while in the US, it rose to 3.3 percent. 

In contrast, China’s inflation rate remained at 0.3 percent, reflecting weak domestic demand due to high unemployment, slow income growth, and a crisis in the real estate sector, a trend that has persisted since 2023.


Closing Bell: Saudi main index slips to close at 11,411 

Closing Bell: Saudi main index slips to close at 11,411 
Updated 04 May 2025
Follow

Closing Bell: Saudi main index slips to close at 11,411 

Closing Bell: Saudi main index slips to close at 11,411 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 132.17 points, or 1.14 percent, to close at 11,411.50. 

The total trading turnover of the benchmark index was SR3.5 billion ($944.3 million), as 41 stocks advanced and 198 retreated.    

Similarly, the Kingdom’s parallel market Nomu lost 116.45 points, or 0.41 percent, to close at 28,013.32. This comes as 30 of the listed stocks advanced while 39 retreated.    

The MSCI Tadawul Index lost 20.74 points, or 1.41 percent, to close at 1,451.17.     

The best-performing stock of the day was Umm Al Qura for Development and Construction Co., whose share price surged 2.77 percent to SR25.95.   

Other top performers included National Industrialization Co., which saw its share price rise 2.26 percent to SR9.49, and Arabian Contracting Services Co., whose share price increased 1.69 percent to SR132.00. 

Zahrat Al Waha for Trading Co. recorded the most significant drop, falling 7.05 percent to SR27.70. 

Saudi Automotive Services Co. saw its stock prices fall 5.67 percent to SR61.50. 

Emaar The Economic City also saw its stock prices decline 4.50 percent to SR14.00. 

On the announcements front, Dar Alarkan Real Estate Development Co. reported its interim financial results for the period ending March 31. 

According to a Tadawul statement, the company posted a net profit of SR209.34 million in the first quarter of 2025, marking a 36.2 percent increase compared to the same quarter in 2024.  

The rise in net income was primarily driven by higher property sales. Increased lease revenues, lower finance costs, and greater non-operating income from Islamic Murabaha deposits also contributed to the gains, though these were partially offset by higher operating expenses and reduced earnings from associates. 

Dar Alarkan Real Estate Development Co. ended the session at SR21.04, down 1.05 percent. 

Saudi Aramco Base Oil Co. – Luberef has announced its interim financial results for the first quarter of 2025. A bourse filing showed the company recorded a net profit of SR221.5 million for the period ending March 31, reflecting a 7.3 percent decline compared to the same quarter last year. The drop in earnings was mainly due to lower by-product crack margins, despite an increase in base oil crack margins. 

Luberef’s shares closed the session at SR98.70, down 0.20 percent. 

Dr. Sulaiman Al Habib Medical Services Group has announced its interim financial results for the period ending March 31. According to a Tadawul statement, the firm posted a net profit of SR557.01 million in the first quarter of 2025, marking a 1.09 percent increase compared to the same quarter in 2024. The growth was primarily driven by higher revenue, although fixed operating costs from recent strategic expansions have temporarily weighed on profit margins. These expansions are still ramping up and are expected to gradually reach full operational efficiency. 

The company’s shares closed at SR289.00, down 2.15 percent. 

The National Agricultural Development Co. reported its consolidated financial results for the first quarter of 2025, posting a net profit of SR103.42 million for the period ending March 31 — a 2.06 percent rise compared to the year-earlier period.  

The increase was supported by higher revenue, reduced general and administrative expenses, stronger operating profit, and increased treasury income. These gains were partially offset by higher cost of sales, increased impairment losses on trade and other receivables, and a decline in finance costs. 

NADEC shares ended the session at SR22.20, down 1.54 percent. 

Saudi Basic Industries Corp. announced a net loss of SR1.21 billion for the first quarter of 2025, compared to a net profit of SR250 million in the same period last year. The loss was primarily due to a SR1.05 billion decline in gross profit, driven by higher feedstock prices and increased operating expenses. These included non-recurring costs of SR1.07 billion linked to a strategic restructuring initiative aimed at improving long-term performance and reducing costs. 

SABIC shares closed at SR60.70, down 2.77 percent. 


Jeddah unveils 29 real estate projects across industrial, residential, retail sectors

Jeddah unveils 29 real estate projects across industrial, residential, retail sectors
Updated 04 May 2025
Follow

Jeddah unveils 29 real estate projects across industrial, residential, retail sectors

Jeddah unveils 29 real estate projects across industrial, residential, retail sectors

RIYADH: Jeddah Municipality has announced 29 new investment opportunities across more than 1.4 million sq. meters, targeting sectors such as commercial, industrial, residential, and recreation. 

Jeddah’s investment package includes 13 commercial opportunities featuring developing and operating retail shops and commercial complexes across various districts. The initiatives include the development of an integrated container city spanning 846,684 sq. meters and a second container park at 429,223 sq. meters.  

This latest undertaking also follows a similar wave of investment opportunities recently launched in Riyadh, underscoring a nationwide push to diversify Saudi Arabia’s economy and enhance urban livability.  

Jeddah’s additional projects feature a 145,472-sq.-meter barley milling and packaging facility, eight worker residential compounds, and eight public parks equipped with kindergartens and retail outlets.  

A food truck zone under the municipal incubator program in South Obhur has also been introduced. In the education sector, a health college project has been announced.   

The strategically distributed initiatives aim to meet neighborhood needs while ensuring synergy between activities.   

The municipality has invited investors to submit proposals through the Furas Saudi investment portal. It noted that the bid submissions will be accepted from May 1 until July 8, as per the scheduled timeline. The Furas portal streamlines investor access, reflecting a unified approach to municipal investments.  

This undertaking underscores Jeddah’s commitment to economic growth and urban development in alignment with national objectives. 

Riyadh’s 2025 investment portfolio — spanning commercial, industrial, and leisure projects — mirrors the Kingdom’s strategic focus on private-sector-driven development under Vision 2030. 

In March, the Riyadh Municipality unveiled 20 new investment prospects across 175,000 sq. meters, including mixed-use spaces, retail hubs, and industrial zones, with contracts ranging from five to 25 years.  

Key districts like Jarir, Al-Rawdah, and Al-Qadisiyah are prioritized to ensure balanced growth. Complementing these efforts, the city has expanded its green infrastructure, adding 87 parks since 2022 to reach over 745,000 sq. meters of green space — transforming them into multifunctional community venues. 

These parallel initiatives highlight Saudi cities’ commitment to sustainable urbanization, economic diversification, and elevated quality of life, cementing the Kingdom’s position as a regional leader in transformative urban development. 


Saudi Arabia rolls out new guidelines for off-plan property deals

Saudi Arabia rolls out new guidelines for off-plan property deals
Updated 04 May 2025
Follow

Saudi Arabia rolls out new guidelines for off-plan property deals

Saudi Arabia rolls out new guidelines for off-plan property deals

JEDDAH: Saudi Arabia has issued a detailed procedural guide to implement its previously approved off-plan real estate regulation, aiming to enhance transparency, protect buyers, and formalize developer obligations.

The new framework was formally approved by Real Estate General Authority CEO Abdullah bin Saud Al-Hammad on May 2 and took effect immediately, according to the official gazette Umm Al-Qura.

This guide is part of the regulatory rollout following the Cabinet’s 2023 decision to formalize off-plan real estate sales and leasing. It is designed to strengthen investor confidence in a sector that accounts for approximately 7 percent of Saudi Arabia’s gross domestic product and plays a crucial role in supporting related industries such as construction and finance.

In a post on its official X handle, REGA stated: “The Real Estate Authority issued the procedural guide for the sale and rent of real estate projects off-plan, with the aim of clarifying the requirements of the procedures that regulate and control the stages of licensing, marketing, selling, leasing, and managing real estate projects off-plan, including requests for amendments or changes, opening and managing an escrow account, and other regulatory procedures.”

The updated model outlines 55 defined scenarios, covering applications by legal and individual developers to register or update their status, improve evaluation scores, or request project modifications. It also details processes for certifying completion, changing contractors, switching project banks, and reallocating escrowed funds.

Refunds to buyers from escrow accounts are permitted in cases such as the cancellation of marketing permits, project delays exceeding 180 days, or failure to secure a sales license. The guide also addresses scenarios involving project restructuring, title transfers, license revocations, and developer substitutions for delayed projects.

The reforms are intended to provide legal clarity and investor assurance as off-plan development becomes an increasingly prominent feature of the Kingdom’s residential and commercial real estate landscape.

Legal entities and individuals seeking to develop off-plan properties must now comply with strict registration and reporting requirements, including updates to developer evaluations and the appointment of certified consultants and accountants.

The regulatory update underscores Saudi Arabia’s push to build a robust legal infrastructure for its real estate sector, positioning the Kingdom as a competitive and secure environment for local and foreign investors.


Qatar welcomes over 1.5m international visitors in Q1 2025

Qatar welcomes over 1.5m international visitors in Q1 2025
Updated 04 May 2025
Follow

Qatar welcomes over 1.5m international visitors in Q1 2025

Qatar welcomes over 1.5m international visitors in Q1 2025

RIYADH: Qatar received more than 1.5 million international visitors in the first quarter of 2025, according to newly released figures, as the country continues to push forward with its comprehensive tourism strategy anchored in major events, strategic partnerships, and diverse travel offerings.

While slightly below the 1.6 million visitors recorded during the same period in 2024, the latest numbers highlight Qatar’s sustained momentum in attracting global travelers.

Visitors from Gulf Cooperation Council countries accounted for 36 percent of arrivals, followed by Europe at 28 percent and Asia and Oceania at 20 percent, underscoring Qatar’s growing appeal across varied markets.

The increase aligns with the nation’s long-term objective of drawing six million visitors annually by 2030. It also coincides with the third phase of the Qatar National Development Strategy (2024–2030), launched in January 2024, which designates tourism as a critical pillar in the country’s economic diversification agenda.

“The achievements of the first quarter of 2025 demonstrate some of the planned outputs of our long-term approach to tourism development,” said Saad Bin Ali Al-Kharji, chairman of Qatar Tourism and chair of the board of directors of Visit Qatar.

“Part of the development transcends into deepening collaboration across local, regional and international markets and continue to diversify source markets, enhance visitor experiences, and reinforce Qatar’s position as a dynamic, year-round destination. We are excited to have welcomed 1.5M in Q1 and look forward to welcoming more guests throughout this year,” he added.

Qatar’s multi-access strategy also appears to be paying off. Of the total visitors, 51 percent arrived by air, 34 percent by land, and 15 percent by sea.

During the Eid Al-Fitr holidays, the country recorded its highest holiday visitor count in three years, attracting 214,000 travelers over an eight-day period — a 26 percent increase from 2024. Nearly half (49 percent) of those visitors came from GCC countries, representing an 18 percent year-on-year rise. Hotel occupancy during this period reached 77 percent, up from 67 percent the previous year.

The hospitality industry reported robust performance overall in Q1, with an average hotel occupancy rate of 71 percent and 2.6 million room nights sold. Key drivers included major international events such as Web Summit Qatar, the Doha Jewellery & Watches Exhibition, and the Qatar International Food Festival.

Reinforcing its position as a regional tourism hub, Qatar also hosted the 51st UN Tourism Regional Committee for the Middle East. The gathering focused on leveraging the country's strengths in sports, innovation, and infrastructure to promote sustainable tourism across the region.

Looking ahead, Qatar is set to continue its tourism push with a strong slate of upcoming events. The country will annually host the T100 Triathlon World Championship Final in partnership with the Professional Triathletes Organization through 2030. Additional highlights include the FIFA Arab Cup Qatar 2025, the Visit Qatar E1 Grand Prix of Electric Boats, and a series of high-profile festivals and sports events, all aimed at enriching Qatar’s tourism offerings and supporting its continued growth.


Syria to sign deal to import electricity from Turkiye, minister says

Syria to sign deal to import electricity from Turkiye, minister says
Updated 04 May 2025
Follow

Syria to sign deal to import electricity from Turkiye, minister says

Syria to sign deal to import electricity from Turkiye, minister says

CAIRO: Syria is set to sign a deal to import electricity from Turkiye through a 400-kilovolt transmission line between the two countries “soon,” the Syrian state news agency cited the country’s energy minister as saying on Sunday.
Syria is also working on establishing a natural gas pipeline connecting the Turkish border town of Kilis and Syria’s northern city of Aleppo, minister Mohamed Al-Bashir said.
“The pipeline will allow the supply of 6 million cubic meters of gas per day to power plants in Syria which will contribute in improving the country’s energy situation,” he added.
Syria has suffered from severe power shortages. On separate occasions, the country said it was working with partners including Gulf states, in the energy and electricity sectors.