Flynas takes delivery of 53rd A320neo from Airbus

Flynas takes delivery of 53rd A320neo from Airbus
Flynas is one of the top four low-cost airlines globally, according to Skytrax. SPA
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Updated 17 July 2024
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Flynas takes delivery of 53rd A320neo from Airbus

Flynas takes delivery of 53rd A320neo from Airbus

RIYADH: Saudi Arabia’s budget airline flynas has received its 53rd A320neo aircraft out of an order of 120 from Airbus as part of its strategic expansion plan. 

The next-generation model airplane touched down at King Khalid International Airport in Riyadh, further consolidating the company’s position as the leading low-cost airline in the Middle East and one of the top four low-cost airlines globally, according to Skytrax.

The delivery is part of flynas’ “We connect the world to the Kingdom” mantra, which complies with the objectives of the Kingdom’s national aviation strategy to join Saudi Arabia with 250 international destinations, accommodate 330 million passengers, and host 150 million tourists yearly by 2030. 

This comes as the company affirmed its intention to expand its fleet and become the largest owner of modern aircraft in the region during the Paris International Airshow 2023. 

It announced the signing of an order for 30 A320neo aircraft as part of a larger deal to purchase 120 new Airbus A320neo and A321neoXLR aircraft, valued at SR46 billion (over $12 billion), according to the air carrier’s website. 

The company also announced that its board of directors had approved an order for an additional 130 aircraft, increasing the total purchase order from Airbus to 250 aircraft. 

The expansion of A320neo aircraft in the flynas fleet highlights its commitment to sustainability and environmental protection. The A320neo is recognized as an advanced, environmentally friendly, and fuel-efficient single-aisle airplane, demonstrating flynas’ dedication to ecological responsibility, reported the Saudi Press Agency. 

Featuring the widest single-aisle cabin with 174 seats, the A320neo family incorporates the latest technologies such as new-generation engines and Sharklets. These advancements result in a 15 percent reduction in fuel consumption and 50 percent less noise compared to previous-generation aircraft. 

Last month, the Saudi carrier announced an increase in seat capacity on its domestic flights to Taif, Abha, and Al-Baha, totaling over 480,000 seats.  

This initiative aims to enhance domestic tourism during this year’s summer season, representing  21 percent increase compared to the same period in 2023. The airline plans to operate an average of 30 flights per day over a three-month period. 

The delivery of the A320neo came a day after a delegation from Saudia, Saudi Arabia’s national flag carrier, visited Airbus’s factory in Hamburg to oversee progress on the Kingdom’s largest aircraft deal in aviation history.

This significant agreement, signed in May, includes the acquisition of 105 A320neo and A321neo aircraft, to be distributed between Saudia and its low-cost carrier, flyadeal.

President of Airbus International Operations, Wouter van Wersch, emphasized the opportunities Saudi Vision 2030 presents for partnership development.

“We, as Airbus, have a very clear strategy on what we want to do in terms of sustainability. We work on innovation, bringing the best aircraft to the market today. But also tomorrow. We look at hydrogen. We look at sustainable aviation fuel. So, there’s a wide array of topics that need to be addressed and to be successful,” he said.

He added that they have been in Saudi Arabia for a long time, saying: “We have a strong local team, of course, in commercial aircraft, but also in helicopters and in defense and space. So, we want to do more. We are very committed to continue to work closely with the Kingdom and we will have to see what happens.”

He further said that Vision 2030 of the country needs more transportation, affirming that his company is a leader in aviation. “So, we are very keen to contribute and look forward to great times together,” the executive said.


Direct flights from Stuttgart to Jeddah to begin later this year

Direct flights from Stuttgart to Jeddah to begin later this year
Updated 06 March 2025
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Direct flights from Stuttgart to Jeddah to begin later this year

Direct flights from Stuttgart to Jeddah to begin later this year

RIYADH: Direct flights from Stuttgart, Germany, to Jeddah, will begin in the second half of 2025 and operate twice a week, the Saudi Air Connectivity Program has announced.

Inaugurated in collaboration with the Saudi Tourism Authority and Jeddah Airports Co., the route is set to utilize an A321neo aircraft with a capacity of 224 seats, according to the Kingdom’s press agency.

This move aims to increase the capacity of travelers and visitors from Europe to Saudi Arabia, aligning with the government’s aviation goal of transporting 330 million passengers across over 250 destinations, as well as 4.5 million tonnes of air cargo, by 2030.

Majid Khan, CEO of ACP, said the collaboration with German low-cost carrier Eurowings — a wholly owned subsidiary of the Lufthansa Group — is advancing well in enhancing air connections between Saudi Arabia and Europe.

He further expressed confidence in forming a long-term partnership with the airline to broaden the network of flight routes in the future, offering travelers new opportunities to experience the Kingdom’s historical and cultural sites.

This falls in line with ACP’s goal to boost tourism in Saudi Arabia by enhancing air connectivity between the Kingdom and international destinations, broadening existing flight routes, and establishing connections to new global markets.

As the driving force behind the National Tourism Strategy and Saudi aviation strategy, ACP promotes collaboration and partnerships between crucial public and private sector players in the tourism and aviation sectors. Its objective is to enhance the Kingdom’s status as a premier global hub for air travel connectivity.
 


Jordan’s move to ease residency rules will attract investment, say experts

Jordan’s move to ease residency rules will attract investment, say experts
Updated 06 March 2025
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Jordan’s move to ease residency rules will attract investment, say experts

Jordan’s move to ease residency rules will attract investment, say experts

RIYADH: Jordan’s recent move to ease residency requirements for foreign investors is set to drive capital inflows, particularly into real estate, according to industry experts.

A recent decision by the country’s Cabinet will reduce financial barriers for foreign residents and property owners seeking to renew their residency, the Jordan News Agency, also known as Petra, has reported.

Among the key amendments, the government scrapped a 10,000 Jordanian dinar ($14,100) deposit requirement for foreign property owners who have lived in Jordan for more than two years.

Meanwhile, non-property owners applying for a five-year residency will see their required deposit halved to 10,000 dinar.

The changes mark a significant shift in Jordan’s investment strategy, aligning with regional trends that leverage residency incentives to attract long-term foreign capital. The policy adjustments are expected to stimulate real estate activity, benefiting adjacent industries such as construction, legal services, and financial consultancy.

According to Petra, Ali Murad, chairman of the Jordanian-European Business Association stated that the decision is a crucial economic measure that will inject liquidity into the local market and strengthen the real estate sector.

 “Shifting residency requirements from bank deposits to property ownership will incentivize foreign investors to purchase real estate, boosting demand for construction and commercial projects,” Petra reported him saying.

Other experts believe that Jordan’s revised policy could make it a more competitive destination for international buyers looking for investment opportunities beyond traditional financial markets.

Fadi Al-Majali, chairman of the Jordanian Expat Business Association said that removing the deposit hold requirement for property owners enhances the attractiveness of real estate investment in the country, Petra reported.

The statement went on to say that Al-Majali believes  “these amendments will encourage more foreign investors to acquire properties, thereby increasing market demand and supporting the continued development of the real estate and construction sectors.”

Iraqi investors, who have historically played a key role in Jordan’s property market, are also expected to benefit.

Majid Al-Saadi, chairman of the Iraqi Business Council in Amman, welcomed the policy shift according to the Jordan News Agency, emphasizing that it allows investors to allocate more capital into Jordan’s retail, healthcare, and education sectors.

While the new measures are expected to drive investment in the near term, experts argue that Jordan could further enhance its appeal by adopting long-term residency programs similar to the UAE’s “golden visa” initiative. 

Gulf states have successfully used such programs to attract high-net-worth individuals, professionals, and entrepreneurs, creating a stable foreign investor base.


Closing Bell: Saudi main index closes in red at 11,811

Closing Bell: Saudi main index closes in red at 11,811
Updated 06 March 2025
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Closing Bell: Saudi main index closes in red at 11,811

Closing Bell: Saudi main index closes in red at 11,811

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 87.75 points, or 0.74 percent, to close at 11,811.11.

The total trading turnover of the benchmark index was SR7.08 billion ($1.88 billion), as 47 of the listed stocks advanced, while 198 retreated.   

The MSCI Tadawul Index decreased by 9.34 points, or 0.62 percent, to close at 1,490.08.

The Kingdom’s parallel market Nomu dipped, losing 258.75 points, or 0.82 percent, to close at 31,296.73. This comes as 34 of the listed stocks advanced while 49 retreated.

The best-performing stock was Tanmiah Food Co., with its share price surging by 4.7 percent to SR127.

Other top performers included Malath Cooperative Insurance Co., which saw its share price rise by 4.30 percent to SR13.58, and Almasane Alkobra Mining Co., which saw a 3.70 percent increase to SR56.

Mouwasat Medical Services Co. saw the biggest decline of the day, with its share price dropping 9.34 percent to SR75.70.

Walaa Cooperative Insurance Co. fell 8.02 percent to SR18.82, while Al-Majed Oud Co. dropped 7.42 percent to SR132.20.

On the announcements front, Al-Majed Oud Co. released its financial results for 2024, with net profits reaching SR156.9 million, up by 5.5 percent compared to the previous year.

In a statement on Tadawul, the company attributed the increase to a surge in sales through geographic expansion and opening new stores, as well as launching new products and an uptick in the e-commerce business. 

In another announcement, Jabal Omar Development Co. declared its annual financial results for 2024. 

The company’s net profit in 2024 reached SR200 million, up from SR37.4 million in the previous year, marking a 433.8 percent surge.

The firm said in a statement that this surge was attributed to a growth in revenue by SR575 million, driven by the improved operations of two new hotels, Address Jabal Omar and Jumeirah Jabal Omar, along with a significant rise in hotel occupancy and commercial center revenues. 

Additionally, the company recognized SR748 million in other operating income from the sale of land in the Jabal Omar project. This surge was achieved despite a rise in general and administrative expenses.

The firm’s shares traded 3.07 percent lower on the main market to close at SR25.30.

Basic Chemical Industries Co. also announced its financial results for the previous year, with net profits reaching SR40.3 million, down by 8.1 percent compared to 2023.

In a statement on Tadawul, the company attributed the decrease in profit to an increase in general and administrative expenses, zakat tax, and a drop in profits from the sale of fixed assets and other operating income.

The firm’s shares traded 1.56 percent lower on the main market to close at SR28.40.


Saudi Arabia’s M&A market sees 63% rise in Feb

Saudi Arabia’s M&A market sees 63% rise in Feb
Updated 06 March 2025
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Saudi Arabia’s M&A market sees 63% rise in Feb

Saudi Arabia’s M&A market sees 63% rise in Feb

RIYADH: Saudi Arabia approved 26 mergers and acquisitions applications in February, a month-on-month surge of 62.5 percent, highlighting a competitive business climate. 

The Kingdom’s General Authority for Competition confirmed the agreements, spanning acquisitions, mergers, and joint ventures, following comprehensive market assessments to ensure fair competition. 

Acquisitions led the approvals, comprising 73 percent of the total, followed by joint ventures at 19 percent, and mergers at 8 percent, according to GAC data. 

Saudi Arabia mandates economic concentration approvals for M&A deals to prevent monopolies and market distortions. 

The rise in approvals aligns with GAC’s broader strategy to foster fair competition, combat anti-competitive practices, and enhance market efficiency, ultimately boosting investor confidence. 

Among the approved acquisition requests, Spark Education Platform secured all stakes in three educational institutes in the UAE and Bahrain. 

The mergers category included UAE-based Aurora Spirit’s consolidation with US-based Berry Global, while London-based law firm Herbert Smith Freehills merged with US-based Kramer Levin. 

In the joint ventures segment, Ajlan & Bros Mining partnered with Moxico KSA Ltd. to launch a zinc-copper project in Khnaiguiyah, southwest of Riyadh. Additionally, Abu Dhabi Future Energy Co. formed a joint venture with France’s EDF International SAS and Nesma Co. to develop a solar energy project in Madinah.  

This follows a surge in mergers and acquisitions across the country, with 202 economic concentration requests approved in 2024 — the highest on record — marking a 17.4 percent increase and underscoring the Kingdom’s efforts to enhance its competitive business environment. 

The Kingdom’s M&A momentum stands in contrast to the global downturn in deal-making. A December report from GlobalData indicated that worldwide deal volume fell 8.7 percent year on year in the first 11 months of 2024, with the Middle East and Africa region experiencing a relatively modest 5 percent decline. 

GAC continues to evaluate economic concentration requests — including mergers, acquisitions, and joint ventures — to safeguard competitive market dynamics. It also monitors various sectors for potential competition law violations, ensuring a level playing field for businesses.


Saudi expats transfer nearly $4bn in Jan, bolstering developing economies

Saudi expats transfer nearly $4bn in Jan, bolstering developing economies
Updated 06 March 2025
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Saudi expats transfer nearly $4bn in Jan, bolstering developing economies

Saudi expats transfer nearly $4bn in Jan, bolstering developing economies

RIYADH: Expatriate remittances from Saudi Arabia rose to SR13.74 billion ($3.66 billion) in January, marking a 32 percent increase compared to the same period last year, according to recent data.

Figures from the Saudi Central Bank, or SAMA, also show that remittances sent abroad by Saudi nationals reached SR6.1 billion. This reflects an 11.33 percent increase during the same period.

This surge was largely driven by the expansion of Vision 2030 projects, which have fueled economic growth and increased demand for skilled and unskilled foreign labor.

Economic stability, competitive transfer fees, and advancements in fintech services have further facilitated the growth of remittance flows.

Countries with large expatriate communities in the Kingdom— such as Bangladesh, India, and Pakistan, as well as Egypt and the Philippines— remain the primary beneficiaries of these money transfers.

Remittances from wealthier nations play a pivotal role in bolstering the economies of developing countries, serving as a substantial source of income and contributing significantly to their gross domestic product.

In 2022, remittances constituted 3.3 percent of India’s GDP and 4.7 percent of Bangladesh’s GDP, according to a World Bank blog.

These financial inflows often surpass foreign direct investment and official development assistance, underscoring their critical importance. ​

Beyond macroeconomic contributions, remittances have profound impacts on individual households.

Studies have demonstrated that remittances lead to notable reductions in child malnutrition, promoting healthier and stronger growth, according to a report by UNICEF.

Moreover, these funds enable families to access healthcare services, afford medications, and invest in better sanitation, contributing to lower child mortality rates.​

Education also benefits markedly from remittance inflows. Households receiving remittances are more likely to keep their children in school longer, with data indicating increased enrollment across various educational levels.

Research from Ghana shows that families with remittance income enroll their children in both primary and secondary education at higher rates compared to those without such income. ​

The impact of remittances is further amplified by lower transfer fees, with reduced costs enhancing the financial support available for essential needs like nutrition, healthcare, and education.

Saudi Arabia offers some of the lowest remittance transfer fees worldwide, with services like stc pay and Tahweel Al Rajhi providing competitive exchange rates and minimal transaction costs.