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.


Saudi Arabia’s pharma, medical device factories surge to 206 with $2.6bn investments

Saudi Arabia’s pharma, medical device factories surge to 206 with $2.6bn investments
Updated 26 August 2024
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Saudi Arabia’s pharma, medical device factories surge to 206 with $2.6bn investments

Saudi Arabia’s pharma, medical device factories surge to 206 with $2.6bn investments

RIYADH: The number of pharmaceutical and medical device factories in Saudi Arabia has reached 206, with investments totaling SR10 billion ($2.6 billion), according to official data.

The Ministry of Industry and Mineral Resources reported that this growth includes 56 pharmaceutical factories licensed by the Saudi Food and Drug Authority, with investments in the pharmaceutical sector alone exceeding SR7 billion.

The medical device sector in Saudi Arabia has seen notable advancements. Globally, this market is valued at $500 billion, with Saudi Arabia's share estimated at $6.6 billion.

The Kingdom now boasts 150 licensed medical device factories, representing a 200 percent increase since 2018. Investments in this sector have reached SR3.1 billion, with notable achievements including the production of advanced respiratory devices, insulin syringes, and specialized surgical instruments.

This expansion aligns with the ministry’s broader efforts to localize the pharmaceutical industry and reduce reliance on imports.

Globally, the pharmaceutical market is valued at approximately $1.1 trillion, with the Middle East and Africa accounting for $31 billion of this total.

Saudi Arabia, the largest pharmaceutical market in the region, holds a $10 billion share, representing 32 percent of the market.

Between 2019 and 2023, the Saudi pharmaceutical market grew by 25 percent, rising from $8 billion to $10 billion annually.

This growth highlights a successful push toward localization, with the Kingdom reducing its dependence on pharmaceutical imports from 80 percent in 2019 to 70 percent by 2023.

In June 2022, the ministry announced over SR11 billion in new investment opportunities in the vaccine and biopharmaceutical sectors, aligning with the Kingdom’s strategic goals of enhancing health security and establishing Saudi Arabia as a hub for pharmaceutical and biopharmaceutical production.

Government initiatives, such as the “Made in Saudi” program, have also been instrumental in this expansion by promoting local products on international platforms.

The ministry has focused on enhancing value chains by fostering collaborations in research and development and securing essential raw materials locally.

The Kingdom aims to localize 80-90 percent of its government procurement needs for insulin and vaccines while also attracting foreign investments in the pharmaceutical and healthcare sectors.

Saudi Arabia’s industrial sector demonstrated notable resilience during the COVID-19 pandemic. The ministry quickly ramped up domestic production capacity for essential medical supplies, increasing the daily output of medical masks from 450,000 to 3 million.

In just three months, the number of hand sanitizer factories grew from 12 to 70. These efforts highlight the Kingdom's ability to respond effectively to global supply chain disruptions and further solidify its growing prominence in the pharmaceutical and medical device industries.


Closing Bell: TASI edges down to close at 12,261 

Closing Bell: TASI edges down to close at 12,261 
Updated 26 August 2024
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Closing Bell: TASI edges down to close at 12,261 

Closing Bell: TASI edges down to close at 12,261 

RIYADH: Saudi Arabia’s Tadawul All Share Index closed at 12,261.18 points on Monday, losing 1.46 points, or 0.01 percent.     

MSCI Tadawul 30 Index lost 0.40 points or 0.03 percent to finish at 1,536.44.     

The parallel market, Nomu, also fell 256.47 points, or 0.96 percent, to conclude the day at 26,433.91.     

The main index posted a trading value of SR9 billion ($2.4 billion), with 85 stocks advancing and 137 declining. On the other hand, Nomu has 26 gainers and 40 losers, reporting a trade volume of SR35.9 million.      

Al-Baha Investment and Development Co. was the top performer on TASI as its share price surged 8.33 percent to SR0.13. Saudi Real Estate Co. also jumped 6.33 percent to SR22.86.     

Saudi Pharmaceutical Industries and Medical Appliances Corp. was also among the top gainers, climbing 4.99 percent to SR33.65. Al-Omran Industrial Trading Co. and Saudi Research and Media Group rose 4.49 percent and 3.48 percent to SR40.75 and SR261.40, respectively.    

Savola Group was the day’s worst performer, with its share price dipping 5.01 percent to SR25.60.   

Wafrah for Industry and Development Co. and Herfy Food Services Co. also performed poorly with their stocks dropping by 3.62 percent and 2.90 percent, to close at SR41.25 and SR26.80, respectively.   

Saudi Automotive Services Co. and Kingdom Holding Co. were also among the worst performers.   

Savola Group’s share price drop followed shareholder approval of a board recommendation to increase the company’s capital through a rights issue aimed at strengthening its financial position and supporting future investments.   

The capital increase will involve offering 600 million ordinary shares at SR10 per share, raising a total of SR6 billion. This move will more than double Savola’s capital from SR5.34 billion to SR11.34 billion, enabling the company to pay off debts and distribute shares in Almarai Co. to eligible shareholders.  

The rights issue will be available to shareholders registered at the close of trading on the day of the extraordinary general assembly meeting, with eligibility being finalized two days later.

This capital increase will result in a 112.36 percent rise in the company’s share count, expanding from 533.98 million shares to 1.13 billion shares. 

In a separate bourse filing, Rawasi Albina Investment Co. reported a SR9.4 million loss for the first half of the year. The company’s net profit saw a significant drop from SR15.1 million in the same period last year, primarily due to increased spending on project implementation and operational capacity. Revenue also decreased by 59.5 percent year on year to SR38 million, down from SR94.2 million. 

Mohammed Hasan AlNaqool Sons Co. also announced its financial results for the same period, witnessing a 55.7 percent growth in revenue.   

The company’s sales reached SR29,233 in the first half of the year, up from SR18,770 in the same period last year. This was mainly attributed to an increase in revenue from subsidiaries.   

Net profit also increased to SR1,201, up from a loss of SR652 last year. 


Qatar strikes another 15-year LNG supply deal with Kuwait 

Qatar strikes another 15-year LNG supply deal with Kuwait 
Updated 26 August 2024
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Qatar strikes another 15-year LNG supply deal with Kuwait 

Qatar strikes another 15-year LNG supply deal with Kuwait 
  • Deliveries will start in January 2025
  • Kuwait imports the fuel to help meet rising demand for power generation

KUWAIT: Qatar agreed on Monday to supply Kuwait with 3 million tonnes per annum of liquefied natural gas for 15 years, the second such deal since 2020 as Kuwait imports the fuel to help meet rising demand for power generation. 

The chief executives of state-owned QatarEnergy and Kuwait Petroleum Corp. signed the long-term sales and purchase agreement for LNG in Kuwait. Deliveries will start in January 2025, KPC CEO Sheikh Nawaf Al-Sabah said. 

Reuters reported last week that QatarEnergy and KPC were in talks for the deal. 

Kuwait, an OPEC member and a major oil producer, has been boosting its reliance on imported gas to meet power demand, especially in the summer when consumption by air conditioning systems rises sharply. KPC also aims to ramp up its own gas output as part of a strategy that targets higher oil production capacity too. 

Last week, Kuwait faced a second round of scheduled power outages this summer due to a lapse in local gas supply, despite officials indicating there would be no more cuts after the first round in June. Summer temperatures regularly soar above 50 degrees Celsius or 122 degrees Fahrenheit. 

The deal will play “a pivotal role in electricity generation in Kuwait,” Sheikh Nawaf said. 

He declined to disclose the deal’s value, saying it was confidential. 

Qatar this year announced a further expansion of its North Field project that will cement it as one of the world’s top LNG exporters. The project will boost the North Field’s LNG output to 142 mtpa from 77 mtpa by 2030. 

The LNG from the new supply deal for Kuwait could be partly from the North Field expansion project and partly from Qatar’s existing output, said QatarEnergy CEO Saad Al-Kaabi, who is also Qatar’s state minister for energy. It will be delivered to Kuwait’s Al Zour port. 

Kuwait and Qatar agreed in 2020 a 15-year deal for the supply of 3 mtpa of LNG from 2022, which will overlap with the new deal. 


Saudi Arabia, Ethiopia form business council to boost economic ties

Saudi Arabia, Ethiopia form business council to boost economic ties
Updated 26 August 2024
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Saudi Arabia, Ethiopia form business council to boost economic ties

Saudi Arabia, Ethiopia form business council to boost economic ties
  • Saudi-Ethiopian Business Council aims to enhance bilateral trade and investment opportunities
  • Council is expected to serve as a pivotal platform for supporting Saudi exports and targeting key sectors in Ethiopia

JEDDAH: Saudi Arabia and Ethiopia are set to strengthen their economic ties with the establishment of a new business council for the 2024-2028 term, the Federation of Saudi Chambers announced. 

The Saudi-Ethiopian Business Council, recently approved by the General Authority for Foreign Trade, aims to enhance trade and investment opportunities between the two nations.

Abdullah bin Mohammed Al-Ajmi will lead the council as president, with Omar bin Abdullah Al-Kharashi and Misfer bin Musaad Al-Shahrani serving as vice presidents, according to the Saudi Press Agency. 

The formation of the council aligns with Saudi Arabia’s strategy to deepen economic relations with Africa, particularly with Ethiopia, which is one of the continent’s largest economies with a gross domestic product of approximately $205 billion in 2022.

Despite the substantial economic potential, trade between Saudi Arabia and Ethiopia remains below SR1.3 billion ($346 million). Al-Ajmi emphasized that the council is poised to capitalize on this untapped potential by fostering stronger business partnerships between the two countries.

The council is expected to serve as a pivotal platform for supporting Saudi exports and targeting key sectors in Ethiopia. Al-Ajmi highlighted Ethiopia’s attractive investment environment and its strategic role as a trade hub for Central Africa. 

He noted that the council will focus on promising sectors such as agriculture, mining, petrochemicals, food industries, tourism, real estate, and construction.

The creation of the council follows an agreement announced nearly three months ago during the Saudi-Ethiopian Business Forum, held on June 5 in Addis Ababa. 

The ceremony was attended by Hassan bin Moejeb Al-Huwaizy, chairman of the Federation of Saudi Chambers, along with over 250 investors and several Ethiopian ministers, officials, and representatives from both the public and private sectors.

Al-Huwaizy described the establishment of the council as the result of ongoing efforts and a shared commitment to enhancing economic cooperation. 

He underscored that the council will provide a vital platform for Saudi and Ethiopian businesspeople to expand their activities and forge new partnerships, driving mutual growth and investment.

As both countries look to the future, the new business council is set to play a crucial role in unlocking significant economic opportunities, fostering bilateral trade, and creating a more integrated economic landscape between Saudi Arabia and Ethiopia.


PIF’s Savvy Games Group partners with Xsolla to launch gaming hub in Riyadh

PIF’s Savvy Games Group partners with Xsolla to launch gaming hub in Riyadh
Updated 26 August 2024
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PIF’s Savvy Games Group partners with Xsolla to launch gaming hub in Riyadh

PIF’s Savvy Games Group partners with Xsolla to launch gaming hub in Riyadh
  • Partnership aims to generate 3,600 video game industry jobs in the Kingdom by 2030
  • Xsolla will establish a regional headquarters in Riyadh

RIYADH: Public Investment Fund-owned Savvy Games Group has signed a memorandum of understanding with international gaming commerce firm Xsolla to establish an interactive entertainment hub in Riyadh.

Focusing on job creation, game development, and publishing, the partnership aims to generate 3,600 video game industry jobs in Saudi Arabia by 2030. This initiative supports the Kingdom’s Vision 2030 and is expected to create both regional and global economic opportunities for developers.

As part of the agreement, Xsolla will establish a regional headquarters in Riyadh, providing product development, technology, customer support, and business development services to help developers and publishers scale their projects in the Middle East.

The collaboration will also launch key initiatives, including the Xsolla Game Development Academy, Incubator, and Accelerator programs. These initiatives are designed to nurture talent, support both local and international game development studios, and position Saudi Arabia as a global hub for the industry.

“This partnership with Xsolla represents a significant step forward in our mission to elevate Saudi Arabia’s games and esports ecosystem to global prominence,” said  Savvy Games Group CEO Brian Ward. 

“By combining our resources and expertise, we are creating jobs and building a vibrant, sustainable industry that will drive opportunity and creativity for years to come,” Ward added. 

The partnership will also focus on hosting industry-leading gaming events, funding development projects, and connecting local studios with international investors.

This collaboration comes in the wake of Saudi Arabia’s recent esports boom, exemplified by the nation’s first Esports World Cup, which boasted a record-breaking prize pool of $62.5 million.

It aligns with the Kingdom’s National Gaming and Esports Strategy, which aims to create jobs and contribute $13 billion to the country’s gross domestic product.

“We are excited to collaborate with Savvy Games Group on this groundbreaking initiative. Our shared vision for the future of video games aligns perfectly, and together, we aim to empower developers, foster creativity, and support the next generation of talent in Saudi Arabia,” said Chris Hewish, chief strategy officer at Xsolla. 

Savvy Games Group has also announced a separate MoU with Niantic Inc., a global leader in augmented reality and location-based games. 

Savvy will support Niantic’s expansion into the MENA region, specifically Saudi Arabia, the UAE, and Egypt. 

This collaboration focuses on inspiring people to play together with their communities through live events and localized content in the region. 

Savvy will also assist Niantic with establishing regional operations, including recruiting local talent and setting up office space, to accelerate Niantic’s growth and increase engagement among mobile gamers in the Middle East. 

“Our partnership with Savvy Games Group will significantly enhance our reach in this vibrant region and support our growing community of players,” said John Hanke, founder and CEO of Niantic. 

Through these partnerships, Saudi Arabia is positioning itself as a key player in the global gaming and esports industries, fostering innovation and driving economic growth.