Lilium agrees deal to supply electric vertical take-off and landing aircraft to Saudia

Lilium agrees deal to supply electric vertical take-off and landing aircraft to Saudia
The aircraft boasts an operating distance of up to 175 kms and can reach speeds of 300 kms per hour. Supplied
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Updated 18 July 2024
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Lilium agrees deal to supply electric vertical take-off and landing aircraft to Saudia

Lilium agrees deal to supply electric vertical take-off and landing aircraft to Saudia
  • Saudia will receive the first vehicle in 2026

MUNICH: German aerospace company Lilium NV is making its debut in Saudi Arabia with a groundbreaking deal to supply up to 100 electric vertical take-off and landing jets to Saudia, the Kingdom’s first national carrier.

The formalization of this agreement comes after a framework deal was initially arranged in late 2022, making Saudia the first airline in the region to invest in sustainable air mobility.

The Saudia Group and the German developer of fully electric vertical takeoff and landing aircraft have entered into an agreement to purchase 50 confirmed Lilium Jets, with an option for an additional 50 aircraft. 

Thursday’s signing ceremony took place at the German firm’s headquarters in Munich, attended by Arab News and key industry stakeholders.

CEO of Lilium, Klaus Roewe, underscored in his speech the significance of this partnership, stating: “It (the deal) signals a transformation and a readiness to shape the future.”

In an interview with Arab News on the sideline of the event, he described Saudia as a very important customer because it’s a “very high-ranking, high-class airline, a very demanding airline.”

Roewe added: “On the other side, it’s also representing a country which we believe is the perfect mirror of what Lilium wants to do, because Lilium is definitively the most advanced, the most innovative product.” 

The CEO went on to say that Saudi Arabia’s ambitions for its tourism and aviation sectors as outlined by the Vision 2030 economic diversification plan show a focus on sustainability and innovation.

“We believe it’s a perfect match between the Kingdom of Saudi Arabia and Lilium,” said Roewe.

Saudi Arabia will receive the first plane in 2026. 

The aircraft’s operations will be approved and conducted in accordance with the quality and safety standards of the General Authority of Civil Aviation, and it will be operated and managed through Saudia Private Aviation.

Ibrahim Al-Omar, the director general of Saudia Group, expressed his enthusiasm for the milestone, saying: “Our partnership with Lilium supports the ambitious goal of Vision 2030 by transforming the future of aviation in Saudi Arabia and beyond.”

He added that starting in 2026, the arrival of the first Lilium Jet will help transport 330 million travelers, providing faster and more efficient connections that exceed industry standards and expectations. This development is set to play a crucial role in key areas such as hygiene, entertainment, and business travel.

The director general said that the group is committed to leading aviation innovation with this collaboration with Lilium being “just the beginning.”

He added: “We will continue to explore new heights, offering the best to our guests and positively impacting regional and global aviation.” 

The German ambassador to Saudi Arabia, Michael Kindsgrab, highlighted in his address the transformative potential of this collaboration in advancing decarbonization and sustainability goals under the Kingdom’s Vision 2030. 

“One of the most important areas of this new cooperation is decarbonization and sustainability,” he said, adding: “This is truly a revolutionary concept, and we are very happy that Saudi Arabia, Saudia in this case, is at the forefront of launching this new technology.”

The ambassador said that this is a big event for Saudi Arabia and for Germany, with economic relations between two countries – with their shared focus on transformation, decarbonization and ecology – being some of the biggest common denominators in this relationship.

Roewe’s praised the collaboration between Lilium and Saudia, and said: “Our teams have been working together intensively after signing of the MoU in late 2022, and we received outstanding support and trust in the process for which we are enormously grateful and thank you for that.”

Saudia aims to integrate these electric vertical takeoff and landing aircraft into its fleet, revolutionizing domestic air transport with efficient, zero-emission solutions. 

The Lilium Jets, designed for regional high-speed travel with zero CO2 emissions, align with Saudi Arabia’s focus on sustainability and innovation under Vision 2030.

Lilium has the capacity to produce up to 80 aircraft per year. The aircraft features a 14-meter-long wing and an 80-meter-long body, with a maximum flight altitude of 3,000 meters. 

It boasts an operating distance of up to 175 kilometers and can reach speeds of 300 kms per hour. The airplane’s battery is recharged, not swapped, requiring 30-40 minutes to reach 80 percent capacity. 

The German ambassador to the Kingdom further elaborated on the economic implications of the deal, stating: “Today, we open another chapter for green mobility and green energy. This is truly a revolutionary concept, and we’re very pleased that Saudi Arabia, represented by Saudia, is at the forefront of launching this new technology.”

Saudia’s commitment to leading aviation innovation through its collaboration with the German firm sets the stage for continued exploration and advancement in sustainable aviation. 

The airline will play a pivotal role in shaping the future of air transport in the Middle East and beyond, reaffirming its position as a global leader in the aviation industry.

With this strategic initiative, Saudia and Lilium are poised to set new standards for sustainable aviation, driving forward the vision of a greener and more interconnected world through cutting-edge technology and collaborative partnerships.


Saudi private sector adds 37k local employees in August: NLO data

Saudi private sector adds 37k local employees in August: NLO data
Updated 11 sec ago
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Saudi private sector adds 37k local employees in August: NLO data

Saudi private sector adds 37k local employees in August: NLO data

RIYADH: Saudi Arabia’s private sector added 37,009 local employees in August, marking a 6.94 percent increase from July’s 34,606 new hires, the latest official data showed. 

According to the National Labor Observatory, the total number of private sector workers in the Kingdom reached 11,572,408 last month, up 0.86 percent from July’s 11,473,341.  

This growth highlights the Kingdom’s commitment to boosting national employment through strategic government initiatives aimed at enhancing local talent within the private sector.  

It also underscores the effectiveness of Saudi Arabia’s labor policies, which support the broader goals of Vision 2030 to diversify the economy and reduce oil dependency. 

Of the total workforce, Saudi nationals now constitute 2,369,828 employees, including 972,682 women and 1,397,146 men.  

The increase in female participation reflects ongoing efforts to promote gender inclusivity, aligning with the national goal of higher female workforce engagement.  

Expatriates made up the remaining 9,202,580 workers, comprising 8,812,758 men and 389,822 women.  

The contribution of foreign staff, particularly in sectors requiring specialized skills, remains vital as Saudi Arabia continues to balance national employment objectives with the need for a competitive and skilled workforce. 

The rise in first-time local hires, coupled with overall employment growth, highlights the success of the Private Sector Empowerment Program, known as Tawteen. 

This initiative encourages Saudization by offering incentives for companies to hire and train the Kingdom’s nationals. 

The government’s focus on job creation is a key aspect of its economic transformation plan, with an emphasis on developing a dynamic, inclusive labor market.  

Saudi Arabia’s private sector has been pivotal in reaching these milestones, supported by reforms from the Ministry of Human Resources and Social Development. 

Recent labor market regulations, such as streamlined employment processes and reduced barriers for small and medium-sized enterprises, have further driven this growth. 

These reforms have improved working conditions, making private sector jobs more attractive to Saudis and enhancing competitiveness across industries. 

The Kingdom’s economic ambitions focus on developing a vibrant private sector capable of absorbing the increasing number of Saudis entering the workforce. 


Saudi Arabia among top movers in real estate transparency globally: JLL

Saudi Arabia among top movers in real estate transparency globally: JLL
Updated 22 min 48 sec ago
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Saudi Arabia among top movers in real estate transparency globally: JLL

Saudi Arabia among top movers in real estate transparency globally: JLL
  • Kingdom has implemented a series of reforms to enhance transparency and efficiency
  • Over 18 new legislations have been introduced to modernize regulations and improve service quality

RIYADH: Saudi Arabia has been ranked as the second-best global improver in real estate transparency, according to a new index. 

The Kingdom’s advancement to 38th position in JLL’s 2024 Global Real Estate Transparency Index underscores significant progress in transparency and regulatory frameworks, reflecting broader efforts to transform the sector under Vision 2030. 

Saudi Arabia’s rise is attributed to key government initiatives, including the formalization of the land registration system through the Real Estate Registry. The public now has access to digitized data on sales, leases, and planning developments from the Real Estate General Authority. 

“Recognizing Saudi Arabia among the top 40 most transparent real estate markets globally in JLL’s latest Global Real Estate Transparency Index validates the effectiveness of our comprehensive reforms,” said Tayseer Al-Mufarrij, spokesman for REGA. 

The Kingdom has implemented a series of reforms to enhance transparency and efficiency, with over 18 new legislations introduced to modernize regulations and improve service quality. 

These initiatives are designed to protect stakeholders, increase market transparency, and boost investor confidence, supporting Saudi Arabia’s economic diversification and large-scale urban development projects. 

Al-Mufarrij emphasized the significance of these reforms, stating, “These initiatives, aimed at improving transparency and investor confidence, are essential for the Kingdom’s continued development and economic diversification.” 


Qatar’s banking sector shows robust growth with assets hitting $550bn

Qatar’s banking sector shows robust growth with assets hitting $550bn
Updated 05 September 2024
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Qatar’s banking sector shows robust growth with assets hitting $550bn

Qatar’s banking sector shows robust growth with assets hitting $550bn

RIYADH: Qatar’s banking sector demonstrated a strong performance in July, with total assets of commercial banks rising by 6.4 percent year-on-year to reach 2 trillion Qatari riyals ($549.9 billion). 

The latest statistics were released in the central bank’s July Monthly Monetary Bulletin and shared through the institute’s official X account.

Key indicators showed a significant increase in domestic deposits, surging 11.4 percent year-on-year to 833.1 billion riyals. Similarly, total domestic credit climbed by 7.3 percent, reaching 1.3 trillion riyals during the same period.

The broad money supply also expanded by 6.4 percent, amounting to 727.4 billion riyals, further highlighting the sustained momentum in Qatar’s financial landscape.

This robust growth aligns with the goals outlined in Qatar’s Third National Development Strategy for 2024-2030. The approach emphasizes enhancing financial services to fuel national development and drive economic diversification, which are key priorities as the country seeks to strengthen its foundations.

Further supporting this transition, an analysis by Standard Chartered predicted that Qatar is on track to restore government revenues to pre-2014 oil price shock levels and double its economy by 2031. 

The report attributed this recovery to the Gulf country’s strategic positioning within the global energy market and its continuous efforts toward diversification.

The study underscored Qatar’s status as the world’s sixth-largest gas producer and holder of the third-greatest natural fuel reserves, which allows the country to benefit from rising hydrocarbon prices. 

In addition, Standard Chartered noted the steady growth of the country’s non-oil economy, which now contributes two-thirds of the nation’s gross domestic product.

Qatar’s international economic profile has been further elevated since hosting the FIFA World Cup in 2022.

According to the International Monetary Fund, the event boosted the country’s global presence, while the World Bank projects Qatar’s economy to grow by 2.1 percent in 2024, accelerating to 3.2 percent by 2025. 

Standard Chartered also anticipated continued growth in the liquefied natural gas sector, which will further bolster the country’s economic expansion in the years ahead.

Beyond its energy and banking sectors, Qatar is also making strides in the sukuk market. 

In August, Estithmar Holding, a Qatar-based company, issued a 500 million riyal sukuk, marking the first corporate issuance denominated in local currency under its 3.4 billion riyal program.

The firm’s group CEO Mohamad bin Badr Al-Sadah said: “The issuance of the first corporate Qatari-riyal-denominated sukuk is a historic milestone for Estithmar Holding.” 

On being listed on the London Stock Exchange’s International Securities Market, he said this issuance has garnered significant interest from diverse investors.


Saudi Arabia eyes high-tech auto partnerships with China

Saudi Arabia eyes high-tech auto partnerships with China
Updated 05 September 2024
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Saudi Arabia eyes high-tech auto partnerships with China

Saudi Arabia eyes high-tech auto partnerships with China

RIYADH: Saudi Arabia’s automotive industry is set to benefit from advanced technology and strategic deals signed with Chinese companies during a ministerial visit.

Minister of Industry and Mineral Resources Bandar Alkhorayef is leading a delegation to China and Singapore from Sept. 1 to 8. The visit seeks to strengthen bilateral relations, attract investments to Saudi Arabia, and explore joint venture opportunities in the industrial sector, according to the Saudi Press Agency.

During the trip, Alkhorayef visited the Guangzhou Economic and Technological Development District and toured Guangzhou MINO Equipment Co. He engaged in discussions with the company’s vice president about potential collaborations in manufacturing high-tech vehicles.

This initiative supports Saudi Arabia’s goal to become a major automotive hub and a leader in innovative, eco-friendly vehicle solutions.

The Saudi automotive market is a significant player in the region, representing 40 percent of total sales in the Middle East and North Africa.

In a post on X, Alkhorayef wrote: “My official visit to China started with a tour of the Guangzhou Economic and Technological Development Zone, where I learned about their experience in setting up industrial cities.”

“I also visited GAC and met with FOTON to discuss opportunities to enhance industrial cooperation and exchange expertise and knowledge, especially in the manufacture of high-tech cars,” the minister added.


UAE, Jordan sign $2.3bn agreement to build railway

UAE, Jordan sign $2.3bn agreement to build railway
Updated 05 September 2024
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UAE, Jordan sign $2.3bn agreement to build railway

UAE, Jordan sign $2.3bn agreement to build railway

RIYADH: The UAE has signed a $2.3 billion deal to develop a 360-km railway network linking Jordan’s Aqaba port to the country’s mining hubs at Al-Shidiya and Ghor Al-Safi. 

The project, to be developed and operated by UAE’s Etihad Rail, is part of a $5.5 billion investment package agreed between the two countries in November 2023, according to a press release. 

The railway infrastructure in Jordan will be modernized under the agreement, including the manufacture and supply of new trains built to international standards. 

The project will also feature the construction of terminals for loading and unloading mineral products at Aqaba, Ghor Al-Safi, and Shidiya. 

The railway will take five years to reach operational status, with completion set for 2030. 

The UAE, one of Jordan’s largest foreign investors, has injected around $22.5 billion into the Kingdom’s economy over the past decade. 

“The Investment Memorandum with Jordan showcases our commitment to leveraging our collective and bilateral efforts to drive economic growth, while enhancing resilience and promoting economic diversification in both of our brotherly nations,” said Mohamed Hassan Al-Suwaidi, UAE’s minister of investment. 

Etihad Rail also signed separate agreements with Jordan Phosphate Mines Co. and Arab Potash Co. to transport 16 million tons of phosphate and potash annually from mining sites to Aqaba via the Jordanian railway network. 

“Through enhancing capabilities and sharing technical expertise, we aim to establish new economic and investment connections that support infrastructure development and foster promising opportunities, all within the framework of our vision to achieve comprehensive and sustainable economic growth,” Al-Suwaidi added. 

Jordanian Prime Minister Bisher Al-Khasawneh noted that these agreements with the UAE underscore the deep and amicable bond between the two nations. 

He further highlighted that these developments symbolize the fraternal and strategic relations between Jordan and the UAE and serve the mutual interests of both nations. 

“We are always pleased with the enduring strategic partnership and close fraternal ties between Jordan and the UAE, which reflect the strong bond between King Abdullah II and his brother, Sheikh Mohammed bin Zayed Al Nahyan,” said Al-Khasawneh. 

He also mentioned that detailed studies on railway tracks and handling requirements for potash and phosphate will be completed by the end of 2025, with bids for construction work expected to be issued in early 2026. 

Shadi Malak, CEO of Etihad Rail, said the agreements and MoUs reinforce the company’s commitment to strengthening its presence in the region. 

“We are keen to leverage our proven expertise in developing and operating the UAE National Railway Network to support Jordan’s ambitious plans for advancing its rail infrastructure and driving economic growth. This aligns with the strong and cooperative relationship between our two nations,” added Malak.