Riad Salameh arrest – turning point or strategic maneuver by former Lebanese central bank chief?

Analysis Riad Salameh arrest –  turning point or strategic maneuver by former Lebanese central bank chief?
Former Lebanese central bank chief Riad Salameh, who was arrested on Tuesday over alleged financial crimes. AP Photo/Hussein Malla/File
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Updated 05 September 2024
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Riad Salameh arrest – turning point or strategic maneuver by former Lebanese central bank chief?

Riad Salameh arrest –  turning point or strategic maneuver by former Lebanese central bank chief?

RIYADH: The arrest of Riad Salameh, Lebanon’s former central bank governor, has sent shockwaves through Lebanon’s financial and political spheres. 

After over a year of intense scrutiny and numerous allegations of financial misconduct, Salameh’s apprehension is being closely analyzed from multiple perspectives.

Some believe his arrest might be an attempt to deflect attention from systemic failures within Lebanon’s financial sector, while others regard the arrest as a significant development many hold both views.

One banker, who chose to remain anonymous, provided a nuanced interpretation of the situation when speaking to Arab News.

“My initial reaction is that the government is seeking a scapegoat to avoid taking responsibility for the financial crash,” he said. 

Despite this, he acknowledged that Salameh was not entirely blameless.

The banker expressed skepticism about the effectiveness of the Lebanese judiciary in tackling high-profile financial crimes. 

“The Lebanese judiciary lacks impartiality,” he stated. “Their attempts to bring criminals to justice have been ineffective, and the judges’ lack of experience in financial investigations is significant.”

He also questioned the credibility of seeing the arrest as a gesture toward international bodies like the Financial Action Task Force and the International Monetary Fund. 

“I don’t believe this will help,” he said, referring to Lebanon’s tarnished reputation due to inaction. 

His concern reflects a broader skepticism about whether the arrest will lead to substantive reforms or merely serve as a symbolic act.

On the topic of investor confidence, the banker was pessimistic. He argued that the damage to Lebanon’s financial system had already been done and meaningful changes are needed to ensure a true recovery.

“Politicians need to take responsibility and move forward, even if it means making difficult decisions,” he said.




The entrance of Lebanon's central bank in March 2023, covered in graffiti by protesters over the liquidity crisis which started in 2019. Shutterstock

While Lebanon’s central bank is supposed to be an independent organization, the banker highlighted that the governor’s tenure was marked by a preoccupation with political decisions rather than focusing on the financial management crucial to the institution.

This raises a critical question: Is Salameh solely to blame for Lebanon’s financial turmoil, or is he just one component in a much larger system of mismanagement and corruption? 

According to the banker, the situation reflects a broader systemic issue. 

“The simple words to describe this are mismanagement and corruption to the highest level,” he said, adding: “The irony is that it hasn’t really stopped.” 

This perspective suggests that while Salameh’s arrest might address one aspect of the crisis, it does not tackle the deep-seated issues that have plagued Lebanon’s financial and political systems for years.

George Kanaan, honorary chairman of the Arab Bankers Association, echoed some of the sentiments expressed by the anonymous banker but also provided a critical perspective on Salameh’s alleged misconduct. 

Kanaan expressed a clear stance on the matter, and said:: “I think he deserves to be in jail, and I think he has clearly committed theft.” 

He lamented that the more substantial issue of financial mismanagement, which he believes is not prosecutable, is overshadowed by Salameh’s individual actions.

Another anonymous banker provided a detailed analysis of the political context surrounding Salameh’s arrest, suggesting several possible scenarios that could explain the timing and nature of this high-profile event. 

He posited that Salameh’s arrest might be linked to broader political maneuvers and speculated on three primary scenarios.

Firstly, the banker suggested that Salameh’s arrest might be part of a larger political deal, potentially positioning him as a scapegoat for the pervasive corruption among Lebanese politicians. “His arrest might be part of a broader political deal,” he said.

This theory hinges on the idea that Salameh could be sacrificed to placate public outrage and international pressure, thereby protecting other, more powerful figures who may be equally or more culpable. 

The banker pointed out that Ali Ibrahim, the financial prosecutor of Beirut — who is reportedly a protégé of the head of the country’s parliament Nabih Berri — has just pressed charges of fraud and money laundering against Salameh. 

Berri was once one of Salameh’s major protectors, which adds a layer of complexity to the current political dynamics.

Another scenario proposed is that Salameh might have felt personally endangered and decided to turn himself in as a form of self-preservation. 

The banker highlighted that Salameh had been publicly summoned over the past 13 months but had consistently failed to attend hearings. 

His arrest, surrounded by high levels of secrecy and occurring without the presence of his legal team, could indicate that he feels safer in jail. 

“He might be feeling endangered due to threats, and he decided to turn himself in so he would be protected behind cell bars,” he noted.

The third scenario was that Salameh’s arrest could be a prelude to a future clearing of his name. 

According to this view, the arrest might be part of a strategy to demonstrate that the Lebanese judiciary is taking significant actions against high-profile figures. 

If Salameh is eventually declared innocent, it could imply that the Lebanese judiciary system has conducted a thorough investigation and that Salameh’s arrest was a procedural step rather than an indictment of his guilt. 

“He was arrested to be cleared and declared innocent at a later stage,” the banker suggested. 

This would signal that the judiciary is making a concerted effort to address corruption, albeit in a way that ultimately exonerates Salameh.

The banker emphasized that Salameh’s role as the central figure in Lebanon’s financial system adds considerable weight to these scenarios. 

“He is the secret keeper of all the financial transactions that happened in Lebanon,” he said, underscoring the pivotal role Salameh played in managing and orchestrating financial dealings. 

His deep involvement in the financial system and knowledge of sensitive transactions make him a key figure in understanding Lebanon’s financial mismanagement, which further complicates the political and legal landscape surrounding his arrest.

Legal analysis: implications and challenges

Jihad Chidiac, a Lebanon-based attorney, said the country was “positively surprised” by the arrest, but raised questions about its broader implications. 

He noted that Salameh’s prosecution in Lebanon could potentially preclude further international legal actions due to the principle of non bis in idem, or double jeopardy.




Lebanon-based attorney Jihad Chidiac. File

Chidiac highlighted the significance of the arrest in the context of Lebanese judicial capacity, saying: “Riad Salameh’s arrest represents a crucial step toward accountability of high-profile figures for alleged financial crimes.”

He also addressed the potential for the arrest to influence Lebanon’s relationship with international bodies. 

According to the attorney, the arrest could be a strategic move to align with international expectations and potentially improve Lebanon’s standing with the FATF and IMF. 

However, he cautioned that the arrest alone might not significantly advance Lebanon’s negotiations with these bodies, given the slow progress on reforms.

Chidiac expressed concerns about the broader impact of Salameh’s arrest on corruption and financial mismanagement in Lebanon. “Addressing these systemic problems will require a more comprehensive and sustained approach,” he said, emphasizing the need for effective legal actions and institutional reforms.

The attorney emphasized that while this case sets a new precedent — given that no other high-ranking figures have faced similar legal actions before — the eventual outcome remains uncertain. 

He highlighted the concern that if Salameh were to disclose crucial information, it could potentially jeopardize a large number of public and prominent figures. 

This adds an extra dimension to the case, as the ramifications of his revelations could be far-reaching.

“The possibility of such disclosures raises significant concerns about the stability of Lebanon’s political and financial institutions, and how they might react to protect themselves from further exposure,” Chidiac said.

Amine Abdelkarim, a criminal law specialist, echoed that reaction, as he argued that Salameh’s arrest was long-overdue. 

“The arrest of Riad Salameh is a purely legal act that should have occurred years ago. However, political interference prevented it,” he said.

Abdelkarim noted that “since the economic crisis and the October 17 revolution, European countries like Belgium, France, and Germany have pursued Salameh for crimes related to money laundering and illicit enrichment.”

Lebanon now faces a pivotal moment, as its judiciary must undertake a serious investigation into what Abdelkarim calls “the largest financial crime Lebanon has witnessed since its establishment, and perhaps the largest global financial crime at the level of a sovereign state.” 

The integrity of this process is underscored by Abdelkarim’s confidence in the investigative judge, Bilal Halawi, who he believes is key to ensuring the judiciary’s credibility.

Abdelkarim also touched on Lebanon’s complex relations with foreign nations, particularly European countries that have issued arrest warrants for Salameh. 

He noted that these countries are likely to demand Salameh’s extradition, creating a legal dilemma for Lebanon. 

“We cannot predict how relations might evolve if Lebanon refuses to hand over Salameh for prosecution abroad,” the law specialist said as he reflected on the diplomatic and legal challenges that lie ahead.

Regarding the possibility that Salameh’s arrest is part of a broader political negotiation, Abdelkarim expressed caution. 

While he acknowledged that such a scenario is possible, he doubted that Salameh would accept being the sole scapegoat for the financial collapse. 

“There are many political figures involved with Salameh, and I don’t believe he will be the only victim,” he remarked, leaving room for further developments in the political and legal fallout from the arrest.

On the potential for Salameh’s arrest to trigger broader reforms, Abdelkarim was cautiously optimistic. 

“This may lead to a correction in the way state funds are managed,” he said, noting that international pressure could push Lebanon toward necessary reforms. 

However, he tempered this optimism by acknowledging the political deadlock in Lebanon, particularly the ongoing failure to elect a new president, which may delay meaningful change.

From a legal perspective, Abdelkarim outlined the key charges against Salameh, including embezzlement of public funds, money laundering, and illicit enrichment. 

He warned of possible legal maneuvers by Salameh to obstruct the investigation, such as withholding crucial documents. 

Abdelkarim emphasized the need for judicial reform, particularly the passage of the judicial independence law, which has been stalled in parliament for years.

As Lebanon grapples with these developments, the effectiveness of the judiciary in handling such high-profile cases will be closely watched. 

It could serve as a litmus test for the country’s commitment to tackling corruption and restoring public trust in its institutions. 

The coming days will be crucial in determining whether this arrest will lead to meaningful reform or merely serve as a symbolic gesture.


Biban 24 sees deals worth over $359m on its 2nd day

Biban 24 sees deals worth over $359m on its 2nd day
Updated 14 sec ago
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Biban 24 sees deals worth over $359m on its 2nd day

Biban 24 sees deals worth over $359m on its 2nd day

RIYADH:  Agreements totaling SR1.35 billion ($359 million) were signed on the second day of Biban 24, a key event focused on supporting startups and small and medium enterprises in Saudi Arabia.

The agreements, finalized during the forum organized by the General Authority for Small and Medium Enterprises, also known as Monsha’at, are set to benefit a range of entrepreneurial initiatives across the Kingdom. The event, held under the theme “A Global Destination for Opportunities,” aims to enhance financial support and empower SMEs, fostering growth in the national economy.

Among the most notable agreements was a memorandum of cooperation between Monsha’at and the Qatar Development Bank. The partnership seeks to strengthen joint training programs, develop accelerators and incubators, and support innovation initiatives to benefit entrepreneurial projects.

Another key agreement was signed between Monsha’at and Milton International, aimed at providing further support to startups and fostering billion-dollar business collaborations between the two organizations.

Monsha’at also entered into a cooperation agreement with Arab National Bank to launch a business accelerator focused on financial technology, designed to bolster the growth of fintech enterprises.

The event also saw the signing of a memorandum of understanding with the National Events Center to support entrepreneurship within the events sector. This collaboration will involve launching competitions to address challenges through an innovation center.

In another significant move, Monsha’at partnered with Noon Co. to enhance its Mahali platform. This initiative will help local businesses develop online stores and tap into new sales opportunities, promoting competitive, locally-produced goods throughout the Kingdom.

These agreements are part of Monsha’at’s broader strategy to drive the growth and competitiveness of SMEs by forging partnerships with key industry players, both locally and internationally.

 


Energy efficiency investment to hit $660bn in 2024: IEA

Energy efficiency investment to hit $660bn in 2024: IEA
Updated 14 min 20 sec ago
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Energy efficiency investment to hit $660bn in 2024: IEA

Energy efficiency investment to hit $660bn in 2024: IEA
  • Skilled labor shortages and cooling solutions among key challenges, IEA warns

RIYADH: The International Energy Agency has projected global investment in energy efficiency to reach a record $660 billion in 2024, maintaining the levels seen in 2022.

Significant increases are expected in emerging markets, with Africa anticipated to see a 60 percent rise, the Middle East a 40 percent increase, and Latin America a 20 percent boost.

Despite this positive growth, the Energy Efficiency 2024 report emphasizes that to meet net-zero targets by 2030, global investment in energy efficiency needs to rise to $1.9 trillion.

A major hurdle in achieving these ambitious targets is the ongoing shortage of skilled labor in the energy sector. The IEA report highlights a critical need for workers in specialized fields like HVAC (heating, ventilation, and air conditioning), heat pump installation, and electrical work to support the growing demand for energy-efficient technologies.

To address this skills gap, the IEA calls for more inclusive policies that encourage greater participation of women in the energy workforce. Women currently represent less than 20 percent of the energy sector, despite making up 39 percent of the global labor force. Increasing women’s representation in the sector could help fill the labor shortage and accelerate energy efficiency progress.

The report also points to the urgent need for energy-efficient cooling solutions in response to rising global temperatures. With 2024 seeing record-breaking heatwaves and soaring air conditioner sales, the IEA stresses that efficient cooling systems can alleviate pressure on electricity grids, especially in regions like Southeast Asia, where efficient air conditioners offer substantial lifetime savings.

These models are becoming increasingly cost-competitive in rapidly growing markets, helping to reduce both energy consumption and grid strain.

The IEA also underscores the critical role that energy efficiency plays in reducing reliance on fossil fuels. In its net-zero emissions by 2050 scenario, the IEA projects that energy efficiency improvements could account for more than a third of the carbon dioxide reductions needed by 2030.

For instance, a transition to electric vehicles and improvements in building insulation could reduce oil demand to levels equivalent to China’s total oil consumption and cut natural gas consumption to levels comparable to Europe’s total use in 2024.

The report highlighted notable progress toward the energy efficiency targets set at the 2023 COP28 summit, where nearly 200 countries committed to doubling the global rate of energy efficiency improvements by 2030. The IEA views this as a significant milestone for energy efficiency in global policy.

However, the global energy efficiency improvement rate for 2024 is projected to remain at 1 percent, consistent with the previous year. The report emphasizes that meeting the targets will require a much stronger push in policy implementation and stronger enforcement of energy efficiency measures.

A key driver of progress is electrification, which is expected to increase by nearly 2 percent in 2024. The growing adoption of electric vehicles and energy-efficient air conditioners, especially in regions facing extreme heat like India and Southeast Asia, is accelerating this transition.

The report also highlights regional trends, with China and India projected to see energy efficiency improvements of 1.5 percent and 2.5 percent, respectively. These gains are largely supported by national policies aimed at promoting energy-efficient technologies and encouraging the adoption of EVs.

“China, India, Southeast Asia, Africa, and Latin America together account for nearly half of global energy demand, positioning these regions as key drivers of global energy efficiency improvements in the years ahead,” the report said.

To support global efforts, the IEA has launched the Energy Efficiency Progress Tracker, a new tool that provides real-time data on national and regional trends in energy intensity, demand, and electrification. This tracker is designed to help policymakers and stakeholders monitor progress and implement actions needed to meet the energy efficiency targets set at COP28.

“The IEA is working more closely than ever with governments to ensure that energy efficiency remains central to secure, affordable, and inclusive energy transitions,” the report concluded. “Well-designed and effectively implemented policies will be essential to achieving these global goals.”


Sustainable bond issuance surges 9%, market set to hit $950bn by year-end: Moody’s

Sustainable bond issuance surges 9%, market set to hit $950bn by year-end: Moody’s
Updated 23 min 19 sec ago
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Sustainable bond issuance surges 9%, market set to hit $950bn by year-end: Moody’s

Sustainable bond issuance surges 9%, market set to hit $950bn by year-end: Moody’s

RIYADH: Global issuance of sustainable bonds in the third quarter of 2024 reached $216 billion, marking a 9 percent annual increase, according to Moody’s.

The year-on-year increase in green, social, sustainability, and sustainability-linked bonds came despite a quarter-on-quarter drop, with the volume issued down 14 percent in the three months to the end of September compared to the preceding period.

For the first nine months of 2024, sustainable bond volumes reached $769 billion, marking a 3 percent decline compared to the same period last year.

Despite the quarterly dip, Moody’s expects total sustainable bond volumes to reach $950 billion in 2024 “buoyed by relatively robust volumes in the first half of the year and continued issuer appetite for funding environmental and social projects with labeled bonds.”

Of the $216 billion issued in the third quarter, green bonds made up the majority at $129 billion. In comparison, social bonds accounted for $37 billion, sustainability bonds for $41 billion, sustainability-linked bonds for $6 billion, and transition bonds for $3 billion. 

Green bonds remained the preferred choice for most issuers, comprising 60 percent of the third-quarter sustainable bond market and accounting for 59 percent of issuance so far this year. 

Although green bond issuance fell 18 percent from the previous quarter, Moody’s expected it will surpass its annual forecast: “Despite the decline in the third quarter, green bonds will likely eclipse our forecast of $580 billion given the strength of year-to-date issuance and continued issuer preference for the green label.”

Europe’s sustainable bond issuance faced notable pressure, dropping by 38 percent in the third quarter to around $80 billion, the largest regional decrease. 

While the continent maintained its position as the leading region in sustainable bond issuance, accounting for 37 percent of global volumes, this marked its lowest share since early 2020. 

The Asia-Pacific region showed resilience, with sustainable bond issuance totaling $60 billion, raising its global share to 28 percent — the region’s highest since the third quarter of 2023. 

North America’s sustainable bond market, however, remained subdued, with volumes of just $26 billion, marking its lowest level since the second quarter of 2020. 

Latin America and the Caribbean brought $12 billion to market, while the Middle East and Africa contributed nearly $5 billion, making up 8 percent of the total global sustainable bond.

Among sectors, nonfinancial companies led in sustainable bond issuance in the third quarter with a 28 percent share, or $60 billion, although this was a 26 percent drop from the previous quarter. 

Financial institutions followed, contributing $48 billion to the market, marking a 12 percent increase from the prior quarter and representing the second-largest share at 22 percent. 

Supranational issuers saw notable growth, issuing $33 billion, which represented a 51 percent increase quarter-over-quarter and an 80 percent rise year-over-year. 

Municipal issuance, on the other hand, declined 17 percent to $13 billion, the lowest since early 2022.

Sovereign and government agency issuance also saw quarter-over-quarter declines of approximately 30 percent.

Sustainable loan volumes experienced a more pronounced decrease, falling 34 percent year-to-date to $380 billion, following two years of strong growth. 

Sustainable loans averaged $127 billion per quarter over the first nine months, a notable drop from the quarterly averages of $201 billion in 2022 and $192 billion in 2023. 

The third-quarter volume of $101 billion was the lowest recorded since the first quarter of 2022. 

Sustainability-linked loans led the sector with $283 billion year-to-date, while green loans contributed $90 billion. In the third quarter alone, SLL volume stood at $71 billion, relatively flat from the previous quarter but down 35 percent year-over-year and 58 percent from the third quarter of 2022. 

Green loan volumes in the third quarter reached $27 billion, representing a 13 percent decrease from the previous quarter and a 54 percent year-over-year decline.

Moody’s highlighted that “while the decline in market share could be driven in part by some of the challenges issuers have faced amid heightened scrutiny around the quality of instruments and perceived greenwashing risks, there may also have been a greater number of unlabeled bonds this year as issuers have sought to quickly execute transactions when market conditions were favorable.”

European borrowers continued to dominate SLL volumes in the third quarter, holding a 42 percent share, with North American borrowers at 35 percent and Asia-Pacific borrowers at 18 percent.

“European SLL volumes declined by 22 percent to $30 billion in the third quarter, their lowest quarterly tally since the third quarter of 2021,” the report said.

The analysis highlighted the role of recent biodiversity and climate COPs in spotlighting the importance of closing financing gaps in the sustainable debt market. 

Biodiversity COP16 in Cali, Colombia, held at the beginning of November, emphasized mobilizing $200 billion annually for projects, including debt-for-nature swaps for high-debt nations. Though a small share of bond proceeds currently go to nature-related uses, Moody’s expected this to grow as more issuers fund biodiversity initiatives.

The upcoming climate change COP29 in Baku, Azerbaijan, due to be held from Nov. 11 to Nov. 22, is set to introduce a new finance target, replacing the current goal.

 “Establishing a new climate finance goal to replace the current $100 billion target will likely be a major topic of discussion at COP29. The aim of this new quantified goal is to support developing countries in their climate action plans beyond 2025,” said Moody’s.
 
Emerging markets, which face higher climate risks, may see increased sustainable bond issuance, especially as the “Climate Bonds Initiative’s expansion of its taxonomy in September to facilitate greater channeling of capital to adaptation and resilience projects,” according to the report.


Jordan, Egypt discuss enhanced energy connectivity through Arab Gas Pipeline link 

Jordan, Egypt discuss enhanced energy connectivity through Arab Gas Pipeline link 
Updated 24 min 22 sec ago
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Jordan, Egypt discuss enhanced energy connectivity through Arab Gas Pipeline link 

Jordan, Egypt discuss enhanced energy connectivity through Arab Gas Pipeline link 

RIYADH: Jordan and Egypt are taking steps to bolster regional gas connectivity as top energy officials from both nations met to explore potential infrastructure and supply partnerships.

The Middle Eastern country’s Minister of Energy and Mineral Resources, Saleh Al-Kharabsheh, and Cairo’s Minister of Petroleum and Mineral Resources, Karim Badawi, held talks on these issues on the sidelines of the ADIPEC 2024 conference in Abu Dhabi. 

A key focus of the discussions was the feasibility of linking Jordan’s Risha Gas Field to the Arab Gas Pipeline through a 300-km connection. 

This proposed expansion follows recent studies that identified commercially viable gas reserves in the Risha field. 

The Arab Gas Pipeline is a regional infrastructure project designed to transport natural gas from Egypt to Jordan, Syria, and Lebanon. Spanning over 1,200 km, the pipeline enhances connectivity and supports energy security across the Middle East. 

The talks also explored potential cooperation on gas-related projects, including initiatives to expand the use of natural gas in Jordanian and Egyptian vehicles, according to a statement released by Jordan’s Ministry of Energy and Mineral Resources. 

Both ministers agreed to set up technical meetings between Jordan’s Ministry of Energy and Mineral Resources and the Egyptian General Petroleum Co. to advance joint oil and gas exploration efforts within Jordan. These technical sessions are expected to facilitate knowledge-sharing and support the country’s ambitions in energy development. 

Additionally, the ministry’s statement highlighted a recent agreement signed between Egypt Gas Co. and Jordan’s Aqaba Development Co. 

This deal aims to supply natural gas to Quweira Industrial City in Aqaba. It includes provisions for constructing a natural gas pipeline network and establishing infrastructure in line with regulatory safety standards. 

At the event, Badawi also announced plans to introduce a policy paper focused on increasing investment in Egypt’s oil and gas sector.

The initiative seeks to attract investors across the oil, gas, refining, and petrochemical industries. 

The announcement followed Badawi’s meeting with TotalEnergies CEO Patrick Pouyanne, where the executive presented the company’s upcoming exploration and production activities.  

The two discussed TotalEnergies’ progress in boosting output at the Bashrush Gas Field, as well as its involvement in the Idku liquefaction plant and the firm’s expansion into jet fuel supply and marketing. 

Additionally, Pouyanne expressed interest in acquiring new exploration areas in the Mediterranean, aligning with the recent international bid round launched by the Egyptian Natural Gas Holding Co. for oil and gas exploration. 


Riyadh Air plans new jet order decision early next year

Riyadh Air plans new jet order decision early next year
Updated 07 November 2024
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Riyadh Air plans new jet order decision early next year

Riyadh Air plans new jet order decision early next year

LONDON: Saudi startup Riyadh Air is wading back into the jet market after buying dozens of Airbus and Boeing planes and aims to finalize a new deal involving the industry’s largest twin-aisle jets early next year, its CEO said.

The country’s newest national airline is weighing up the Boeing 777X and the Airbus A350-1000 and expects to make a decision in the first or second quarters of 2025, CEO Tony Douglas told Reuters.

Riyadh Air last year ordered 39 Boeing 787 wide-body jets with options for another 33 as part of a wider deal also involving national carrier Saudia, and last week it added a firm order for 60 Airbus A321neo-family aircraft.

Douglas declined to comment on the size of the new order but reiterated that the airline, which plans to start operations next year, ultimately aimed to operate more than 200 aircraft.

Douglas told Reuters in a separate interview last week that Riyadh Air would start formal talks for a new order for large wide-body aircraft within two months.

The roughly 200-seat A321neo is an in-demand single-aisle aircraft that competes with the larger versions of Boeing 737 MAX. Airbus says it is sold out through the rest of the decade.

Despite the long lead times for most new purchases, Douglas said the A321neos would be delivered between the second half of 2026 and the end of 2030 and hinted at further purchases.

“That puts us right back in the standard order window with Airbus so the door is wide open,” he said.

Industry sources said the aircraft had become available as part of a complex financing deal driven by the availability of future delivery slots originally assigned to Capital A unit AirAsia, which has been restructuring its order book.

Airbus declined to comment and AirAsia did not reply to a request for comment.

Douglas declined to comment on the deal’s structure, saying only that it was a “complex multi-party transaction.”

The growth of Riyadh Air, owned by Saudi Arabia’s Public Investment Fund, is one of the industry’s fastest launches.

Douglas said the A321neo would be used to open new routes or to fly in sectors where there is not enough demand to fill the 290-seat Boeing 787-9, adding that flying such big jets less than three-quarters full would not make sense economically.

Riyadh Air has not decided which version of A321neo to take but is likely to include some long-distance models, he added.