Saudia, Riyadh Air Sign Strategic Memorandum of Cooperation

Saudia and Riyadh Air announced the signing of a memorandum of understanding as part of a comprehensive agreement. (Asharq Al-Awsat)
Saudia and Riyadh Air announced the signing of a memorandum of understanding as part of a comprehensive agreement. (Asharq Al-Awsat)
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Saudia, Riyadh Air Sign Strategic Memorandum of Cooperation

Saudia and Riyadh Air announced the signing of a memorandum of understanding as part of a comprehensive agreement. (Asharq Al-Awsat)
Saudia and Riyadh Air announced the signing of a memorandum of understanding as part of a comprehensive agreement. (Asharq Al-Awsat)

Saudia and Riyadh Air announced the signing of a memorandum of understanding as part of a comprehensive agreement that includes operating flights using the shared code system, within joint efforts to better serve Saudi Arabia’s vision and ambitions in the aviation sector.

In a statement on Tuesday, the two companies said the MoU was the first major agreement between the carriers, and would lay solid foundations for a range of bilateral initiatives and agreements in the future.

In addition to enhancing the aviation sector in the Kingdom, this cooperation provides a comprehensive and diverse package of benefits for passengers travelling internationally and domestically within Saudi Arabia, including a broader range of destinations and services.

As part of the agreement, passengers on both carriers will be able to benefit from a wide range of advantages, explore code-share services and follow flights.

The deal will see the merging of the two carriers’ loyalty program so that travelers will be able to earn points or credits when traveling on code-share services operated by one of the two carriers.

Saudia CEO Capt. Ibrahim Koshy said: “We are very proud to form this strategic partnership with Riyadh Air, a cooperation that we consider to be an important turning point in the process of supporting the aviation sector. We are working to unify efforts to serve guests to and from the Kingdom, and we continue to move forward to achieve our ambitions to make a positive change in the aviation sector in general.”

Riyadh Air CEO Tony Douglas stated: “Riyadh Air and Saudia will play a significant part in the growth of travel tourism within the Kingdom and so having the national carriers working side-by-side is the best way to accelerate and manage this growth.”

He continued: “We are confident that Riyadh Air will raise the bar in air travel and working in cooperation with Saudia will help us achieve this as we prepare for take-off in 2025.”



Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.