Saudi Ministers Affirm Commitment to Economic Diversification

Saudi ministers of finance and economy attend the first dialogue session of the Budget 2024 Forum, titled “Sustainable Finance” in Riyadh (Asharq Al-Awsat)
Saudi ministers of finance and economy attend the first dialogue session of the Budget 2024 Forum, titled “Sustainable Finance” in Riyadh (Asharq Al-Awsat)
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Saudi Ministers Affirm Commitment to Economic Diversification

Saudi ministers of finance and economy attend the first dialogue session of the Budget 2024 Forum, titled “Sustainable Finance” in Riyadh (Asharq Al-Awsat)
Saudi ministers of finance and economy attend the first dialogue session of the Budget 2024 Forum, titled “Sustainable Finance” in Riyadh (Asharq Al-Awsat)

The Saudi Minister of Finance asserted on Thursday that since its initiation in 2016, the national transformation plan of the Kingdom, known as Vision 2030, has incorporated a diverse range of sectoral and regional strategies.

“These strategies include a large number of projects and the Kingdom has been conducting a comprehensive review of all these strategies over the last two years,” said Mohammed Al-Jadaan.

“We are currently halfway through the Vision,” he added, underlining the need for the optimum utilization of the limited revenues and resources so as to achieve the greatest economic return.

Al-Jadaan highlighted the focus of Vision 2030 on economic diversification, particularly on non-oil domestic products, with a targeted range of approximately 18%-21%.

The minister stressed that the range should not be exceeded, otherwise it will be a burden on the economy.

Addressing the first dialogue session of the Budget 2024 Forum, titled “Sustainable Finance” in Riyadh, Al-Jadaan discussed the concept of financial capacity in local debt markets and its considerations with the private sector.

“In its borrowing endeavors, the Kingdom takes into account the needs of the private sector, considering their access to financing in banks for small and medium-sized enterprises, consumer loans, and providing financial support,” noted the minister.

He highlighted the global market, international loans, and the allocation of approximate amounts for each country based on risk diversification, economic strength, credit rating, pointing to indicators such as debt service to the gross domestic product (GDP) and non-oil GDP, emphasizing financial sustainability.

On his part, Minister of Economy Faisal Al-Ibrahim affirmed that Saudi Arabia seeks to achieve optimal economic diversification.

Al-Ibrahim also confirmed that many targets of Vision 2030 have been realized.

The institutional capacities of government entities, coupled with their collaboration with other sectors, have become well-established and of high quality, added Al-Ibrahim.

He pointed out that exports of services rose to SAR135 billion currently, compared to SAR65 billion in 2016, which contributed to improving the Kingdom’s trade balance.

The contribution of non-oil revenues to covering costs jumped from 19 percent to 35 percent, which is due to the basic growth of the non-oil economy, said Al-Ibrahim while noting that unemployment rates continue to decline systematically.

Al-Ibrahim said that the Kingdom’s Vision 2030 created a fertile environment for economic diversification, building national capabilities and raising the efficiency of government institutions, in addition to improving the trade balance.

He underlined the need to support the private sector to reach the government target.

The minister also stressed that all sectoral strategies and mega projects aimed to enable the private sector to exploit available opportunities and grow to respond to demand within the Kingdom and also compete with other producers outside Saudi Arabia.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.