China’s COMAC Seeks to Enter Saudi Aviation Market

A model of a Chinese-made COMAC (C919) aircraft at the company’s pavilion at the Future Aviation Forum in Riyadh. (Photo: Turky Al-Agili)
A model of a Chinese-made COMAC (C919) aircraft at the company’s pavilion at the Future Aviation Forum in Riyadh. (Photo: Turky Al-Agili)
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China’s COMAC Seeks to Enter Saudi Aviation Market

A model of a Chinese-made COMAC (C919) aircraft at the company’s pavilion at the Future Aviation Forum in Riyadh. (Photo: Turky Al-Agili)
A model of a Chinese-made COMAC (C919) aircraft at the company’s pavilion at the Future Aviation Forum in Riyadh. (Photo: Turky Al-Agili)

Chinese aircraft manufacturer COMAC, which launched its first international flights in February, expressed its desire to enter the Saudi aviation market and contribute to supporting the country’s ambition to be a global aviation hub.

COMAC Chairman He Dongfeng stressed that the COMAC cargo aircraft can connect Saudi Arabia with markets in the region, as well as in North Africa and neighboring Asian countries.

Speaking during a panel discussion, “A special conversation with the Commercial Aircraft Company about future growth plans and current trends,” on the second day of the Future Aviation Forum, he said that the Chinese government-owned company is working according to a comprehensive three-year strategy that aims to reduce carbon emissions.

COMAC, which was established in 2008, launched its first ever commercial flights during the month of May 2023, and then announced its intention to produce 150 C919 aircraft annually within five years, adding that it has already obtained more than 1,200 orders from local companies.

The C919 aircraft carries less than 200 passengers, and is the first locally manufactured passenger aircraft of this size. The Chinese company said that it began developing the airplane 15 years ago, to compete with the narrow-body Airbus A320neo and Boeing 737 aircraft.

COMAC began its first production lines at a time when the two giants of the aircraft industry, Boeing and Airbus, are facing challenges related to meeting the delivery of aircraft on time, and others related to the shortage of supplies of engines and semiconductors.



Gold Eyes Best Quarter in over Eight Years

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
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Gold Eyes Best Quarter in over Eight Years

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)

Gold halted its record run on Friday but remained on track for its best quarter since 2016 after a rally catalysed by an outsized US Federal Reserve interest rate cut, while markets braced themselves for a crucial inflation report due later in the day.

Spot gold was down 0.1% at $2,666.50 per ounce as of 1115 GMT, below the all-time peak of $2,685.42 hit in the previous session. It is heading for its best quarter since the first three months of 2016.

US gold futures fell 0.2% to $2,688.90, Reuters reported.

"The market at this point in time has priced in all the good news and there's also some hesitancy from fresh buyers to get involved at these record high levels," said Ole Hansen, head of commodity strategy at Saxo Bank.

Bullion has risen 29% so far this year, hitting successive record peaks after last week's half-percentage-point cut by the Federal Reserve and the stimulus measures announced by China earlier this week.

Silver prices surged, tracking bullion's strong performance, though some analysts warn that the rally may fade.

"Overall, industrial demand is still supportive for silver. But we need to have a stronger economic performance in China as well as in other developed countries," said ANZ commodity strategist Soni Kumari.

The surge in silver prices is more a spillover impact from gold, Kumari said.

Spot silver eased 0.1% to $31.98 per ounce, after hitting its highest since December 2012 at $32.71 on Thursday. It is set for a third straight week of gains.

"I do believe silver will continue to outperform gold. But as we all know, wherever gold goes, silver tends to go, but faster," Hansen added.

Both gold and silver serve as safe-haven investments, but the latter has more industrial applications, so tends to underperform during recessions and outperform when economies expand.

Inflows into gold exchange-traded funds, particularly from Western investors, are set to rise in coming months, adding yet more positive stimulus for already record high bullion prices. Some banks expect gold to rise towards $3,000.

In other metals, platinum was up 0.5% at $1,012.40 but palladium fell nearly 1.5% to $1,031.75.