Saudi Arabia Explores Untapped Markets to Expand Global Flight Connections

The Air Connectivity Program pavilion during the annual meeting of the International Aviation Council in Riyadh (Photo by: Turky Al-Agili)
The Air Connectivity Program pavilion during the annual meeting of the International Aviation Council in Riyadh (Photo by: Turky Al-Agili)
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Saudi Arabia Explores Untapped Markets to Expand Global Flight Connections

The Air Connectivity Program pavilion during the annual meeting of the International Aviation Council in Riyadh (Photo by: Turky Al-Agili)
The Air Connectivity Program pavilion during the annual meeting of the International Aviation Council in Riyadh (Photo by: Turky Al-Agili)

Saudi Arabia has established the Air Connectivity Program in 2021 to work with air carriers and airports with the aim to launch additional routes and flights to targeted destinations.

The Kingdom is seeking to become a global aviation hub through several initiatives and programs, at the forefront of which is the National Aviation Strategy, which seeks to connect 250 direct destinations to and from Saudi airports, increase air traffic, and raise the volume of cargo.

In remarks to Asharq Al-Awsat, Executive Vice President of Aviation Development in the Air Connectivity program, Rashid Al-Shammari talked about a plan to expand air routes through 29 airports in the Kingdom by adding the largest number of plane seats.

He explained that the program links the National Tourism Strategy to the National Aviation Strategy through the launch of new routes, additional flights in priority target markets and seasonal trips.

He made his comments on the sidelines of the first annual meeting in the Middle East of the General Assembly of the Airports Council International, which is held in Riyadh from May 22-23.

He stated that the Air Connectivity Program has been able to launch more than 50 routes since its inception in 2021, and works to facilitate entry into the market and enhance expansion opportunities for travel partners to achieve the goals of Vision 2030, in addition to empowering cadres and developing operational excellence based on the latest technologies.

Some of the routes that were launched include a connection between Beijing and Riyadh. The program also cooperated this year with the Italian national carrier ETA to operate flights from the city of Rome to Jeddah and Riyadh.

At the global level, the Kingdom jumped 14 places in the rate of international air connectivity, to reach the 13th place in 2023 compared to 27th in 2019, according to the latest air connectivity index report issued by the International Air Transport Association (IATA), in a classification that includes more than 200 countries.

Moreover, in 2023, Riyadh Air was established by the Public Investment Fund, targeting more than 100 destinations by 2030 and providing more than 200,000 direct and indirect job opportunities, as well as contributing SAR 75 billion ($20 billion) to the country’s gross domestic product.



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.