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Saudi Arabia Enjoys Fastest Growing Airport Technology Sector in Middle East

SITA’s pavilion at the annual meeting of the General Assembly of the Airports Council International in Riyadh. (Turky Al-Agili)
SITA’s pavilion at the annual meeting of the General Assembly of the Airports Council International in Riyadh. (Turky Al-Agili)
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Saudi Arabia Enjoys Fastest Growing Airport Technology Sector in Middle East

SITA’s pavilion at the annual meeting of the General Assembly of the Airports Council International in Riyadh. (Turky Al-Agili)
SITA’s pavilion at the annual meeting of the General Assembly of the Airports Council International in Riyadh. (Turky Al-Agili)

A recent study, “Investment trends in travel technology” by Amadeus, showed that airports are witnessing a rapid digital transformation, as the pace of travel industry transformation is set to accelerate with an average 14% increase in technology investment planned for 2024.

In recent years, passengers have seen tremendous changes in travel services, beginning with quick online purchase of tickets to electronic boarding passes and other areas.

Digital transformation in Saudi Arabia is one of the most important pillars of Vision 2030, as the Kingdom is considered the fastest growing in the field of airport technology in the Middle East region, according to Jihad Boueri, the Regional Vice President for Airport Affairs for the Middle East, India and Africa region at SITA.

Speaking to Asharq Al-Awsat on the sidelines of the first annual meeting in the Middle East of the General Assembly of the Airports Council International (ACI) in Riyadh, Boueiri pointed to a global technical revolution in the airport sector, but added that its implementation in the Kingdom was faster and stronger as a result of a solid budget and the development of new airports.

Asked about the challenges facing the sector, he said the need to train human resources and discover and develop young talents could delay the process of adopting modern technologies.

Sustainability also represents another challenge as the aviation sector is responsible for 4 percent of carbon emissions, he remarked, while highlighting projects such as reducing engine operation time, saving fuel to reduce thermal emissions, and choosing environmentally friendly devices at airports

Commenting on the future outlook for the travel industry, he stressed that airport technology was leaning towards allowing travelers to pass through free zones based on the biological fingerprint that collects all individuals’ information in a data cloud.

Travelers will also be able to check in luggage from home through airline companies, he said, noting that the Kingdom is taking great steps towards applying these advanced technologies.

In April, Saudia Airlines launched a trial version of the “Virtual Assistant with Artificial Intelligence Technology” platform, in cooperation with Accenture, the global management consulting and professional services company. The platform enables individuals to plan travel and complete all procedures with the aim of redefining digital travel standards.

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Dollar Strengthens on Elevated US Bond Yields, Tariff Talks

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
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Dollar Strengthens on Elevated US Bond Yields, Tariff Talks

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The dollar rose for a second day on Wednesday on higher US bond yields, sending other major currencies to multi-month lows, with a report that Donald Trump was mulling emergency measures to allow for a new tariff program also lending support.

The already-firm dollar climbed higher on Wednesday after CNN reported that President-elect Trump is considering declaring a national economic emergency as legal justification for a large swath of universal tariffs on allies and adversaries.

The dollar index was last up 0.5% at 109.24, not far from the two-year peak of 109.58 it hit last week, Reuters reported.

Its gains were broad-based, with the euro down 0.43% at $1.0293 and Britain's pound under particular pressure, down 1.09% at $1.2342.

Data on Tuesday showed US job openings unexpectedly rose in November and layoffs were low, while a separate survey showed US services sector activity accelerated in December and a measure of input prices hit a two-year high - a possible inflation warning.

Bond markets reacted by sending 10-year Treasury yields up more than eight basis points on Tuesday, with the yield climbing to 4.728% on Wednesday.

"We're getting very strong US numbers... which has rates going up," said Bart Wakabayashi, Tokyo branch manager at State Street, pushing expectations of Fed rate cuts out to the northern summer or beyond.

"There's even the discussion about, will they cut, or may they even hike? The narrative has changed quite significantly."

Markets are now pricing in just 36 basis points of easing from the Fed this year, with a first cut in July.

US private payrolls data due later in the session will be eyed for further clues on the likely path of US rates.

Traders are jittery ahead of key US labor data on Friday and the inauguration of Donald Trump on Jan. 20, with his second US presidency expected to begin with a flurry of policy announcements and executive orders.

The move in the pound drew particular attention, as it came alongside a sharp sell-off in British stocks and government bonds. The 10-year gilt yield is at its highest since 2008.

Higher yields in general are more likely to lead to a stronger currency, but not in this case.

"With a non-data driven rise in yields that is not driven by any positive news - and the trigger seems to be inflation concern in the US, and Treasuries are selling off - the correlation inverts," said Francesco Pesole, currency analyst at ING.

"That doesn't happen for every currency, but the pound remains more sensitive than most other currencies to a rise in yields, likely because there's still this lack of confidence in the sustainability of budget measures."

Markets did not welcome the budget from Britain's new Labor government late last year.

Elsewhere, the yen sagged close to the 160 per dollar level that drew intervention last year, touching 158.55, its weakest on the dollar for nearly six months.

Japan's consumer sentiment deteriorated in December, a government survey showed, casting doubt on the central bank's view that solid household spending will underpin the economy and justify a rise in interest rates.

China's yuan hit 7.3322 per dollar, the lowest level since September 2023.