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Saudi Arabia Attracts Airlines, Opens New Routes in 2024

A Saudi budget airline Flynas Airbus A320-200 plane flies over the Red Sea resort of Sharm el-Sheikh, south of Cairo, Egypt December 15, 2018. (Reuters)
A Saudi budget airline Flynas Airbus A320-200 plane flies over the Red Sea resort of Sharm el-Sheikh, south of Cairo, Egypt December 15, 2018. (Reuters)
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Saudi Arabia Attracts Airlines, Opens New Routes in 2024

A Saudi budget airline Flynas Airbus A320-200 plane flies over the Red Sea resort of Sharm el-Sheikh, south of Cairo, Egypt December 15, 2018. (Reuters)
A Saudi budget airline Flynas Airbus A320-200 plane flies over the Red Sea resort of Sharm el-Sheikh, south of Cairo, Egypt December 15, 2018. (Reuters)

CEO of the Saudi Air Connectivity Program Majid Khan said the program has successfully attracted 12 new airlines, added 20 new destinations, and increased seating capacity by more than 1.5 million this year.

Speaking at the Routes Conference, underway in Bahrain from Oct. 6-8, Khan explained that the Air Connectivity Program is responsible for linking all 29 airports in Saudi Arabia. The program also serves as a central point to ensure the achievement of the Kingdom’s tourism goals, which include reaching 150 million tourists by 2030.

Khan emphasized the importance of developing sufficient direct flight capacity to Saudi Arabia to enable tourists worldwide to travel directly to the Kingdom, rather than via indirect routes.

Rashed Al-Shammari, Executive Vice President of Aviation Development at the Air Connectivity Program, told Asharq Al-Awsat that the Routes Conference brings together key aviation stakeholders in Bahrain, adding that the Saudi participation highlights the Kingdom’s tourist destinations and the program’s role in linking the National Tourism Strategy with the National Aviation Strategy.

Al-Shammari noted that the program aims to create new direct air routes and enhance existing ones to connect Saudi Arabia to more than 250 destinations worldwide.

He pointed to over 100 scheduled meetings during the event with global aviation industry leaders to negotiate new partnerships and promote Saudi Arabia’s geographic location and role in the aviation sector.

Al-Shammari further stressed that adding new flights and expanding existing routes would support the regional growth of the tourism ecosystem.

Over the three-day conference, the program is showcasing services and opportunities to strengthen Saudi Arabia’s air connectivity, targeting key international markets.

Launched in 2021, the Air Connectivity Program aims to boost tourism in Saudi Arabia by boosting air links between the Kingdom and the world.

The program acts as the executive enabler of both the National Tourism Strategy and the National Aviation Strategy. It seeks to foster collaboration and build partnerships between key players in the public and private sectors in both tourism and aviation to elevate Saudi Arabia’s position as a leading global destination.

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Saudi Aramco: Oil Refining Has Been Underinvested

FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Saudi Aramco: Oil Refining Has Been Underinvested

FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The current oil supply crisis shows there is underinvestment in oil refining as demand holds resilient, Saudi state-owned Aramco's vice president of market analysis and sustainability, Musaab Al Mulla, said on Tuesday.

Around 3 ⁠million barrels per ⁠day of refining capacity closed between 2020 and 2023, Al Mulla said at the S&P Global Energy Middle East ⁠Petroleum and Gas Conference in London.

"Now we realize if you have those refineries you may have definitely mitigated the impacts of the crisis today," he said.

The war in Iran, attacks on energy infrastructure and ⁠Iran's effective ⁠closure of the Strait of Hormuz followed by a US naval blockade, have removed around 14 million bpd of oil supply from Middle East producers to the global market.

Business

OECD Cuts 2026 Global Growth Forecasts Over Mideast War Fallout

A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
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OECD Cuts 2026 Global Growth Forecasts Over Mideast War Fallout

A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)

The war in the Middle East has dented economic growth prospects worldwide, with a more severe shock likely if no effective ceasefire is agreed before 2027, the OECD warned Wednesday.

Global economic growth is now forecast to slip to 2.8 percent for 2026 if Gulf exports of oil and gas return to pre-conflict levels in the third quarter, the group of 38 industrialized countries said in its quarterly update.

Previously the OECD had forecast full-year global growth of 2.9 percent.

But if the Middle East war continues into next year, however, global growth could slow to 2.1 percent, the OECD said -- well below the average annual growth of 3.4 percent seen from 2013 to 2019, before the Covid pandemic.

"The longer the disruptions last, the larger the economic and social costs become," the group's chief economist Stefano Scarpetta said in the report.

Many countries would risk falling into recession, he noted, and a drop in investment spending -- "including in energy-intensive AI" -- would likely push up unemployment.

Sustained high prices for energy as well as fertilizer and other key products from hydrocarbon production in the Gulf would weigh especially hard on developing countries that have "higher shares of energy and food in household consumption".

Even if the war sparked by US and Israeli strikes on Iran in late February ends in the coming weeks, the OECD forecast global inflation rising to 4.0 percent this year from 3.4 percent in 2025.

In this "time-limited disruption scenario", the group expects US growth to slow to 2.0 percent this year and 1.8 percent in 2027, after growing 2.1 percent last year.

In the eurozone, where many countries are highly dependent on energy imports, GDP growth will slump to 0.8 percent this year after 1.4 percent last year, assuming a Mideast ceasefire is secured in the coming weeks.

Business

Saudi Non-oil Private Sector Activity Hits 3-month High in May

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)
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Saudi Non-oil Private Sector Activity Hits 3-month High in May

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)

Saudi Arabia's non-oil private sector expanded at the fastest pace in three months in May as domestic demand improved and supply chains stabilized, while business optimism remained subdued amid conflict in the region, a survey showed on Wednesday.

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index, compiled by S&P Global, rose to 52.8 in May from 51.5 in April. The 50 mark separates growth from contraction, Reuters reported.

Output accelerated at the ⁠fastest pace in ⁠three months after March's downturn following the start of the Iran war, as firms cited normalizing working conditions, revived contracts and stronger local demand.

Export sales fell for a third straight month, hit by shipping disruption, higher freight and fuel costs, geopolitical tensions and stronger competition. The pace of decline eased only modestly from April's survey-record contraction.

However, supply chains improved, with suppliers' delivery times shortening for the first time in three months as ⁠firms relied ⁠more on local vendors. Backlogs of work rose for an 11th consecutive month, albeit moderately.

“Overall, the latest PMI reading supports the expectation that Saudi Arabia’s non-oil economy will continue its upward trend during the remainder of 2026," said Naif Al-Ghaith, Riyad Bank's chief economist.