Saudi Banks Poised to Benefit as Local Aircraft Deals Surpass $100 Billion

Flynas announced on Thursday a Murabaha financing agreement with Bank AlJazira. (Asharq Al-Awsat)
Flynas announced on Thursday a Murabaha financing agreement with Bank AlJazira. (Asharq Al-Awsat)
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Saudi Banks Poised to Benefit as Local Aircraft Deals Surpass $100 Billion

Flynas announced on Thursday a Murabaha financing agreement with Bank AlJazira. (Asharq Al-Awsat)
Flynas announced on Thursday a Murabaha financing agreement with Bank AlJazira. (Asharq Al-Awsat)

Bandar Al-Mohanna, CEO and Managing Director of Flynas, stated that aircraft deals by Saudi national carriers have surpassed $100 billion at list prices.

He highlighted this as a major opportunity for local banks to provide innovative financing solutions backed by strong asset guarantees, citing the partnership between Flynas and AviLease, a Public Investment Fund (PIF) subsidiary specializing in aircraft leasing, as a prime example.

His remarks followed Flynas’ announcement on Thursday of a Murabaha financing agreement with Bank AlJazira worth SAR495 million ($132 million) to fund the acquisition of three new Airbus A320neo aircraft.

Al-Mohanna emphasized that Flynas is not just purchasing planes but is actively building an integrated aviation ecosystem. Strengthening partnerships with Saudi banks is a key part of this strategy, he said, stressing that the company seeks to develop financing programs that support long-term financial sustainability and drive continued growth in the aviation sector.

He also reaffirmed Flynas’ commitment to prioritizing partnerships with national institutions, further strengthening the local aviation industry and aligning with Saudi Arabia’s broader financial and aviation sustainability goals.

The Murabaha financing deal with Bank AlJazira is part of Flynas’ wider efforts to support the Saudi financial sector by enhancing competitiveness and developing advanced financial products tailored to the aviation industry’s evolving needs.



US Treasury Chief Dismisses Moody’s Downgrade amid Trump Tax Cut Debate

US Treasury Secretary Scott Bessent speaks during a news conference in Geneva on May 12, 2025, to give details of "substantial progress" following a two-day closed-door meeting between US and China top officials aimed at ending a devastating tariff war. (AFP)
US Treasury Secretary Scott Bessent speaks during a news conference in Geneva on May 12, 2025, to give details of "substantial progress" following a two-day closed-door meeting between US and China top officials aimed at ending a devastating tariff war. (AFP)
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US Treasury Chief Dismisses Moody’s Downgrade amid Trump Tax Cut Debate

US Treasury Secretary Scott Bessent speaks during a news conference in Geneva on May 12, 2025, to give details of "substantial progress" following a two-day closed-door meeting between US and China top officials aimed at ending a devastating tariff war. (AFP)
US Treasury Secretary Scott Bessent speaks during a news conference in Geneva on May 12, 2025, to give details of "substantial progress" following a two-day closed-door meeting between US and China top officials aimed at ending a devastating tariff war. (AFP)

Treasury Secretary Scott Bessent on Sunday dismissed Moody's downgrade of the US sovereign credit rating, as the Republican-controlled Congress tried to push ahead on President Donald Trump's sweeping tax-cut bill.

Bessent, in a pair of television interviews, said the bill's provisions extending the 2017 tax cuts passed under Trump's first term would spur economic growth that would outpace what the nation owed, even as nonpartisan analysts warn the measure it would add trillions to the federal government's $36.2 trillion in debt.

"I don't put much credence in the Moody's" downgrade, Bessent told CNN's "State of the Union" program.

The House of Representatives Budget Committee on Friday rejected the bill, with a handful of Republican hardliners saying they were concerned it did not sufficiently cut spending.

House Speaker Mike Johnson separately said on Sunday the chamber is still "on track" to pass the bill. The committee is set to try again in a rare Sunday night hearing, set to begin at 10 p.m. ET (0200 GMT Monday).

"We've had lots of conversations. We'll have more today," Johnson said on "Fox News with Shannon Bream" when asked about hard-line Republicans Chip Roy and Ralph Norman demanding more spending cuts.

Congressional Republicans in 2017 also argued that the tax cuts would pay for themselves by stimulating economic growth. But the nonpartisan Congressional Budget Office estimates the changes increased the federal deficit by just under $1.9 trillion over a decade, even when including positive economic effects.