Virgin Atlantic Launches Direct Flights Linking Europe, the US, and Saudi Arabia

Fahd Hamidaddin, CEO of the Saudi Tourism Authority (Asharq Al-Awsat)
Fahd Hamidaddin, CEO of the Saudi Tourism Authority (Asharq Al-Awsat)
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Virgin Atlantic Launches Direct Flights Linking Europe, the US, and Saudi Arabia

Fahd Hamidaddin, CEO of the Saudi Tourism Authority (Asharq Al-Awsat)
Fahd Hamidaddin, CEO of the Saudi Tourism Authority (Asharq Al-Awsat)

King Khalid International Airport in Riyadh has welcomed the inaugural flight of British airline Virgin Atlantic from London Heathrow, marking a major milestone in the airline’s expansion into the Saudi market.

The new daily service aims to connect travelers from Europe and the US to Saudi Arabia, amid projections of a 24% increase in air connectivity between the Kingdom and the UK by 2035.

Saudi Minister of Tourism and Chairman of the Saudi Tourism Authority Ahmed Al Khateeb described the launch as a significant step in reinforcing Saudi Arabia’s position as one of the world’s fastest-growing tourism destinations.

He stressed that the strategic partnership with the Virgin Group would help attract more visitors from the UK and beyond, eager to explore Saudi Arabia’s natural beauty, rich heritage, and unique experiences.

In 2024, the Kingdom welcomed over 128 million air travelers, a 15% year-on-year increase, and views the UK as one of its most vital target markets.

Speaking at a press conference in Diriyah, Virgin Group founder Sir Richard Branson expressed his enthusiasm for the airline’s entry into Saudi Arabia.

He praised the Kingdom’s rapid development, citing tourism projects on the Red Sea, golf courses, luxury hotels, and new entertainment cities as key attractions.

Branson revealed that Virgin Atlantic will operate connecting flights from Riyadh to London, then onward to Los Angeles and other global destinations. He also hinted at an upcoming meeting with Crown Prince Mohammed bin Salman to explore further collaboration in tourism, including hotel ventures, cruise ships, and even space travel through Virgin Galactic.

Fahd Hamidaddin, CEO of the Saudi Tourism Authority, said Virgin Atlantic’s arrival was made possible through collaboration with the General Authority of Civil Aviation and the Air Connectivity Program.

He explained that the airline would serve not only as a travel link but also as a broader tourism partner through its associated brands - Virgin Holidays, Virgin Voyages (cruise tourism), and Virgin Galactic (space tourism).

The new route is expected to contribute 95,000 seats annually between London and Riyadh, with the goal of attracting more tourists from Europe and North America.

Hamidaddin noted that these developments align with efforts to enhance travel options and pricing through both international and local airline partnerships.

The launch of the Virgin Atlantic route reflects Saudi Arabia’s growing role as a global tourism hub and highlights the deepening ties between Riyadh and London.

With Riyadh evolving into a center of investment and tourism, the city offers a gateway to explore the Kingdom’s rich cultural heritage, including UNESCO World Heritage sites.

Saudi Arabia’s diverse landscapes - ranging from vast deserts and towering mountains in Asir to warm Red Sea beaches and coral reefs - along with its world-class events, continue to draw millions of visitors from around the globe.



Pakistan Central Bank Receives $2 billion from Saudi Arabia as Part of Broader Financial Support Package

Mohammed Al-Jadaan and Muhammad Aurangzeb following the agreement for Saudi Arabia to provide an additional $3 billion in support to Pakistan (X).
Mohammed Al-Jadaan and Muhammad Aurangzeb following the agreement for Saudi Arabia to provide an additional $3 billion in support to Pakistan (X).
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Pakistan Central Bank Receives $2 billion from Saudi Arabia as Part of Broader Financial Support Package

Mohammed Al-Jadaan and Muhammad Aurangzeb following the agreement for Saudi Arabia to provide an additional $3 billion in support to Pakistan (X).
Mohammed Al-Jadaan and Muhammad Aurangzeb following the agreement for Saudi Arabia to provide an additional $3 billion in support to Pakistan (X).

Pakistan announced that it has received $2 billion from Saudi Arabia’s Ministry of Finance as part of a broader financial support package.

Earlier, Pakistan’s Finance Minister, Muhammad Aurangzeb, said that Saudi Arabia had committed to depositing an additional $3 billion, while extending an existing $5 billion loan for three years instead of renewing it annually.

This support comes as Pakistan faces repayment of $3.5 billion to the United Arab Emirates, putting pressure on its reserves, which stand at about $16.4 billion.

Saudi Arabia has a history of assisting Pakistan during economic crises, including a $6 billion support package in 2018 that included deposits and deferred oil payments.


Gold Rises as Middle East Optimism Calms Inflation Fears

Samples of gold displayed in a program affiliated with the Brazilian Federal Police specializing in tracking gold in Brasilia (Reuters)
Samples of gold displayed in a program affiliated with the Brazilian Federal Police specializing in tracking gold in Brasilia (Reuters)
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Gold Rises as Middle East Optimism Calms Inflation Fears

Samples of gold displayed in a program affiliated with the Brazilian Federal Police specializing in tracking gold in Brasilia (Reuters)
Samples of gold displayed in a program affiliated with the Brazilian Federal Police specializing in tracking gold in Brasilia (Reuters)

Gold prices rose on Thursday as growing optimism about a possible end to conflicts in the Middle East calmed inflation worries and improved prospects for lower interest rates.

Spot gold rose 0.5% to $4,815.15 per ounce by 0926 GMT, after rising to a one-month high in the previous session. US gold futures for June delivery gained 0.3% to $4,836.50.

"For the month of March gold was under pressure because of the need for liquidity in the metal following the war, but that is kind of mostly run its course, that need for liquidity," said Nitesh Shah, commodity strategist at WisdomTree.

Shah added that he expects gold prices to remain very well supported as concerns surrounding central bank independence and dollar debasement risk still remain prevalent, Reuters reported.

Optimism grew on Thursday that the war in the Middle East may be near an end, with a key Pakistani mediator in Tehran and the administration of US President Donald Trump talking up hopes for a deal that would open the crucial Strait of Hormuz.

Crude oil prices were up more than 1% on Thursday, but remained well below the $100-a-barrel mark.

"Gold remains supported amid renewed optimism around de-escalation. The pullback in oil prices is easing some of the inflation concerns that weighed on prices earlier in the conflict. The move reflects a broader shift in market focus," ING analysts said.

Global equities vaulted past their previous all-time highs in Asian trading as optimism grew about a deal to end the Iran war.

Gold prices fell to as low as $4,097.99 an ounce on March 23 as high inflation concerns due to soaring energy prices raised expectations of a more hawkish approach to intrest rates by the US Federal Reserve, weighing on the non-yielding metal's demand.

Prices have since recovered as investors now see a more than 34% chance of at least one US interest rate cut by 2026-end, up from 32% a day prior, as per CME's FedWatch Tool.

Among other metals, spot silver rose 1.4% to $80.12 per ounce, platinum gained 1% to $2,130.25, and palladium was up 0.9% at $1,587.25.


UK Economy Surged Ahead of Iran War, but Energy Shock to Test Resilience

Buses pass in front of the Bank of England building in London (Reuters)
Buses pass in front of the Bank of England building in London (Reuters)
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UK Economy Surged Ahead of Iran War, but Energy Shock to Test Resilience

Buses pass in front of the Bank of England building in London (Reuters)
Buses pass in front of the Bank of England building in London (Reuters)

Britain's economy put on a burst of growth in February, suggesting it was in slightly better shape before the start of the Iran war than many economists had feared, official figures showed on Thursday.

Gross domestic product expanded 0.5% month-on-month in February, the biggest increase since January 2024, the Office for National Statistics said. Economists polled by Reuters had forecast a much more modest reading of 0.2%.

While the figures are likely to cheer finance minister Rachel Reeves, economists said Britain remained ⁠vulnerable to the fallout from ⁠the Middle East conflict, being highly dependent on imported energy and prone to higher inflation than peers.

"Unfortunately, the latest energy price shock has likely pulled the rug on this momentum, with another year of above-target inflation and a softening labour market likely to come," said Fergus Jiminez-England, associate economist from the National Institute for Economic and Social Research.

Britain suffered the sharpest cut to economic growth forecasts for large rich economies by the International ⁠Monetary Fund due largely to the Iran war, in forecasts published on Tuesday.

"Growth increased further in the three months to February led by broad-based increases across services," ONS chief economist Grant Fitzner said.

"Meanwhile car production recovered from the effects of the autumn cyber incident."

Economic growth for the three months to February was 0.5%, the ONS said, putting Britain's economy on track for a conspicuously strong first quarter, for a third year running.

That pattern has led to suspicions among some economists that the ONS' process of seasonal adjustment has gone awry following unusually large swings in output during the COVID-19 pandemic - something the ONS rejects.

"We're confident in our figures and seasonal adjustment processes," ⁠an ONS spokesperson ⁠said on Thursday, adding that statisticians had looked thoroughly at the issue.

James Smith, economist at ING, said he still doubted whether the ONS had fully accounted for the influence of the last period of high inflation in its seasonal adjustment process, and the timing of price increases.

"We wrote in our reaction to the January data that February or March could see a strong bounce back for exactly this reason," Smith said.

"Suffice to say, all of this is old news anyway, given the crisis we find ourselves in today."

Separate ONS data showed Britain's total trade deficit, excluding the volatile movements of precious metals, rose in inflation-adjusted terms in February to 5.627 billion pounds ($7.62 billion), its highest since November 2024.

The widening was driven by imports rising to their second-highest reading on record, after December 2022.