Saudi Arabia Announces New Low-Cost Airline with Fleet of 45 Planeshttps://english.aawsat.com/business/5166797-saudi-arabia-announces-new-low-cost-airline-fleet-45-planes
Saudi Arabia Announces New Low-Cost Airline with Fleet of 45 Planes
The headquarters of the Saudi General Authority of Civil Aviation
Saudi Arabia announced on Sunday the planned establishment of a new national low-cost airline with a fleet of 45 planes to be ready by 2030, state media reported.
The United Arab Emirates's carrier Air Arabia was among an alliance of three companies that won a bid to operate the new airline.
The new carrier would operate domestic and international flights from and to King Fahd international airport in Dammam and is expected to expand travel options by serving 81 domestic and international destinations.
The announcement came during a ceremony in which Governor of Eastern Region Prince Saud bin Naif bin Abdulaziz inaugurated the new identity and master plan for the King Fahd International Airport.
The event also included the unveiling of the master plans for Al-Ahsa and Qaisumah international airports, the launch of the Dammam Airports Strategy, and the inauguration of a package of integrated development projects with a value exceeding 1.6 billion Saudi riyals.
The Saudi General Authority of Civil Aviation said on its X account that the establishment of a new national low-cost airline aims to enhance air connectivity for the Eastern Region, increase seat capacity, improve service quality for travelers, and create a competitive environment that offers more choices, all in line with the objectives of the aviation program under the National Transport and Logistics Strategy.
It said the winning bid came from a consortium comprising Air Arabia, Nesma Group, and Kun Investment Holding, which submitted the most competitive proposal.
The new national low-cost carrier is expected to expand travel options by serving 24 domestic and 57 international destinations.
It aims to connect nearly 10 million passengers annually through King Fahd International Airport (KFIA) by 2030, in support of the sector’s strategic goals.
The project will also create over 2,400 direct jobs, contribute to GDP growth targets under the aviation program, and support economic development and tourism in Dammam and Eastern Region.
The alliance is expected to complete licensing procedures and begin operations in 2026.
Future Plans
Prince Saud bin Naif bin Abdulaziz on Sunday also unveiled Dammam airports' new strategy and he inaugurated electronic gates to streamline passenger procedures.
He stated that the significant expansion of the Saudi aviation sector is a direct result of the government's strong commitment to supporting this industry, recognizing its crucial role in achieving broader development goals.
This includes investing in infrastructure improvements, increasing air connectivity, and establishing the Kingdom as a major global logistics hub, all in line with the objectives outlined in Vision 2030.
The strategic plan targets serving more than 19.3 million passengers annually at KFIA by 2030, more than double the number in 2022.
It also aims to boost air cargo capacity to over 600,000 tons annually, a 1,000% increase, positioning the airport as a key regional logistics hub in line with the Kingdom’s Vision 2030.
Future developments include a record-breaking expansion of the airport’s operational capacity, increasing aircraft movements to 77 per hour and boosting annual passenger capacity to 32 million.
Additional projects include comprehensive upgrades to general aviation facilities and infrastructure to meet the highest international standards.
By the end of 2024, King Fahd International Airport had recorded a 35% increase in passenger traffic compared to 2022.
Minister of Transport and Logistic Services and Chairman of GACA Saleh Al-Jasser said: “The Kingdom, under the support of its wise leadership, is witnessing unprecedented advancements in aviation and air transport projects, initiatives, and services.”
He noted that launching a new low-cost carrier in the Eastern Region is one of the initiatives of the aviation program derived from the National Transport and Logistics Strategy.
GACA President Abdulaziz Al-Duailej stressed that the new strategic program emanates from the National Strategy for Transport and Logistics Services, a key pillar to enhance air connectivity, and achieve the Kingdom's targets to be a global center in air transport and logistics services.
Arab Gulf Readies Infrastructure to Attract Long-Term Capitalhttps://english.aawsat.com/business/5308884-arab-gulf-readies-infrastructure-attract-long-term-capital
Arab Gulf Readies Infrastructure to Attract Long-Term Capital
A solar power project in northern Saudi Arabia. (SPA)
Saudi Arabia and other Gulf countries are reshaping how they finance the next wave of infrastructure, moving beyond government spending to tap private and institutional capital for projects spanning energy, water, and the digital economy.
The shift marks a broader change in the Gulf’s investment model, as governments, development banks, sovereign investors, and private capital increasingly share the cost of turning large-scale projects into long-term investable assets.
What is changing in the Gulf is not simply the scale of infrastructure spending. The financing model itself is being reshaped.
As projects expand across energy, water, transport and the digital economy, government funding alone is no longer enough to meet rising investment needs. Pension funds, insurers and asset managers, meanwhile, control vast pools of long-term capital that are well suited to infrastructure assets capable of generating steady cash flows over many years.
The region is therefore moving toward financing structures designed to share risks more effectively, strengthen project creditworthiness and turn government-backed investments into opportunities that can draw in private and institutional capital.
Speaking to Asharq Al-Awsat, Saud Alsayyari, Asian Infrastructure Investment Bank (AIIB) Senior Investment Officer for the Middle East and North Africa, said the “fundamentals are strong” in Saudi Arabia and across the Gulf.
Population growth, urbanization and economic transformation programs are creating a broad pipeline of opportunities in renewable energy, digital infrastructure, water and healthcare, he explained.
The bigger challenge is no longer finding opportunities. It is structuring the risks and mobilizing enough capital to deliver them, he stressed.
Multilateral development institutions can play a central role by making projects more bankable, reducing risks for investors and catalyzing capital flows far beyond the size of their own direct commitments, he added.
Renewable energy and digital infrastructure lead opportunities
Alsayyari noted that the strongest investment opportunities over the next five years are likely to emerge where economic growth meets climate and sustainability goals.
Large-scale renewable energy projects, backed by storage technologies, will be a key pillar of the region’s energy transition, he went on to say.
He pointed to the financing of Oman’s 500-megawatt Ibri II solar power plant as an example.
Technology-enabled infrastructure will also play an increasingly important role.
From nationwide fiber-optic networks to smart logistics, such infrastructure “multiplies the value of every other asset class,” Alsayyari said.
Social infrastructure, particularly healthcare and education, is also expected to expand alongside population growth and urbanization.
“Disciplined structuring and strong environmental and social standards are what turn opportunity into sustainable, long-term value,” Alsayyari remarked.
Development banks can turn plans into bankable projects
Alsayyari said multilateral development banks can help transform government infrastructure plans into projects that lenders and investors are willing to finance. Their role includes sharing risks and providing the technical expertise needed to make projects viable.
He cited recent financing with the Saudi Water Authority, structured with the National Infrastructure Fund and commercial lenders to modernize major desalination facilities.
Projects of that scale become investable when a multilateral development institution can absorb risks that commercial lenders are unwilling to take, he added.
Such institutions can also carry out environmental and social due diligence and provide the technical expertise needed to structure deals in line with international standards.
“That is the model: multilateral development institutions turn ambition into bankable projects through disciplined preparation, blended finance and credit enhancement,” he stressed.
AIIB’s involvement also “reassures the market, reduces perceived risk and catalyzes private capital far beyond the size of our direct commitment,” he said.
The key issue is who carries the risk
For private investors, the problem is not risk itself, Alsayyari said. It is how that risk is distributed.
Infrastructure risk cannot be eliminated, but it can be allocated more effectively among the parties involved, he remarked.
Problems arise when investors are asked to shoulder risks they cannot easily price, such as regulatory uncertainty, early-stage construction risk or revenue models without a clear track record.
“Our role as a multilateral development bank is to correct that risk allocation,” Alsayyari said.
AIIB does this through non-sovereign financing that reduces pressure on public budgets, as well as guarantees and first-loss structures that can make commercial investment tranches more attractive to institutional investors.
Those tools can also increase confidence in how projects will be delivered and operated, he explained.
Clear visibility over future projects is equally important.
Alsayyari said the investment program AIIB is developing with Saudi Arabia gives investors a clearer view of a structured pipeline of opportunities rather than leaving them to assess isolated deals one by one.
Saud Alsayyari, Asian Infrastructure Investment Bank (AIIB) Senior Investment Officer for the Middle East and North Africa. (AIIB)
Four conditions could unlock institutional capital
Alsayyari said pension funds and insurers hold enormous amounts of long-term capital, yet infrastructure still accounts for only a limited share of their portfolios. That is despite a natural fit between the two.
Infrastructure assets can offer predictable, inflation-linked cash flows, making them well-suited to the long-term liabilities of institutional investors, he added.
Alsayyari identified four conditions needed to attract more of that capital: stable legal and regulatory frameworks, including clear public-private partnership rules; standardized project documents, procurement processes and structures; credit-enhancement tools; and reliable environmental, social and governance performance.
“Many global investors are subject to net-zero commitments, so they are looking for assets aligned with the goals of the Paris Agreement,” he noted. “When those conditions are in place, Gulf infrastructure can become a core asset class for institutional investors, and the capital will follow.”
Regional funds can multiply investment
Alsayyari described regional funds as one of the Gulf’s most effective tools for mobilizing private capital for infrastructure.
A direct loan finances one project. A well-structured investment platform can finance an entire portfolio, spread risk and build a broader investment ecosystem around it, he said.
He pointed to AIIB commitments to Gulf infrastructure funds, including Rakiza and Aberdeen Standard Investcorp Infrastructure Partners.
The funds target sustainable core infrastructure in healthcare, education, water, mobility and digital networks, with backing from investors including Saudi Arabia’s Public Investment Fund and the Oman Investment Authority.
AIIB’s participation adds more than capital, Alsayyari said.
Projects financed through the funds are assessed against the bank’s standards, ineligible activities are excluded and governance requirements are written into contracts.
The combination of “scale, discipline and local expertise” is crucial to steering institutional capital toward the region’s infrastructure needs, he said.
Gulf states look beyond new construction
Alsayyari said Gulf countries have made significant progress in building an infrastructure system that balances economic growth, environmental goals and long-term financing needs.
Sustainability has become embedded in national strategies, from net-zero commitments to renewable energy targets, he stated. One of the most striking developments, however, is the growing focus on upgrading existing assets rather than simply building new ones.
Alsayyari cited the modernization of desalination plants in Saudi Arabia.
Switching from thermal desalination to reverse osmosis will reduce energy consumption and emissions while increasing production capacity and extending asset life, he said.
“Growth and environmental performance are advancing together,” he told Asharq Al-Awsat.
The region’s financing system is also evolving quickly, with more structures combining multilateral, national and commercial institutions.
Alsayyari said the partnership with the National Infrastructure Fund offered a model that could be replicated elsewhere.
Every AIIB-approved financing aligns with the goals of the Paris Agreement, he said. “The direction of the region is clear, and we are proud to support that path.”
Energy, water and green hydrogen seen as the next growth areas
Over the next decade, Saudi Arabia and other Gulf states are likely to stand out in several infrastructure sectors, Alsayyari said.
Renewable energy and storage systems are expected to lead, alongside the emerging green hydrogen economy, technology-enabled infrastructure and climate-resilient water systems.
The region already has advanced investments in connectivity, data center capacity and digital infrastructure, he noted.
Water security will remain a strategic priority because of the region’s geography and its future needs.
The bigger transformation may be in how projects are financed
Alsayyari said the most important infrastructure change over the next decade may not be what the Gulf builds, but how it pays for it.
The region is gradually moving away from models driven mainly by government funding toward more complex partnerships bringing together governments, development institutions, sovereign investors and private capital.
That shift sits at the heart of the role the Asian Infrastructure Investment Bank was created to support, Alsayyari said.
AIIB’s 11th annual meeting, to be hosted by Doha, will mark an important milestone as the bank enters its second decade.
Alsayyari said Saudi Arabia and other Gulf countries could lead several global trends in renewable energy, digital infrastructure and water systems in the years ahead.
Europe Can’t Afford to Miss AI Revolution, Says ECB Chiefhttps://english.aawsat.com/business/5308696-europe-can%E2%80%99t-afford-miss-ai-revolution-says-ecb-chief
European Central Bank President Christine Lagarde addresses a press conference following the ECB Governing Council meeting at the ECB headquarters in Frankfurt, Germany, July 23, 2026. (Reuters)
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Europe Can’t Afford to Miss AI Revolution, Says ECB Chief
European Central Bank President Christine Lagarde addresses a press conference following the ECB Governing Council meeting at the ECB headquarters in Frankfurt, Germany, July 23, 2026. (Reuters)
European Central Bank chief Christine Lagarde said Wednesday that the continent could not afford to miss out on the artificial intelligence revolution as the continent's growth model comes under increasing pressure.
The United States and China are seen leading the AI race, with their companies producing the most advanced large language models and rapidly building vast new data centers.
"Europe largely missed out on the first digital revolution, as the commercial gains from the spread of information and communication technologies were captured disproportionately elsewhere," Lagarde said at a World Economic Forum event in Geneva.
"We cannot afford to repeat that experience with artificial intelligence, the second digital revolution," she said.
While European companies are investing heavily in AI, barriers in the eurozone are hindering them from scaling up their operations, she said.
The "fragmentation" of EU markets means firms are not competing enough across the whole eurozone and also struggled to raise funds, particular when compared to US peers, Lagarde said.
"The result is fewer firms growing to global size and slower diffusion of new technologies across the economy."
She added that scale is particularly important for Europe to be able to compete in AI and other new technologies at a time when Europe's post-war growth model faces major challenges.
She noted that Europe had long benefitted from "three pillars" -- a rules-based global order underpinned by US security guarantees, cheap energy and expanding global trade.
"All three are weakening as the international environment changes," she said.
"These shifts suggest that Europe's post-war growth model is eroding. And it is unlikely to return to the form we once knew."
The return of US President Donald Trump to the White House, in particular, has shaken relations between the United States and Europe.
He has imposed hefty tariffs on European Union imports and questioned long-standing US commitments to the continent's security.
Trump Pauses 50% Tariffs on Canadian Goods for Three Dayshttps://english.aawsat.com/business/5308660-trump-pauses-50-tariffs-canadian-goods-three-days
This aerial view shows a Capital Southern Transportation, Inc. truck passing over the Peace Bridge between Canada and the US in Fort Erie, Ontario, on August 18, 2026. (AFP)
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Trump Pauses 50% Tariffs on Canadian Goods for Three Days
This aerial view shows a Capital Southern Transportation, Inc. truck passing over the Peace Bridge between Canada and the US in Fort Erie, Ontario, on August 18, 2026. (AFP)
US President Donald Trump paused the planned rollout of punishing new tariffs on Canadian goods late Tuesday, as both sides indicated they were close to a broader trade agreement after weeks of talks.
Trump announced the three-day reprieve from 50-percent duties on select goods just hours before a midnight deadline.
The delay was "based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!" Trump wrote on his Truth Social platform.
Canadian Prime Minister Mark Carney was less definitive, saying "substantial progress has been made" towards a comprehensive trade deal, but "there is important work still to be done."
Ottawa and Washington have held intense negotiations on revising their existing deal, the United States-Canada-Mexico Agreement (USMCA), which Trump signed and praised during his first term but now says needs to change.
The US Trade Representative's office said on X that the pact between Washington and Ottawa is set to "include comprehensive market access for all American goods, economic security commitments, digital trade alignment" and other provisions.
A proclamation by Trump to pause the duties added that the suspension came about as "Canada has expressed a commitment to remove the discriminations or unreasonable and unequal impositions at issue."
Carney said the prospective deal aims to "address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers and families."
- 'Discriminatory treatment' -
Trump had signed orders for the 50-percent duties last month, with the White House alleging "discriminatory treatment" by Canada against US automobile and dairy products.
The new tariffs would cover products such as wine, hockey sticks and cement.
They target around 5.5 percent of Canada's exports to the United States, worth about $20 billion, Oxford Economics estimates.
While this only poses a "modest" negative risk to Canada's economy, Oxford Economics said in a recent report that the duties would "affect central Canada's manufacturing sector much more severely."
Canadian negotiators have been in Washington to push for a deal to avoid the new tariffs and also secure relief on Trump's sector-specific duties, which have battered Canada's auto, steel, lumber and aluminum industries.
Ottawa reportedly offered concessions like pressuring provinces to put some US beverages back on their shelves.
Without going into details, Trump added in his Truth Social post: "The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!"
Trump has previously called for the revival of the controversial project opposed by environmental activists, which was blocked under his predecessor Biden.
- Political concerns -
"It's not unusual for a trade negotiation to go right up to the deadline," former US commerce official Christopher Padilla told AFP.
He expects that the Trump administration threatened new tariffs to try and win early concessions from Canada as the countries negotiate new terms for the USMCA.
Oxford Economics anticipates that manufacturers who stand to be most impacted include those in the cement, paper, printing, wood, clothing and electronic equipment sectors.
With the US Supreme Court striking down many of Trump's global tariffs earlier this year, the president had tapped an untested legal provision for the new duties targeting Canada.
The US duties will not apply to Canadian energy, potash or goods already facing sector-specific tariffs, but are set to hit products covered by the USMCA.
Trump's trade envoy Jamieson Greer previously said the tariffs aimed to "hold Canada accountable" for its retaliation against the United States.
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