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Egyptian Travel Agents Association Says No Differences Between Airlines, Lebanese Travel Agents

Egyptian Travel Agents Association Says No Differences Between Airlines, Lebanese Travel Agents
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Egyptian Travel Agents Association Says No Differences Between Airlines, Lebanese Travel Agents

Egyptian Travel Agents Association Says No Differences Between Airlines, Lebanese Travel Agents

Egyptian Travel Agents Association (ETAA) of the country’s Chamber of Commerce held a meeting with a number of tourism and aviation companies to identify the parties that caused the dispute between Al-Masria Universal Airlines and a Lebanese travel agent.

This dispute has caused a crisis for some Lebanese flights to Sharm El Sheikh late April.

Member of ETAA board of directors Nader Ayyad affirmed the solid relationship between Egypt and Lebanon.

“The ETAA has held an urgent meeting in light with the cancellation of flights by Lebanese tourists to Sharm El Sheikh last month,” Ayyad said in a statement of which Asharq al-Awsat received a copy.

The meeting was attended by travel agents and aviation companies in Egypt and aimed at finding out the causes of the crisis, the statement said, pointing out Egyptian companies were proved not to violate their contracts with their Lebanese counterparts.

It pointed to the agreement between Civil Aviation General Manager at Rafic Hariri International Airport Mohammed Shehab al-Din with and the Egyptian airlines, which stipulates that planes carrying tourists don’t take off from Lebanon before entirely paying dues.

Ayyad said that April 26’s flight has seen an agreement with Al-Masria Universal Airlines on the need to operate a trip to return Lebanese tourists.

“The ETAA has coordinated with Al-Masria Universal Airlines to return tourists and stress on Egyptian companies to hold their responsibility and collect the value of the trip,” the statement read.

It explained that in this case, if any company fails to pay the due amount for the passengers’ return trip, they will remain in the country until the money is paid.

Al-Masria Universal Airlines provided documents to the ETAA, showing that the Lebanese agent didn’t commit to paying the company’s dues, which prompted the Egyptian company to cancel flights from Sharm El Sheikh to Lebanon for this agent only.

ETAA pointed out that all Egyptian airlines have completed all the remaining contracts with the Lebanese travel agents until the end of the holidays, stressing the full respect and appreciation for all the Lebanese tourism companies and the Lebanese people.

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4 Factors Behind the Decline of Saudi Stock Market in H1 2025

Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
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4 Factors Behind the Decline of Saudi Stock Market in H1 2025

Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 

Financial analysts and market specialists have identified four main factors driving the decline of the Saudi stock market during the first half of 2025. Speaking to Asharq Al-Awsat, they pointed to heightened geopolitical tensions in the region, ongoing trade disputes and tariffs between the United States, China, and Europe, oil price volatility, and persistently high interest rates. Collectively, these pressures have squeezed liquidity and weighed heavily on market performance.

Despite the downturn, analysts expect the market to gradually recover over the second half of the year, supported by potential global interest rate cuts, stabilizing oil prices, easing economic uncertainty, and forecasts of robust growth in Saudi Arabia’s GDP and the non-oil sector, alongside continued government spending on major projects.

The Saudi stock market recorded notable losses in the first six months of 2025, with the benchmark index retreating 7.25%, shedding 872 points to close at 11,163, compared to 12,036 at the end of 2024. Market capitalization plunged by around $266 billion (SAR 1.07 trillion), bringing the total value of listed shares to SAR 9.1 trillion.

Seventeen sectors posted declines during this period, led by utilities, which plummeted nearly 32%. The energy sector fell 13%, and basic materials dropped 8%. In contrast, telecom stocks advanced around 7%, while the banking sector eked out a marginal 0.05% gain.

Dr. Suleiman Al-Humaid Al-Khalidi, a financial analyst and member of the Saudi Economic Association, described the first-half performance as marked by significant swings. “The index rose to 12,500 points, only to lose nearly 2,000 points before recovering to about 11,260,” he said.

He attributed the volatility to several factors: regional geopolitical strains, oil prices dipping to $56 a barrel, and high interest rates, which constrained liquidity. He noted that financing costs for traders now range between 7.5% and 9%, historically elevated levels.

“The Saudi market posted the steepest decline among regional exchanges despite record banking sector profits, which failed to translate into stronger overall index performance,” he observed.

Looking ahead, Al-Khalidi anticipates three interest rate cuts totaling 0.75 percentage points by next year, which would bring rates down to about 3.75%. “That should encourage a recovery in trading activity, improve liquidity, and support an upward trend in the index toward 12,000 points, potentially reaching 13,500 if momentum builds,” he added.

Meanwhile, Mohamed Hamdy Omar, economic analyst and CEO of G-World, described the downturn as largely expected, citing external pressures and prolonged trade tensions between the US, China, and Europe. “Retaliatory tariffs dampened investor confidence globally, and Saudi Arabia was no exception,” he said.

Lower oil revenues also strained state finances, leading to a budget deficit of SAR 58.7 billion in the first quarter, further tightening liquidity. Trading volumes fell over 30% year-on-year.

Omar pointed out that changes to land tax regulations and heightened regional security risks also weighed on sentiment. Nonetheless, he expects gradual improvement in the second half of 2025, driven by anticipated rate cuts, rebounding oil prices, and continued large-scale public investments.

He stressed the need for vigilance: “Saudi Arabia remains among the most stable markets, thanks to proactive regulation and policies designed to attract foreign capital and bolster investor confidence.”