Saudi Commercial Activities Rebound after Lifting Int’l Flight Ban

Reopening Saudi airspace and lifting suspensions on travel during the summer boosts recovery in commercial activities (Asharq Al-Awsat)
Reopening Saudi airspace and lifting suspensions on travel during the summer boosts recovery in commercial activities (Asharq Al-Awsat)
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Saudi Commercial Activities Rebound after Lifting Int’l Flight Ban

Reopening Saudi airspace and lifting suspensions on travel during the summer boosts recovery in commercial activities (Asharq Al-Awsat)
Reopening Saudi airspace and lifting suspensions on travel during the summer boosts recovery in commercial activities (Asharq Al-Awsat)

The reopening of Saudi airspace to international flights has put commercial activities, especially sales in the travel and tourism sectors, back on the track of recovery, industry workers told Asharq Al-Awsat.

According to sector employee estimates, travel and tourism activities have seen a 60% improvement.

Last May, Saudi authorities gave the green light for citizens and residents to travel following a suspension due to the coronavirus pandemic. The decision, which coincided with the advent of summer, contributed to growth in sales of travel agencies and shopping stores.

After the Kingdom reopened its airspace, ticket sales rebounded by more than 60%, revealed Sultan Jamil, the branch director of the “Journey for Travel & Tourism” agency.

Jamil predicted further growth in sales and greater recovery as more countries ease coronavirus measures and as the world observes Eid al-Adha holiday next week.

The branch director adds that bookings for August have increased significantly, especially for flights bound to the US and European countries.

He explains that a previous drop in customers could be traced back to lockdowns in some destinations and an absence of clarity on some travel requirements. According to Jamil, today, the situation is different.

Jamil said that ticket prices saw a 15% hike, while hotel prices dropped by 10%.

Countries that topped tourist destinations sought by Saudi travelers for the current period are Ukraine, Georgia, and Dubai.

Ticket prices for Ukraine start at around SAR2,500 ($666), while for Georgia, they start from SAR2,000 ($533), revealed Jamil.

Similarly, clothing stores witnessed a remarkable rebound in sales.

Faisal Al-Dhamry, who works at the “New Jersey” sportswear store, said that the resumption of international flights drove sales up by more than 50%.



Oil Up as Israel, Hezbollah Trade Accusations of Ceasefire Violation

FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)
FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)
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Oil Up as Israel, Hezbollah Trade Accusations of Ceasefire Violation

FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)
FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)

Oil prices ticked up on Thursday after Israel and Lebanon’s Hezbollah traded accusations that their ceasefire had been violated, and as Israeli tanks fired on south Lebanon.

OPEC+ also delayed by a few days a meeting likely to extend production cuts.

Brent crude futures edged up by 30 cents, or 0.4%, to $73.13 a barrel by 1741 GMT. US West Texas Intermediate crude futures were up 23 cents, 0.3%, at $68.93. Trading was thin because of the US Thanksgiving holiday, Reuters reported.
Israel's military said the ceasefire was violated after what it called suspects, some in vehicles, arrived at several areas in the southern zone.
The deal, which took effect on Wednesday, was intended to allow people in both countries to start returning to homes in border areas shattered by 14 months of fighting.
The Middle East is one of the world's major oil-producing regions, and while the ongoing conflict has not so far not impacted supply it has been reflected in a risk premium for traders.
Elsewhere, OPEC+, comprising the Organization of the Petroleum Exporting Countries and allies including Russia, delayed its next policy meeting to Dec. 5 from Dec. 1 to avoid a conflict with another event.
Also supporting prices, OPEC+ sources have said there will again be discussion over another delay to an oil output increase scheduled for January.
"It's highly unlikely they are going to announce an increase production at this meeting," said Rory Johnston, analyst at Commodity Context.
The group pumps about half the world's oil but has maintained production cuts to support prices. It hopes to unwind those cuts, but weak global demand has forced it to delay the start of gradual increases.
A further delay has mostly been factored in to oil prices already, said Suvro Sarkar at DBS Bank. "The only question is whether it's a one-month pushback, or three, or even longer."
Depressing prices slightly, US gasoline stocks rose 3.3 million barrels in the week ending Nov. 22, the US Energy Information Administration said on Wednesday, countering expectations of a small draw in fuel stocks ahead of holiday travel.
Slowing fuel demand growth in top consumers China and the US has weighed on oil prices this year.