Dubai Airshow Sees Remarkable Saudi Participation

Part of the Dubai Airshow event (EPA)
Part of the Dubai Airshow event (EPA)
TT

Dubai Airshow Sees Remarkable Saudi Participation

Part of the Dubai Airshow event (EPA)
Part of the Dubai Airshow event (EPA)

Saudi Arabia made a remarkable presence on the first day of the Dubai Airshow, which reflects the readiness of the aviation sector in the Kingdom to shift into a new phase in line with the major economic transformations.

The Saudi authorities concluded several deals, agreements, and MoUs on the sidelines of the airshow.

They included establishing centers and partnerships in the maintenance sector and exploring strategic partnerships in training.

CEO of Saudi Arabian Airlines (Saudia) Ibrahim al-Koshy announced that the company plans to place a wide-body aircraft order next year to fuel rapid international expansion plans that will see it and a subsidiary flying to 200 mostly foreign destinations by 2030.

The airline expects to carry 85 million passengers a year by the end of the decade, up from 35 million before the pandemic, he said at the Dubai Airshow.

Saudia Aerospace Engineering Industries (SAEI) also signed a deal with the French Thales Group, which specializes in aviation systems, to launch a partnership through advanced aircraft maintenance services.

Flyadeal, Saudi Arabia’s low-cost carrier and a subsidiary of Saudia, signed a seven-year TrueChoice Overhaul agreement to cover engines that power its 11 A320-200 aircraft fleet.

The Prince Sultan Academy of Aviation Sciences signed an agreement with Airbus to train cabin crews and maintenance and management work training.

During the exhibition, Honeywell announced that it had selected Saudi Aerospace Engineering Industries as its certified maintenance center in the Middle East.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
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OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.