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ADQ, Etihad Unveil Plans to Grow Abu Dhabi’s Aviation Ecosystem

Plans to Support the transformation of Etihad Airways and the future growth of the civil aviation sector in Abu Dhabi. (Asharq Al-Awsat)
Plans to Support the transformation of Etihad Airways and the future growth of the civil aviation sector in Abu Dhabi. (Asharq Al-Awsat)
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ADQ, Etihad Unveil Plans to Grow Abu Dhabi’s Aviation Ecosystem

Plans to Support the transformation of Etihad Airways and the future growth of the civil aviation sector in Abu Dhabi. (Asharq Al-Awsat)
Plans to Support the transformation of Etihad Airways and the future growth of the civil aviation sector in Abu Dhabi. (Asharq Al-Awsat)

Etihad Airways and ADQ, one of the region’s largest holding companies, announced Thursday a proposed transaction that will support the ongoing transformation of Etihad Airways and the future growth of the civil aviation sector in Abu Dhabi.

As part of the proposed transaction, a number of Etihad’s businesses providing airline support services will become part of a new ADQ aviation company.

Once the transaction is complete, the airline support services businesses will benefit from being part of ADQ’s broad mobility and logistics portfolio, which includes Abu Dhabi Airports and AD Ports Group.

The businesses included in the proposed transaction are Etihad Engineering, Etihad Airport Services Cargo, Etihad Airport Services Ground, Etihad Aviation Training, Etihad Secure Logistics and Etihad Technical Training.

Additionally, the proposed transaction will see two Etihad businesses join Abu Dhabi National Exhibition Company (ADNEC).

Etihad Airport Services Catering will combine with ADNEC’s catering business Capital Hospitality, and Etihad Holidays will join ADNEC’s tourism promotion business, Tourism 365.

The proposed agreement marks the start of a new chapter for Etihad Airways, allowing the airline to further sharpen its focus on its core business and respond with greater agility to market opportunities as global travel demand rebounds from COVID-19.

CEO of ADQ Mohamed Hassan al-Suwaidi said that “with the proposed addition of Etihad’s experienced aviation support businesses to our new dedicated aviation company, ADQ is primed to develop an integrated aviation platform that is driven by performance and a robust financial foundation through its new company.”

“With an integrated mobility and logistics portfolio that plays a leading role in the development of Abu Dhabi’s global connectivity, we are well-positioned to unlock the growth potential of these aviation services businesses,” he added.

Humaid Matar al-Dhaheri, Managing Director and Group CEO of ADNEC, for his part, said that the inclusion of Etihad Airport Services Catering and Etihad Holidays supports Abu Dhabi’s strategy, which aims to achieve integration between various business units across exciting economic sectors.

“This step will enable us to go above and beyond the customers’ expectations by building on what has been done already.”

“Our focus remains on achieving milestones and continuing to work to enhance competitiveness at the regional and international levels, as well as increase contributions to the economy of Abu Dhabi and support sustainable development.”

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.