Saudi Companies Lead Aviation, Travel Sector Recovery in Region

The development of the aviation sector infrastructure has prompted an active movement of travel at Saudi airports (Photo Credit: Abdullah Al-Falih)
The development of the aviation sector infrastructure has prompted an active movement of travel at Saudi airports (Photo Credit: Abdullah Al-Falih)
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Saudi Companies Lead Aviation, Travel Sector Recovery in Region

The development of the aviation sector infrastructure has prompted an active movement of travel at Saudi airports (Photo Credit: Abdullah Al-Falih)
The development of the aviation sector infrastructure has prompted an active movement of travel at Saudi airports (Photo Credit: Abdullah Al-Falih)

Saudi aviation and travel industry companies are leading the way in terms of post-pandemic recovery. At the regional level, the companies have opened new flying destinations. They also developed a fleet of aircrafts of the latest models that are reliable in raising the number of passengers over the coming years.

For expansion, Saudi national companies rely on aviation sector infrastructure which includes 30 regional and international airports and high-quality logistic services.

The presence of a promising infrastructure has encouraged these companies to raise the number of passengers flying from different countries around the world to key and touristic Saudi cities.

Concerned authorities are seeking, according to their programs, to reach 12 million visits from abroad, compared to 4 million visits in 2021.

According to programs and targets, the Kingdom is expecting the arrival of 30 million visitors from abroad in 2030.

According to aviation industry experts, many factors are playing an important part in raising the passenger capacity of Saudi companies and encouraging the inflow of investment into the sector.

These factors include Saudi authorities allowing all types of visitors, including those holding tourist visas, to perform Umrah in the kingdom.

Visitors eligible for on-arrival visas or e-visas and holders of US, British or Schengen visas are also included.

“The current stage is different from what it was in the past two years ago, with most countries lifting travel restrictions,” aviation expert Hussein Al-Zahrani told Asharq Al-Awsat.

Zahrani added that the lifting of restrictions has encouraged prospective visitors to move forward with their travel plans.

“Saudi companies are undergoing recovery after the coronavirus pandemic,” noted Mohammed Khojah, another aviation sector expert.

According to Khojah, the government is developing the sector and its facilities and support services.

This is reflected in the expansion of national companies.

Today, Saudi companies are working to develop their fleets. This has put Saudi companies on the map of international competition in attracting travelers from inside the Kingdom and abroad.



Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
TT

Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices rose over 1% to hit a two-week peak on Friday, heading for the best weekly performance in more than a year, buoyed by safe-haven demand as Russia-Ukraine tensions intensified.

Spot gold jumped 1.3% to $2,703.05 per ounce as of 1245 GMT, hitting its highest since Nov. 8. US gold futures gained 1.1% to $2,705.30.

Bullion rose despite the US dollar hitting a 13-month high, while bitcoin hit a record peak and neared the $100,000 level.

"With both gold and USD (US dollar) rising, it seems that safe-haven demand is lifting both assets," said UBS analyst Giovanni Staunovo.

Ukraine's military said its drones struck four oil refineries, radar stations and other military installations in Russia, Reuters reported.

Gold has gained over 5% so far this week, its best weekly performance since October 2023. Prices have gained around $173 after slipping to a two-month low last week.

"We understand that the price setback has been used by 'Western world' investors under-allocated to gold to build exposure considering the geopolitical risks that are still around. So we continue to expect gold to rise further over the coming months," Staunovo said.

Bullion tends to shine during geopolitical tensions, economic risks, and a low interest rate environment. Markets are pricing in a 59.4% chance of a 25-basis-points cut at the Fed's December meeting, per the CME Fedwatch tool.

However, "if Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," said Soni Kumari, a commodity strategist at ANZ.

The Chicago Federal Reserve president reiterated his support for further US interest rate cuts on Thursday.

On Friday, spot silver rose 1.8% to $31.34 per ounce, platinum eased 0.1% to $960.13 and palladium fell 0.6% to $1,023.55. All three metals were on track for a weekly rise.