Fears of SVB’s Collapse Having Repercussions on Arab Countries

 Anticipation for disclosures of the investment sectors and financial activities in the Arab countries due to the resounding bankruptcy of the Silicon Valley Bank (Reuters)
Anticipation for disclosures of the investment sectors and financial activities in the Arab countries due to the resounding bankruptcy of the Silicon Valley Bank (Reuters)
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Fears of SVB’s Collapse Having Repercussions on Arab Countries

 Anticipation for disclosures of the investment sectors and financial activities in the Arab countries due to the resounding bankruptcy of the Silicon Valley Bank (Reuters)
Anticipation for disclosures of the investment sectors and financial activities in the Arab countries due to the resounding bankruptcy of the Silicon Valley Bank (Reuters)

The collapse of the California-based Silicon Valley Bank (SVB) has fueled fears among customers, depositors, and technology companies regarding the economic level in the US. They also worry about the announced bankruptcy having a contagion effect in wider regions of the world.

The Arab region does not seem immune to the repercussions, as banks in Kuwait disclosed minor exposures to SVB's bankruptcy.

Arab world banks and investment institutions have expressed caution towards SVB’s economic failure.

The fallout of SVB's insolvency will widen, specialists told Asharq Al-Awsat, adding that its impact will reach the business environment and the banking sector worldwide.

Experts noted that the business and financial environments in the Arab and Gulf regions would each be affected differently.

“SVB’s collapse highlights potential risks to the financial sector and potential implications for global financial stability,” said Fadel bin Saad al-Buainain, Saudi Shura Council member.

“Whatever has been said about controlling the bank’s crisis and limiting its repercussions on the banking system, that saying lacks relevance for two reasons,” he added.

The two reasons cited by al-Buainain include the overlapping of the components of financial sectors, which aggravates exposure to risks, and panic driving depositors to withdraw their money out of fear of being written off due to the bankruptcy of banks.

“I think that the panic that afflicted depositors may have an impact that exceeds the impact of the collapse of the bank,” revealed al-Buainain.

“We find that panic hit financial markets and made investors more cautious,” he added, noting that “this may dry up the market and increase repercussions.”

Al-Buainain clarified that raising interest rates had made investors less willing to invest and take risks and that the tightening of monetary policy may be one of the causes of what happened recently.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.