Dubai's Busy Airport Sees Passenger Traffic Drop 40% in 2021

FILE - In this March 7, 2021 file photo, a woman enters the face and iris-recognition gate to board a plane, during a media tour at Dubai Airport, in the United Arab Emirates. (AP Photo/Kamran Jebreili, File)
FILE - In this March 7, 2021 file photo, a woman enters the face and iris-recognition gate to board a plane, during a media tour at Dubai Airport, in the United Arab Emirates. (AP Photo/Kamran Jebreili, File)
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Dubai's Busy Airport Sees Passenger Traffic Drop 40% in 2021

FILE - In this March 7, 2021 file photo, a woman enters the face and iris-recognition gate to board a plane, during a media tour at Dubai Airport, in the United Arab Emirates. (AP Photo/Kamran Jebreili, File)
FILE - In this March 7, 2021 file photo, a woman enters the face and iris-recognition gate to board a plane, during a media tour at Dubai Airport, in the United Arab Emirates. (AP Photo/Kamran Jebreili, File)

Dubai International Airport, the world's busiest airport for international travel, handled some 40% less passenger traffic in the first half of 2021, compared to the same period last year, its chief executive said Wednesday.

The decline came as more contagious coronavirus variants cut off the hub's biggest source markets and continued to clobber the global aviation industry.

However, CEO Paul Griffiths remains optimistic for the crucial east-west transit point as authorities gradually re-open Dubai's key routes to the Indian subcontinent and Britain, reported The Associated Press.

The 10.6 million passengers that passed through the airport over the past six months “is still very positive," Griffiths told The Associated Press. “I think coupled with the restrictions easing that we’re now seeing, (it) will bode very well for a satisfactory end to the year.”

The airport, which saw 86.4 million people squeeze through before the pandemic hit in 2019, has held the title of the world’s busiest since it beat out London's Heathrow seven years ago. It even kept the crown as the virus turned the world’s biggest airports into massive voids. But the once-teeming terminals still have a long way to go before seeing pre-pandemic passenger levels.

The hopes stoked by the United Arab Emirates' speedy vaccination campaign took a hit as the delta variant emerged, prompting familiar border closures and capacity cuts, and hurting the mammoth airport, hub of long-haul carrier Emirates. Dubai World Central, the Gulf city’s second airport that went out of use for commercial flights during the pandemic, appears to be a parking lot for Emirates’ iconic fleet of double-decker Airbus A380s.

Although the UAE recently lifted an entry ban on India, Pakistan, Nepal and Sri Lanka, which are home to most of the vast foreign workforce in the federation, stringent vaccination requirements still bar many from boarding flights to the country.

“All of those South Asian markets are incredibly important to Dubai, they’re a very important transit opportunity, of course, as people go to all parts of northern Europe," said Griffiths. “It’s very important we get those traffic flows back.”
There are reasons to expect a rebound, Griffiths added. One of the airport's two main terminals, mothballed amid the pandemic, returned to use last month to prepare for an influx of holiday-makers escaping wintry weather and attending the World Expo in October.

And after months of frustration and confusion, the UK last week removed the UAE from its “red list” that ordered all travelers to quarantine for 10 days in costly, government-approved hotels. The upgrade to “amber” elicited a strong sigh of relief throughout the federation of seven sheikhdoms, home to some 120,000 British expats. London was ranked as the top destination city for Dubai’s airport in 2020, with 1.15 million customers.

Griffiths declined to put a number on the financial hit, but said the “loss of traffic (to the UK) has had a very, very significant impact on the economy of both countries.”
So thrilled was Emirates about the flight resumption that the airline plopped a woman on the pinnacle of the tallest tower on the planet, Burj Khalifa, and filmed her raising placards that implored Brits to fly Emirates.

The stakes are indeed high for Dubai, where the economy thrives not on oil, like in other Gulf Arab sheikhdoms, but on travel and tourism. Emirates remains the linchpin of the wider empire known as “Dubai Inc.,” an interlocking series of businesses owned by the city-state.

There are signs of looming uncertainty, with the airport yet to hire back any of the 5,000 employees it furloughed during the devastation of the pandemic last year. But when asked whether Dubai Airport would hold onto its title — one of many prized superlatives in the extravagant emirate home to the world's tallest building and biggest mall — Griffiths didn’t miss a beat.

“I have no doubt in my mind,” he said. “We’re gearing up to expect a huge surge in volume."



UK Second Largest Foreign Investor in Saudi Arabia

Photo by SPA
Photo by SPA
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UK Second Largest Foreign Investor in Saudi Arabia

Photo by SPA
Photo by SPA

Saudi Minister of Investment Eng. Khalid Al-Falih highlighted the deep-rooted Saudi-British relations, saying the UK is the second largest foreign investor in the Kingdom with approximately $16 billion in investment shares.

This came during a panel session held on Tuesday as part of the Great Futures Initiative Conference at the King Abdullah Financial District. The event was held with United Kingdom (UK) Minister for Business and Trade Lord Dominic Johnson.
“The investment sector relies heavily on banks and economic ventures in the financial field," Al-Falih said, indicating that the Kingdom has the fastest growing economy over the past six years.
For his part, the British minister hailed the Kingdom's achievements in expanding joint economic ventures, noting that economic cooperation between the two countries will continue for many decades to come.
He also explained that economic cooperation between the two kingdoms demonstrates the depth of relations and cooperation, as the UK is keen to participate in Saudi Arabia's development.
The UK minister also commended the remarkable development in the Kingdom and the ease of access to investment in the Saudi market, citing the exceptional opportunities for British investors in Saudi Arabia.


SEREDO 2024 Exhibition Opens in Jeddah

Photo by SPA
Photo by SPA
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SEREDO 2024 Exhibition Opens in Jeddah

Photo by SPA
Photo by SPA

The Deputy Minister of Municipal Rural Affairs and Housing, Talal bin Mohammed Al-Khunaini, inaugurated the activities of the second edition of the Saudi Real Estate Development and Ownership (SEREDO) 2024 at the Jeddah International Exhibition & Convention Center in Jeddah.

The four-day exhibition seeks to explore promising opportunities in the real estate development sector, exchange expertise, transfer best practices, and experiences among professionals in the field, and strengthen local and international partnerships. It serves as a platform that brings together leading real estate developers, providing an opportunity for companies to showcase their real estate products to specialists and interested individuals in the sector, and to foster new partnerships, SPA reported.
The event will hold discussions on real estate sector developments and analysis of modern market trends, the utilization of geospatial data and its impact on shaping new horizons in real estate, methods and strategies to professionalize real estate auctions, entrepreneurship and innovation in the real estate market, real estate funds, and negotiation techniques for real estate brokers. These sessions will feature the participation of officials, speakers, and specialists in the sector.


Oil Stable as OPEC Maintains Forecasts

An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in Kazakhstan (Reuters)
An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in Kazakhstan (Reuters)
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Oil Stable as OPEC Maintains Forecasts

An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in Kazakhstan (Reuters)
An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in Kazakhstan (Reuters)

Oil prices were little changed on Tuesday, as OPEC maintained its global oil demand forecasts and investors waited on US inflation indicators this week.

Brent crude futures fell 9 cents to $83.27 a barrel at 1102 GMT, while US West Texas Intermediate (WTI) crude futures also lost 9 cents to $79.03 a barrel.

"Oil prices were slightly higher overnight but remain in a broad holding pattern over the past week, with the lead-up to the upcoming US inflation data keeping some reservations in place," said Yeap Jun Rong, market strategist at IG.

Investors are watching the U.S. Consumer Price Index data due on Wednesday for clues to when the Federal Reserve will consider cutting interest rates, which could spur economic growth and therefore oil demand.

On Tuesday, OPEC - the Organization of the Petroleum Exporting Countries - stuck to its forecast for relatively strong growth in global oil demand in 2024 and said there was a chance the world economy could do better than expected this year, Reuters reported.

The OPEC monthly report said world oil demand will rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025.

The market is also watching wildfires in remote western Canada that could disrupt the country's oil supply.

Firefighters on Monday were racing to contain one blaze in British Columbia and two in Alberta near the heart of the country's oil sands industry.

"Spreading wildfires in Alberta oil sands impose downside risks to our constructive Canada production outlook as massive fires in the same region eight years ago triggered a temporary shutdown of over 1 million bpd oil production," said Goldman Sachs analysts in a note.

Although no operational disruptions have been reported, Alex Hodes, an analyst at energy brokerage StoneX, said Canada's 3.3 million barrel per day (bpd) production capacity was "very likely to be affected".


Geopolitical Tensions Top Bahrain Summit’s Economic Agenda

Jeddah Islamic Port (General Ports Authority)
Jeddah Islamic Port (General Ports Authority)
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Geopolitical Tensions Top Bahrain Summit’s Economic Agenda

Jeddah Islamic Port (General Ports Authority)
Jeddah Islamic Port (General Ports Authority)

Geopolitical challenges and tensions in the Middle East cast a shadow over the Arab Summit that will be held in Bahrain on Thursday. However, these challenges can encourage Arab countries to move towards reaching a declaration of a common Arab market, amid the continued disruption of global supply chains and the emergence of the food security crisis.

The establishment of the Arab Common Market is likely to reduce the risks of dependence on global supply chains, which are suffering from successive disruptions that have already affected the growth rates of some economies, including Arab countries.

This advantage was clearly evident in the electrical interconnection agreements between Saudi Arabia and Egypt, as well as the integrated industrial partnership for sustainable economic development between Egypt, Bahrain, Jordan, the Emirates and Morocco.

Economic challenges

Economic growth rates represent an important challenge for Arab countries. Some states saw a decline in the employment rate and an increase in debt, as a result of the direct consequences of external factors on their economies, such as the Israeli war in Gaza, the Russian-Ukrainian war, and the repercussions of the outbreak of the Covid-19 pandemic.

These factors forced some countries to devalue their currencies against the dollar, which led to a decline in the purchasing value of consumers in parts of the Arab world, in parallel with an increase in inflation rates, which subsequently put pressure on Arab economies.

All these factors have led the International Labor Organization (ILO) to expect unemployment rates in the Arab region to remain high at levels of 9.8 percent during the current year.

Economic integration and the Arab market

The Arab countries have taken important steps towards economic integration, since the launch of the Arab Free Trade Area, which aims to increase levels of intra-trade and remove customs tariffs, leading to the Arab Customs Union, and then the Arab Common Market.

While supporting regional integration requires providing investment incentives and the transfer of intra-Arab capital, Arab countries have recently sought to integrate trade in services within intra-trade liberalization negotiations, in view of the strategic importance of the services sector and its contribution of about 48 percent of the gross domestic product.

In this context, the upcoming summit in Bahrain will discuss an important item on its agenda, which focuses on progress achieved in completing the requirements of the Greater Arab Free Trade Area and the establishment of the Arab Customs Union.

“The economic, social and development fields are the cornerstone of Arab action”, said Arab League Secretary-General Ahmed Aboul Gheit during the meeting of the Economic and Social Council within the preparations for the 33rd session of the League of Arab States Council meeting at the summit level.

In recent press statements, the Secretary General of the Union of Arab Chambers, Dr. Khaled Hanafi, expected intra-Arab trade to grow by 4 percent to 18 percent during 2025, explaining that the volume of trade among Arab countries is estimated at about $700 billion dollars.


Scores of Protests Invalidate Riyadh Chamber Elections

A glimpse from the ceremony announcing the final results of the Riyadh Chamber of Commerce elections (Asharq Al-Awsat)
A glimpse from the ceremony announcing the final results of the Riyadh Chamber of Commerce elections (Asharq Al-Awsat)
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Scores of Protests Invalidate Riyadh Chamber Elections

A glimpse from the ceremony announcing the final results of the Riyadh Chamber of Commerce elections (Asharq Al-Awsat)
A glimpse from the ceremony announcing the final results of the Riyadh Chamber of Commerce elections (Asharq Al-Awsat)

Saudi Arabia’s Commerce Ministry received numerous complaints from candidates and voters regarding irregularities in the Riyadh Chamber of Commerce elections, sources reported.

Complaints highlighted instances of vote manipulation without the owners’ consent and technical glitches that prevented some candidates from receiving votes.

Consequently, after reviewing the electoral process and detecting manipulation attempts, the ministry took action.

In response to concerns raised by business figures and voters, the ministry initiated a review of the election procedures.

Subsequently, the Election Committee annulled improperly cast votes and allowed those unable to vote due to technical issues a chance to do so within the designated period.

The ministry also extended the term of current board members and pledged to take legal action against violators.

The ministry’s decision was prompted by objections raised regarding the fairness and transparency of the Riyadh Chamber of Commerce elections.

Khalid Al-Babtain, a legal advisor, emphasized to Asharq Al-Awsat the ministry’s role in ensuring fair elections.

The Riyadh Chamber of Commerce witnessed a record-high voter turnout, with over 121,000 votes cast compared to 76,600 in the previous elections. Nine candidates secured victories for the board of directors’ positions out of 18 available seats.


Gold Prices Drift Higher as Key US Inflation Data Looms

A salesman arranges gold bangles at a jewelry shop in Chennai, India, on May 10, 2024. (Photo by R. Satish BABU / AFP)
A salesman arranges gold bangles at a jewelry shop in Chennai, India, on May 10, 2024. (Photo by R. Satish BABU / AFP)
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Gold Prices Drift Higher as Key US Inflation Data Looms

A salesman arranges gold bangles at a jewelry shop in Chennai, India, on May 10, 2024. (Photo by R. Satish BABU / AFP)
A salesman arranges gold bangles at a jewelry shop in Chennai, India, on May 10, 2024. (Photo by R. Satish BABU / AFP)

Gold prices drifted up on Tuesday, with the spotlight shifting to key inflation reports due this week, which could offer more insights on the pace and scale of the US Federal Reserve's interest rate cuts this year.
Spot gold was up 0.4% at $2,344.39 per ounce by 0557 GMT after falling 1% on Monday, Reuters reported.
US gold futures rose 0.3% to $2,350.00.
The US producer price index data is scheduled for release at 1230 GMT, followed by the consumer price index on Wednesday. The CPI data is expected to show core inflation rose 0.3% month-over-month in April, down from 0.4% the prior month, according to a Reuters poll, pulling the annual rate down to 3.6%.
"If gold manages to hold above $2,320- $2,330 range, that is a sign of positiveness. That means short-term momentum will be bullish and with that support after a weaker CPI data, potentially gold could test the all-time high level in the short-term," said Kelvin Wong, a senior market analyst for Asia Pacific at OANDA.
However, currently "gold prices are supported by ongoing stagflationary risk scenario that is kind of ignoring the whole higher cost of holding gold."
Bullion is known as inflation hedge but elevated interest rates reduce the opportunity cost of holding gold.
Last week's weak jobs report and a softer-than-expected US payrolls report for April have increased expectations for rate reductions this year. The Fed will cut its key interest rate twice this year, starting in September, according to a stronger majority of economists polled by Reuters.
Spot silver rose 0.8% to $28.41 per ounce and palladium gained 0.8% to $968.43.
Platinum was up 0.6% to $1,002.90, after hitting a near one-year peak on Monday.
BHP Group is likely to sweeten its $43 billion takeover offer for Anglo American for a second time and possibly add cash, investors in both companies said, after the London-headquartered target rejected a higher bid.


International Companies Gather in Riyadh to Explore Giga Saudi Projects

The Saudi Giga Projects 2024 kicked off on Monday in Riyadh. (Asharq Al-Awsat)
The Saudi Giga Projects 2024 kicked off on Monday in Riyadh. (Asharq Al-Awsat)
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International Companies Gather in Riyadh to Explore Giga Saudi Projects

The Saudi Giga Projects 2024 kicked off on Monday in Riyadh. (Asharq Al-Awsat)
The Saudi Giga Projects 2024 kicked off on Monday in Riyadh. (Asharq Al-Awsat)

More than 600 investors and representatives of local and international companies gathered in Riyadh to explore the Giga projects that are currently being implemented in Saudi Arabia, namely NEOM, Qiddiya, The Red Sea, Roshen, and Diriyah.
The two-day Saudi Giga Projects 2024 kicked off on Monday, in the presence of government agencies, developers, contractors, consultants, suppliers and thought leaders, to discover the huge projects taking place in the Kingdom within the framework of Vision 2030.
In remarks to Asharq Al-Awsat, CEO of Expertise Contracting Co. Ltd., Mohammad Ashif, said that his company works with giant Saudi projects such as The Red Sea and Qiddiya, and provides services to the King Salman Park, with the aim to develop Saudi Arabia’s infrastructure in line with Vision 2030.
Expertise Contracting Co. Ltd. is a leading industrial group in Saudi Arabia and the Middle East. It provides services in various sectors, including petrochemicals, oil and gas, fertilizers, steel, cement, water treatment, and power generation sectors.
Ashif stressed that Saudi Arabia is considered a model for the future of construction and infrastructure, and has achieved a 40 percent annual growth in this field during the past five years.
For his part, the regional account manager at MEED, the global business intelligence company, Alaa Khamis, told Asharq Al-Awsat that the volume of the Kingdom’s major projects will exceed $850 billion in 2023. He continued that the value of the contracts that were delivered last year amounted to about $65 billion, covering various sectors.
During the event, speakers discussed the latest trends and technologies in giant Saudi projects, pointing to a great interest by international companies to explore investment opportunities in Saudi Arabia.
The CEO of Asfar Tourism Investment Company, which is wholly owned by the Public Investment Fund (PIF), Fahad bin Mushayt, said that one of the company’s main goals focuses on empowering the private sector.
He also announced the full opening of the first resort in the city of Al Baha at the end of 2024.
The Saudi Giga Projects 2024 featured a dynamic program of keynote speeches and panel discussions presented by more than 30 speakers.
Participants listened to updates and in-depth insights about major Saudi giant projects, including Trojena, New Square, Diriyah, King Salman Park and Red Sea International.


Saudi Finance Minister Participates in Qatar Economic Forum 2024

Saudi Finance Minister Mohammed al-Jadaan. (AP)
Saudi Finance Minister Mohammed al-Jadaan. (AP)
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Saudi Finance Minister Participates in Qatar Economic Forum 2024

Saudi Finance Minister Mohammed al-Jadaan. (AP)
Saudi Finance Minister Mohammed al-Jadaan. (AP)

The Saudi Minister of Finance, Mohammed bin Abdullah Al-Jadaan, participates in the fourth edition of the Qatar Economic Forum 2024, held from 14 May through 16, in Doha, Qatar.
The forum aims to discuss economic challenges and opportunities in the Middle East and North Africa region, said the Saudi Press Agency on Tuesday.
During the first day of the forum, the Saudi minister will participate in a dialogue session titled "Reshaping Middle East Economies." During the session, he will join the Chairman of the Islamic Development Bank (IsDB) Group, Muhammad Al-Jasser, and the Qatari Minister of Finance, Ali Al-Kuwari.
The forum will bring together over 1,000 decision-makers from government and private sectors worldwide. They will discuss various topics including geopolitical challenges, globalization and trade, energy transition, technological innovation, business and investment prospects, as well as sports and entertainment.


Red Sea Global Announces Cooperation with Oracle

Red Sea Global (RSG) announced a cooperation with Oracle to introduce its technology solutions, including OPERA Cloud Central Hospitality platform, in the Kingdom for the first time. (SPA)
Red Sea Global (RSG) announced a cooperation with Oracle to introduce its technology solutions, including OPERA Cloud Central Hospitality platform, in the Kingdom for the first time. (SPA)
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Red Sea Global Announces Cooperation with Oracle

Red Sea Global (RSG) announced a cooperation with Oracle to introduce its technology solutions, including OPERA Cloud Central Hospitality platform, in the Kingdom for the first time. (SPA)
Red Sea Global (RSG) announced a cooperation with Oracle to introduce its technology solutions, including OPERA Cloud Central Hospitality platform, in the Kingdom for the first time. (SPA)

Red Sea Global (RSG) announced on Monday a cooperation with Oracle, a company specialized in hospitality, to introduce its technology solutions, including OPERA Cloud Central Hospitality platform, in the Kingdom for the first time.

Through this cooperation, RSG said it will establish premier luxury resorts such as Thuwal Private Retreat, Shebara, and Desert Rock, which are set to become the first resorts in the Kingdom to leverage Oracle's advanced cloud hospitality technology solutions.

Group CEO at Red Sea Global John Pagano said: "The Oracle Hospitality OPERA Cloud Central platform truly is best in class, but until now, it has not been accessible to the Saudi Arabian industry."

"Oracle was eager to be part of the exciting transformation happening in the Kingdom, especially in the hospitality industry. With their expertise and support, we now have the technology in place to deliver exceptional guest experiences, responding to our discerning visitors' needs before they know what they want," he added.

Executive Vice President and General Manager at Oracle Hospitality Alex Alt said: "Saudi Arabia is one of the world's most exciting hospitality market stories today, and by pioneering a regenerative approach to tourism, Red Sea Global is at the heart of that transformation. Now, Oracle will also be a part of shaping the sector's future in the region."


Jeddah Historic District Program, Cruise Saudi Sign MoU to Take in Rising Number of Int'l Cruise Visitors

The Jeddah Historic District Program and Cruise Saudi signed a memorandum of understanding (MoU) to accommodate the increasing number of international cruise visitors. (SPA)
The Jeddah Historic District Program and Cruise Saudi signed a memorandum of understanding (MoU) to accommodate the increasing number of international cruise visitors. (SPA)
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Jeddah Historic District Program, Cruise Saudi Sign MoU to Take in Rising Number of Int'l Cruise Visitors

The Jeddah Historic District Program and Cruise Saudi signed a memorandum of understanding (MoU) to accommodate the increasing number of international cruise visitors. (SPA)
The Jeddah Historic District Program and Cruise Saudi signed a memorandum of understanding (MoU) to accommodate the increasing number of international cruise visitors. (SPA)

The Jeddah Historic District Program and Cruise Saudi, a company fully owned by the Public Investment Fund, signed a memorandum of understanding (MoU) to accommodate the increasing number of international cruise visitors who will enjoy exploring the authentic sites of the historic district.

"Central to the goals of the Jeddah Historic District Program and Cruise Saudi is introducing the region's historical landmarks and cultural identity, enlivening its commercial outlets, encouraging entrepreneurs to invest in the region, and supporting Saudi tourist guides to enhance the tourist experience," said the Jeddah Historic District Program in a statement carried by the Saudi Press Agency on Monday.

Jeddah Historic District Program Director General Abdulaziz bin Ibrahim Al-Issa said: "The tourism sector is experiencing growth and prosperity, which contributes to boosting the Kingdom's presence on the global tourism map, in line with Saudi Vision 2030."

"Our strategic partnership with Cruise Saudi aims to drive economic growth and actively engage in the district's revitalization. We are committed to protecting the tangible and intangible heritage that earned the district its UNESCO status, recognizing its profound cultural impact," he added.

"Jeddah’s Historic District is one of our most popular Shorex destinations, and we continue to witness how much international passengers enjoy exploring its unique historic sites through the tours and experiences we offer," said Cruise Saudi CEO Lars Clasen.

"This MoU represents our shared vision and marks an exciting new chapter, paving the way for collaborative efforts to draw even more visitors to this enchanting destination while protecting its heritage and authenticity," he added.