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Defense Aircraft Maintenance Focal Interest of Saudi Companies

A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)
A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)
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Defense Aircraft Maintenance Focal Interest of Saudi Companies

A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)
A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)

Defense aircraft maintenance dominated the interests of Saudi companies at the World Defense Show (WDS) in the Saudi capital, Riyadh. Companies emphasized efforts to commit to localizing defense industries and technical investment, at a time when cooperation agreements and memoranda of partnerships for building military ships and helicopter platforms were a prominent focus in deals signed on the WDS’ last day.

The four-day WDS 2022, which began on March 6, witnessed the signing of a deal between the Saudi-based Overhaul and Maintenance Company (OMC) and the Saudi Technology Development and Investment Company (TAQNIA).

OMC also signed another deal with the Saudi Authority for Data and Artificial Intelligence (SDAIA). Its deal with SDAIA aims to develop innovative geospatial products and services that contribute to enhancing local content and serving the Saudi market, to enhance the Kingdom's global position in the fields of data and artificial intelligence.

BAE Systems Saudi Arabia and SDAIA signed a deal to provide information technology services, cybersecurity services, as well as professional services and manpower for institutions.

A second deal was signed between the two. It aims to develop operational and technical capabilities, advance security operations centers and network security, as well as support data management analysis systems by participating with specialized experts, developing strategies for future improvement.

Abdulatif Al-Sheikh, CEO of OMC, confirmed to Asharq Al-Awsat that the company is continuing to localize the defense industry in the Kingdom, indicating that the company owns three companies in the defense field.

“Companies in Riyadh and Jeddah have invested in qualitative capabilities and national competencies working in training Saudi technicians through a package of training programs, most of which are internationally accredited by the European International Safety Organization,” Al-Sheikh told Asharq Al-Awsat.

International Systems Engineering (ISE) CEO Majid AlMuzairi told Asharq Al-Awsat that his company was working to expand the scope of its projects, in addition to signing many agreements and strategies with a number of government agencies and related companies on the sidelines of the WDS.

AlMuzairi stressed that cybersecurity is one of the Kingdom’s priorities and noted that ISE is launching a pivotal action plan in the digital transformation process.

He revealed the company's vision to be the first provider of information services and technology management for companies operating in the defense and national security sectors.

Saudi Maintenance and Supply Chain Management Company (SMSCMC) CEO Jeremy Charmak told Asharq Al-Awsat that his company is using its capabilities to push the local industry in the Kingdom, as it currently has eight branches, six of which are in Saudi Arabia.

He revealed that the Saudization rate at his company is up to 72%.

Charmak pointed out that SMSCMC is launching very important training programs in the transportation of sensitive and dangerous equipment and safety equipment, indicating that the company specializes in supply chains and logistics services, and was established in 2006.

International Maritime Industries (IMI) , the largest shipyard in the MENA region, has expanded its partnership with Hyundai Heavy Industries (HHI) to enable the construction of naval vessels at its yard in Saudi Arabia.

The extension of the existing memorandum of understanding (MoU) between IMI and HHI will lead to further cooperation between the two partners in areas including naval vessel research, development and construction, and the localization of engine manufacturing for naval ships in the kingdom.

It will also deliver further knowledge transfer through the training of IMI’s Saudi team members at HHI facilities, providing them with new skills and future career opportunities, as well as the development of further commercial relations, said a statement.

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IMF Says Engaging with Iraq on Preparing New Bailout Program

Central Bank of Iraq (INA)
Central Bank of Iraq (INA)
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IMF Says Engaging with Iraq on Preparing New Bailout Program

Central Bank of Iraq (INA)
Central Bank of Iraq (INA)

The International Monetary Fund on Thursday said it was engaging with Iraqi authorities as it prepares a new bailout program for the country, whose economy has been battered by the war on Iran.

The US-Israel war on Iran, launched in late February, plunged the region into conflict and saw Tehran's retaliatory action virtually block the Strait of Hormuz, a key energy supply route.

Iraq's economy is heavily dependent on its energy exports, which almost entirely rely on transport through the strait.

Before the war, the country was already facing acute fiscal constraints, and the IMF this month forecast its economy would contract by 16 percent this year.

"Our plan now is to engage with the authorities to understand better their priorities, how they want to address their vulnerabilities, and then to move ahead on how we can best support them with a program," said IMF spokesperson Julie Kozack at a regular press briefing in Washington.

Kozack cited the country's severe financing constraints from before the outbreak of the war, and said its very narrow non-oil revenue base was also putting pressure on the fiscal balance.

The last of Iraq's three most recent programs with the IMF ended in 2019.

It has a total of around $428 million in interest payments due to the Fund by 2030, according to IMF data.

IMF Chief Kristalina Georgieva first disclosed that Iraq had approached the Fund for a new program at the Fund's annual meetings in Bangkok earlier this month.

At those meetings, Georgieva lauded the resilience of global economic growth in the face of wars in Iran and Ukraine, but warned that outcomes were highly uneven with more vulnerable economies battered hard by the conflicts.

Business

Iraq's Central Bank: Exchange Rate Gap Narrows to 9%, No New Currency Being Printed

Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)
Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)
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Iraq's Central Bank: Exchange Rate Gap Narrows to 9%, No New Currency Being Printed

Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)
Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)

Iraq's Central Bank Governor Nizar Nasser Hussein announced Thursday that the gap between the dinar's official exchange rate and its parallel-market rate had narrowed to 9%, down from approximately 24%, while denying reports that new banknotes were being printed.

Hussein made the remarks during a visit by the Iraqi Parliament's Investment and Development Committee to the central bank to discuss the repercussions of changes to the dollar exchange rate, their impact on economic and investment activity, and the challenges facing investors and local companies, according to a parliamentary statement carried by the Iraqi News Agency (INA).

The governor confirmed that no currency printing was underway, describing reports to the contrary as inaccurate. He also noted that the gap between the official and parallel-market exchange rates had fallen to 9%, as Iraq faces mounting financial and economic pressures stemming from the war involving Iran and disruptions to oil exports.

In early October, the Central Bank of Iraq raised the dollar's selling rate to the public to 1,520 dinars, from approximately 1,320 dinars previously, a move that devalued the dinar by around 15% against the dollar amid pressure on oil revenues and foreign currency inflows.

Iraq's public finances depend heavily on oil revenues, making export disruptions and declining foreign currency inflows major sources of pressure on the state budget and foreign exchange market.

During the meeting, the central bank outlined measures taken to support the economy, including assistance to state-owned and private banks in providing citizens with concessional loans ranging from 5 million to 15 million Iraqi dinars.

For its part, the Investment and Development Committee stressed the need to limit the impact of exchange rate changes on investment project costs, raw material prices and contractual obligations, as well as their repercussions for market stability and citizens' purchasing power.

The committee called for stronger coordination between the central bank, government agencies and the banking sector, streamlined bank financing procedures, and the removal of obstacles facing investors to ensure projects can continue without imposing additional burdens on businesses and citizens.

The developments come as Iraqi authorities seek to contain the economic fallout from the war amid mounting pressure on oil exports and public finances.

Iraq had requested financial support from the International Monetary Fund, which projected that the country's economy would contract by 16% this year, according to estimates cited in the report.

Business

Riyadh Metro Opens New Horizons for Commercial Real Estate Investment

Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)
Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)
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Riyadh Metro Opens New Horizons for Commercial Real Estate Investment

Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)
Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)

Riyadh's public transport network is increasingly becoming a factor in real estate investors' calculations, with Saudi Arabia's rail services recording more than 40.9 million passengers during the third quarter of 2026. Of these, the Riyadh Metro accounted for 30.4 million riders.

This draws renewed attention to the attractiveness of commercial properties located near metro stations and the opportunities for cafés, restaurants, and retail outlets to benefit from passenger traffic. However, industry specialists note that assessing the metro's actual impact on rents and occupancy rates requires comparing property performance before and after operations began, while taking other market factors into account.

In this context, Khaled Al-Mobid, CEO of Menassat Realty Co., told Asharq Al-Awsat that the Riyadh Metro has begun to reshape the concept of a prime commercial location.

A desirable site is no longer limited to properties situated on major roads; ease of access through public transportation has become an additional factor enhancing investment appeal.

Al-Mobid added that average rents in Riyadh's major shopping centers reached approximately SAR 2,650 per square meter annually, reflecting growth of 1.2 percent, while occupancy rates remained stable at 91 percent during the first half of 2026. He stressed, however, that these indicators cannot be attributed solely to the metro.

He pointed to practical signs of the growing importance of transport-linked commercial activity, including the offering of 733 commercial units within the public transport network, in addition to opportunities available for cafés and financial services.

Metro Enhances the Appeal of Commercial Locations

Al-Mobid expects businesses that depend on daily customer traffic, particularly cafés, restaurants, and quick-service providers, to benefit from locations near the busiest stations. He believes proximity to metro stations will become a more important consideration for investors and developers when selecting sites and planning mixed-use projects.

He emphasized that the value of a commercial location in the future will not be measured solely by the number of cars passing by, but also by the number of people who can easily reach it without needing a vehicle.

A view of the Riyadh Metro's Blue Line emerging from the Financial District Station (SPA)

Measuring the Real Estate Impact Requires Market Comparison

For his part, Khalid Aljasir, a real estate specialist and chairman of Amaken International Group, told Asharq Al-Awsat that the launch of the Riyadh Metro represents a significant development in the city's infrastructure and is expected to gradually influence the real estate demand landscape, particularly in commercial areas that benefit from improved accessibility and higher user traffic.

Aljasir explained that proximity to public transport stations can enhance a property's investment appeal, although the extent of the impact varies depending on the location, the nature of the commercial activity, and the level of demand in the area.

He stressed that increases in rents or occupancy rates cannot be attributed solely to metro operations without analyzing other market variables.

He noted that measuring the metro's actual impact requires comparing similar commercial properties located near stations with those farther away, both before and after operations began. Metrics such as average rents, occupancy rates, and demand levels can help determine how improved accessibility affects real estate performance.

A view of the Riyadh Metro's Yello Line (SPA)

Accessibility Becomes a Key Consideration for Investors

Aljasir added that accessibility and integration with public transport networks are increasingly important factors when evaluating investment opportunities. Investors assess a property's ability to attract tenants and users, as well as how easily customers and employees can reach it, alongside traditional considerations such as location and size.

He noted that cafés, restaurants, retail stores, and daily-service businesses may benefit from sites experiencing steady pedestrian traffic near metro stations. Commercial offices may also gain from improved accessibility for employees and clients.

Furthermore, locations connected to public transport could become more attractive for mixed-use developments that combine commercial, office, and service functions.

Aljasir stressed that proximity to a station is not the sole determinant of investment success. Economic viability, rent levels, actual demand, the nature of the business, and overall site quality remain fundamental factors in decision-making.

He underscored the importance of studying the integration of public transportation and real estate development and evaluating its impact on expected cash flows and investment returns, rather than assuming that all properties near stations will experience the same increase in value or rental rates.