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Saudi Aviation Forum Sees Signing of Aircraft Deals, Technical Solutions Agreements

Future of Aviation Forum activities (Asharq Al-Awsat)
Future of Aviation Forum activities (Asharq Al-Awsat)
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Saudi Aviation Forum Sees Signing of Aircraft Deals, Technical Solutions Agreements

Future of Aviation Forum activities (Asharq Al-Awsat)
Future of Aviation Forum activities (Asharq Al-Awsat)

Flynas, the Saudi air carrier and the leading low-cost airline in the Middle East, has announced growth in partnership with 3 aircraft lessors for sales and leaseback of total 14 new Airbus A320neo aircraft worth SR6.6 billion, for deliveries scheduled in 2022 and 2023.

The announcement was made during the Future of Aviation Forum organized by the General Authority of Civil Aviation (GACA) from May 9-11 in Riyadh, with Flynas’ participation in the forum as a strategic partner.

Flynas said that these 14 aircraft financing, secured with partnership from CDB Aviation, CMB Financial Leasing and Avolon Aerospace Leasing Limited, represent part of the company's order for 120 Airbus A320neo aircraft.

Bander Almohanna, Chief Executive Officer and Managing Director of flynas said: "These agreements support flynas' strategy to expand locally and internationally and effectively contribute to achieving the Civil Aviation Authority's strategy that aims to reach 330 million passengers in the Kingdom annually and linking the world to the Kingdom through more than 250 destinations".

Flynas recently announced that the company's Board of Directors had agreed to increase the volume of new orders for aircraft to 250 aircraft, with which Flynas aims to become the first low-cost airline in the Gulf to enable the Kingdom of Saudi Arabia to reach its goal of 100 million annual tourists by 2030.

The Future of Aviation Forum, held in Riyadh, brought together aviation industry leaders from around the world in the public and private sectors, airline CEOs, and international regulators.

The forum aimed to discuss the evolution of air travel and develop solutions for the post-pandemic industry, hosting over 120 speakers and more than 2,000 participants to discuss three principal themes; innovation, growth, and sustainability, during 40 sessions.

In other news, Saudia Aerospace Engineering Industries (SAEI) has announced launching a cooperation project with Stellar Blu to provide, install and support advanced aerial internet solutions in line with the National Aviation Strategy.

The agreement between the two sides that was signed during the Forum.

Under this cooperation, advanced technologies will be provided that the company relies on over many coming years, where Stellar Blu, in cooperation with SAEI, will enhance its role as a distinguished center for aerial internet communication in the region, where this strategic partnership targets to enhance the role of the Saudia Airlines and increase its capabilities to provide current clients of airlines and government institutions with comprehensive technology.

Stellar Blu will provide the Falcon 300 technology that allows airlines to benefit from several satellite aerial communication services and consequently enabling airlines to provide constant communication service with the internet for their clients and realize the best performance levels, allowing guests to enjoy the live broadcast feature and social media applications, and offer them a unique experience called “experiencing home internet in the sky.”

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Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.