Boeing CEO to Asharq Al-Awsat: Aviation Industry Is Recovering, FII Came at an Important Time

President of Boeing International Sir Michael Arthur. (Asharq Al-Awsat)
President of Boeing International Sir Michael Arthur. (Asharq Al-Awsat)
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Boeing CEO to Asharq Al-Awsat: Aviation Industry Is Recovering, FII Came at an Important Time

President of Boeing International Sir Michael Arthur. (Asharq Al-Awsat)
President of Boeing International Sir Michael Arthur. (Asharq Al-Awsat)

President of Boeing International Sir Michael Arthur said that the aviation industry was recovering and in good condition, stressing its vitality for the global economy.

Commenting on the Riyadh-hosted Future Investment Initiative (FII) forum, Arthur told Asharq Al-Awsatthat he was very impressed with the scope of the conference, which he said came at a very important time in the history of the global economy.

“There is a lot of change happening right now. But I think that Saudi Arabia has an active role in this by bringing people together, and we are looking forward to the next few years,” he stated.

Challenges

On the challenges facing the aviation industry, he said: “We have had three terrible years in this industry, due to the coronavirus pandemic, as the world stopped flying, but now the industry is recovering very quickly.”

Pointing to the high demand for planes, Arthur said the Middle East region ranked above the world average in the number of passengers traveling by plane.

“We are almost back to pre-coronavirus levels now, in the number of flights, and in some countries… There is currently more regional demand and by next year we will be back to full pre-COVID-19 levels or even above them by 10 to 24 percent,” he remarked.

He stressed that the industry has recovered and was in good shape.

Arthur continued: “In the long term after 20 years, we see tremendous growth in the field of aviation, where 41,000 aircraft will be purchased, which means almost doubling the current fleet.”

Supply chains

The president of Boeing International noted that constraints in the supply chain have obstructed the return of the full production capacity in the aviation industry.

“But the solution will come, it is only a matter of time, we will determine that,” he said.

Arthur pointed to the Saudi government’s ambition to develop aerospace within the Global Space Initiative.

“We would like to be a part of that,” he said. “We are already very involved in the Kingdom. We have 2,000 people working here in the country and their numbers are increasing over time, part in defensive warplanes, and another part in commercial aircraft. Thus, we have a lot of ideas for the future…”

Manufacturing plans

In response to a question about the company’s plans to manufacture parts for its aircraft in Saudi Arabia, he said: “We already provide significant defense support in the Kingdom. I am glad you asked this question, and we have been here for many years, and this work is going at an increasing pace all the time.

“We are helping the Saudi Air Force in their rotary-engine aircraft and in their fixed-wing aircraft to ensure that they are safe, efficient and capable of flight.”

He pointed to a global partnership with the Saudi armed forces, as well as a memorandum with the Saudi government for the production of aluminum used in the aircraft industry.

Importance of air transport

Turning to the importance of the Middle East region in the air transport sector, Arthur said Saudi Arabia and the region enjoyed a very good position, noting that the region links the East and West.

“So, I think there’s a lot of potential for growth here, in terms of passengers,” he underlined.

He added that the region was home to two of the seven largest shipping companies in the world.

“So, this is just an example of the scale of this growth. We expect this to develop even more over the next few years. So, you have a major geographic role, and Saudi Arabia and other Gulf Cooperation Council (GCC) countries are investing in aviation infrastructure. So, I think the future looks very positive for the region, in this area,” Arthur remarked.

Aircraft delivery

He stressed that demands for aircrafts were increasing, adding that the market was in good shape.

“As I said earlier, the long-distance travel market is coming back now and it will be stronger next year… So, they expect the growth to be very healthy,” he stated.

Asked about Boeing’s chances to join the new company that Saudi Arabia intends to launch, he said: “The ambition of the Kingdom and the Public Investment Fund is very exciting... We are fans of their projects, and we very much hope that they will choose Boeing aircraft; but this is an option that remains for Saudi Arabia… Of course, we will work closely with them to give them the best we can.”

He reiterated that the defense partnership was an important part of Boeing’s relationship with Saudi Arabia.

“We have a great growing relationship in the business side. We now have a partnership in maintenance, as well as on the defense platform. We have 240 Boeing aircraft in the Saudi fleet… We are very proud to support the Saudi government in the work it needs,” he concluded.



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.