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Saudi Arabia Launches First Aircraft Maintenance City in Jeddah

Deputy Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah visits the forum in Jeddah. (Asharq Al-Awsat)
Deputy Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah visits the forum in Jeddah. (Asharq Al-Awsat)
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Saudi Arabia Launches First Aircraft Maintenance City in Jeddah

Deputy Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah visits the forum in Jeddah. (Asharq Al-Awsat)
Deputy Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah visits the forum in Jeddah. (Asharq Al-Awsat)

Saudi Arabia inaugurated on Monday its first industrial city dedicated to aircraft manufacturing and maintenance in Jeddah, marking a significant step in the Kingdom’s aviation industry. The government also issued new licenses for aircraft maintenance, repair, and overhaul (MRO), reinforcing its commitment to developing the sector.

The launch took place during the Aviation Industry Forum in Jeddah, held under the patronage of Minister of Industry and Mineral Resources Bandar Alkhorayef and organized by the National Industrial Development Center. The event gathered high-ranking officials, industry leaders, and decision-makers to discuss the latest developments in the aviation sector, both locally and globally, while exploring investment opportunities.

New industrial licenses were granted in collaboration with the General Authority of Civil Aviation (GACA) and the General Authority for Military Industries (GAMI). They cover various activities, including aircraft maintenance, unmanned aerial vehicles (UAVs), navigation systems, and electronic systems.

The Ministry of Industry and Mineral Resources emphasized that the new licenses will provide investors with significant benefits, including incentives and support programs, to help localize and grow the aviation sector.

As part of this effort, the first aircraft maintenance license was awarded to Middle East Propulsion Company (MEPC), while another was granted to Saudia Aerospace Engineering Industries (SAEI).

Deputy Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah told Asharq Al-Awsat that the designated land will be exclusively used for aviation-related industries to achieve strategic goals.

The focus will be on manufacturing aircraft components, such as aluminum and titanium parts, landing gear, and modern transport aircraft, he explained.

Aircraft manufacturing is a core component of Saudi Arabia’s National Industrial Strategy, and its development involves identifying necessary investments and regulatory frameworks.

GACA is a strategic partner in this effort, working alongside the Ministry of Industry under the leadership of the National Industrial Development Center.

Moreover, global aerospace companies such as Embraer, Turkish Aerospace Industries (TAI), Boeing, and Airbus are actively seeking environments that provide reliable local suppliers for aircraft manufacturing, bin Salamah said.

With a growing demand for aircraft components and engines worldwide, Saudi Arabia is in a strong position to support the industry due to its abundant raw materials, he added.

Following the establishment of three major automotive factories in the Kingdom, around 30 Tier-1 and Tier-2 suppliers are in discussions about investment, while other automotive companies are also considering setting up production facilities.

Meanwhile, GACA President Abdulaziz Al-Duailej revealed to Asharq Al-Awsat that several companies have applied for air cargo service licenses in Saudi Arabia.

A new cargo license will soon be issued at Dammam airport, followed by an airline license in Madinah and Qassim in the coming years, he added.

GACA is overseeing the implementation of the National Aviation Strategy, which aims to double passenger numbers, increase air cargo capacity, and expand direct flight destinations to over 250.

Achieving these goals requires airport expansions, additional airlines, and larger aircraft fleets, as well as enhanced maintenance services.

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Business

Strait of Hormuz Blockade Drives up Costs at Panama Canal

Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
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Strait of Hormuz Blockade Drives up Costs at Panama Canal

Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)

The war in the Middle East has boosted demand to move vital cargo through the Panama Canal to such an extent that one vessel carrying liquefied natural gas (LNG) paid $4 million to skip the line and avoid a wait that can take up to five days, according to an official report.

A surge in such payments has been recorded since the US-Israeli attacks on Iran began February 28, which led to the blockade of the Strait of Hormuz, a critical waterway for one-fifth of the world's oil and natural gas exports from Gulf countries.

To meet fuel demand, Asia's refineries are choosing to buy oil or gas from the United States and ship it through the transoceanic waterway instead of purchasing from Gulf countries who rely on the Strait of Hormuz, according to reports from the Panama Canal Authority.

The average number of ships passing through the canal on a daily basis has "remained strong," the authority told AFP in a statement Tuesday, with 34 ships in January and 37 ships in March. Some days exceeded 40 transits.

"The increase reflects changes in global trade patterns and market conditions, including geopolitical factors affecting key routes," the authority said.

Ships transiting the canal book their passage well in advance, and ships without bookings wait an average of five days to get through, but there is an auction where last-minute transits can be purchased.

The most recent auction included a $4 million bid for an LNG vessel, and in recent weeks two oil tankers exceeded bids of $3 million, the authority said.

Past average auction prices between October and February stood at around $130,000, and rose to $385,000 in March and April.

Five percent of global maritime trade passes through the Panama Canal, and its main users are the US and China. The route primarily connects the US East Coast with China, South Korea and Japan.

In the first half of the 2026 fiscal year, which runs October to September, the Panamanian waterway recorded passage of 6,288 ships, a year-on-year increase of 3.7 percent, according to official figures.

Business

UK Inflation Jumps in March as Middle East War Propels Energy Prices

Vehicles pass a petrol station as they make their way down the A3 during the morning rush hour near Ripley, south-west of London on April 22, 2026. (AFP)
Vehicles pass a petrol station as they make their way down the A3 during the morning rush hour near Ripley, south-west of London on April 22, 2026. (AFP)
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UK Inflation Jumps in March as Middle East War Propels Energy Prices

Vehicles pass a petrol station as they make their way down the A3 during the morning rush hour near Ripley, south-west of London on April 22, 2026. (AFP)
Vehicles pass a petrol station as they make their way down the A3 during the morning rush hour near Ripley, south-west of London on April 22, 2026. (AFP)

Britain's annual inflation rate jumped to 3.3 percent in March as the Middle East war sent oil and gas prices surging, official data showed Wednesday.

The Consumer Prices Index (CPI) increased from 3.0 percent in the 12 months to February, the Office for National Statistics said in a statement.

"Inflation climbed in March, largely due to increased fuel prices, which saw their largest increase for over three years," Grant Fitzner, chief economist at the ONS, said in a statement.

Finance minister Rachel Reeves reiterated the Labour government's opposition to a conflict that has increased the cost of living for millions of Britons.

"This is not our war, but it is pushing up bills for families and businesses. That's why it's my number one priority to keep costs down," Reeves said in a statement.

At 3.3 percent, the latest UK inflation figure matches the March print for the United States. But the pace of the CPI increase in the world's biggest economy was far sharper, having stood at 2.4 percent in February.

Britain's inflation rate is also much larger than in the eurozone, where annual inflation rose to 2.6 percent in March from 1.9 percent in February.

The US-Iran war began on February 28, sending energy prices rocketing.

They have since pulled back on a ceasefire that US President Donald Trump extended Tuesday. But oil and gas prices remain far above their pre-war levels as Gulf supplies remain largely blocked from transiting the Strait of Hormuz.

Business

Pakistan Receives Additional $1 Billion from Saudi Arabia Under $3 Billion Package

The State Bank of Pakistan logo is seen at a reception desk at its headquarters in Karachi (Reuters)
The State Bank of Pakistan logo is seen at a reception desk at its headquarters in Karachi (Reuters)
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Pakistan Receives Additional $1 Billion from Saudi Arabia Under $3 Billion Package

The State Bank of Pakistan logo is seen at a reception desk at its headquarters in Karachi (Reuters)
The State Bank of Pakistan logo is seen at a reception desk at its headquarters in Karachi (Reuters)

Pakistan’s central bank said Tuesday it had received $1 billion from Saudi Arabia’s finance ministry as a second tranche of a recently agreed $3 billion deposit package between the two countries.

In a post on its official X account, the State Bank of Pakistan said the funds were credited on April 20, 2026. The transfer comes just days after Islamabad received a first tranche of $2 billion, which was deposited on April 15.

With this latest payment, Saudi Arabia has completed the full transfer of the agreed $3 billion support in a short period, providing immediate liquidity that strengthens Pakistan’s monetary policy flexibility.

Ongoing Saudi support

The inflow caps a week of major Saudi financial moves aimed at supporting Pakistan’s economic stability and easing balance-of-payments pressures. In addition to the new $3 billion package, Riyadh last week renewed an existing $5 billion deposit held at the State Bank of Pakistan.

Analysts say the combination of rolling over existing deposits and injecting new funds lifts total Saudi deposits at the central bank, directly bolstering foreign exchange reserves and giving Islamabad a stronger footing in ongoing negotiations with international financial institutions.

Impact on Pakistan’s economy

Saudi support is seen as a key pillar of Pakistan’s efforts to restore macroeconomic stability. The funds are expected to help stabilize the rupee against the US dollar, improve the country’s financial position and its ability to meet external obligations, and provide a buffer against external shocks and high energy costs.

The financial measures underscore the depth of the strategic partnership between Riyadh and Islamabad, and reflect Saudi Arabia’s commitment to supporting Pakistan’s economic stability as part of its broader role in promoting regional and global financial stability.