عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Virgin Atlantic Launches Direct Flights Linking Europe, the US, and Saudi Arabia

Fahd Hamidaddin, CEO of the Saudi Tourism Authority (Asharq Al-Awsat)
Fahd Hamidaddin, CEO of the Saudi Tourism Authority (Asharq Al-Awsat)
TT
TT

Virgin Atlantic Launches Direct Flights Linking Europe, the US, and Saudi Arabia

Fahd Hamidaddin, CEO of the Saudi Tourism Authority (Asharq Al-Awsat)
Fahd Hamidaddin, CEO of the Saudi Tourism Authority (Asharq Al-Awsat)

King Khalid International Airport in Riyadh has welcomed the inaugural flight of British airline Virgin Atlantic from London Heathrow, marking a major milestone in the airline’s expansion into the Saudi market.

The new daily service aims to connect travelers from Europe and the US to Saudi Arabia, amid projections of a 24% increase in air connectivity between the Kingdom and the UK by 2035.

Saudi Minister of Tourism and Chairman of the Saudi Tourism Authority Ahmed Al Khateeb described the launch as a significant step in reinforcing Saudi Arabia’s position as one of the world’s fastest-growing tourism destinations.

He stressed that the strategic partnership with the Virgin Group would help attract more visitors from the UK and beyond, eager to explore Saudi Arabia’s natural beauty, rich heritage, and unique experiences.

In 2024, the Kingdom welcomed over 128 million air travelers, a 15% year-on-year increase, and views the UK as one of its most vital target markets.

Speaking at a press conference in Diriyah, Virgin Group founder Sir Richard Branson expressed his enthusiasm for the airline’s entry into Saudi Arabia.

He praised the Kingdom’s rapid development, citing tourism projects on the Red Sea, golf courses, luxury hotels, and new entertainment cities as key attractions.

Branson revealed that Virgin Atlantic will operate connecting flights from Riyadh to London, then onward to Los Angeles and other global destinations. He also hinted at an upcoming meeting with Crown Prince Mohammed bin Salman to explore further collaboration in tourism, including hotel ventures, cruise ships, and even space travel through Virgin Galactic.

Fahd Hamidaddin, CEO of the Saudi Tourism Authority, said Virgin Atlantic’s arrival was made possible through collaboration with the General Authority of Civil Aviation and the Air Connectivity Program.

He explained that the airline would serve not only as a travel link but also as a broader tourism partner through its associated brands - Virgin Holidays, Virgin Voyages (cruise tourism), and Virgin Galactic (space tourism).

The new route is expected to contribute 95,000 seats annually between London and Riyadh, with the goal of attracting more tourists from Europe and North America.

Hamidaddin noted that these developments align with efforts to enhance travel options and pricing through both international and local airline partnerships.

The launch of the Virgin Atlantic route reflects Saudi Arabia’s growing role as a global tourism hub and highlights the deepening ties between Riyadh and London.

With Riyadh evolving into a center of investment and tourism, the city offers a gateway to explore the Kingdom’s rich cultural heritage, including UNESCO World Heritage sites.

Saudi Arabia’s diverse landscapes - ranging from vast deserts and towering mountains in Asir to warm Red Sea beaches and coral reefs - along with its world-class events, continue to draw millions of visitors from around the globe.

Most Viewed

 
 
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
TT
TT

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
TT
TT

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).
TT
TT

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.