Embraer Presses Ahead with Saudi Aviation, Defense Partnerships

Embraer E195-E2 aircraft parked at the company’s headquarters (EPA)
Embraer E195-E2 aircraft parked at the company’s headquarters (EPA)
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Embraer Presses Ahead with Saudi Aviation, Defense Partnerships

Embraer E195-E2 aircraft parked at the company’s headquarters (EPA)
Embraer E195-E2 aircraft parked at the company’s headquarters (EPA)

Brazilian aircraft manufacturer Embraer is pressing ahead with strategic memoranda of understanding signed with Saudi Arabia in 2023, company officials said, underscoring the kingdom’s growing weight in the global aviation market.

Speaking to Asharq Al-Awsat during a tour and media briefing at Embraer’s main plant in Sao Paulo, the officials said the agreements remain active and are moving forward at a pace.

The understandings cover civil aviation, military and defense applications, and urban air mobility.

The remarks come as Saudi Arabia pushes through a sweeping expansion of its aviation and air transport sector under Vision 2030.

The program includes new national carriers, expanded regional and international air links, and efforts to localize aircraft maintenance and parts assembly.

That has made the Saudi market one of the most attractive and strategic destinations for the Brazilian aerospace group.

Embraer is the world’s third-largest commercial aircraft manufacturer after Boeing and Airbus. It has a commanding position in regional aviation through its E-Jets family, which seats between 70 and 150 passengers.

Through its electric aviation company Eve, Embraer is also developing electric vertical takeoff and landing aircraft, or eVTOLs, widely known as flying air taxis.

The field has opened the door to promising strategic partnerships with future transport projects in Saudi Arabia.

Cutting production time and tackling supply chains

At the factory briefing, held after the International Air Transport Association's annual general meeting in Rio de Janeiro, Embraer Chief Executive Francisco Gomes Neto said the company was confident it could meet its operating targets for the year.

He expects Embraer to deliver between 80 and 85 commercial aircraft in 2026, out of a total group delivery target of 255 aircraft, including executive jets and defense aircraft.

Neto said total revenue is expected to reach between $8.2 billion and $8.5 billion this year, a sharp rise from about $3.8 billion in 2020, when the company was hit hard by the COVID-19 pandemic. The group aims to surpass $10 billion in revenue by 2030, or earlier, supported by growth in future businesses, led by Eve’s electric vertical aircraft program.

He said Embraer had cut factory production time by 28% between 2021 and 2026 through operational efficiency measures. Production of the E1 now takes less than a year, down from about 18 months previously. A shift he linked to closer work with suppliers as global supply-chain bottlenecks gradually ease.

The company’s backlog has also reached a record $32.1 billion, driven by strong demand across its main business units. Commercial aviation accounts for $14.5 billion of the backlog, alongside executive aviation, defense, services and logistics solutions.

Neto said the figure does not include several major strategic deals announced recently. When purchase options and future acquisition rights agreed with global airlines are included, Embraer’s potential order book could rise to about $52 billion.

On the sidelines of the IATA conference, Neto said Eve could eventually add about $1 billion to $1.5 billion a year to group revenue once production expands and manufacturing accelerates. He expects eVTOL vehicles to receive official certification and enter service in 2028.

He also said Embraer is awaiting a major Indian government military tender in the coming months for the purchase of 60 to 80 military transport aircraft. The company sees its C-390 Millennium as a leading contender against the US-made C-130 Hercules, particularly after Embraer’s alliance with India’s Mahindra Group.

Market dominance and moving past the engine crisis

Arjan Meijer, chief executive of Embraer Commercial Aviation, said the company’s new E2 aircraft family is gaining strong traction in the market.

He said demand is rising sharply and that Embraer has captured 76% of the global market share in its category, competing against Airbus’s A220. The E2 has attracted 24 customers worldwide, with 202 aircraft delivered and about 1.25 million flight hours logged.

Meijer also said the Pratt & Whitney geared turbofan engine crisis has largely receded. Only one or two aircraft are now grounded worldwide, he said, compared with about 22% of the global fleet in March 2025. He described the technical issue as effectively behind the company.

On China, Meijer said Embraer remains optimistic about gaining ground in the country’s aviation market through a dedicated team working there daily. He said the locally certified E2 family complements Chinese-made aircraft by offering capacity between the smaller C909 and the larger C919, giving Chinese airlines more flexibility to connect cities and reduce operating losses.

He acknowledged continuing structural challenges in China since the closure of Embraer’s Harbin joint venture in 2016, but said discussions remain active.

Meijer said Embraer has no current plans to develop aircraft larger than 150 seats, despite repeated customer interest. The company will instead focus on its core segment, where it sees the strongest prospects for profitability and efficiency.

 



Port Security and Trade Continuity: A New Formula for Saudi Competitiveness

A panel discussion featuring Professor Waheed Sami Abu Shanab (Conference)
A panel discussion featuring Professor Waheed Sami Abu Shanab (Conference)
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Port Security and Trade Continuity: A New Formula for Saudi Competitiveness

A panel discussion featuring Professor Waheed Sami Abu Shanab (Conference)
A panel discussion featuring Professor Waheed Sami Abu Shanab (Conference)

Port competitiveness is no longer just about handling more ships and containers. Keeping trade moving and infrastructure secure against physical and cyber threats has become just as critical, as ports grow more reliant on digital systems and supply chains become increasingly complex.

The economic fallout from port disruptions and their impact on global trade took center stage at a session titled "Securing Infrastructure" during the Saudi Maritime and Logistics Congress 2026, which opened Wednesday in Jeddah with maritime and infrastructure security experts in attendance.

Discussions focused on threats facing ports and shipping companies, particularly cyberattacks capable of crippling operations and disrupting trade, and the need to strengthen port readiness to keep services running and limit economic losses.

Professor Waheed Sami Abu Shanab, a professor of marine engineering at King Abdulaziz University's Faculty of Maritime Studies, said Saudi ports now face a challenge that goes beyond expanding capacity: withstanding disruptions while keeping trade flowing at the lowest possible cost.

Speaking to Asharq Al-Awsat on the sidelines of the session, Abu Shanab said Saudi Arabia's ports on the Red Sea and Arabian Gulf gave the kingdom a strategic advantage as international trade routes shift. But making the most of that position requires greater investment in operational resilience, logistics connectivity and cybersecurity.

Investments top $3.7 billion

The challenges come as Saudi Arabia ramps up investment in port infrastructure. Its ports now have 34 logistics centers, including 17 at Jeddah Islamic Port, backed by investments exceeding 14 billion riyals ($3.7 billion), alongside projects to upgrade container terminals and boost handling capacity.

Abu Shanab said the investments include more than 2 billion riyals to develop a container terminal at Jubail Port and an initial 1.6 billion riyals for a fourth container terminal at Jeddah Islamic Port. Other projects involve upgrading cargo-handling equipment and expanding the use of modern operating systems.

He said future investment must focus on operational efficiency, reserve capacity and stronger links between ports, roads, railways and logistics hubs to absorb sudden surges in shipping volumes and redirect cargo when routes are disrupted.

Abu Shanab floated a preliminary proposal for an additional 10 billion to 20 billion riyals in investment over five years to strengthen strategic ports' readiness.

He stressed that the figure was a proposed planning scenario, not an official assessment of the sector's needs or an approved budget.

Cyberattacks threaten trade beyond ports

Abu Shanab warned that growing reliance on digital systems exposes ports to cyber threats whose economic impact could ripple through factories, markets and supply chains.

He pointed to the 2017 cyberattack on global shipping group Maersk, which the company estimated cost it between $200 million and $300 million after widespread disruption to its operations and systems.

A failure of digital systems managing containers, vessel schedules and cranes could leave cargo stranded, drive up delay and insurance costs, and undermine shipping companies' commitments and customer confidence, he said.

To illustrate the potential costs, Abu Shanab offered a hypothetical scenario: a delay affecting 5,000 twenty-foot equivalent units (TEUs), each incurring an additional 1,000 riyals in costs, would generate a direct bill of 5 million riyals before indirect losses.

He stressed that the calculation did not reflect actual losses at Saudi ports but illustrated the potential cost of disruptions. Investing in prevention and business continuity, he argued, could be cheaper than shutting down a strategic port.

Competitiveness goes beyond handling fees

Abu Shanab said regional ports should be judged not simply by their handling charges but by the total cost of getting goods from ships to markets, including customs clearance, storage, inland transport and schedule reliability.

Saudi ports overseen by the Saudi Ports Authority handled about 8.3 million TEUs in 2025, up 10.58% from a year earlier, highlighting growing activity and the need to expand capabilities without compromising service efficiency.

Artificial intelligence could help schedule vessel arrivals and allocate berths, while upgraded handling equipment could cut waiting times and fuel, storage and transportation costs, making services more reliable for shipping lines, he said.

"The most competitive port is not necessarily the one with the lowest fees, but the one offering the lowest total logistics cost, the greatest reliability and the fastest access to markets," Abu Shanab said.

Simulating crises before they strike

Abu Shanab called for a national simulation model using digital twins and artificial intelligence to test how ports and supply chains would respond to facility shutdowns or shifting maritime routes, and measure the time and cost of restoring operations.

He also urged stronger protection for critical infrastructure, including submarine cables, energy and telecommunications facilities, alongside improved vessel monitoring systems, disaster recovery centers and backup operating plans to keep essential services running.

Saudi Arabia's ports on two coastlines, coupled with expanding logistics services and transport networks, offer a foundation for more reliable supply chains, he said. But realizing that potential depends on matching existing investments with operational and technological readiness.

Protecting maritime infrastructure, Abu Shanab concluded, is no longer a standalone security or technical concern. It is central to port competitiveness and Saudi Arabia's ability to keep trade flowing, attract shipping lines and secure long-term investment.


Türkiye Cuts Key Interest Rate to 36%, First Cut in Months

Central Bank of Türkiye (Official Website)
Central Bank of Türkiye (Official Website)
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Türkiye Cuts Key Interest Rate to 36%, First Cut in Months

Central Bank of Türkiye (Official Website)
Central Bank of Türkiye (Official Website)

Türkiye's central bank cut its key interest rate on Thursday to 36 percent in the first cut in nine months, pointing to a recent slowdown in inflation.

At a policy meeting, the bank "decided to reduce the policy interest rate ... from 37 percent to 36 percent," it said in a statement.

It was the first cut since January when the bank cut the key rate from 38 to 37 percent, a rate which it held until Thursday's meeting.

"Despite monthly fluctuations, recent inflation figures and leading indicators confirm the downward trend," a bank statement said.

"Data on economic activity and the limited impact of supply shocks on domestic prices suggest that the weak trend in domestic demand continues," it added.

However, ongoing geopolitical tensions were keeping energy prices high, which could push inflation higher, it warned, saying the effects of such geopolitical developments "are being closely monitored".

Türkiye's annual inflation rate eased to 29.7 percent in September from 31.5 percent in August - the first time it had fallen below 30 percent in nearly five years, official figures showed.

At the time, Finance Minister Mehmet Simsek said it was at its lowest level since November 2021. "Disinflation is spreading across the board, excluding transportation," he wrote on X.

The official figures are disputed by the ENAG group of independent economists that publishes its own data, which said its figures showed year-on-year inflation stood at 46.6 percent in September.

 

 

 

 


Saudi Stock Market Drops 2.3% to Lowest Close Since 2021

A person stands in front of a screen showing falling stock prices (Reuters)
A person stands in front of a screen showing falling stock prices (Reuters)
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Saudi Stock Market Drops 2.3% to Lowest Close Since 2021

A person stands in front of a screen showing falling stock prices (Reuters)
A person stands in front of a screen showing falling stock prices (Reuters)

Saudi Arabia's benchmark stock index ended Thursday's session down 2.3 percent, shedding 231 points to close at 9,696, its lowest closing level since 2021, with total trading turnover reaching approximately SAR 4.9 billion.

The Tadawul All Share Index (TASI) fluctuated between an intraday low of 9,640 points and a high of 9,888 points.

Thursday's decline brought the index's weekly losses to more than 400 points, or 4.1 percent, marking its eighth consecutive week of declines.

Most stocks fell during the session, led by Saudi National Bank, which dropped more than 5 percent to SAR 34.62, with approximately 9 million shares traded.

Saudi Aramco and Al Rajhi Bank each declined 1 percent, closing at SAR 25.40 and SAR 59.80, respectively, while Maaden fell 5 percent to SAR 55.90.

Shares of Retal, Al Yamamah Steel, East Pipes, Jahez, Gulf Training and Saudi Steel Pipe ended the session with losses ranging from 5 to 9 percent.

Meanwhile, Electrical Industries, Abo Moati, Umm Al-Qura Cement, Saleh Al-Rashed, Wafrah, Saudi Vitrified Clay Pipe and Watani Iron Steel each fell 10 percent.

On the upside, Al-Etihad rose 10 percent to SAR 6.16, followed by JAZADCO with gains exceeding 9 percent. Shares of Al Arabia, UCIC and Saudi Kayan advanced between 1 and 3 percent.