LONDON: British Airways, slammed by the coronavirus pandemic, said Monday that CEO Alex Cruz is stepping down “with immediate effect” but gave no reason for his departure.
Parent group IAG added in a statement that Cruz, who has been BA chief executive for four and half years, will be replaced by its Aer Lingus boss Sean Doyle but will remain non-executive chairman.
New IAG chief executive Luis Gallego, who took the reins from Willie Walsh just last month, said the reshuffle was aimed at emerging stronger from the COVID-19 pandemic, which has decimated demand for air travel.
“We’re navigating the worst crisis faced in our industry and I’m confident these internal promotions will ensure IAG is well placed to emerge in a strong position,” Gallego said in the statement.
“I want to thank Alex for all that he has done at British Airways. He worked tirelessly to modernize the airline in the years leading up to the celebration of its 100th anniversary.
“Since then, he has led the airline through a particularly demanding period and has secured restructuring agreements with the vast majority of employees.”
British Airways chief executive steps down
https://arab.news/gjdyg
British Airways chief executive steps down
- Reshuffle aimed at emerging stronger from the COVID-19 pandemic, which has decimated demand for air travel
Saudi benchmark index closes in green with $1.8bn trade volume
RIYADH: Saudi Arabia’s Tadawul All Share Index wrapped up Monday’s trading session at 12,259.60 points, witnessing an increase of 42.55 points, or 0.35 percent.
Nomu, the parallel market, ended the day at 26,859.37 points, shedding 336.56 points or 1.24 percent. Concurrently, the MSCI Tadawul Index grew by 5.34 points to close at 1,535.83, a 0.35 percent increase.
TASI reported a trading volume of SR7 billion ($1.86 billion), with 85 stocks making gains and 134 witnessing declines.
Nomu, on the other hand, saw a trading volume of SR28 million.
On the announcements front, ADES reported a substantial revenue increase of 60.5 percent year on year to SR1.53 billion in the first quarter of 2024, fueled by significant contributions across its operational regions.
According to its financial results, the deployment of all 19 rigs for the Aramco megaproject beginning in March, up from only four in the same period last year, was a key driver.
Additionally, Kuwait’s operations generated SR152 million following the activation of all recently awarded contracts, achieving a total of 10 operational rigs, according to a bourse filing.
In India, the gradual deployment of three rigs contributed SR40 million.
The company’s net profit saw a remarkable surge of 124.6 percent year on year to SR200.9 million, benefiting from strong revenue performance and enhanced earnings before interest, taxes, depreciation, and amortization margins.
Abdullah Al Othaim Markets Co. also released its financial results for the first quarter of 2024, witnessing a 3 percent drop in profits despite an increase in revenue.
The company reported profits of SR116.4 million, down from SR120 million during the same period in 2023.
This decline was attributed to higher expenses linked to new branches, including a SR4.7 million increase in leasing finance costs, a SR2.3 million decrease in the performance of associate companies, and a SR4.8 million decrease in profits from Sharia-compliant liquidity investments.
Despite the decrease in profits, the company experienced a 9 percent growth in sales, bolstered by both existing and newly opened branches during the quarter.
Saudi Ground Services Co. also saw an increase in revenue with total earnings reaching SR653.2 million for the current quarter, marking a 15.8 percent rise from SR563.9 million recorded in the same quarter of the previous year.
This surge was primarily driven by an uptick in domestic and international flights and an increased number of Umrah pilgrims.
Consequently, the company’s net profit soared by 77.7 percent, amounting to SR71.2 million, compared to SR40 million in the prior year’s corresponding quarter.
The rise in profits was attributed to the significant revenue growth and effective cost management strategies, including a reduction in administrative expenses and a boost in other income.
Riyadh Cables Group Co. also closed the first quarter in green, with revenues leading to significant financial growth.
The company reported a profit increase to SR169 million in the first quarter of 2024, up 35.3 percent from SR124.8 million in the same quarter last year.
The company attributed this robust growth primarily to an increase in sales revenues and the volume of quantities sold, bolstered by a diversification of the products sold.
Moreover, the operating profit for the first quarter reached SR208.2 million, marking a 34 percent increase from SR155.5 million in the corresponding quarter of the previous year.
Saudi Arabian Mining Co., also known as Ma’aden, saw a significant increase in net profits despite a drop in revenue for the first quarter of 2024.
The company’s sales decreased to SR7.3 billion, a 9 percent drop compared to the same quarter of the previous year, primarily due to lower commodity prices across all products except gold and alumina.
However, this was partially offset by higher sales volumes of primary aluminum, ammonia, and gold.
Net profits surged by to reach SR981 million, a 134 percent increase compared to Q1 2023, largely attributed to a SR828 million, 52 percent, increase in gross profit.
This improvement was driven by higher sales volumes, reduced raw material costs, lower depreciation expenses, and a one-time insurance claim of SR199 million for relining pots within smelter plants.
Oman’s public debt slightly declines to $39bn
RIYADH: Oman’s public debt stood at 15.1 billion Omani rials ($39.23 billion) by the end of March, marking a slight decrease from 15.3 billion rials at the close of 2023.
This update comes as the Ministry of Finance disbursed over 206 million rials in dues to the private sector through the financial system during the first quarter of the year, the Oman News Agency reported.
Recent developments in the public debt domain have been positive, according to ONA. This is thanks to continued government measures aimed at rationalizing spending, diversifying revenue sources, and directing additional revenues toward debt repayment.
These efforts, including the repurchasing of sovereign bonds, settling high-cost loans, and issuing local sukuk and bonds for trading on the Muscat Stock Exchange, have contributed to an improvement in Oman’s credit rating and future outlook, according to ONA.
International credit rating agencies have praised the government’s efforts in managing financial obligations and reducing the size of public debt, the agency reported.
However, the Ministry of Finance’s financial performance data for the first quarter indicated a 12 percent decrease in the state’s public revenues, primarily due to reductions in net oil and gas revenues.
By the end of March, revenues had amounted to around 2.8 billion rials, down from 3.2 billion rials in the same period of 2023.
Net oil revenues also saw a marginal 1 percent decrease, totaling 1.6 billion rials compared to 1.7 billion rials in the first quarter of last year.
Meanwhile, net gas revenues experienced a significant 38 percent decline, amounting to 444 million rials, down from 720 million rials in the corresponding period of 2023.
Public spending until the end of the first quarter of 2024 amounted to 2.6 billion rials, reflecting a decrease of 103 million rials, or 4 percent, compared to the actual spending during the same period of the previous year.
Similarly, current expenditures of civil ministries totaled about 1.97 billion rials, a decrease of 49 million rials compared to the first quarter of 2023.
Total contributions and other expenditures reached 486 million rials, marking a 78 percent increase compared to 273 million rials during the same period last year.
This increase is mainly attributed to the social protection system, with support for petroleum products of 72 million rials and 140 million rials, respectively.
Riyadh set to host GREAT Futures Initiative Conference
RIYADH: The GREAT Futures Initiative Conference is set to begin on Tuesday in King Abdullah Financial District with the mission of enhancing economic relations between Saudi Arabia and the UK.
“Today the largest UK business delegation in over a decade lands in Riyadh for GREAT FUTURES, with over 400 delegates from the UK traveling to Saudi Arabia, 70 percent of whom have never visited the Kingdom,” British Ambassador to Saudi Arabia Neil Crompton told Arab News.
“Over the next two days, senior leaders from both our kingdoms will forge partnerships that span our economies, from cultural institutions to cutting-edge technologies,” he said. “These partnerships build on existing bonds in the fields of security and energy. The UK is committed to playing its part in the transformational Vision 2030.”
The GREAT Futures Initiative Conference is a joint project organized by the UK government’s GREAT Britain and Northern Ireland campaign in partnership with the Saudi government.
The conference is part of the Saudi-British Strategic Partnership Council, co-chaired by Crown Prince Mohammed bin Salman and UK Prime Minister Rishi Sunak.
British Deputy Prime Minister Oliver Dowden will represent the UK at the conference.
“The GREAT Futures Initiative Conference is an important opportunity to build partnerships between the business sectors of both countries, keeping pace with the future, innovation and creativity,” Dowden said. “It also allows British companies to familiarize themselves with relevant business regulations, incentives, and advantages for conducting business in Saudi Arabia.”
The conference will welcome 800 participants from the two kingdoms’ public and private sectors.
UK Ambassador Neil Crompton posted a video on X social media platform in the lead-up to the conference.
“This festival marks a significant event in the British calendar, as it takes place once every two years in a city around the world,” Crompton said. “This year, we chose to hold it in Riyadh due to the widespread British interest in the positive changes and opportunities, which came as a result of the success of Vision 2030.”
The ambassador said that the embassy would be hosting a British delegation comprising representatives from 400 companies, under the patronage of the British deputy prime minister.
“I am looking forward to meeting athletes, artists, celebrities, and entrepreneurs from both our kingdoms. I would like to extend my thanks to our partners in the Saudi government for cooperating with us on this joint project,” he said.
The two-day conference, from May 14 to May 15, will feature 47 sessions and workshops with 127 speakers from both public and private sectors.
The conference aims to enhance cooperation and economic partnership in 13 sectors such as tourism, culture, education, health, sports, investment, trade, and financial services.
Agreement signings are also expected in education and training, tourism, and real estate development.
KAFD’s centrally located business district will host the two-day conference in its 28,000 sq. m venue.
Gautam Sashittal, CEO of King Abdullah Financial District Development and Management Co., highlighted the significance of the conference being hosted in KAFD.
“Holding a spectacle of this magnitude can never be classified as a roadshow held by British stakeholders for their Saudi counterparts to hop on and make millions if not billions,” Sashittal said. “On the contrary, this event is just a kickstarter for a year-long campaign aimed at creating an everlasting collaboration that reimagines key domains while unearthing hidden jewels rooted in both countries’ glorious pasts.
“As one of the few places where the Kingdom’s exciting next phase is getting written, it was quite natural for the choice to fall on KAFD and its architectural marvel, which is otherwise known as the conference center,” he said.
In 2023, bilateral trade between Saudi Arabia and the UK increased by 68 percent, amounting to $17 billion, according to the chairperson of the Saudi British Joint Business Council, Jennie Gubbins.
The increase in trade could not be attributed to the oil sector alone, Gubbins said, pointing to the effectiveness of the Kingdom’s economic diversification efforts and the development of other industries, primarily in the tech field.
The Saudi Ministry of Commerce will participate in the conference and through its sub-entities will facilitate meetings of leaders of the business sectors in the two countries.
As a part of the conference, accompanying events will be held over the next 12 months to enhance partnerships in promising and emerging fields between the two countries.
The ministry aims to inform the British business sector of the economic reforms that the Kingdom has accomplished to improve the business environment and facilitate the start and practice of economic activities.
The “GREAT Futures” also aims to be a platform for exchanging qualitative experiences and learning about the latest practices across sectors.
Saudi EXIM Bank and SNB sign 2 agreements to boost non-oil exports
RIYADH: Saudi exporters are set to gain better access to credit facilities and risk coverage with the signing of two agreements between leading banks designed to boost non-oil exports.
The Saudi Export-Import Bank and the Saudi National Bank have agreed a Murabaha deal and an insurance agreement, with the former aimed at increasing trade, while the latter covers commercial and political risks.
The objective is to elevate Saudi non-oil exports by offering credit products, insurance, and financing solutions, aligning with the global competitiveness goals of Saudi Vision 2030.
The insurance policy agreement was signed by Mohammed bin Omar Al-Bishr, director general of the general insurance department at Saudi EXIM Bank, while Abdul Latif bin Saud Al-Ghaith, general director of the finance department at the institution, signed the Murabaha deal.
Nasser Al-Fraih, SNB’s head of the group of banking and international institutions, signed the agreements on behalf of the bank.
The CEO of Saudi EXIM Bank stressed that these agreements demonstrate the bank’s dedication to collaborating with regional financial institutions to promote diversification and bolster the non-oil economy in accordance with Saudi Vision 2030.
They will also strengthen the banking industry’s contribution to boosting Saudi exports, closing financial gaps, and reducing non-payment risks associated with export operations.
Moreover, the CEO of SNB emphasized the effective collaboration between the public and private sectors in contributing to the development of non-oil exports from the Kingdom, enhancing competitiveness, and providing credit and financing solutions to establish a sustainable economy in accordance with Saudi Vision 2030.
Furthermore, these agreements open up prospects for collaboration to assist Saudi exporters, enhance non-oil export activities, and promote growth opportunities for the Kingdom’s businesses and services in new global markets.
In April, Saudi EXIM Bank and its Swiss counterpart signed an agreement to boost the Kingdom’s non-oil exports, enhancing their global market competitiveness.
In an X post following the deal, the Saudi lender stated that the reinsurance agreement with the Swiss Export Credit Agency was signed in Zurich.
This development followed Saudi EXIM’s signing of reinsurance treaties with a consortium of global reinsurers led by Swiss Re in Zurich.
These agreements were aimed at expanding global insurance operations in collaboration with the world’s largest reinsurers and providing insurance coverage to support the growth of Saudi exporters in global markets.
Arab Summit preparing for key economic, social challenges
RIYADH: Critical economic and social challenges facing the Middle East took center stage during the preparatory meeting for the 33rd Arab Summit held in Bahrain’s capital, Manama.
The session, which took place on May 12, tackled issues that will be submitted to the upcoming summit, which is scheduled to take place for the first time in Bahrain on May 16.
Saudi Finance Minister Mohammed Al-Jadaan headed the Kingdom’s delegation to the ministerial meeting, which included representatives of member states of the League of Arab States and a number of specialists from its general secretariat.
Al-Jadaan affirmed Saudi Arabia’s pride in hosting the 32nd Regular Session of the Arab Summit, which concluded with the issuance of the Jeddah Declaration, which encompasses numerous initiatives aimed at enhancing collective efforts across economic, agricultural, cultural, and educational domains.
He added that the previous summit issued numerous important decisions in support of joint action, the most important of which is accomplishing the requirements of the Greater Arab Free Trade Area, according to the Saudi Press Agency.
Speaking during the senior officials meeting, held a day before the prep gathering, the Assistant Deputy Minister for International Cooperation at the Saudi Ministry of Finance, Naif Al-Enzi, said that the countries attending the summit continuously strive, at both international and regional forums, to raise issues that serve the interests of joint action.
Al-Enzi expressed his optimism for the session’s success under Bahrain’s presidency, aiming for consensus on outcomes that propel Arab economic and social integration while enhancing ongoing collective efforts and cooperation.
Announced on May 19, 2023, at the conclusion of the 32nd Arab Summit, the Jeddah Declaration emphasized the importance of strengthening joint action based on common foundations, values, interests and one destiny.
The 2023 summit was only the second, following a gathering in Algeria in November 2022, after a three-year hiatus due to the COVID-19 pandemic.
It covered several topics, including tensions between Israel and Palestine, the conflict in Sudan, the peace process in Yemen, instability in Libya, and Lebanon’s political situation.
Significantly, it was the first time Syria had been invited to participate in an Arab League Summit since its suspension from the organization in 2011.
The gathering’s final communique reaffirmed “the centrality of the Palestinian cause” to Arab countries and that it is one of the main factors for stability in the region. It condemned all practices and violations inflicted upon the Palestinians, their lives, properties and existence.
The communique also stressed the importance of intensifying efforts to achieve a comprehensive and just settlement of the Palestinian issue based on a two-state solution, as per UN Security Council Resolution 242 and the 2002 Arab Peace Initiative, to ensure the establishment of an independent Palestinian state based on the 1967 borders, with East Jerusalem as its capital.
Furthermore, it reiterated previous summit positions, including the need for the protection of Muslim sites in Jerusalem.
