LONDON/DUBLIN: “I’m here to send you the regards of the Federal Chancellor. I am entitled to tell you we want you in Germany.” This private message from Angela Merkel, delivered by a regional politician to Wall Street bankers last year, is having the desired effect.
Frankfurt, along with Dublin, is emerging on top in the battle to draw highly-paid banking jobs — and the tax revenue that they bring — away from London before Britain’s departure from the European Union in March 2019.
Germany has favored a subtle approach, with Chancellor Merkel saying little if anything in public on what is a sensitive issue at home. Instead she relied on Volker Bouffier, prime minister of the state of Hesse where Frankfurt is located, to take her invitation to New York in November, according to three sources familiar with the discussions.
Irish leaders have been less reticent, but both countries have sent the same welcoming message to US, Japanese and other foreign banks — despite the public unpopularity of bankers that still lingers after the global financial crisis.
While Paris and Amsterdam are set to lure one or two major lenders, Germany and Ireland have so far secured the bulk of commitments from big-name banks.
Even then, the work of lobbyists is not over: they are pushing to host the huge business of clearing deals in euro-denominated securities, now dominated by the British capital.
Banks have been undertaking legal, financial and economic analysis in choosing new bases for their EU business if it can no longer be done from London. But they also need to know the political climate will be favorable.
“Bankers want reassurance that the government wants them,” one senior banking executive told Reuters. “Business does care about political sentiment toward them. There’s a reason: if there are problems you know that government will use its powers to help you.”
The largest global banks in London have indicated that about 9,600 jobs could go to the continent or Ireland in the next two years, though few have yet moved, according to public statements and information from industry sources.
In recent weeks Morgan Stanley, Citi and Bank of America as well as Japan’s Nomura, Mizuho and Sumitomo Mitsui have announced decisions for new EU headquarters, all opting for Frankfurt or Dublin.
These cities’ success follows year-long campaigns, as government agencies and lobby groups staged a charm offensive with the banks unseen since the 2007-09 crisis.
Merkel, who is seeking re-election next month, left city and Hesse officials to do the rounds in New York. That included the one-on-one meetings with senior executives on Wall Street when Bouffier passed on her message.
German taxpayers had to fund a series of bank bailouts during the crisis, and the bad memories remain due to Deutsche Bank. While Germany’s biggest bank did not needed rescuing, it has run up a litigation bill of €15 billion since 2009 due to extravagant market bets and misconduct.
Local officials have had fewer inhibitions than the national politicians. The Frankfurt Main Finance lobby group went on more than 50 trips to foreign banks’ home bases in the past year. “We’ve had indications that two thirds of the major banks’ moves will be to Frankfurt,” lead campaigner Hubertus Vaeth said.
Morgan Stanley, Citi and JPMorgan say Frankfurt will be their EU trading base after Brexit. However, Vaeth said: “The strategy was to be subtle. There was no glee or triumphalism.”
As a medium-sized provincial city, Frankfurt has also been proclaiming its cultural attractions. That involved taking Wall Street firms to the city’s English-language theater and Japanese bankers to see the Eintracht Frankfurt soccer team play.
Ireland has adopted similar sporting tactics. When Dublin hosted an American Football game between Boston College and Georgia Tech last year, government ministers worked the room at a dinner of 500 executives from Boston and Atlanta, including State Street CEO Jay Hooley.
The Irish political welcome has been more evident.
New Prime Minister Leo Varadkar, building on work by his predecessor Enda Kenny, has met several bank bosses and posted a picture on his website of him smiling with Bank of America CEO Brian Moynihan.
Politicians posing with bankers had been close to anathema since a collapse of the Irish financial system forced the country to take an international bailout in 2010, bringing austerity policies which hurt voters badly.
Frankfurt and Dublin make bankers feel wanted in battle for Brexit jobs
Frankfurt and Dublin make bankers feel wanted in battle for Brexit jobs
SAFE unveils expansion plans to transform aviation security: CEO
RIYADH: Saudi Arabia’s aviation sector is set for substantial safety and security enhancements as the National Security Services Co. prepares to embark on an ambitious expansion plan, its CEO told Arab News.
Turki Matooq Al-Thonayan explained how the company, also known as SAFE, already has operations spanning multiple countries and a workforce exceeding 10,000 employees.
The comments came on the sidelines of the Future Aviation Forum, which saw over 5,000 industry experts and leaders from more than 120 countries gather in Riyadh to discuss issues facing the sector.
In his interview with Arab News, Al-Thonayan emphasized the strategic integration of SAFE’s plans with the aviation sector, aligning with broader transportation goals, saying: “The plan of expansion is totally integrated with aviation. Why we are here is because of transportation, talking about aviation, land, and maritime.”
Al-Thonayan went on explaining that the company is also targeting Saudi Arabia’s giga-projects like NEOM, the Red Sea and Qiddiya.
“We are targeting the mass event in VIP protection, industrial facilities. And moreover, we are trying to support the government and their initiative to privatize the security services,” he added.
SAFE was launched in 2021 and is totally owned by the Public Investment Fund.
According to the CEO, the company was initially focused on security services but has since added firefighting, safety, and critical facility management to its remit.
“We are working in more than 37 governments within the Kingdom, we are working in Bahrain and we launched our office in the UAE, and we are planning for more expansion in the future,” Al-Thonayan said.
The focus on customer experience is at the heart of SAFE’s operational ethos. “Because if we are providing the services like the firefighting, the facility management, the security, this affects the passengers and the customers and the airports,” he said.
“The engagement between the passengers and the services is going to be for security and verification. Our goal is how to make this experience excellent, how we address the goal of the passengers,” Al-Thonayan explained.
Understanding the needs of passengers and ensuring their swift and efficient movement through airports is a priority for SAFE. “Sometimes their goal is to move as fast as possible to their businesses, to their collaboration within the Kingdom. So we would like to enhance the process. We would like to improve the efficiency of the services within the airport,” the top official noted.
“Our goal is to be the ultimate security, safety, firefighting partner,” he emphasized.
Al-Thonayan outlined the firm’s key objectives, which revolve around enhancing service efficiency and generating revenue, and said: “Our success is to be a reliable enabler. So how we can enable the ecosystem of aviation to move faster toward their targets, how we can make them do more.”
He highlighted that SAFE aims to offer comprehensive solutions that streamline services and ensure reliability, saying: “We are planning to offer and make a commercial offering for a total solution. So instead of having scattered services among these suppliers, we will have one quality service provider that is reliable from the ecosystem, from the government, from the client, from the service provider.”
The concept of integration is central to the company’s approach, as Al-Thonayan noted.
“Being in Bahrain or being in the UAE, or being in Saudi Arabia, the added value here is to have an integrated service. Door to door, which enables the network to do the business and do smooth and efficient logistics where it contributes and operation excellence, and cost efficiency,” the CEO explained.
Al-Thonayan stressed the importance of global operations and the role SAFE plays in facilitating seamless travel experiences. “Our target is to make smooth, excellent, and efficient operations with our destination all over the globe. Today we are talking about the globe coming to Saudi Arabia. How can I enhance this process to make their life easy? How we can contribute and the quality of the lifestyle. This is our role,” he said.
Highlighting recent partnerships, Al-Thonayan mentioned significant agreements aimed at enhancing the aviation network within the Kingdom.
“The ecosystem in aviation consists of airlines, logistics, and airports. So we have signed (an MoU) today with Dammam Airport Co., DACO and Cluster 2, which is another 22 airports,” he added.
These collaborations are going to enhance the network within the Kingdom, according to the CEO. “Our role here is to provide security solutions for our safety solutions, and how can we succeed to transform the model and the business operation from scattered business to a total solution business,” he added.
Al-Thonayan underscored the significance of accredited training and technology integration to enhance services. By shifting security’s role from a cost center to a value generator, SAFE aims to cultivate data networks for expanded services. This vision was demonstrated through recent agreements that are viewed as a starting point for further success and collaboration.
Al-Thonayan reiterated SAFE’s commitment to setting high standards in the aviation sector and ensuring an exceptional customer experience.
“We would like to say to our colleagues in the sector, we are the front or the national front. Passengers, travelers, airport companies, airline companies, will see first our employees, the security, the customer service, and they will make the impression,” he said,
“We are obligated and committed to deliver the best customer experience for the globe,” the CEO concluded.
With these comprehensive strategies and partnerships, SAFE is poised to play a pivotal role in the future of aviation security and customer experience, both within the Kingdom and beyond.
PIF-owned helicopter firm eyes global expansion and IPO, says CEO
RIYADH: Saudi Arabia’s Public Investment Fund-owned commercial chopper operator, The Helicopter Co., is eyeing a global footprint and an initial public offering, revealed its CEO.
Speaking to Arab News on the second day of the Future Aviation Forum in Riyadh, Arnaud Martinez explained that once the company solidifies its position in the Saudi market, it will seek avenues to expand and grow its business.
This aligns with the Saudi sovereign fund-owned firm’s goal to generate long-term commercial returns and activate new sectors in the Kingdom that support the realization of Vision 2030.
Martinez said: “Now, the market, the aim is not only KSA, right? There is something else than just KSA. We couldn’t go over and beyond the borders until we are securing our own market.”
He added: “But once you secure the market, it’s a healthy, again, move to go and see what’s going on in other countries, other continents, and other bids. That’s what PIF does; we invest, we create something that the Kingdom needs, we grow the business, then you go on, you grow, you go over the borders, and then you go on an IPO journey.”
During the interview, Martinez also shed light on how the Kingdom’s aviation market needs to be flexible and responsive to meet ongoing demand.
“The agility, the reactivity is needed in the Saudi market. I cannot wait and wait to have a contract, wait to have a request from the client and say: wait for two years, wait for three years, I will bring you the assets, I will bring you the helicopter; we cannot do that,” the CEO stressed.
“I need to plan and be agile. We have done that in the past five years. We only bring the aircraft that the Kingdom needs. I don’t buy aircraft because I love buying aircraft; we buy aircraft because we need aircraft,” he further emphasized.
Moving on to the role of THC, Martinez underlined that the firm’s role is very different from five years ago.
“The role five years ago was mainly to serve as an air mobility solution. The giga-projects, the famous giga-projects that we are talking about — rightly so, because they are fantastic projects: Red Sea Global, Amaala, NEOM, Qiddiya — all these projects were the core of the THC setup five years ago,” the CEO affirmed.
“Now the scope is way different five years later. One of our key segments, really close to my heart, is how we impact the lives of the people by saving lives. So, we have a massive segment, with our partner, Saudi Red Crescent, and we are working really hard to provide emergency services to the Saudi population,” he underscored.
Martinez also added, “The next five years will be as exciting as the past five years, maybe more.”
The CEO continued to stress that in the upcoming years, THC needs to continue growing its medical services support, as well as its contribution to hospitality and tourism.
He also added in that regard, “It’s time to see in the following few years what is abroad the border, right, overseas. You cannot be only a national champion; you want to be a regional leader in the worldwide plane. That’s the next wave, next step.”
To support the firm in its plans, THC also seeks to invest in new technology, Martinez disclosed during the interview.
With regards to having fully electric helicopters, the CEO said: “The platform is ready. The helicopter platform is not the issue. It’s the readiness of the ecosystem, the regulation, the infrastructure, the airspace, so many key elements around that. The platform, the helicopter is the easy piece.”
Speaking on the Future Aviation Forum, Martinez noted: “The airshows are always a good opportunity for me to sit with people who have 50, 60, 70 years legacy, which I don’t have.”
“We are 100 percent owned by PIF and part of that portfolio of aviation. So, this forum is always a good opportunity for us to meet with the ecosystem. We are not alone and growing alone. We are growing with many support services,” Martinez added.
More than 5,000 global aviation industry experts, international airline leaders, and airport executives are expected to convene at the Future Aviation Forum.
Organized by the General Authority of Civil Aviation, the three-day event will feature discussions on issues related to the global flight sector, air transport, and environmental sustainability in civil aviation, as well as talks on enabling advanced air transport and enhancing global connectivity.
The event also aligns with the Kingdom’s ambition to become a leader in the sector within a decade, including securing $100 billion worth of investments by 2030.
Saudi Arabia sets ambitious targets to strengthen aviation strategy, senior official says
RIYADH: Increasing passenger numbers and expanding flight routes are among the key objectives of Saudi Arabia’s aviation strategy, according to a senior official.
In an interview with Arab News on the sidelines of the Future Aviation Forum held in Riyadh, Vice President of the General Authority of Civil Aviation for Quality and Traveler Experience, Abdulaziz Al-Dahmash, said the Kingdom has set “very ambitious targets” in this sector.
These include tripling the number of passengers compared to 2019, handling 4.5 million tonnes of cargo, and establishing more than 250 direct destinations from the Kingdom’s airports to global locations.
“Those key targets need enablers, and one of the key pillars is our passenger experience, and we always say that the passenger comes first, so from that perspective, we started different programs from a regulator perspective,” Al-Dahmash told Arab News.
He added: “We said, total quality evaluation or air total quality evaluation program. This program focuses on the passenger experience across all the touchpoints at the airport, from entrance to boarding.”
Al-Dahmash noted that Saudi Arabia’s aviation strategy includes four sub-programs aimed at enhancing passenger experience to meet 2030 targets.
The first focuses on reducing waiting times through operational standards, while the second emphasizes traveler feedback and satisfaction.
The third ensures infrastructure readiness by inspecting over 1,300 items annually per terminal.
The fourth addresses passengers’ complaints and improves responsiveness and resolution. These initiatives have already shown significant progress since 2019.
“We are still moving forward to achieve our targets in 2030,” Al-Dahmash stressed.
Additionally, the investment showcases in the Kingdom align closely with the national aviation strategy’s ambitious goals.
The initiative presents a substantial economic opportunity amounting to $100 billion, with half of this investment targeted toward developing the airport infrastructure.
Mohammed Al-Khuraisi, the executive vice president of strategy and business intelligence at GACA, told Arab News: “We have King Salman Airport (undergoing a) massive expansion from 40 million to 120 million capacity, similarly, Jeddah Airport. Then we have around $40 billion worth of investments in terms of airlines, that entails commercial airlines.”
He added: “We have heard Saudia major announcements yesterday of around 105 aircrafts. Prior to that, there were Riyadh Air major announcements as well, and we expect more waves of aircraft acquisitions in terms of passenger, airlines or also cargo airlines.”
Apart from airline investments, around $10 billion is allocated to various aviation-related services such as special economic zones, cargo logistics and general aviation as well as ground handling, maintenance, repair, and catering, illustrating a comprehensive approach to supporting the industry’s expansion and development.
On the air connectivity front, Ali Rajab, executive vice president of air transport and international cooperation at GACA, highlighted Saudi Arabia’s ambitious plans for air connectivity, aiming to increase the number of destinations served by the country’s airports.
“We will have by 2030, 250 destinations that would reach to Saudi Arabia. In 2019, we were only 99, And today we have reached to 149 destinations,” Rajab said.
He added: “This conference focuses on connectivity, and we have around 73 airline representatives here. We have most of the industry, including airports and, logistics services and ground handlers, catering, etc., all of these companies help to have more connectivity, helping the world, connecting each other.”
Rajab also expressed confidence that by 2030, Saudi Arabia will emerge as the leading country within its region in terms of aviation and will rank fifth globally in the industry.
Saudi Ma’aden extracting lithium from seawater, CEO says
RIYADH: Saudi Arabian Mining Co. Ma’aden has successfully extracted lithium from seawater, although not at levels that are commercially viable, and its project remains at the pilot stage, the company's CEO told Reuters on Tuesday.
“We are actually producing lithium from seawater now,” Robert Wilt said.
Wilt, who is also the vice chairman of Manara Minerals, also said that company was not looking at acquiring diamond business De Beers. “We are not looking at De Beers at all,” he said.
Riyadh Airport leads annual audit awards as service quality improves across the Kingdom
RIYADH: King Khalid International Airport secured first place at Saudi Arabia’s annual Aviation Security Audit Awards, with the Kingdom’s terminals achieving an 80 percent overall average in service quality assessments for 2023.
Announced during the Future Aviation Forum held in the Saudi capital, the Riyadh-located facility secured the top ranking based on factors such as operational performance standards, evaluation of airport facilities and services, passenger satisfaction questionnaire, and passenger complaints.
King Abdulaziz International Airport in Jeddah and Abha International Airport collected the second and third awards, respectively.
The General Authority of Civil Aviation highlighted a 6 percent increase in Saudi airport performance in 2023 compared to the previous 12 months in its Comprehensive Airport Service Quality Assessment Program results.
The program, one of GACA’s initiatives, aims to evaluate and enhance the quality of services provided to passengers at Saudi airports, improving the travel experience.
The event was attended by Abdulaziz bin Abdullah Al-Duailej, president of GACA, along with CEOs of airport companies and directors general of Saudi airports.
In his speech, Al-Duailej emphasized that passenger services and satisfaction are fundamental principles guiding the Kingdom’s airports. He also highlighted the annual event’s role in showcasing its commitment to enhancing service quality, creating competitive airport environments, and promoting continual improvement and development.
“As part of its regulatory and supervisory role, GACA has taken numerous steps to develop the Kingdom’s aviation system for effective performance,” he said.
Al-Duailej added that improving the passenger experience and providing services that meet international standards are among GACA’s top priorities, aligning with the objectives of the National Aviation Strategy.
The president also noted that GACA is continuously working to improve the passenger experience at airports by implementing strict monitoring and supervision standards and indicators.
He further stated that over 1 million samples of operational performance data have been collected, and feedback from service users and stakeholders has been incorporated into the service development process.
Abdulaziz bin Abdullah Al-Dahmash, executive vice president for quality and passenger experience at GACA, noted that in 2023, the authority issued around 500 reports under the program.
These included monthly and quarterly operational performance reports, passenger satisfaction surveys, semi-annual program results reports, and annual program review reports.
During the event, Al-Duailej launched the ‘Bridges’ program, which aims to empower and connect the Saudi airport sector with local content, starting with 23 investment opportunities valued at SR7 billion ($1.87 billion) by 2030. The program is designed on several strategic pillars to develop national human capabilities.
