DUBAI: Saudi Arabian Airlines could list shares in its cargo business next year as part of the state-owned carrier’s privatization plan, its top executive said on Thursday.
Cargo would be the third unit to pursue an initial public offering (IPO) since the airline, also known as Saudia, decided in 2006 to privatize them.
Saudia plans to list 30 percent of its cargo business next, which “could be in 2018,” Director General Saleh bin Nasser Al-Jasser told reporters in Dubai.
He said after that the airline’s private aviation or medical business could be listed.
Reuters reported in May that Saudia had engaged with advisers for the full sale of its medical unit, which is called Saudia Medical Services, based in Jeddah.
The airline has also said it plans to list its maintenance and flight academy units, and the airline itself.
Saudi Airlines Catering raised $347 million (SR1.3 billion) with an IPO of 30 percent of its shares in 2012. Saudi Ground Services Co. was listed in 2015.
Saudi Arabian Airlines says could list cargo unit’s shares next year
Saudi Arabian Airlines says could list cargo unit’s shares next year
Lloyd’s market engaging with US government over Gulf maritime plan, officials say
LONDON: The Lloyd’s of London market is engaging with the US government’s International Development Finance Corporation over a plan to provide political risk insurance and guarantees for maritime trade in the Gulf, Lloyd’s market officials said on Thursday.
“Lloyd’s is engaging constructively with the US Development Finance Corporation and relevant stakeholders, with a clear focus on ensuring that the Lloyd’s market continues to lead as the global center of excellence for war risk insurance,” a Lloyd’s spokesperson said.
The Lloyd’s Market Association, which represents the interests of all underwriting businesses in the Lloyd’s market, welcomed the engagement of US President Donald Trump, its CEO Sheila Cameron said separately in a statement on Thursday.
“Since Sunday 1 March, there have been at least 40 transits of vessels through the Strait of Hormuz. There remain approximately 1,000 vessels, approximately half of which are oil and gas tankers, with an aggregate hull value exceeding $25 billion in the Persian/Arabian Gulf and surrounding waters,” Cameron said, citing data.
Cameron added that the vast majority of these vessels were insured in the London market and insurance “currently remains in place.”
Insurance broker Marsh said on Wednesday it had met with US officials to explore solutions for restoring maritime trade.
The US Navy could begin escorting oil tankers through the Strait of Hormuz if necessary, Trump said on Tuesday, adding he had ordered the International Development Finance Corporation to provide political risk insurance guarantees for maritime trade in the Gulf.
Earlier this week, London’s marine insurance market widened the area in the Gulf it deems as high risk as the conflict in the Middle East escalates.
