SINGAPORE: The Commercial Aircraft Corp. of China (COMAC) on Tuesday said it was aiming to make the first delivery of its C919 single-aisle jet in 2021, despite delays in flight testing.
Lu Zheng, COMAC’s deputy general manager of sales and marketing, told reporters on the sidelines of the Singapore Airshow that the company expected Chinese certification to take three to four years. COMAC also has been speaking to US authorities.
“It should not have any impact” on the delivery time to the jet’s launch customer, China Eastern Airlines, he said. “We’re striving for 2021.”
The C919, which hopes to compete with Boeing Co’s 737 and the Airbus SE A320, is a symbol of China’s civil aerospace ambitions and President Xi Jinping’s push to upgrade manufacturing capabilities.
There was an almost five month-gap between the C919’s first and second flight, far longer than that of other new aircraft, which had raised concerns that COMAC’s plans to deliver the aircraft were running behind schedule. The plane has since undergone multiple tests, including a long-distance flight.
Lu also said US and European certification to come after it wins approval from Chinese regulators. Europe’s aviation safety regulator has started the certification process, but its US counterpart has not, he said.
He described recent partnerships between Airbus and Bombardier, as well as Boeing and Embraer as “normal,” but said that they would affect the markets its C919 and ARJ21 planes want to compete in.
“It will have an impact but they’ve also been impacted by us,” he said. “We will work hard to become, from a follower, to be a competitor, and in future, if we have the opportunity, to become a leader. But it’s a long road.”
The company does not plan to announce any orders at the Singapore Airshow, he added. But it planned to speak to potential customers from Southeast Asia.
The company, which is also co-developing a new wide-body jetliner with Russia, said in a statement that it had asked engine makers for proposals to supply the C929 jet’s propulsion system on December 21.
Russian officials have said the two countries expect to develop their own engine for the project.
China’s COMAC says first delivery of C919 jet planned for 2021
China’s COMAC says first delivery of C919 jet planned for 2021
Saudi Arabia to develop 320k new hotel rooms by 2030: Knight Frank
RIYADH: Saudi Arabia is gearing up to expand its hospitality sector by developing 320,000 new hotel rooms by 2030, according to an analysis by global property giant Knight Frank.
The consultancy’s study disclosed that as much as 67 percent of the planned hotel room supply in the Kingdom would fall in the “upscale” or “luxury” categories, referring to 4-star and 5-star accommodations, respectively.
This move aims to cater to the projected surge in tourism, with 150 million domestic and international tourists expected by 2030.
“With a target of welcoming 150 million visitors by 2030—a 50 percent increase from its previous goal—the government is actively exploring various strategies to attract to international travelers,” Partner and Head of Hospitality at Tourism and Leisure Advisory in Middle East and Africa Turab Saleem said.
Saleem noted that this includes the development of cultural and entertainment offerings nationwide, which complement existing attractions like the Jeddah F1 Grand Prix and numerous entertainment seasons.
“Noteworthy additions include theme parks such as Boulevard World in Riyadh, alongside the licensing of 24 additional theme parks by the Saudi General Entertainment Authority over the past year,” he added.
Oil Updates – prices climb amid US stocks decline, Middle East conflict
TOKYO: Oil prices extended gains on Wednesday after industry data showed a surprise drop in US crude stocks last week, a positive sign for demand, though markets were also keeping a close eye on hostilities in the Middle East, according to Reuters
Brent crude futures rose 26 cents, or 0.29 percent, to $88.68 a barrel and US West Texas Intermediate crude futures climbed 26 cents, or 0.31 percent, to $83.62 a barrel at 9:34 a.m. Saudi time.
US crude inventories fell 3.237 million barrels in the week ended April 19, according to market sources citing American Petroleum Institute figures. In contrast, six analysts polled by Reuters had expected a rise of 800,000 barrels.
Traders will be watching for the official US data on oil and product stockpiles due at 5:30 p.m. Saudi time for confirmation of the big drawdown.
US business activity cooled in April to a four-month low, with S&P Global saying on Tuesday that its flash Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 50.9 this month from 52.1 in March.
“This could help convince policy makers that rate cuts are required to support the economy,” ANZ analysts said in a note.
US interest rate cuts could bolster economic growth and, in turn, demand for oil from the world’s top consumer of the fuel.
Analysts were still bullish that any latest developments in conflicts in the Middle East will still support markets, though the impact on oil supplies remains limited for now.
“Overall, crude oil prices are well supported around current levels by on-going Middle East risk premium. On the topside, risk of possible renewed OPEC production increase from Jun will help limit any significant upside,” said head of markets strategy for United Overseas Bank in Singapore Heng Koon How.
“We maintain our forecast for Brent to consolidate at USD 90/bbl by end of this year,” Heng added.
Israeli strikes intensified across Gaza on Tuesday, in some of the heaviest shelling in weeks.
“Recent reports suggest that both Iran and Israel consider the current operations concluded against one another, with no follow-up action required for now,” ING analysts said in a note.
“The US and Europe are preparing for new sanctions against Iran – although these may not have a material impact on oil supply in the immediate term,” they added.
Pakistan Stock Exchange hits record high, breaks 72,000 points in intraday trade
- Analysts say investors expect a significant decline in April inflation data that may lead to a cut in interest rates
- The Pakistani bourse has recently been trading at record highs due to hopes of positive loan talks with the IMF
ISLAMABAD: Pakistan’s benchmark share index breached the key level of 72,000 to trade at a record high of 72,414 points during intraday trade earlier on Wednesday, according to data from the Pakistan Stock Exchange website.
The Pakistani bourse has recently been trading at record highs amid positive sentiment prevailing among investors due to hopes of the country’s successful talks with the International Monetary Fund (IMF) for a new loan program.
The country’s finance minister, Muhammad Aurangzeb, recently visited Washington to hold talks with IMF officials for a long-term bailout facility as Pakistan’s current $3 billion program is due to expire this month.
The finance minister expressed hopes the outline of the new program would soon become visible, adding that the loan would help Pakistan continue with structural economic reforms.
“After a record current account surplus, investors are now expecting a big fall in April inflation data that may result in a cut in interest rates in the coming months,” Sohail Mohammed, CEO of Karachi-based brokerage company Topline Securities, told Reuters.
Pakistan’s benchmark KSE100 index has surged 75.5 percent over the past year and is up 11.5 percent year-to-date.
The equity market is expected to surge further as an IMF delegation arrives in Pakistan next month to determine the contours of the new loan facility.
“We are still hoping that we can get into a staff-level agreement [with the IMF] by the time June is done or early July so that we can move on,” the finance minister said on Tuesday while addressing a news conference in Islamabad.
With input from Reuters
Saudi Arabia’s non-oil exports surge by 4.4%: GASTAT
RIYADH: Saudi Arabia’s non-oil exports, including re-exports, saw a surge of 4.4 percent in February compared to the same period of 2023, official data showed.
According to the General Authority for Statistics, the total value of this sector reached SR21.86 billion ($5.83 billion), marking a rise from SR20.93 billion in the same period of the previous year.
The increase in non-oil shipments was driven by an 8.3 percent surge in the exports of rubber and plastic products in February, constituting 24.1 percent of the total exports.
Strengthening the non-oil private sector remains pivotal for Saudi Arabia, as the Kingdom continues its economic diversification efforts aimed at reducing reliance on oil.
The report unveiled a 4.1 percent year-on-year decrease in the Kingdom’s non-oil exports, excluding re-exports, in February. Conversely, the value of re-exported goods surged by 32.3 percent during the same period.
However, GASTAT noted that Saudi Arabia’s overall merchandise shipments decreased by 2 percent in February compared to the year-ago period.
This decline was primarily attributed to a 3.8 percent decrease in oil exports in February compared to the same month in 2023, according to the report.
Similarly, the percentage of oil shipments out of total exports decreased to 77 percent in February from 78.4 percent in the same period of the previous year.
The fall in oil exports was due to the Kingdom’s decision to reduce crude output, aligned with an agreement by the Organization of the Petroleum Exporting Countries, and its allies, collectively known as OPEC+.
In April 2023, Saudi Arabia reduced oil output by 500,000 barrels per day, a decision the Energy Ministry has now extended until the end of December 2024.
Compared to January 2024, the value of overall merchandise exports witnessed a marginal rise of 0.1 percent to SR95.02 billion.
GASTAT revealed that Saudi Arabia’s imports rose by 12.3 percent year on year in February.
On the other hand, the merchandise trade balance surplus decreased by 21.8 percent compared to the year-ago period.
China was Saudi Arabia’s primary trading partner in February, with exports to the Asian country amounting to SR12.57 billion.
India and Japan followed, with SR9.43 billion and SR8.55 billion in exports, respectively.
South Korea, the UAE, and Poland were also featured among the top destinations for Saudi exports, along with Egypt, the US and France.
China also held the top spot on the import side, accounting for 19.9 percent – or SR12.58 billion – of exchanges in February.
According to the report, King Abdulaziz Sea Port in Dammam was ranked the highest entry point for goods into Saudi Arabia, constituting 26.7 percent of the overall exports.
UBS gets green light to open Saudi branch for banking operations
RIYADH: In a move aimed at enhancing Saudi Arabia’s financial landscape, the Kingdom has granted permission for a branch of the Swiss bank UBS to operate within the nation.
According to the Saudi Press Agency, the approval was granted during a session chaired by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, held by the Cabinet in Jeddah on April 23.
The session commenced with King Salman briefing the Cabinet on the recent communications and discussions held between the Kingdom and several countries regarding shared relations, regional issues, and global developments, as reported by SPA.
In this context, the Cabinet reaffirmed Saudi Arabia’s steadfast stance toward promoting security and stability in the region and the world.
The Minister of Media, Salman bin Yousef Al-Dossary, stated in a press release following the session that the Cabinet praised the outcomes of the second ministerial meeting of the dialogue between the Gulf Cooperation Council countries and Central Asian countries.
He emphasized the Kingdom’s commitment to continue strengthening communication channels with various countries worldwide and supporting areas of joint coordination, including multilateral efforts.
Additionally, the Cabinet expressed its appreciation for the participants of the forthcoming World Economic Forum special meeting, set to take place in Riyadh in the upcoming week, highlighting the Kingdom’s dedication to encouraging global collaboration and tackling shared challenges.
Moreover, the Cabinet announced that the World Bank had selected Saudi Arabia as a center for knowledge dissemination to promote worldwide awareness of economic reforms, underscoring its leadership in achieving significant progress in global competitiveness indicators.
Al-Dossary further highlighted that the Cabinet applauded the achievement of five Saudi cities in obtaining advanced positions in the 2024 Smart Cities Index.
Following today’s session, the Cabinet approved cooperation agreements with Qatar, the Dominican Republic and the UK as well as Turkey, Chad, Portugal, Hong Kong, and Yemen.
Additionally, the body authorized discussions regarding statistical collaboration with Australia and maritime cooperation with Egypt. It also endorsed anti-corruption agreements with South Korea, archival partnerships with Greece, and financial technology collaboration with Singapore.
Authorization was granted for negotiations on science and technology cooperation with the Bahamas. A unified law for international road transport within GCC countries was approved, and additional compensation was granted to Tabah village’s affected families in the Hail region.
Furthermore, final accounts for various government entities were approved.
