GENEVA: More Iranians are using social media to vent anger at what they see as the corruption and extravagance of a privileged few, while the majority struggles to get by in an economy facing tighter US sanctions.
The country has been hit by a wave of protests during the last year, some of them violent, but as economic pressures rise, people are increasingly pointing fingers at the rich and powerful, including clerics, diplomats, officials and their families.
One person channelling that resentment is Seyed Mahdi Sadrossadati, a relatively obscure cleric who has amassed 256,000 followers on his Instagram account with a series of scathing posts aimed at children of the elite.
In one recent post, he blasted the “luxury life” of a Revolutionary Guards commander and his son, who posted a selfie online in front of a tiger lying on the balcony of a mansion.
Openly criticizing a well-known member of the powerful military unit that answers to Supreme Leader Ayatollah Ali Khamenei is in itself an unusual act of defiance.
“A house tiger? What’s going on?” Sadrossadati wrote. “And this from a 25-year-old youth who could not gain such wealth. People are having serious difficulty getting diapers for their child.”
The Iranian rial currency has hit 149,000 to the US dollar on the black market used for most transactions, down from around 43,000 at the start of 2018, as US President Donald Trump vowed to pull out of the nuclear deal between Tehran and world powers aimed at curbing its nuclear program.
That has sent living costs sharply higher and made imports less accessible, while the threat of financial punishment from the US has prompted many foreign companies to pull out of Iran or stay away.
The situation could get worse, as additional sanctions come into force this week.
Wary of growing frustration over the relative wealth of a few among the population of 81 million, Khamenei has approved the establishment of special courts focused on financial crimes.
The courts have handed out at least seven death sentences since they were set up in August, and some of the trials have been broadcast live on television.
Among those sentenced to death was Vahid Mazloumin, dubbed the “sultan of coins” by local media, a trader accused of manipulating the currency market and who was allegedly caught with two tons of gold coins, according to the Iranian Students’ News Agency (ISNA).
The tough sentences have not been enough to quell frustration, however, with high profile officials and clerics in the firing line.
“Because the economic situation is deteriorating, people are looking for someone to blame and in this way get revenge from the leaders and officials of the country,” said Saeed Leylaz, a Tehran-based economist and political analyst.
Washington is likely to welcome signs of pressure on Iran’s political and religious establishment, as it hopes that by squeezing the economy it can force Tehran to curb its nuclear program and row back on military and political expansion in the Middle East.
Public anger among Iranians has been building for some time.
Demonstrations over economic hardships began late last year, spreading to more than 80 cities and towns and resulting in at least 25 deaths.
In addition to his written contributions, Sadrossadati has posted videos of debates between himself and some of those he has criticized.
In one, he confronted Mehdi Mazaheri, the son of a former central bank governor who was criticized online after a photograph appeared showing him wearing a large gold watch.
In a heated exchange, Sadrossadati shouted: “How did you get rich? How much money did you start out with and how much money do you have now? How many loans have you taken?“
Mazaheri, barely able to get in a reply, said he would be willing to share documents about his finances.
Children of more than a dozen other officials have been criticized online and are often referred to as “aghazadeh” — literally “noble-born” in Farsi but also a derogatory term used to describe their perceived extravagance.
High-profile clerics have also been targeted.
Mohammad Naghi Lotfi, who held the prestigious position of leading Friday prayers at a mosque in Ilam, west Iran, resigned in October after he was criticized on social media for being photographed stepping out of a luxury sports utility vehicle.
Facebook posts labelled Lotfi a hypocrite for highlighting ways that ordinary Iranians could get through the economic crisis during his speeches. The outcry was a major factor in his decision to resign from a post he had held for 18 years.
“The hype that was presented against me in this position ... made me resign, lest in the creation of this hype the position of the Supreme Leader of the Islamic Revolution be damaged,” Lotfi told state media after stepping down.
“The issue of the vehicle ... was all lies that they created in cyberspace,” he added.
He was one of at least four clerics in charge of Friday prayers who have resigned in the last year after being accused on social media of profligacy or financial impropriety.
Facing new sanctions, Iranians vent anger at rich and powerful
Facing new sanctions, Iranians vent anger at rich and powerful
- Clerics, officials and their children singled out
- Courts established to try financial crimes
Electric passenger drones set for a year-end launch in Saudi Arabia, says Front End CEO
RIYADH: Electric passenger drones are set to be launched in Saudi Arabia by the end of this year with Alkhobar-based firm Front End set to introduce the service to the Kingdom, revealed its CEO.
Speaking to Arab News on the sidelines of the Future Aviation Forum, Majed Al-Ghaslan, who is also the chairman of the company, stated that Front End’s collaboration with the Chinese electric vertical take-off and landing vehicle developer EHang is facilitating the deployment of such electric flights in the Kingdom.
Al-Ghaslan said: “We’re pushing the boundary of air traffic, also urban traffic management systems. So we’re discussing this with the Civil Aviation Authority (General Authority of Civil Aviation) here in the Kingdom. We’re very closely aligned with the Ministry of Transport.”
He added: “We have electric buses and cars now; you’re going to have electric flights for passengers. And this is already running in many cities around the world. We want Riyadh and the major cities around the Kingdom to be the first as well. The idea is to launch the pilots this year and hopefully start launching this service as well this year.”
The official also added that the deployment of these electric drones, capable of carrying passengers, in the Kingdom is very feasible, as such services are running effectively in countries like China, Indonesia, and Japan.
During the talk, he revealed that these proposed electric flights, which take off vertically, can be used for both carrying passengers and for logistics purposes.
According to Al-Ghaslan, these flights are capable of traveling up to 30 minutes with two passengers, and with more advanced batteries, the distance can be extended further.
He explained, “You can do a 30-minute flight, but still, 30 minutes is a long flight. For example, in Riyadh, you can cover end to end because you are going direct path to anywhere, with two passengers. So you can take up to 250 kilograms. And then with more advanced batteries, the distance can be even higher.”
The official added that the drones capable of carrying passengers, which will be introduced in Saudi Arabia, will be autonomous and will operate using advanced technologies like artificial intelligence.
Discussing Front End’s eagerness to enter the air mobility sector, Al-Ghaslan noted that the Kingdom’s transformative Vision 2030 program has facilitated the firm’s entry into the industry.
“Typically, what we do is partner with and localize companies, bringing them into the Kingdom. I never thought I’d be in aviation, but because of the new frontiers that include electric vehicles that vertically take off and land, and advancements in passenger-level drones, that is our interest. We run drone services for our clients, but we are now getting into the air mobility sector,” said Al-Ghaslan.
He added, “The Vision 2030 program actually enabled this transformation to take place, and there are now national-level strategies. We are at the forefront of making it happen from the private sector at least.”
The official also noted that Front End is planning to introduce a ride-hailing service in Saudi Arabia using a fleet of electric vehicles, under a partnership with an Indian company named Blue Smart.
“We’re also launching a ride-hailing service. So, this is something we’re also going to be announcing at the right time, again, electric. So, our theme is around sustainability as well. It’s a company from India called Blue Smart. And this is also going to be announced this year,” he concluded.
Riyadh Air to unveil its crew uniform at Paris Fashion Week, says CEO
- New attire will ‘become instantly recognizable as the Riyadh color’
RIYADH: Saudi Arabia’s new airline, Riyadh Air, is set to unveil its cabin crew special uniform at the upcoming Paris Fashion Week, according to its CEO.
On the sidelines of this year’s Future Aviation Forum in Riyadh, Tony Douglas, CEO of Riyadh Air, shared in an interview with Arab News a series of strategic developments that are set to propel the new airline into the global spotlight.
With Riyadh Air scheduled to launch in the summer of next year, Douglas highlighted the airline’s upcoming milestone at Paris Fashion Week, which will take place from June 18-23.
“Our next milestone will be (in) June in Paris,” he said. “This is going to be about Paris Fashion Week. Now, what would we possibly do in Paris Fashion Week? For the first time ever as an airline, we will reveal our haute couture fashion collection. So our cabin crew won’t wear cabin crew uniforms. It’ll be cabin crew fashion,” he added.
Drawing inspiration from the fashion depicted in the film “Catch Me If You Can,” Douglas emphasized the airline’s commitment to style and sophistication.
“If you can ever remember the movie ‘Catch Me If You Can,’ where DiCaprio goes through the terminal building, and everybody stops to photograph them because they look glamorous. They look fashionable. They look refined. And we want to bring that back with a modernist twist. And that’s what we’ll be revealing at Paris Fashion Week at the end of June,” he explained.
The new uniforms will feature a unique color that Douglas believed would become “instantly recognizable as the Riyadh color.”
He added: “We want to get that kind of glamor into aviation to make sure that this brand, because of course, the brand is Riyadh wherever it’s identified around the world, that immediately speaks to quality, grace, refinement, and fashion.”
In addition to fashion, Riyadh Air is rapidly building its operational capabilities, according to the top official.
“We now have our first group of pilots who’ve joined us. So we’ve got over 30 instructor pilots, they’re the highest qualified pilots you can get from lots of different international airlines. They’re, of course, engaged with us at this stage to assist with our certification flying. And we’ll start our certification flying in September of this year. So literally months away now,” Douglas revealed.
He added: “Yesterday, our third batch of cabin crew started with us, so this feels like a real airline now.”
The interest in joining Riyadh Air has been extraordinary, according to Douglas.
He noted the overwhelming response to their careers page, saying: “The statistic that I still almost struggle to comprehend in a very positive way is if you go onto RiyadhAir.com, our website, there’s a careers page, and it allows you to put in your personal details. In just over a year, we’ve had 1.1 million people send the details, their qualifications and their contacts to be considered to become part of the Riyadh Air family, 146 different nationalities, and we think that that’s just completely staggering.”
He added: “We ask ourselves why I would never have imagined so much interest and my only explanation is it’s because it’s under the leadership and the decree of His Royal Highness, the Crown Prince Mohammed bin Salman.”
Looking ahead, Douglas confirmed that Riyadh Air’s headquarters will soon be visible near Riyadh International Airport.
“Our brand new headquarters building will be available for us to start occupying in the summer of this year. And just out by Riyadh International Airport, people will see their biggest brand logo lit up in the skyline, probably in the next two months. And that’s when you will know where the home of the Riyadh Air family is,” Douglas announced.
The CEO acknowledged the challenges and opportunities ahead by reflecting on the industry’s current dynamics: “What a difference two or three years makes pre-pandemic. It was actually difficult to make any money in aviation. Ticket prices for a decade were almost at an all-time low.”
Douglas added: “Here we are today, where demand is significantly ahead of supply in many markets and, in particular, our market. But also we all know ticket prices are actually expensive at the moment. I don’t think that will last because it is a cyclical industry and it’s one again where classic Keynesian economics supply and demand at the moment.”
The Riyadh Air head confidently predicted ongoing market growth and outlined the carrier’s mission, saying: “Is the market going to continually grow? The answer is very simply, yes it is. Back to the proposition of Riyadh Air. We’ll bring a full-service carrier, the sort of carrier that the Kingdom needs and quite frankly, demands such that we’ll have global connectivity.”
Douglas invited guests to witness Riyadh Air’s debut at Paris Fashion Week and teased future technological innovations.
“Come and see us in Paris. Come and see the incredible fashion, which will stand out, but also later on in the year will start to reveal what our digital proposition is, and that will be another standout case for our industry,” he concluded.
Closing Bell: Saudi Tadawul closes in red across all indexes
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Monday, losing 73.02 points, or 0.60 percent, to close at 12,125.36.
The total trading turnover of the benchmark index was SR6 billion ($1.6 billion) as 68 of the listed stocks advanced, while 155 retreated.
On the other hand, the Kingdom’s parallel market Nomu also slipped 25.51 points, or 0.09 percent, to close at 27,036.50. This came as 24 of the listed stocks advanced, while as many as 40 retreated.
Similarly, the MSCI Tadawul Index also dropped 13.53 points, or 0.89 percent, to close at 1,515.07.
The best-performing stock of the day was Al-Baha Investment and Development Co. which saw its share price surge 7.69 percent to SR0.14.
Other top performers include Almasane Alkobra Mining Co. as well as the Mediterranean and Gulf Insurance and Reinsurance Co., whose share prices soared by 7.05 percent and 6.72 percent, respectively, to stand at SR63.80 and SR25.40.
In addition to this, other top performers included Almunajem Foods Co. and Methanol Chemicals Co.
The worst performer was Fawaz Abdulaziz Alhokair Co., whose share price dropped by 8.04 percent to SR10.06.
Al-Babtain Power and Telecommunication Co. as well as Ash-Sharqiyah Development Co., also saw their share prices dropping by 7.39 percent and 4.45 percent respectively, to stand at SR41.35 and SR20.20.
Moreover, other worst performers also include Arabian Contracting Services Co. and East Pipes Integrated Co. for Industry.
On Nomu, Future Care Trading Co. was the top gainer with its share price rising by 11.05 percent to SR15.28.
Other best performers on Nomu were Professional Medical Expertise Co. as well as Osool and Bakheet Investment Co., whose share prices soared by 8.42 percent and 4.53 percent to stand at SR103 and SR 41.50, respectively.
Other top gainers also include Sure Global Tech Co. and Ghida Alsultan for Fast Food Co.
Leen Alkhair Trading Co. experienced a significant drop in its share price on Nomu, with the company’s shares falling by 7.72 percent to SR26.90.
The share prices of Almuneef Co. for Trade, Industry, Agriculture and Contracting as well as Riyadh Steel Co. also fell by 7.68 percent and 6.25 percent to stand at SR51.70 and SR30, respectively.
Other major losers include Molan Steel Co. and Mayar Holding Co.
Saudi aviation industry likely to create 35,000 new jobs by 2030
RIYADH: Saudi Arabia unveiled its first “State of Aviation” report, highlighting the sector’s contributions to the Kingdom’s economic growth, as industry leaders gathered for the Future Aviation Forum.
Speaking at the opening ceremony of the three-day event in Riyadh, Saudi Minister of Transport and Logistic Services Saleh Al-Jasser emphasized the unprecedented importance of aviation.
Saudi Arabia’s aviation sector contributed $21 billion to the Kingdom’s gross domestic product in 2023 while generating an additional $32.2 billion in tourism receipts, positively impacting other key areas of the economy.
“This transformation is one that we invite the world to share. We seek private sector partners with expertise to help us achieve our ambition,” said Al-Jasser.
The minister also reflected on the progress made in the aviation industry over the past two years and how industry leaders collaborated to overcome a major crisis by addressing global challenges and unlocking new opportunities.
This collaboration led to the introduction of new global policies, the announcement of nearly $3 billion in aviation deals, the signing of the Riyadh Aviation Declaration, and the commencement of a new golden age for aviation.
The State of Aviation report by GACA revealed that the Kingdom’s aviation sector contributed $53 billion to the economy and supported approximately 958,000 jobs nationwide.
Furthermore, the regulator introduced its General Aviation Roadmap during the forum, aiming to foster the development of Saudi Arabia’s business jet and private industry.
With targeted investments in six specialized general aviation airports and other initiatives, the roadmap projects the sector’s contribution to GDP to reach around $2 billion and the creation of 35,000 new jobs by 2030.
Al-Jasser shared three brief points, emphasizing the importance of aviation in driving global growth and well-being, highlighting the enormous opportunities being created in Saudi Arabia for everyone, and noting how this week reflects Saudi Arabia’s commitment to the global aviation industry.
“Globally, aviation traffic numbers have passed pre-pandemic levels, with air cargo fueling 80 percent of the world’s commerce needs,” he continued.
Outlining the achievements and developments in Saudi Arabia’s civil aviation sector since 2022, Al-Jasser noted that the Kingdom recorded 111 million passengers last year and announced a comprehensive economic policy for the civil aviation sector.
He stated that the Kingdom confirmed the order of hundreds of aircraft through the existing Saudi carrier and launched the Riyadh King Salman International Airport master plan to support more than 100 million passengers by 2030.
The minister added: “We also opened Riyadh Integrated Special Logistics Zone, securing a leading global investor and AviLease, a global aircraft leasing company, and established Riyadh Air to connect Riyadh.”
During the keynote address, Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, underscored the importance of this forum and its role in enhancing connectivity.
“We’ve gone from almost zero flights to almost 37 million flights last year. this is unprecedented and also proves the resilience and strength of the global aviation industry,” Al-Duailej said.
He also underscored examples of challenges, including what he pressed on the most, manufacturing and supply chain disruption.
“The aviation industry globally is facing a serious shortage of manufacturing capabilities and challenges in the whole value chain of the process. This is an area where we need to focus on,” said the GACA president.
He added: “Also, environmental sustainability is a very important element and objective, as we all agreed to protect our mother nature, we all agreed on specific targets on net zero carbon emission. Nonetheless, we agree on what and on why, but we have issues around how.”
Commenting on the significant growth in Saudi Arabia’s aviation sector, he also mentioned that in 2023 the number of passengers reached a record 112 million, up from 88 million in 2022, marking a 27 percent year-on-year increase.
The first quarter of the current year has already seen an additional 20 percent increase in passenger numbers.
In terms of connectivity, the number of direct international destinations from the Kingdom rose to 148, marking a 47 percent increase from 2019 when there were 99 direct destinations.
“In cargo, we’ve not done as well as we anticipated, but we still have about 6 percent growth in air cargo, reaching about a million, and hopefully on the way to reaching 4.5 million,” Al-Duailej said.
The GACA chief said: “Aviation is a major economic enabler. I don’t think other national strategies will achieve their expected targets if we do not succeed in aviation.”
He further discussed Saudi Arabia’s expansion and development plans for airports, revealing that the current capacity of Saudi airports, set at 120 million passengers, is poised to exceed 300 million.
“We are already working on the current terminals and expanding King Salman’s and King Khaled airports from the current 30+ million, and by the end of 2025, we will reach 54 million and on the way to reaching 100+ million by 2030,” Al-Duailej said.
He added: “King Abdulaziz Airport in Jeddah, the largest airport in the Kingdom, handled 43 million passengers last year and is expected to reach about 50 million passengers.”
Moreover, Al-Duailej stressed privatization as a key strategy to enhance connectivity.
“We are also working on privatization. Privatization is another important element in achieving this connectivity. The Kingdom has the first successful PPP model in the Middle East region,” he explained.
In 2012, the GACA president added, the Kingdom signed the first concession agreement with the private sector to build the Medinah airport in the West, and by 2015, the airport started with 8 million passengers fully financed and funded and operated by the private sector.
He also stated that three weeks ago, an agreement was signed to expand an existing concession with the same company that originally held it.
This expansion will greatly increase the capacity from 8 million to about 17 million by 2028, more than doubling the current capacity.
During the third panel session, Al-Jasser further explained the collaborative effort with partners and the private sector in Saudi Arabia.
“The marine sector is highly privatized, where we signed concession agreements in our two main ports with the private sector to invest more than SR17 billion, to build new infrastructure to cater for growth,” the minister said.
Al-Jasser noted that the expansion plans for King Salman Airport are progressing well, and the airport is expected to handle 100 million passengers by 2030.
Additionally, the ministry is managing the transition period leading up to this goal by building more terminals and expanding existing ones to accommodate the increased passenger capacity before 2030.
Riyadh’s grade A office renting grew by 5% in Q1 2024: report
RIYADH: Saudi Arabia’s prime office rental space saw a 5 percent growth in transactions in the first quarter of 2024 compared to the previous period, according to an industry report.
As per the global real estate services provider Savills analysis, Riyadh achieved an occupancy rate of 98 percent in early 2024, with rents increasing by 20 percent year on year.
“Despite healthy demand, a significant decrease in the number of office rent transactions was recorded in the first quarter, with Ejar data indicating a 27 percent drop in transactions quarter on quarter due to the limited availability of office spaces,” Amjad Saif, head of transactional services at Savills Saudi Arabia, said.
“However, Grade A offices witnessed an increase in rents by 5 percent compared to the last quarter, owing to the buoyant demand for quality assets amid their limited supply,” Saif added.
The report also highlighted that 74 percent of Savills’ inquiries originated from overseas, with an impressive 37 percent coming specifically from US corporations.
“Riyadh is experiencing a remarkable surge in corporate interest, with over 180 foreign companies surpassing the initial target of 160 choosing to establish their regional headquarters in the city,” Ramzi Darwish, head of Saudi Arabia at Savills Middle East, said.
“This growing confidence reflects the robust potential of the Saudi capital, fueled by the country’s strategic economic diversification plan. Prominent entities such as Franklin Templeton and Allen & Overy have recently set up their regional bases in the capital Riyadh,” he added.
The report also indicated that the Business Parks and the King Abdullah Financial District are experiencing significant interest, with 75 percent of transactions involving relocations to these areas.
To address demand concerns, over 420,000 sq. m of new Grade A office space is expected by year-end, providing tenants with greater flexibility and helping to stabilize rental prices, the analysis stated.
Significant leasing activity was observed in the first quarter of 2024, with legal services leading the way, followed by engineering, manufacturing, and information technology sectors.
Additionally, technology, media, telecommunications, banking, and financial services, as well as insurance companies, dominated occupier inquiries, reflecting diverse industry interests.
