Mideast virus quarantine measures not working, says IATA

International flights in Saudi Arabia are not due to restart until January at the earliest. (Shutterstock)
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Updated 27 November 2020
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Mideast virus quarantine measures not working, says IATA

  • International Air Transport Association predicts economic impact of COVID-19 will be felt for years to come

JEDDAH: Saudi Arabia and the Middle East will feel the damaging economic impact of the coronavirus disease pandemic on the aviation sector for many years to come, according to a leading global industry organization.

And the only way to help the recovery is to eliminate quarantine measures and introduce systematic testing of passengers, said the International Air Transport Association (IATA).

The latest figures issued by the IATA forecast global airlines to lose a total of $157 billion this year and next, with those in the Middle East set for 2020 losses amounting to $7.1 billion, and $3.3 billion in 2021.

“Saudi Arabia, just like other countries, was impacted a lot because of its large networks and large carriers that are operating not by Saudi carriers only . . . Saudi Arabia has around 94 international carriers flying in and out of the country, and all those were stopped,” Muhammad Ali Albakri, IATA regional vice president for the Middle East and Africa, told Arab News.

He pointed out that due to its strategic geographical position the Middle East had a high degree of connectivity, with 1,060 routes as of April 2019.

All flights in, out, and within Saudi Arabia were grounded in March. While domestic flights restarted in May and Riyadh has reported that the volume of traffic has recovered to nearly 60 percent, international flights are not due to restart until January at the earliest.

FASTFACT

43%

IATA expects Middle East airline revenues to improve by 43 percent next year compared to 2020.

As a result, IATA said that Saudi Arabia’s air connectivity score this year dropped by96 percent, which was the biggest in the region and compared to 89 percent in the UAE.

The negative impact of COVID-19 on aviation revenues and passenger demand will be felt for years, the association added.

It predicted that the Middle East’s revenues for 2021 would improve by 43 percent — compared to 2020 — but would still be down 16 percent from the peak before COVID-19, equating to about $68.5 per passenger.

“The forecast for 2021 is better than 2020 but would not be enough because it is expected to remain negative in the territory and revenues, due to delays in anticipated recovery that was expected in the second half of 2020, but did not happen,” Albakri said.

One of the ways in which the region could speed up the economic recovery from COVID-19 would be to eliminate quarantine measures and adapt systematic testing of passengers,  IATA said.

Sixteen countries in the Middle East have opened their borders to regional and international air travel, but nine of these still have quarantine measures in place, which IATA said equates to a closed border.

“Reopening borders safely is a must, it’s no longer an alternative, it really has to happen and has to happen quickly. Quarantine cannot work, countries cannot continue to rely on closing their borders, or opening the borders but requiring quarantines,” Albakri added.

IATA is calling for the systematic testing of passengers without the need for quarantine on arrival, which will enable governments to safely open borders and help their economies to recover from the impact of the pandemic and control the spread of the disease.

“We are advocating systematic testing is the safe alternative to reopen borders; testing that is scalable, affordable, accurate, and fast in delivering the results is the way forward,” Albakri said.

The association noted that the Middle East’s high level of connectivity would also help aviation companies play a key role in the transportation of COVID-19 vaccines worldwide. In order for this to happen, it said governments in the region needed to work closer together and adopt internationally accepted measures and procedures.

“Countries in the region have to start working together to support the delivery of COVID-19 vaccines, not only to the need of the region’s countries and populations but also to act as a shipping hub between East and West to help vaccines to be transported safely and securely around the world,” Albakri added.

He said that IATA was working with all countries in the Middle East directly, and in cooperation with the International Civil Aviation Organization and the Arab Civil Aviation Organization, to merge paths and efforts to adopt a unified methodology, and that a proposal had been prepared for Arab transport and health ministers to take onboard.


Oman money supply rises 6.4% to $68.6bn in November 

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Oman money supply rises 6.4% to $68.6bn in November 

JEDDAH: Oman’s money supply climbed 6.4 percent to 26.4 billion Omani rials ($68.6 billion) in November, signaling solid liquidity conditions and continued growth in bank deposits, official data showed.  

The increase in broad money — a measure that includes cash in circulation and bank deposits — was driven by a 12.2 percent rise in cash and demand deposits, alongside a 4.1 percent increase in savings and time deposits, the Oman News Agency reported. 

The latest reading follows steady gains earlier in 2025, with money supply up 6.1 percent in the three months through August. This was supported by a 6.9 percent rise in narrow money and a 5.8 percent increase in quasi-money. The trend reflects sustained liquidity conditions and stronger deposit growth across the banking system. 

The expansion in monetary aggregates points to continued liquidity and policy support for private-sector lending, as Oman advances fiscal and economic reforms under its Vision 2040 strategy. 

“During the same period, currency in circulation increased 1.9  percent, while demand deposits rose 14.1 percent,” the ONA report stated. 

At conventional commercial banks, the weighted average deposit rate in Omani rials declined to 2.50 percent in November from 2.73 percent a year earlier, while the weighted average lending rate eased to 5.45 percent from 5.67 percent over the same period. 

The overnight interbank lending rate averaged 3.92 percent in November, down from 4.56 percent a year earlier, reflecting a decline in the weighted average repo rate to 4.5 percent from 5.30 percent, influenced by US Federal Reserve policy shifts. 

Meanwhile, total assets of Islamic banks and windows reached about 9.3 billion Omani rials by the end of November, accounting for 19.4 percent of the Gulf state’s total banking sector assets.  

“This marks a 12.3 percent increase compared with the same period in 2024,” ONA reported, citing data from the Central Bank of Oman. 

Total financing by Islamic banking units rose 10.3 percent to around 7.5 billion rials, while deposits increased 10.9 percent to approximately 7.3 billion rials by the end of November. 

The November data follows the International Monetary Fund’s 2025 Article IV consultation report, released earlier this month, which highlighted the continued resilience of Oman’s economy amid global uncertainty. 

The IMF cited steady growth in non-hydrocarbon sectors, low inflation, and broadly sound fiscal and external positions, underscoring the effectiveness of Oman’s coordinated economic and financial policies.