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.


Open Forum Riyadh to discuss digital currency, AI, and mental health

Updated 26 April 2024
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Open Forum Riyadh to discuss digital currency, AI, and mental health

  • The event will run in parallel to the WEF’s Special Meeting on Global Collaboration

LONDON: The Open Forum Riyadh — a series of public sessions taking place in the Saudi capital on Sunday and Monday — will “spotlight global challenges and opportunities,” according to the organizers.

The event, a collaboration between the World Economic Forum and the Saudi Ministry of Economy and Planning, will run in parallel to the WEF’s Special Meeting on Global Collaboration, Growth and Energy for Development, taking place in Riyadh on April 28 and 29.

“Under Saudi Vision 2030, Riyadh has become a global capital for thought leadership, action and solutions, fostering the exchange of knowledge and innovative ideas,” Faisal F. Alibrahim, Saudi minister of economy and planning, said in a press release, adding that this year’s Open Forum being hosted in Riyadh “is a testament to the city’s growing influence and role on the international stage.”

The forum is open to the public and “aims to facilitate dialogue between thought leaders and the broader public on a range of topics, including environmental challenges, mental health, digital currencies, artificial intelligence, the role of the arts in society, modern-day entrepreneurship, and smart cities,” according to a statement.

The agenda includes sessions addressing the impact of digital currencies in the Middle East, the role of culture in public diplomacy, urban development for smart cities, and actions to enhance mental wellbeing worldwide.

The annual Open Forum was established in 2003 with the goal of enabling a broader audience to participate in the activities of the WEF, and has been hosted in several different countries, including Cambodia, India, Jordan and Vietnam.

The panels will feature government officials, artists, civil-society leaders, entrepreneurs, and CEOs of multinationals.

This year’s speakers include Yazeed A. Al-Humied, deputy governor and head of MENA investments at the Saudi Pubic Investment Fund; Princess Reema Bandar Al-Saud, Saudi Arabia’s ambassador to the US; and Princess Beatrice, founder of the Big Change Charitable Trust and a member of the British royal family.

Michele Mischler, head of Swiss public affairs and sustainability at the WEF, said in a press release that the participation of the public in Open Forum sessions “fosters diverse perspectives, enriches global dialogue, and empowers collective solutions for a more inclusive and sustainable future.”


Meituan looks to hire in Saudi Arabia, indicating food delivery expansion

Updated 26 April 2024
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Meituan looks to hire in Saudi Arabia, indicating food delivery expansion

SHANGHAI: Chinese food delivery giant Meituan is seeking to hire staff for at least eight positions based in Riyadh, in a sign it may be looking to Saudi Arabia to further its global expansion ambitions, according to Reuters.

The jobs ads, which is hiring for KeeTa, the brand name Meituan uses for its food delivery operations in Hong Kong, is seeking candidates with expertise in business development, user acquisition, and customer retention, according to posts seen by Reuters on Linkedin and on Middle Eastern jobs site Bayt.com.

Meituan did not immediately respond to a request for comment by Reuters on its plans for Saudi expansion.

Bloomberg reported earlier on Friday that the Beijing-based firm would make its Middle East debut with Riyadh as the first stop.

Since expanding to Hong Kong in May 2023, Meituan’s first foray outside of mainland China, speculation has persisted that its overseas march would continue as the firm searches for growth opportunities, with the Middle East rumored since last year to be one area of possible expansion.

“We are actively evaluating opportunities in other markets,“ Meituan CEO Wang Xing said during a post-earnings call with analysts last month.

“We have the tech know-how and operational know-how, so we are quietly confident we can enter a new market and find an approach that works for consumers there.” 


IMF opens first MENA office in Riyadh

Updated 26 April 2024
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IMF opens first MENA office in Riyadh

RIYADH: The International Monetary Fund has opened its first office the Middle East and North Africa region in Riyadh.

The office was launched during the Joint Regional Conference on Industrial Policy for Diversification, jointly organized by the IMF and the Ministry of Finance, on April 24.

The new office aims to strengthen capacity building, regional surveillance, and outreach to foster stability, growth, and regional integration, thereby promoting partnerships in the Middle East and beyond, according to the Saudi Press Agency.

Additionally, the office will facilitate closer collaboration between the IMF and regional institutions, governments, and other stakeholders, the SPA report noted, adding that the IMF expressed its appreciation to Saudi Arabia for its financial contribution aimed at enhancing capacity development in its member countries, including fragile states.

Abdoul Aziz Wane, a seasoned IMF director with an extensive understanding of the institution and a broad network of policymakers and academics worldwide, will serve as the first director of the Riyadh office.

 


Saudi minister to deliver keynote speech at Automechanika Riyadh conference

Updated 26 April 2024
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Saudi minister to deliver keynote speech at Automechanika Riyadh conference

RIYADH: Saudi Arabia’s Deputy Minister of Investment Transaction Saleh Al-Khabti is set to deliver the keynote speech at a global automotive aftermarket industry conference in Riyadh.

Set to be held from April 30 April to May 2 in the Saudi capital’s International Convention and Exhibition Center, Automechanika Riyadh will welcome more than 340 exhibitors from over 25 countries.

Al-Khabti will make the marquee address on the first day of the event, which will also see participation from Aftab Ahmed, chief advisor for the Automotive Cluster at the National Industrial Development Centre, Ministry of Industry and Mineral Resources.

Saudi Arabia’s automotive sector is undergoing a transformation, with the Kingdom’s Public Investment Fund becoming the major shareholder in US-based electric vehicle manufacturer Lucid, and also striking a deal with Hyundai to collaborate on the construction of a $500 million-manufacturing facility.

Alongside this, Saudi Arabia’s Crown Prince Mohammed bin Salman launched the Kingdom’s first electric vehicle brand in November 2022.

Commenting on the upcoming trade show, Bilal Al-Barmawi, CEO and founder of 1st Arabia Trade Shows & Conferences, said: “It is a great honor for Automechanika Riyadh to be held under the patronage of the Saudi Arabian Ministry of Investment, and we’re grateful for their continued support as the event goes from strength-to-strength.

“The insights and support we’ve already received have been invaluable, and we look forward to continuing this relationship throughout the event and beyond.”

This edition of Automechanika Riyadh will feature seven product focus areas, including parts and components, tyres and batteries, and oils and lubricants.

Accessories and customizing, diagnostics and repairs, and body and paint will also be discussed, as well as care and wash. 

Aly Hefny, show manager for Automechanika Riyadh, Messe Frankfurt Middle East, said: “The caliber of speakers confirmed to take part at Automechanika Riyadh is a testament to the event’s growth and prominence within the regional automotive market.

“We have developed a show that goes beyond the norm by providing a platform that supports knowledge sharing and networking while promoting the opportunity to engage with key industry experts and hear the latest developments, trends and innovations changing the dynamics of the automotive sector.”


Aramco-backed S-Oil expects Q2 refining margins to remain steady then trend upward

Updated 26 April 2024
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Aramco-backed S-Oil expects Q2 refining margins to remain steady then trend upward

SEOUL: South Korea’s S-Oil forecast on Friday that second-quarter refining margins will be steady, supported by regular maintenance in the region, then trend upward in tandem with higher demand as the summer season gets underway, according to Reuters.

Over the January-March period, the refiner said it operated the crude distillation units  at its 669,000-barrel-per-day oil refinery in the southeastern city of Ulsan at 91.9 percent of capacity, compared with 94 percent in October-December.

S-Oil, whose main shareholder is Saudi Aramco, plans to shut its No. 1 crude distillation unit sometime this year for maintenance, the company said in an earnings presentation, without specifying the time.