Flight-hailing app could take off in Gulf region next year, CEO says

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OneFlight International's brand ambassador and three-time Super Bowl Champion John Elway. (Twitter: @ONEflight_Intl)
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OneFlight International CEO Ferren Rajput. (Instagram)
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Updated 16 September 2022
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Flight-hailing app could take off in Gulf region next year, CEO says

  • ONEflight International operates as the go-between the customer and a bank of aircraft owned privately by third parties

NEW YORK: A flight-hailing service that began in the US 12 years ago will enter the Middle East within the next year, Ferren Rajput, founder and CEO of ONEflight International, told Arab News on the fringes of SALT New York on Wednesday.

The service allows people to book a private jet in as little as five hours, but Rajput said with the introduction of a new app, currently in development, the company hopes to reduce the waiting time in a process he calls the “Uberization of private jet flying.”

Since he started his company 12 years ago it has expanded to Europe, and he hopes that by 2023 Gulf Arabs will have the opportunity to use the service.

“We haven’t left them (the Gulf region) out,” Rajput said. “We just haven’t expanded into the Middle East.”

“I think the Middle East is a prime market, especially for our kind of model. We just haven’t gone there, but we’re certainly looking to go out there within the next year.”

ONEflight International, much like the hailing apps, operates as the go-between the customer and a bank of aircraft owned privately by third parties.

He said that the service is not used by the super-rich — they still tend to own their own planes — instead it is attracting wealthier players in the business market.

“Right now, you would say a majority of customers are in the range of probably 45 on up to about 60. We’re seeing a growth in the 35-40 range.”

But he believes as the business expands to the Gulf, the age range will fall further.

“I would tend to believe in the UAE that it’s going to be even lower because of the wealth. So we’re estimating there’s a huge influx of those that are the up-and-comers of the 35-45 range.”

During the height of the COVID-19 pandemic when most airlines were laying off staff, he said that his business had flourished.

“Our industry actually jumped up by a good 22  percent,” he said referring to the US market. “The European market seems to be jumping up now. A little lagged behind the US market. And that has really come around due to the fact that people didn’t want to fly private.”

He believes that those still using his business post-pandemic will stay with it.

SALT is a global thought-leadership and networking forum encompassing finance, technology and geopolitics. Its biannual events and technology solutions connect leading asset managers and entrepreneurs with top asset owners, investment advisers and policy experts.


Saudi Tadawul Group and Chinese Shenzhen Stock Exchange sign MoU to boost cooperation 

Updated 11 December 2023
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Saudi Tadawul Group and Chinese Shenzhen Stock Exchange sign MoU to boost cooperation 

RIYADH: Cooperation efforts between Saudi Arabia and China’s capital markets are on track to flourish thanks to an agreement signed by the Saudi Tadawul Group. 

Inked with the Chinese Shenzhen Stock Exchange, the memorandum of understanding aims to enhance collaboration and explore new opportunities in several areas, including joint listing and financial technology, by leveraging the advantages of both parties, according to a statement. 

This move aligns with the Shenzhen Stock Exchange’s plans to bolster partnerships with foreign exchanges to attract more long-term funds from outside China. 

It also poses a crucial step in promoting the development of the Saudi capital market.

Moreover, fostering the growth of capital markets emerges as a shared objective for both nations as it is believed that issuers and investors from the joint countries will benefit from the deep cooperation between the capital markets, according to officials from Saudi Tadawul Group. 

Under the terms of the agreement, both parties will work hand in hand to study the joint listing of exchange-traded funds and stocks. 

In addition, they will also exchange experiences and mutual learning in various fields, including environmental, social, and governance, financial technology, investor assistance, and corporate incubation services. This will help in supporting the high-quality development of both markets.

Moreover, both sides will jointly research and promote cooperation in products such as indices, funds, and real estate investment trusts. 

The two entities will also jointly build a cross-border capital service mechanism to promote the participation of market entities from both sides in cross-border investments and further advance the connectivity and integration of the capital markets between China and Saudi Arabia.

In September, the Saudi Tadawul Group and the Shanghai Stock Exchange signed an MoU to bolster cooperation and promote mutual development.

At the time, the agreement focused on dual listings of exchange-traded funds, initiatives related to investor relations and infrastructure development, as well as fintech, environmental and social practices. 

There was also support for family businesses and small-medium enterprises, corporate governance, and data exchange and research, according to a statement released at the time.


Closing Bell: TASI edges up 84 points, reaches $2bn trade volume  

Updated 11 December 2023
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Closing Bell: TASI edges up 84 points, reaches $2bn trade volume  

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its upward trend on Monday, as it gained 84.23 points, or 0.75 percent, to close at 11,380.95.    

The total trading turnover of the benchmark index was SR7.52 billion ($2 billion) as 84 stocks advanced, while 133 retreated.    

Parallel market Nomu performed negatively as it dropped by 170.41 points, or 0.71 percent, to finish at 23,705.39. However, the MSCI Index edged up by 14.78 points to 1,463.16.    

The best-performing stock on the main index was Alkhorayef Water and Power Technologies Co., whose share price soared by 7.79 percent to SR168.80.    

Other top performers of the day included Naseej International Trading Co. and United Wire Factories Co., with their share prices surging by 6.34 percent and 4.23 percent, to reach SR57 and SR28.35, respectively.    

The worst performer of the day was Al-Baha Investment and Development Co. The share price of the company dipped by 7.14 percent to SR0.13.    

Saudi Enaya Cooperative Insurance Co. and Amana Cooperative Insurance Co. were also amongst the worst performers with their stocks dropping by 6.35 percent and 4.37 percent, to close at SR15.34 and SR12.70, respectively.  

In Monday’s trading session, ACWA Power, one of Saudi Arabia’s leading utility companies, saw its shares climb by 4 percent, reaching SR242.   

This marked the stock’s highest closing value since its initial listing, with approximately 500,000 shares traded. The company’s shares peaked at SR243.60 during the day.  

On the announcement front, Al Sagr Cooperative Insurance Co. disclosed today that it has received approval from the Insurance Authority to increase its capital from SR140 million to SR300 million through a rights issue, as per a statement on Tadawul.  

The approval also encompasses modifications to the company’s bylaws regarding the capital article, adapting them to reflect the new capital structure.   

This authorization from the IA holds validity for one year from the date of the letter, within which the capital increase must be completed.  

Al Sagr noted that it is facing difficulties determining the expected completion date for this event with the financial impact to be announced later.   

Additionally, Al Sagr emphasized its commitment to meeting the requirements of all other pertinent regulatory authorities in the course of this capital increase process. 


Saudi sovereign fund launches Dan Co. to promote ecotourism in Kingdom

Updated 11 December 2023
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Saudi sovereign fund launches Dan Co. to promote ecotourism in Kingdom

RIYADH: Saudi Arabia’s Public Investment Fund has launched a company dedicated to promoting ecotourism in the Kingdom.

In a press statement, the sovereign wealth fund said the newly launched firm Dan Co. plans to develop and operate high-end resorts and lodges in the Kingdom to partner with the local community and promote agritourism.

While agritourism refers to visitor experiences related to traditional farming, ecotourism focuses on experiencing nature and minimizing environmental impact. 

The fund revealed that the first project by Dan Co. would be located in the Al-Ahsa region, across 1.8 million sq. meters, featuring an eco-resort, an agritourism retreat and an adventure spot. 

The agritourism retreat will celebrate the unique produce of Al-Ahsa, which is especially famous for its rice and dates.

On the other hand, the eco-resort will utilize local materials with low carbon emissions, preserving the region’s flora and fauna.

The adventure resort will offer activities for travelers, including horse riding, star gazing and hill climbing. 

The press statement added that Dan Co. is expected to contribute SR6 billion ($1.6 billion) to Saudi Arabia’s non-oil gross domestic product by 2030. 

“The establishment of Dan Co. encapsulates one element of PIF’s strategy to further strengthen tourism,” said Khalid Johar, co-head of the fund’s local real estate portfolio department, in the statement.

He added: “It will boost economic development and contribute to national economic growth. The company will operate novel business models that integrate sustainability and embrace nature, involving the private sector and local farmers in agritourism and ecotourism.”

Johar further noted that establishing Dan Co. will also create new job opportunities in the local communities. 

Developing the tourism sector is crucial for Saudi Arabia, as the Kingdom is diversifying its economy away from oil, aligned with the goals outlined in Vision 2030. 

Saudi Arabia’s National Tourism Strategy aims to attract over 150 million visitors by the end of this decade, and the fund has been spearheading this journey after the launch of Vision 2030. 

The fund’s portfolio initiated several strategic investments to strengthen Saudi tourism and boost city economies nationwide.

These include the Soudah Development, which will create a year-round luxury mountain tourism resort in the Aseer region.

On the other hand, Boutique Group is developing historical palaces into luxury boutique hotels.

The fund’s Saudi Downtown Co. also aims to establish and develop urban centers across the Kingdom. 


UAE’s green bonds and sukuk value surges over $4bn in 11 months

Updated 11 December 2023
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UAE’s green bonds and sukuk value surges over $4bn in 11 months

RIYADH: The total value of sukuks, green and sustainability-linked bonds registered with the UAE’s Securities and Commodities Authority reached about 15.45 billion dirhams ($4.2 billion) between January and November, according to a top official.

SCA Chairman Mohamed Al-Shorafa disclosed the figures in an interview with the Emirates News Agency, or WAM, on the sidelines of the UN climate change conference in Dubai.

He appreciated the UAE’s commitment to sustainable development, aligning with the vision of the late founding father, Sheikh Zayed bin Sultan Al-Nahyan, and actively pursued under current leadership guidance.

The UAE’s ambitious target is to achieve net-zero emissions by 2050, with Dubai planning a 50 percent reduction in carbon emissions by 2030. 

Al-Shorafa emphasized the SCA’s pivotal role in regulating the issuance of green and sustainability-linked bonds and sukuk. 

Al-Shorafa said: “Issuing green bonds and sukuk is one of the transformational projects in supporting the efforts to make the UAE the new global economic hub for the next ten years.” 

In a significant move, the SCA exempted companies listing sustainability-linked bonds from registration fees for 2023, reflecting a positive response to the growing demand for these instruments.

Additionally, SCA CEO Maryam Al-Suwaidi highlighted the importance of green bonds in the country’s transformative journey.

“These performance agreements represent forward-looking quality projects that will enhance the country’s competitiveness, and the transformational projects will greatly impact all sectors over short periods and ensure the implementation of the new government action model of the UAE government,” Al-Suwaidi told WAM. 

The UAE has facilitated its green transition by encouraging local companies to raise capital through green sukuk. 

This move included DP World’s successful $1.5 billion green sukuk offering in October, listed on Nasdaq Dubai and the London Stock Exchange, oversubscribed by 2.3 times.


Saudi Arabia’s initiatives help boost industrial licenses by 84%

Updated 11 December 2023
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Saudi Arabia’s initiatives help boost industrial licenses by 84%

RIYADH: Saudi Arabia granted 412 new industrial licenses in the third quarter, marking an 83.9 percent surge compared to the corresponding period in the previous year, according to the latest Investment Ministry data.

The ministry attributed this increase, along with a 1.5 percent rise in capital for newly licensed factories, to the Kingdom’s efforts to enhance the competitiveness of the industrial environment, elevate the value of local content and support domestically manufactured products.

These initiatives fall under the National Industrial Development and Logistics Program and the Saudi Export Development Authority, which introduced the “Made in Saudi” program in 2021 to promote local talent and innovation.

The program seeks to boost the economy, position Saudi products internationally, and attract investments by supporting businesses locally and globally.

Businesses collaborating in this initiative can use the “Saudi Made” logo to enhance the country’s global image.

In alignment with Vision 2030, the initiative strives to build a diversified and sustainable Saudi economy, targeting an increase in non-oil exports to 50 percent of non-oil gross domestic product by 2030.

The ministry issued 2,202 licenses in the third quarter, including those granted as part of anti-concealment law enforcement, representing an 89 percent increase over the same period last year. 

The construction sector led in investment licenses with 654 licenses, a 170 percent increase, over the third quarter of last year.

On the other hand, the manufacturing sector bagged 360 licenses, reflecting a 94 percent increase. 

Professional, scientific, and technical activities saw a boost with 216 new licenses, a 93 percent increase, while the information and communication sector obtained 204 licenses, indicating a 115 percent increase.

Notably, public administration and support services witnessed the most substantial growth in investment licenses, with an increase of 294.3 percent.

Following closely, the electricity, gas, steam, and air conditioning sector saw a rise of 175 percent in granted licenses.

The construction sector also experienced a notable increase of 170 percent during this period.

According to MISA investment data, the third quarter closed 19 deals, with the education & training and culture sectors attracting the highest investor interest, each securing four agreements. 

China led in the origin of investments with five deals in the third quarter, followed by Japan with three in Saudi Arabia. The remaining deals were distributed among 12 other countries.