Riyadh Air to use AI for green flight routes in fight against climate change

Speakers at a panel discussion at the UN World Tourism Day 2023, held from Sept. 27-28 in the Saudi capital on Wednesday.
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Updated 27 September 2023
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Riyadh Air to use AI for green flight routes in fight against climate change

RIYADH: Saudi Arabia’s newest airline will use artificial intelligence to track the least carbon-emitting flight routes, according to its chief operating officer. 

Speaking during a panel discussion at the UN World Tourism Day 2023, held from Sept. 27-28 in the Saudi capital, Riyadh Air’s Peter Bellew discussed how the company was putting sustainability concerns at the center of its development. 

The airline, announced by Crown Prince Mohammed bin Salman in March, has ordered 72 Boeing 787s, described by the executive as “the most carbon efficient aircraft there is out there.” 

He added: “We’re going to track in a unique way every single step and every part of our business (to see how) we can reduce our carbon emissions, how we can improve fuel usage, how we can use artificial intelligence to assist us and the optimal flight paths, flight routings, and all those things together.” 

The national carrier acknowledges its advantage as a startup without legacy systems and emphasizes its commitment to sustainability. 

The airline will also use IT systems to track each crew member’s carbon index, encouraging eco-friendly practices. 

Additionally, they are exploring environmentally conscious systems at airports, including electric and hydrogen-powered ground equipment. 

“This is going to be the center of the largest generation of green and blue hydrogen on planet Earth, and we’ll be able to take that through into our maintenance or repair our overhaul, and our engineering facilities,” Bellew said. 

He mentioned the airline’s aim to use eco-friendly hydrogen energy by 2030, aligning the carrier with prospective sustainability principles. 

“I hope that by 2030, they’ll all be powered by clean green hydrogen energy, and then you’ve got the whole Reduce, Reuse, Recycle (sustainability principles) that we can do with what’s on board the aircraft in terms of the management of the waste, to all our buildings and everything,” he added. 

Overall, the airline sees these initiatives as an opportunity to lead by example and foster positive change in the industry. 

Bellew stressed the advantages of being a new airline in today’s technology-driven era, considering it a remarkable opportunity to leverage the latest advancements in data utilization and AI. 

Moreover, Ahmed Daoud, executive director of innovation at the Royal Commission for AlUla, mentioned that the city has developed a blueprint or a plan for involving entrepreneurs and startups in the region to focus on significant growth through environmentally conscious practices. 

This model is “not only sustainable but regenerative and creates wealth and opportunities for local communities,” Daoud said. 

He also added: “That also allows us to continue to invest in our local environments as well.” 

Saudi Arabia has become the first country to back a call for $1 trillion in annual investment into the global startup ecosystem from G20 countries during the Startup20 engagement group’s summit in India this year. 

Daoud outlined a strategic approach to leveraging a global entrepreneurial ecosystem to benefit a young tourist destination. 

He said: “We create synergies between a broader global entrepreneurial ecosystem making investments directly now, not from a venture capital or corporate venture capital perspective, that’s not our position, but in terms of creating symbiotic relationships where we can compete as a nascent tourist destination, by leveraging these advanced solutions that are being developed on the S side of the SME spectrum.” 

He further explained that this approach is being applied to local startups within Saudi Arabia, and there are plans to expand this model to include businesses from the global entrepreneurial ecosystem. 

“We’re investing heavily in expanding that model to a global entrepreneurial ecosystem as well,” Daoud continued. 




Riyadh Air's Chief Operating Officer Peter Bellew.

WTO is held under the theme “Tourism and Green Investments” to encourage global collaboration in exploring opportunities to strengthen the tourism industry’s resilience and push the sector toward an investment-led and environmentally conscious future. 

During the two-day event, tourism CEOs will deliver keynote comments, while panel discussions will focus on three UNWTO essential themes: people, planet, and prosperity. 

Participants will learn about the power of tourism and its role in integrating cultures, preserving the environment, and creating a more peaceful and connected world. 

Saudi Arabia will hand over the chair to Georgia, who will host the event next year. 


Global sukuk hit $900bn outstanding by Q3: Fitch Ratings

Updated 8 sec ago
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Global sukuk hit $900bn outstanding by Q3: Fitch Ratings

  • Debt capital market in the GCC is about $1 trillion outstanding, with sukuk accounting for 37%

RIYADH: Global sukuk outstanding reached $900 billion by the third quarter of the year, marking an 8.5 percent year-on-year increase, driven by improved financing conditions after the US Fed rate cut, according to Fitch Ratings. 

The US Federal Reserve’s recent decision to lower rates to 5 percent in September is expected to lead to further declines, with Fitch projecting rates of 4.5 percent and 3.5 percent by the end of 2024 and 2025, respectively. This environment is anticipated to stimulate sukuk issuances in the near term. 

The analysis said that several factors, including the refinancing of upcoming maturities and the funding and diversification goals of Islamic countries, will drive the growth of sukuk issuances in the fourth quarter of this year and into 2025. 

Sukuk, which is also called an Islamic bond, is a Shariah-compliant debt product, through which investors gain partial ownership of an issuer’s assets until maturity. 

The analysis from Fitch follows Saudi energy giant Aramco’s recent completion of a $3 billion international sukuk issuance, with demand exceeding expectations and reaching six times oversubscription. 

“We are seeing a build-up of sukuk pipeline partially supported by the recent Fed cut. However, downside risks include shariah-related complexities, rising geopolitical risks, and oil volatilities that could affect market growth,” said Bashar Al-Natoor, global head of Islamic finance at Fitch Ratings. 

He added: “In general, sukuk market credit conditions are sound, with 81.5 percent of Fitch-rated sukuk being investment-grade, 95 percent of sukuk issuers on Stable Outlooks, and no defaults.” 

In the Gulf Cooperation Council region, the debt capital market is about $1 trillion outstanding, with sukuk accounting for 37 percent. 

According to the analysis, international demand for emerging market US dollar debt issuance is likely to rise, with sukuk comprising more than 10 percent. 

The report also indicated that the sukuk market has become more diverse following the inaugural sukuk issuance by Ireland-based AerCap Holdings and Kuwait’s first sustainable sukuk from Warba Bank. 

In August, another report released by Fitch Ratings said that the UK is a Western hub for Islamic finance, with the London Stock Exchange being the third-largest listing venue for US dollar sukuk globally. 

According to that report, the LSE currently holds a 35 percent global share of US dollar sukuk, valued at around $80 billion outstanding at the end of the first half of this year. 


Egypt annual inflation rate slows to 26%

Updated 39 min 22 sec ago
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Egypt annual inflation rate slows to 26%

RIYADH: Energy price rises led Egypt’s September inflation rate to reach 26 percent, although this is a significant reduction from the 40.3 percent recorded in the same month of 2023. 

According to the nation’s Central Agency for Public Mobilization and Statistics, Egypt’s general consumer price index reached 236.5 points, a 2.3 percent increase from August. 

Electricity, gas, and other fuels saw a substantial increase of 14.9 percent, adding further pressure on household expenses. 

Other contributors to the inflationary pressure included a 0.7 percent rise in cereals and bread and similar surges in meat and poultry. 

The prices of fish and seafood increased by 1.7 percent, while dairy products, cheese, and eggs saw a 2.8 percent rise. 

The vegetable category recorded a significant jump of 12.4 percent, and the cost of fruits rose by 1.7 percent. 

Additionally, sugar and sugary foods edged up by 0.2 percent, and coffee, tea, and cocoa prices grew 0.9 percent. 

Other categories also saw increases, including fabrics, up 1.1 percent, ready-made garments by 0.8 percent, and footwear by 0.3 percent. 

The prices for actual housing rent increased by 0.9 percent, while furniture and furnishings rose by 0.8 percent. 

Home maintenance goods and services grew by 1.4 percent, and household appliances by 1.5 percent. 

Medical products and equipment registered a 3 percent increase, while hospital services rose 1.3 percent. 

Transportation costs, including private carrier expenses, increased by 1 percent, with vehicle purchases up by 2.3 percent. 

Despite these rises, some areas saw a decline. Notably, hotel services prices fell by 0.1 percent. 

However, this decrease was not enough to counterbalance the broader upward trend in other sectors.


Saudi POS transactions surge 2.6% to $3.6 bn, driven by education sector growth

Updated 42 min 21 sec ago
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Saudi POS transactions surge 2.6% to $3.6 bn, driven by education sector growth

  • Telecommunication spending rose 17.4% to SR136.5 million
  • Expenditure on furniture saw the largest decline, dropping 11.7% to SR349.3 million

RIYADH: Saudi Arabia’s point-of-sale transactions climbed 2.6 percent to SR13.7 billion ($3.6 billion) in the week ending Oct. 5, driven by a sharp increase in spending within the education sector, official data showed. 

The latest figures from the Saudi Central Bank, also known as SAMA, showed that the education sector led the growth with a 96.8 percent surge in transactions, totaling SR196.8 million, following weeks of declines since the academic year started in August. 

Telecommunication spending followed, rising 17.4 percent to SR136.5 million. The public utilities sector recorded the third-largest increase, with a 13.9 percent jump to SR61.5 million. 

Expenditure on furniture saw the largest decline, dropping 11.7 percent to SR349.3 million during this period. 

Spending on electronic devices fell 8.4 percent to SR238 million, while clothing and footwear saw a 7.4 percent decrease to SR757.3 million. Recreation and restaurant expenditures also declined by 2.4 percent and 1.9 percent, respectively. 

These five sectors were the only ones to register declines, while the majority of industries experienced growth. 

In terms of transaction value, the food and beverages sector retained the largest share of POS spending, totaling SR2.22 billion, followed by restaurants and cafes at SR1.95 billion, and miscellaneous goods and services at SR1.77 billion. 

Spending in these top three categories accounted for approximately 43.3 percent, or SR5.9 billion, of the week’s total POS value. 

Geographically, Riyadh led POS transactions, representing 34.3 percent of the total, with spending in the capital reaching SR4.71 billion, the second-highest increase at 4.7 percent. 

Jeddah followed with a 2.2 percent rise to SR1.86 billion, accounting for 13.6 percent of the total. Dammam ranked third with SR697 million, recording the highest increase at 5.8 percent. 

Tabuk saw the third-largest spending increase, up 4.2 percent to SR276.2 million. Hail and Abha also experienced growth, with expenditures rising 1.7 percent and 0.5 percent to SR224.6 million and SR168.6 million, respectively. 

In terms of the number of transactions, Dammam saw the highest increase at 6.8 percent, reaching 9,112 transactions. Hail and Buraidah recorded the smallest increases at 2.9 percent each, with 4,046 and 4,964 transactions, respectively. 


Oil Updates – prices edge up after sliding on potential Israel-Hezbollah ceasefire

Updated 09 October 2024
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Oil Updates – prices edge up after sliding on potential Israel-Hezbollah ceasefire

LONDON: Oil prices edged up on Wednesday as developments in the Middle East took center stage against cautious demand expectations and ahead of a government meeting on China’s fiscal policy.

Brent crude futures rose 45 cents, or 0.6 percent, to $77.63 a barrel by 10:03 a.m. Saudi time. US West Texas Intermediate futures rose 33 cents to $73.90 a barrel.

Prices had plunged more than 4 percent in the previous session on a possible Hezbollah-Israel ceasefire, but markets remain wary of a potential Israeli attack on Iran’s oil infrastructure.

“The everyday dilemma of ‘Middle Eastern headlines’ moving like a pendulum between ‘ceasefire talks’ and ‘further escalation in attacks’ has been distracting investors from reality ... Oil markets are twirled in sentiments of ‘buying the rumor’ and sidelining the real fundamentals that should matter,” said Phillip Nova senior market analyst Priyanka Sachdeva in an email.

The sell-off on Tuesday followed a rally that began after Iran launched a missile barrage at Israel on Oct. 1, culminating in an 8 percent gain on the week on Friday, the largest in more than a year.

Hezbollah officials on Tuesday appeared to back off from a truce in Gaza as a condition for a ceasefire in Lebanon. Hezbollah’s deputy leader Naim Qassem said he backed attempts to secure a truce in a televised speech, the first time the end of the war in Gaza was not mentioned as a pre-condition.

Also supportive for prices, China’s finance ministry will detail plans on fiscal stimulus at a highly-anticipated news conference on Saturday, the government’s main information office said on Wednesday.

Markets have been awaiting further news of fiscal support by Beijing to help China’s flagging economy, which in turn can stimulate oil demand. A press conference by the state planner on Tuesday had disappointed investors after it offered no big stimulus to revive economic growth.

OANDA’s senior market analyst, Kelvin Wong, expects a sideways trading pattern for the oil market in the short term, with WTI confined within a range of $73.15 to $78.30 a barrel, pending announcements on China’s new fiscal stimulus measures and developments in the Middle East.

On the demand front, data showed US crude oil stocks rose by nearly 11 million barrels last week, much more than analysts polled by Reuters had expected, according to market sources citing American Petroleum Institute figures on Tuesday. However, fuel stockpiles fell.

Weak demand continued to underpin the fundamental outlook. The US Energy Information Administration on Tuesday downgraded its 2024 forecast for global oil demand growth by 20,000 barrels per day, to 103.1 million bpd, because of weaker industrial production and manufacturing growth in the US and China. 


Herfy: key shareholder Savola requests vote on board member dismissal

Updated 09 October 2024
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Herfy: key shareholder Savola requests vote on board member dismissal

  • On Monday, Herfy announced that it had arranged a general assembly for Nov. 4

RIYADH: Herfy’s biggest shareholder has requested a meeting of stock owners to vote on the dismissal of a board member, the Saudi food services firm announced on Tuesday.
Savola Group requested the meeting so shareholders can vote on removing Mohammed Abdulaziz Alshetwey from his board seat.
Savola owns a 49 percent stake in the Saudi food services company, according to a company profile on the Saudi stock exchange.
Herfy, founded in 1982, owns an extensive set of restaurants and is one of the Kingdom’s first fully integrated food services company with its own bakery factory.
On Monday, Herfy announced that it had arranged a general assembly for Nov. 4 and invited shareholders to participate to decide whether to dismiss Chairman Mutaz Qusai Alazzawi.
The company said Ahmad Hamad Alsaid, a shareholder and a former chairman of Herfy, requested the meeting to vote on the chairman’s removal.
Herfy issued a statement addressing what it called “rumors” against the company, including accusations by Alsaid of “misrepresentation in the financial statements” of the Saudi firm.
The letter to shareholders, outlined a list of 11 statements regarding the conduct of Alsaid, including hiring relatives and supplying products to firms “not affiliated with Herfy outside of Riyadh”.
“The company’s management affirms that it did not intend to engage in these disputes, but in light of what is being circulated on social media regarding the company, it was the company’s duty to clarify the facts and take the necessary measures to move the company forward and strive to achieve everything that is in its best interest and the interest of its shareholders,” the statement said.