Saudi Arabia braces for Eid Al-Fitr rush with anticipated surge in airline passengers

Special Saudi Arabia braces for Eid Al-Fitr rush with anticipated surge in airline passengers
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Updated 10 April 2024
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Saudi Arabia braces for Eid Al-Fitr rush with anticipated surge in airline passengers

Saudi Arabia braces for Eid Al-Fitr rush with anticipated surge in airline passengers
  • Air travel between the UAE and Saudi Arabia alone has witnessed a noticeable surge

RIYADH: Buoyed by the millions of Umrah performers and worshippers throughout the holy month of Ramadan, Saudi Arabia braces for a surge in travel for Eid Al-Fitr. 

The spike is expected to result in a significant rise in the number of arriving and departing passengers from key Umrah airports. 

Air travel between the UAE and Saudi Arabia alone has witnessed a noticeable surge, driven by increasing demand from individuals wishing to perform Umrah rituals during the holy month of Ramadan. The demand generally reaches its peak during the last 10 days of the holy month. 

According to the UAE’s General Civil Aviation Authority statistics, flights between the UAE and Saudi Arabia increased by 13.3 percent in March, rising to around 383 weekly flights compared to approximately 338 in February, coinciding with the beginning of Ramadan. 

Saudi aviation management firm Matarat Holding predicts that overall travelers will reach 6.6 million this year, reflecting a 25 percent growth compared to the previous year. 

Khaled Al-Hamash, executive vice president of strategy at Matarat, told Arab News: “Those traveling on Umrah charter flights are 500,000 passengers and the rest are scheduled. Those traveling from and to international destinations are 4.7 million passengers and the rest are domestic.”   

This comes as the Kingdom witnessed a significant influx of travelers last year. According to data released by Saudi Arabia’s General Authority of Civil Aviation in May 2023, the number of passengers to and from its airports during Ramadan and Eid Al-Fitr exceeded 11.5 million people from the beginning of the holy month until the ninth of Shawwal. 

The success of last year’s hosting sets a precedent for this year’s Eid Al-Fitr celebrations, indicating the Kingdom’s readiness to facilitate travel and accommodate pilgrims during this festive period.  

The impact on traveling during Eid Al-Fitr this year is anticipated to be significant, suggesting that travel demand during the season will be much higher based on previous figures. 

“Eid holidays have traditionally been peak travel season for domestic and international travelers from Saudi,” Muzammil Ahussain, CEO of Almosafer, told Arab News.  

He added: “This year too we have witnessed an initial upsurge in bookings for the Eid travel season. With many preferring to finalize their travel plans closer to the holidays, we are anticipating even greater demand for flights and hotel stays.”  

Ahussain explained that many residents prefer shorter flights and are opting for staycation trips. This choice allows them to spend quality time with family while exploring popular tourist destinations within the country.  

“Trips to AlUla and Al Ahsa are particularly attractive to domestic travelers, with top destinations like Riyadh, Dammam, and Jeddah drawing travelers,” he said.  

For international trips, the CEO noted that destinations including Dubai, Cairo, and European capitals like Paris and London continue to be “all-time favorites” among travelers from Saudi Arabia.  

“This year, we are also witnessing a greater demand for travel to Turkiye and Thailand, as well as far-Eastern destinations like Korea and Japan,” he added.  

Capacity addition   

Given the high demand during the Eid Al-Fitr period, airlines strategically adapt to accommodate the surge in passengers, both domestically and internationally. 

This includes significant increases in seat capacity and flight frequency, ensuring smoother travel experiences for all passengers.  

Saudia, for instance, has significantly increased the number of seats both domestically and internationally for this year’s Eid compared to the previous year’s season.   

According to the Kingdom’s national carrier, the allocation of international sector seats rose by 36 percent to over 246,000 seats, with 602 flights, marking a 44 percent increase compared to Eid 2023.  

Additionally, the domestic sector experienced a surge in seat capacity, with an increase of 21 percent totaling more than 270,000 seats. This was accompanied by 1,300 flights, reflecting a 21 percent increase compared to the previous year’s Eid season.  

“Saudia is committed to providing a flexible operational plan throughout the year and during peak seasons. As we mark the end of Ramadan and the beginning of Eid Al-Fitr, we are seeing a high travel demand and are prepared to provide additional flights and increase seat capacity to address the growing demand,” Sulaiman Yaqoobi, chief operating officer at Saudia Group, told Arab News.  

He added: “We are also sharing the spirit of Eid with Saudia’s guests onboard and at AlFursan lounges by distributing sweets and broadcasting Eid Takbeer, as we always strive to give our guests the best experience possible.”  

Saudia is also capitalizing on this opportunity by offering a promotional deal, featuring a 25 percent discount for travel between Saudi Arabia, other Gulf Cooperation Council countries, and Egypt in the hospitality class.  

The booking window for this offer is from April 7 to April 30, with the travel period spanning from April 9 to Sept. 30, 2024.  

The Almosafer CEO highlighted that Dubai stands out as a “preferred destination” due to its proximity to Saudi Arabia and its visa-free status for Saudi passport holders, making travel there convenient, “which means people can travel with great ease.” 

According to the latest data from the UAE’s GCAA, flydubai increased its flights to the Kingdom by 40 percent from 93 weekly flights in February to 130 flights in March, while Etihad Airways also increased its flights by more than 22.2 percent, from 63 flights in February to 77 flights in March. 

Meanwhile, Emirates operated approximately 67 weekly flights to the Kingdom in March, covering Dammam, Jeddah, Madinah, and Riyadh, while Wizz Air Abu Dhabi operated about 21 weekly flights including Dammam and Madinah. 

Additionally, flights operated by Air Arabia reached approximately 88 weekly flights, the GCAA data showed. 

During Ramadan and the Umrah season, from March 11 to April 7, Etihad Airways successfully transported around 45,000 passengers to its destinations in Saudi Arabia. Most travelers visiting the Kingdom during this period were from the UAE, India, Pakistan, and Indonesia. 

Surge in flights   

The impact on traveling during Eid Al-Fitr is significant, with Saudi Arabia’s demonstrated ability to manage crowds and ensure the smooth operation of religious events providing reassurance to travelers.  

Furthermore, the distribution of passengers across key Umrah airports offers insights into the nation’s transportation infrastructure and connectivity.   

Jeddah’s King Abdulaziz International Airport emerges as the primary gateway for Umrah travelers, accommodating a staggering 81 percent of the anticipated passengers.  

“Although Jeddah’s King Abdulaziz International Airport has the most traffic, Madinah’s Prince Mohammed Bin Abdulaziz International Airport follows suit, handling 16 percent of the total traffic,” Al-Hamash said.  

He added: “Taif International Airport and Prince Abdul Mohsin Bin Abdulaziz International Airport in Yanbu serve as additional entry points.”  

Al-Hamash also outlined the anticipated number of arriving and departing flights, both chartered and scheduled, to and from major Umrah airports during the season, spanning from the first Ramadan to the sixth of Shawwal or until after Eid Al-Fitr.  

“The total expected number of flights surpasses 37,000, indicating a notable 19 percent increase compared to the previous year,” he said.  

Overall, the Umrah and Eid Al-Fitr holidays are playing a key role in reviving the hospitality industry, signaling a return to the robust performance recorded across the GCC region.


Closing Bell: Saudi main index ends the week in red at 12,415 

Closing Bell: Saudi main index ends the week in red at 12,415 
Updated 33 min 48 sec ago
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Closing Bell: Saudi main index ends the week in red at 12,415 

Closing Bell: Saudi main index ends the week in red at 12,415 
  • MSCI Tadawul Index increased by 4.12 points, or 0.27%, to close at 1,544.02
  • Parallel market Nomu gained 201.99 points, or 0.65%, to close at 31,250.65

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 23.99 points, or 0.19 percent, to close at 12,415.49. 

The total trading turnover of the benchmark index was SR6.49 billion ($1.73 billion), as 139 stocks advanced, while 89 retreated.    

The MSCI Tadawul Index increased by 4.12 points, or 0.27 percent, to close at 1,544.02. 

The Kingdom’s parallel market, Nomu, rose, gaining 201.99 points, or 0.65 percent, to close at 31,250.65. This comes as 45 of the listed stocks advanced, while 36 retreated. 

The best-performing stock was United Cooperative Assurance Co., with its share price surging by 7.94 percent to SR10.20. 

Other top performers included the Saudi Steel Pipe Co., which saw its share price rise by 7.33 percent to SR73.20, and Gulf General Cooperative Insurance Co., which saw a 5.91 percent increase to SR12.18. 

Bupa Arabia for Cooperative Insurance Co. saw the largest decline of the day, with its share price dropping 4.12 percent to SR186. 

CHUBB Arabia Cooperative Insurance Co. saw its shares drop by 3.59 percent to SR56.40, while The Mediterranean and Gulf Insurance and Reinsurance Co. declined 3.17 percent to SR25.95. 

On the announcements front, Jarir Marketing Co. profits slightly increased to SR974 million by the end of 2024, compared to SR973 million in the same period of 2023. 

According to a Tadawul statement, operating profit totaled SR1.05 billion in 2024, up from SR1.04 billion in the corresponding period of 2023, reflecting a 0.74 percent growth. The increase in profits was attributed to a 2.2 percent rise in total sales, driven by higher sales in the smartphone, computer, and tablet sectors. 

The company’s total profit also rose by 3.8 percent, which is higher than the sales growth due to a relative improvement in profit margins in certain departments, particularly smartphones, as a result of discounts granted by suppliers, the statement added. 

Jarir Marketing also reported that shareholders’ equity reached SR1.74 billion by the end of the period, compared to SR1.77 billion at the end of the same period last year. 

Shares of Jarir traded 1.38 percent lower in today’s trading session on the main market to close at SR12.82. 

Moreover, SNB Capital Co. serving as the lead manager of the Arabian Co. for Agricultural and Industrial Investment, announced that Entaj will proceed with an initial public offering of 9 million ordinary shares, representing 30 percent of its total share capital.  


UAE real estate market ends 2024 with record growth, led by Dubai, Abu Dhabi

UAE real estate market ends 2024 with record growth, led by Dubai, Abu Dhabi
Updated 31 min 47 sec ago
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UAE real estate market ends 2024 with record growth, led by Dubai, Abu Dhabi

UAE real estate market ends 2024 with record growth, led by Dubai, Abu Dhabi
  • Residential transactions in Abu Dhabi rose by 19%
  • Office occupancy rates in Dubai and the capital hit 945, pushing rents up by 15-20% annually

JEDDAH: The UAE’s real estate market ended 2024 on a strong note, with Dubai’s residential sales soaring 30 percent year on year to 119 billion dirhams ($32.4 billion) in the fourth quarter. 

According to CBRE Middle East’s latest market review, property transactions surged and rental prices climbed across key sectors — commercial, residential, retail, and industrial — driven by strong economic expansion and investor demand. 

The UAE real estate market saw strong growth in 2024, driven by rising demand, limited supply, and increasing prices across residential, commercial, retail, and industrial sectors, supported by new regulations. 

This trend is part of a broader regional shift, with property markets in Saudi Arabia, Qatar, and the UAE implementing reforms to better meet global investor demand.

For example, Saudi Arabia recently allowed foreigners to invest in Saudi-listed companies that own real estate in Makkah and Madinah, following a key decision by the Kingdom’s Capital Market Authority. 

“The UAE’s real estate market continue to attract rising foreign investor interest, supporting record residential transactional volumes across Dubai and Abu Dhabi during 2024. Commercial sectors also remain buoyant, with demand largely outstripping supply, as reflected in the rising occupancy and rental rates across the office, retail and industrial markets,” said Matthew Green, head of research MENA at CBRE.  

In the fourth quarter, residential transactions in Abu Dhabi rose by 19 percent, while office occupancy rates in both Dubai and the capital city hit 94 percent, pushing rents up by 15-20 percent annually due to supply constraints. 

“Amid these highly positive market dynamics, the UAE government has moved to ensure the long-term sustainability of the real estate market, by implementing several new regulations in recent weeks,” said Green.  

He said that these changes were aimed at improving transparency through the Dubai Smart Rental Index, expanding the addressable market via recent changes to Dubai’s designated Freehold areas, and cooling the off-plan market through the UAE Central Bank’s amendment to lending regulations on transactional set-up fees. 

The UAE’s economic growth further fueled the commercial market, with Abu Dhabi’s real gross domestic product expanding by 4.5 percent in the third quarter of 2024, driven by a 6.6 percent increase in non-oil sectors. The rise in new business licenses and corporate expansions drove strong tenant demand, particularly for premium office spaces, the report added. 

Residential sector  

Dubai’s residential sector saw an 18 percent rise in apartment prices and a 20 percent increase in villa prices, pushing average values to 1,647 dirhams and 2,024 dirhams per sq. foot, respectively. Transaction volumes soared, with total residential sales in 2024 reaching 434 billion dirhams, up 33 percent from 2023, the report noted. 

Abu Dhabi’s residential market followed suit, with apartment prices rising 11 percent and villa prices climbing 12 percent. The capital’s sales activity was led by a 59 percent surge in ready property transactions, while off-plan sales grew 5 percent but still accounted for 66 percent of total volume. 

Rental contract registrations in Dubai rose 7 percent year on year, with renewal contracts up 9 percent and new registrations increasing 5 percent. Despite rising costs, CBRE noted that tenants continued to prefer lease renewals to avoid steep rent hikes. 


Global Labor Market Conference sees 31 deals to provide training, job opportunities in Saudi Arabia

Global Labor Market Conference sees 31 deals to provide training, job opportunities in Saudi Arabia
Updated 57 min 52 sec ago
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Global Labor Market Conference sees 31 deals to provide training, job opportunities in Saudi Arabia

Global Labor Market Conference sees 31 deals to provide training, job opportunities in Saudi Arabia
  • Saudi Logistics Academy signed four agreements to strengthen the Kingdom’s position as a global logistics hub
  • GLMC signed a new three-year partnership agreement with the World Bank

RIYADH: Saudi Arabia signed 31 deals at the Global Labor Market Conference to expand training, leadership development, and job opportunities for graduates and individuals with disabilities through specialized skills and education.

Taking place in Riyadh from Jan. 29-30, the agreements and memoranda of understanding also include a variety of development initiatives, educational projects, and knowledge exchanges aimed at empowering different segments of society, the Saudi Press Agency reported.

This falls in line with the Kingdom’s Vision 2030 goals, which focus on further elevating operational efficiency, supporting innovation, and creating added value.

It also aligns well with Saudi Arabia’s revised unemployment rate target of 5 percent by 2030, down from the previous goal of 7 percent, as part of Vision 2030’s ambitions.

The Saudi Logistics Academy signed four agreements to strengthen the Kingdom’s position as a global logistics hub.

The first MoU was with the International Federation of Freight Forwarders Associations and seeks to bolster collaboration in developing skills and vocational training in the field of freight and logistics services. Under the terms of the agreement, both sides committed to exchanging information and expertise to support the nation’s logistics transformation.

The academy inked a second MoU with the Spanish ACEX Association to establish a collaborative framework to enhance human resources in road maintenance and operation. This partnership focuses on providing specialized training programs and promoting the exchange of best practices to achieve mutual objectives.

The third agreement, signed with Saudi MEDLOG Limited, focuses on training and certifying 18 individuals for entry-level positions within the company. This initiative aims to enhance the skills of the national workforce to meet the demands of the job market.

The academy also partnered with the Mediterranean Shipping Co. to train and certify six candidates for roles within the firm as part of the entry-level diploma program.

GLMC signed a new three-year partnership agreement with the World Bank, directed at shaping labor systems and formulating policies that meet the future needs of the job market while addressing it's evolving challenges.

The collaboration reinforces combined endeavors, specifically in training policymakers on a global scale and conducting research to offer inventive perspectives that assist governments and organizations in adjusting to the swift transformations influencing labor market needs, job trends, and labor policies.

Both entities aspire to nurture a fresh cohort of policymakers through the deal, fortifying the conference’s position as an impartial research institution committed to forging effective labor market strategies.

Policymakers will be chosen from nations falling within the mandate of the World Bank to craft a holistic and enduring global labor market framework.

As part of the collaboration, the GLMC Labor Market Academy was launched in partnership with Takamol Holding.

The academy offers a three-year development program covering all aspects of the labor market to train international experts responsible for future policy formulation and to create an innovative platform for cross-country learning, particularly for low- and middle-income nations.

The partnership also includes the inauguration of a policy lab, which is a dedicated platform for in-depth discussions on specific policies, tools, and programs that propel labor market outcomes and workforce skills.

During the second edition of the GLMC, two policy labs will be introduced, playing a crucial role in addressing youth employment challenges, focusing on active labor market programs to raise employment opportunities and sector skills councils to bridge the gap between employees’ skills and job responsibilities.

The GLMC-World Bank collaboration aims to promote an inclusive and diverse global labor market, ensuring that all countries, especially emerging economies, can benefit from collaborative research and advanced policy development.

On the sidelines of the GLMC, the Ministry of Tourism signed several memorandums of cooperation as part of its efforts to develop the capabilities of national workers in the tourism sector and improve employee quality.

An agreement inked with the Marriott Hotel Group in Riyadh aims to create job opportunities for several Saudi workers. It also focuses on training and developing the workforce to enhance professional performance and increase operational efficiency in the tourism sector.

The MoU between the Ministry of Tourism and hotel management firm Adeera aims to train and qualify Saudi nationals working in the sector, as well as prepare job seekers to fill available industry positions.

The memorandum of cooperation signed between the Ministry of Tourism and Takamul Business Services Co. seeks to further elevate the capabilities of workers, exchange experiences, achieve quality and occupational safety standards, as well as improve services.

Saudi Arabia is emerging as a global leader in addressing labor market challenges, skill development, and workforce requalification, according to an analysis released by GLMC in December.

The inaugural report, issued by the conference hosted by the Kingdom’s Ministry of Human Resources and Social Development, emphasized the government’s initiatives to bridge the gap between academic qualifications and market demands. 

These efforts include enhancing education and training programs and preparing young job seekers for the rapidly evolving global labor landscape.


Remittances from Egyptian expats sees 65% annual increase

Remittances from Egyptian expats sees 65% annual increase
Updated 30 min 1 sec ago
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Remittances from Egyptian expats sees 65% annual increase

Remittances from Egyptian expats sees 65% annual increase
  • The pound’s value decreased significantly, leading to increased prices for imported goods
  • Egypt’s net international reserves have also seen consistent growth

RIYADH: Egyptians working abroad sent around $2.6 billion in remittances in November, a 65.4 percent annual increase, according to official data.

The nation’s central bank stated that the surge reflects the impact of economic reform measures implemented in March, including fully floating the Egyptian pound, therefore allowing its value to be determined by market forces. 

This move was part of an agreement with the International Monetary Fund to secure an $8 billion loan aimed at stabilizing the economy. 

Following the flotation, the pound’s value decreased significantly, leading to increased prices for imported goods and contributing to higher inflation rates. 

The sharp decline in the pound’s value and rising inflation have driven more Egyptians to seek opportunities abroad, aiming to earn in stronger foreign currencies and mitigate the impact of economic instability at home. 

Between July and November, remittance inflows increased by 77 percent year-on-year, totaling around $13.8 billion, up from $7.8 billion during the same period last year, according to the Central Bank of Egypt.

From January last year to November, the total money sent back to the country from expats saw an annual increase of 47.1 percent to about $26.3 billion.

The steady growth in remittances is a key factor in supporting Egypt’s foreign currency reserves — which saw notable gains last year — and stabilizing the economy amid ongoing fiscal and monetary adjustments. 

Egypt’s net international reserves have also seen consistent growth alongside rising inflows from Egyptians working abroad. 

The CBE announced that NIRs increased by $157 million in December, reaching a record high of $47.1 billion. 

This marks a continuation of steady monthly gains, with reserves rising from $46.94 billion in October to $46.95 billion in November. On a year-on-year basis, Egypt’s foreign exchange reserves grew by $11.9 billion in 2024, up from $35.22 billion in December 2023. 

The number of Egyptians living abroad varies between 12 million to 14 million according to a range of reports, with the highest number of expats in the Gulf Cooperation Council. 

In the fiscal year 2023/24, Egypt achieved a primary budget surplus of 6.1 percent of its gross domestic product, indicating that revenues exceeded expenditures before accounting for interest payments. 

However, after including interest obligations, the country faced an overall budget deficit of 3.6 percent of GDP. This highlights the significant burden of Egypt’s debt servicing on its primary budget. 


Saudi Aramco raises February LPG prices

Saudi Aramco raises February LPG prices
Updated 29 min 11 sec ago
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Saudi Aramco raises February LPG prices

Saudi Aramco raises February LPG prices
  • New prices are set at $635 per tonne for propane and $625 per tonne for butane

RIYADH: Saudi Aramco has increased the official selling prices for propane and butane for February, according to a statement released on Thursday.

The new prices are set at $635 per tonne for propane and $625 per tonne for butane, reflecting a $10 rise for each product compared to the previous month.

Both propane and butane are types of liquefied petroleum gas, commonly used for heating, vehicle fuel, and as feedstock in the petrochemical industry. Although similar, these gases have different boiling points, making them suitable for a range of specific applications.

Aramco's OSPs for LPG serve as important benchmarks for contracts supplying these products from the Middle East to the Asia-Pacific region.

Propane demand typically peaks in the winter months, as it is a key source of home heating, and this seasonal increase often drives up prices.

The fluctuations in price are a direct reflection of supply and demand dynamics, with colder weather pushing prices higher in line with greater consumption.