Australia clears Qatar-Virgin deal to spur competition in aviation market

Australia clears Qatar-Virgin deal to spur competition in aviation market
Virgin has a 35 percent share of Australia’s domestic market. Reuters
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Australia clears Qatar-Virgin deal to spur competition in aviation market

Australia clears Qatar-Virgin deal to spur competition in aviation market
  • Treasurer says deal will boost competition
  • Qantas says announcement expected, welcomes competition
  • Virgin long-haul flights to Doha to begin in June

SYDNEY: Australia on Thursday approved Qatar Airways buying a 25 percent stake in Virgin Australia from US private equity firm Bain Capital, posing a challenge for national flag carrier Qantas that has long dominated Australian air routes.

Qatar Airways in October proposed to buy the minority stake for an undisclosed amount after the federal government in 2023 denied the Middle Eastern carrier’s requests to fly additional services into Sydney, Melbourne, Brisbane and Perth.

Treasurer Jim Chalmers said the deal is expected to boost competition in the aviation sector and follows extensive talks by the government with industry, unions and other stakeholders.

“My decision aligns with the advice of the Foreign Investment Review Board that this proposal is consistent with the national interest,” Chalmers said in a statement.

“I have approved this proposal subject to legally enforceable conditions that ensure Australian representation on Virgin’s board and protection of its customer data.”

Australia’s treasurer has the power to cancel any foreign investments if it is deemed a risk to national security.

Virgin Australia CEO Jayne Hrdlicka said the deal will “support continued growth in line with the market domestically, improve our ability to compete for key segments of the market and add momentum to our margin ambitions.”

Qantas on Thursday said its first-half profit surged 11 percent on the back of strong demand, and declared a special dividend for the first time in more than two decades.

“We always said that we welcome competition, and we always said that we weren’t going to oppose the result. The announcement today was expected,” Qantas CEO Vanessa Hudson said in an earnings call, when asked about the government’s approval.

Qantas and its budget arm Jetstar together held about 65 percent of Australia’s domestic market while Virgin, its biggest domestic competitor, has a 35 percent share, data from Australia’s competition regulator showed.

Australia’s competition watchdog last week backed a planned alliance between Virgin Australia and Qatar Airways, which could result in 28 new weekly return services between Doha and Australia’s major cities.

Virgin said its long-haul flights to Doha, expected to begin in June, will be operated using aircraft leased from Qatar Airways and will offer travelers flying to Europe, Africa and the Middle East more value and choice.

Qantas has a rival international flying partnership with Dubai-based Emirates. Virgin has a code-sharing agreement with Abu Dhabi-based Etihad which will expire on June 1.

Bain Capital continues to hold a majority stake in Virgin, for which it was targeting an 1 billion Australian dollars ($630 million) listing before the plans were delayed.


IMF team to visit Pakistan next week for $7 bln bailout review

IMF team to visit Pakistan next week for $7 bln bailout review
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IMF team to visit Pakistan next week for $7 bln bailout review

IMF team to visit Pakistan next week for $7 bln bailout review
  • IMF team usually spends around two weeks to review fiscal reforms and policy
  • Separate IMF team is visiting Pakistan to discuss around $1 billion in climate financing 

ISLAMABAD: A mission from the International Monetary Fund (IMF) will arrive in Pakistan next week, finance minister Muhammad Aurangzeb said on Wednesday, with a first review of a $7 billion bailout program due in March.

Islamabad secured the $7 billion Extended Fund Facility (EFF) last summer as part of an economic recovery plan.

Pakistan’s economy had stabilized and now needs to focus on an export led growth, the finance minister said.

The IMF team usually spends around two weeks to review fiscal reforms and policy.

A separate IMF team is visiting Pakistan to discuss around $1 billion in climate financing on top of the EFF.

That disbursement will take place under the IMF’s Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy.


Saudi Arabia opens first phase of Sports Boulevard

Saudi Arabia opens first phase of Sports Boulevard
Updated 26 February 2025
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Saudi Arabia opens first phase of Sports Boulevard

Saudi Arabia opens first phase of Sports Boulevard

JEDDAH: Saudi Arabia has opened the first phase of Sports Boulevard, marking a major milestone in Riyadh’s transformation into a global athletics and lifestyle destination.  

The project, led by the Sports Boulevard Foundation, is now 40 percent complete, with 83 km of the route set to be accessible to visitors starting Feb. 27, according to the Saudi Press Agency. 

Chaired by Crown Prince Mohammed bin Salman, the board of directors of the SBF announced the launch of the phase, which includes five key destinations: Wadi Hanifah, the Promenade, a section at the intersection of Prince Mohammed bin Salman bin Abdulaziz Rd. and Prince Turki bin Abdulaziz Al-Awwal Rd., as well as the Princess Nourah bint Abdulrahman University internal loop, and the first phase of Sands Sports Park. 

The initiative, launched by King Salman in March 2019, aligns with the country’s Quality-of-Life Program, outlined in Saudi Vision 2030, by creating greener, more sustainable cities that encourage participation in activities like walking, cycling, and horse riding. It also aims to transform Riyadh into one of the world’s most livable cities by blending sports with cultural, artistic, and environmental opportunities. 

The Sports Boulevard, closely overseen by the crown prince, stretches across Riyadh, connecting Wadi Hanifa in the west to Wadi Al-Sulai in the east via Prince Mohammed bin Salman Road.

At over 135 km in length, it will become the world’s largest linear park. The project includes pathways for pedestrians, cyclists, and amateur athletes, as well as horse trails and various other sports facilities.

The urban facades follow the distinctive design guidelines outlined in the Sports Boulevard’s design code.

The first completed destination of the project, Wadi Hanifah, is located in western Riyadh. Stretching 13.4 km, it runs from Al-Olab Dam in the north to Jeddah Road in the south, passing through the Diriyah Gate project. 

Wadi Hanifah features pedestrian pathways, cycling and equestrian trails, green spaces, and designated rest areas. A key feature is the Cycling Bridge, which connects Wadi Hanifah to the Promenade. 

Located at the intersection of King Khalid Road and Prince Mohammed bin Salman Road, the bridge offers two distinct paths: a 1 km pedestrian walkway and a 771-meter cycling track. 

The Promenade spans 4 km and follows the Sports Boulevard’s urban design code, which draws inspiration from Salmani architecture. It features dedicated cycling paths for both professionals and amateurs, expansive green spaces, water features, walking trails, children’s playgrounds, and a variety of retail outlets. 

At the intersection of Prince Mohammed bin Salman bin Abdulaziz Road and Prince Turki bin Abdulaziz Al-Awwal Road, a 300-meter area features the Arts Tower — an installation inspired by the high-voltage electricity towers that once lined Prince Mohammed bin Salman Road. The figure’s geometric panels reflect sunlight, creating reflections, and serving as a distinctive landmark and focal point for visitors.

 The Sands Sports Park, the fifth completed destination in the first phase, is located southeast of King Khalid International Airport. It offers dedicated cycling paths, mountain bike trails, BMX tracks, and scenic hiking and equestrian trails. 

At its core is the Najdi Flower, a signature 45-km cycling route for professionals. Over 350,000 sq. meters of sand dunes have been rehabilitated to enhance the park’s natural landscape.

The park also features retail outlets and specialized centers for bicycle rentals and accessories. Future phases will introduce additional sports facilities and buildings, further enhancing the visitor experience.

The news agency reported that the SBF had previously opened the Prince Turki bin Abdulaziz Al-Awwal Road Underpass to improve traffic flow and mobility in Riyadh. Construction is also ongoing at other project destinations, including those beyond the Promenade, the Urban Wadi Destination, the King Abdulaziz Road Underpass, and the Abi Bakr Al-Siddiq Road Underpass.

SPA concluded that these developments are progressing according to the approved project schedule.

As part of the broader Sports Boulevard project, the SBF announced in December it had launched a SR3.5 billion ($933 million) real estate investment fund to develop Urban Wadi High Rises, spanning 40,000 sq. meters with a gross floor area exceeding 207,000 sq. meters.

SBF signed agreements with Riyadh Development Co., Turkiye’s FTG Development, and Jadwa Investment to establish the fund, which aims to transform Riyadh’s urban landscape.


Closing Bell: Saudi main index slips to 12,233 amid mixed market performance

Closing Bell: Saudi main index slips to 12,233 amid mixed market performance
Updated 26 February 2025
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Closing Bell: Saudi main index slips to 12,233 amid mixed market performance

Closing Bell: Saudi main index slips to 12,233 amid mixed market performance

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 68.58 points, or 0.56 percent, to close at 12,232.65.  

The total trading turnover of the benchmark index was SR5.80 billion ($1.54 billion), as 95 stocks advanced, while 141 retreated.     

The MSCI Tadawul Index also decreased by 10.34 points, or 0.67 percent, to close at 1,532.52.  

Nomu, the Kingdom’s parallel market, rose, gaining 13.50 points, or 0.04 percent, to close at 31,286.23. This comes as 43 stocks advanced, while 33 retreated.  

The best-performing stock was CHUBB Arabia Cooperative Insurance Co., with its share price surging by 10 percent to SR47.85.  

Other top performers included Naseej International Trading Co., which saw its share price rise by 9.64 percent to SR104.60, and East Pipes Integrated Co. for Industry which saw a 4.11 percent increase to SR162.  

Saudi Telecom Co. was also among the top performers with a 3.58 percent increase to reach SR46.30. Jamjoom Pharmaceuticals Factory Co. also increased by 3.11 percent to reach SR172.20.  

The biggest decliner of the day was Saudi Ceramic Co., with its share price dropping 5.29 percent to SR28.65. 

Yanbu National Petrochemical Co. fell 4.21 percent to SR35.25, while Saudi Industrial Investment Group dropped 3.33 percent to SR17.42. 

Arriyadh Development Co. dropped 3.23 percent to SR33, while Saudia Dairy and Foodstuff Co. declined 3.03 percent to SR306.80. 

On the announcements front, Almoosa Health Co. reported a 22.8 percent year-on-year revenue growth in 2024, reaching SR1.20 billion, driven by increased patient volume, higher outpatient revenue, an expanded specialty mix, and a strategic focus on high-end tertiary care.   

The company’s fourth quarter revenue rose 21.7 percent year on year, reflecting strong performance across all segments.  

Almoosa Health maintained profitability despite rising costs, with the cost of revenue increasing by 23.6 percent for 2024 and 25 percent in fourth quarter due to business expansion and increased patient volumes.   

Almoosa Health Co.’s share price dropped 1.12 percent on Wednesday to settle at SR159.20.  

In other financial disclosures, stc reported key financial highlights for 2024, with revenues reaching SR75.9 billion, a 5.7 percent increase from 2023.   

The company’s net profit surged 85.7 percent to SR24.7 billion in 2024. It also announced a fourth-quarter dividend distribution of SR0.55 per share, in line with its approved dividend policy, along with an additional cash dividend of SR2 per share.  

Rasan Information Technology Co. reported strong financial results for the fiscal year 2024, with revenue increasing 39.8 percent year on year to SR358.3 million, up from SR256.2 million in the previous year.   

The company attributed this growth to a 25 percent rise in insurance policy sales, particularly in medical insurance, which saw a 69 percent increase despite a decline in average written premiums.   

Additionally, the launch of new products, expanded cross-selling initiatives, and a strengthened network of strategic partners contributed to revenue growth.  

Its net profit for 2024 more than doubled, increasing 106.2 percent to SR94.7 million, compared to SR46.0 million in 2023.   

The company credited this profit growth to an 8.6 percentage point increase in gross profit margin, which reached 66.5 percent in 2024.   

Rasan’s share price dropped by 0.91 percent on Wednesday to settle at SR87.  

Halwani Bros. Co. reported a 9.8 percent year-on-year increase in revenue for 2024, reaching SR969.1 million, compared to SR882.7 million in the previous year.   

The company attributed this growth to higher sales in Saudi Arabia, increased export sales, and geographical expansion through enhanced sales channels and restructuring of the sales department.  

Its net profit rebounded significantly, reaching SR44.7 million, compared to a net loss of SR98 million in 2023.   

The company credited this turnaround to higher domestic and export sales, a better sales mix, reduced selling and administrative expenses, and a SR5.4 million boost from the reversal of certain provisions.  

Halwani Bros. Co.’s share price dropped 0.18 percent on Wednesday to settle at SR56.60. 


First use of sustainable aviation fuel in Saudi Arabia to be at Red Sea International Airport

First use of sustainable aviation fuel in Saudi Arabia to be at Red Sea International Airport
Updated 26 February 2025
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First use of sustainable aviation fuel in Saudi Arabia to be at Red Sea International Airport

First use of sustainable aviation fuel in Saudi Arabia to be at Red Sea International Airport

RIYADH: Sustainable aviation fuel will be used in Saudi Arabia for the first time after a deal was struck for airplanes using Red Sea International Airport.

An agreement between Red Sea Global, daa International, and Arabian Petroleum Supply Co. will see the airport supplied with a 35 percent SAF blend, cutting direct aircraft emissions by up to 35 percent. 

The deal marks a significant step in reducing aviation-related carbon emissions in the Kingdom, according to a press release. 

This aligns with the company’s goal to power all operations at the Red Sea with renewable energy. It has already installed over solar panels capable of producing 400 megawatts, which is expected to offset up to 600,000 tonnes of carbon dioxide equivalent annually. 

John Pagano, Group CEO of Red Sea Global, said that by introducing SAF to the Kingdom, the company is significantly reducing guests’ personal carbon footprints from the moment they arrive and even after they depart. 

“More than this, we’re supporting the wider aviation sector to start making choices that are better for the environment,” he added. 

SAF is a lower-carbon alternative to traditional jet fuel, designed to reduce greenhouse gas lifecycle emissions. It can be produced from renewable sources, waste-derived materials, or synthesized from clean hydrogen and captured carbon dioxide.  

In accordance with international standards set by the International Civil Aviation Organization and the International Air Transport Association, SAF must be blended with conventional Jet A1 fuel.  

Aviation fuel significantly impacts sustainability, with the industry contributing about 2.5 percent of global carbon emissions annually.  

SAFs can reduce emissions by up to 80 percent but currently account for less than 0.1 percent of jet fuel used by major US airlines.  

Challenges include high production costs and limited availability, hindering widespread adoption. 

“Introducing sustainable aviation fuel at Red Sea International Airport marks a significant milestone in our commitment to environmental stewardship and sustainability. This groundbreaking initiative not only reduces carbon emissions but also aligns with our broader mission to protect the Red Sea’s unique and fragile ecosystem,” said Michael White, chief commercial officer at RSI. 

RSG’s commitment to sustainability extends beyond aviation fuel. Its subsidiary air operator, Fly Red Sea, will exclusively refuel its seaplane fleet with SAF and lower-carbon aviation fuel.  

Additionally, RSG has committed to planting and restoring 50 million mangroves by 2030 to enhance carbon sequestration and biodiversity in collaboration with the National Center for Vegetation Cover.  

The Red Sea welcomed its first guests in 2023, with five hotels now open. RSI has been receiving regular domestic flights since September 2023, and international flights began in April with a twice-weekly route to Dubai International Airport.  

Upon full completion in 2030, the Red Sea will feature 50 resorts, offering up to 8,000 hotel rooms and over 1,000 residential properties, alongside marinas, golf courses, entertainment venues, and leisure facilities. 


Egypt wants to move state-owned enterprises to its sovereign wealth fund, minister says

Egypt wants to move state-owned enterprises to its sovereign wealth fund, minister says
Updated 26 February 2025
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Egypt wants to move state-owned enterprises to its sovereign wealth fund, minister says

Egypt wants to move state-owned enterprises to its sovereign wealth fund, minister says

ABU DHABI: Egypt aims to move state-owned enterprises to be managed by the country’s sovereign wealth fund, to maximize the return on state assets, Investment Minister Hassan El-Khatib said on Wednesday.

Egypt has been divesting state assets under a program to boost the role of the private sector, a requirement imposed by the International Monetary Fund for an expanded $8 billion loan.

“I want to move the state-owned enterprises in batches to the (sovereign wealth) fund to manage, to maximize the return on, say, state assets,” Khatib told the Investopia 2025 conference in Abu Dhabi.

Egypt’s $12 billion sovereign wealth fund was established in 2018 in an aim to foster private sector partnerships and help foreign investment to flow into state-owned companies. But the government and military have been hesitant to relinquish control over some assets.

However, the government has been trying expedite the program, seeking to sell stakes in at least 10 companies in 2025, including two military-owned companies.

“I see we have a lot of good companies. As we move them, get the private sector to run them, have the proper governance, partner with the private sector, list in some cases. So the perception of the sovereign wealth fund will be maximization of yield on the return value and the valuation,” Khatib added.