Middle East airline fleet set for 5% annual surge, outpacing global growth: report 

Middle East airline fleet set for 5% annual surge, outpacing global growth: report 
Saudi Arabia and the UAE are driving much of this growth, accounting for 60 percent of the region’s aviation market, according to Oliver Wyman’s analysis. Shutterstock
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Middle East airline fleet set for 5% annual surge, outpacing global growth: report 

Middle East airline fleet set for 5% annual surge, outpacing global growth: report 

RIYADH: The Middle East’s commercial airline fleet will see a 5.1 percent compound annual growth rate from 2025 to 2035, above the 2.8 percent global average, according to a new forecast.

A report by consulting firm Oliver Wyman projected 2,557 aircraft would be available in the region, with fleet expansion fueled by demand for short-haul flights.

The Middle East’s share of the global commercial fleet is projected to rise from 5.3 percent in 2025 to 6.7 percent by 2035. Alongside fleet expansion, maintenance, repair, and overhaul spending is forecast to surge from $16 billion in 2025 to $20 billion in 2035, propelled by the increasing number of aircraft.

The analysis underscores the region’s aggressive push to strengthen its aviation sector, aligning with broader economic ambitions — particularly in Saudi Arabia, where the government’s National Tourism Strategy aims to attract 150 million visitors by 2030. 

Andre Martins, head of transportation, services, and operations practices for India, the Middle East, and Africa at Oliver Wyman, said: “The Middle East commercial aviation market is on a growth trajectory, supported by strong demand for air travel, from both full-service airlines and low-cost carriers entering the market.” 

He added: “The region’s fleet expansion will be driven primarily by the addition of narrowbodies that will cater to the growth in domestic and shorter-haul flights.” 

Martins said that there is a significant opportunity for different countries in the Middle East to capture the large market potential across the entire value chain, while simultaneously enhancing the productivity and efficiency of operations.

“By leveraging global insights and best practices, the aviation sector in the Middle East can adapt their strategies to address local challenges while driving substantial improvement,” he added. 

Saudi Arabia and UAE flying high

Saudi Arabia and the UAE are driving much of this growth, accounting for 60 percent of the region’s aviation market, according to Oliver Wyman’s analysis. 

Saudi Arabia leads in domestic travel, making up 45 percent of total seats, while the UAE remains focused on international traffic. 

A recent report by the International Air Transport Association highlighted the Middle East’s aviation sector growth, with passenger demand rising 9.6 percent year on year in January. 

IATA also noted that the capacity of air carriers in the region increased by 4.4 percent compared to the same month last year. 

However, air cargo demand saw an 8.4 percent year on year decline in January. 

Narrow-body aircraft to dominate fleet 

The Middle East’s fleet expansion will be dominated by narrow-body aircraft, projected to reach 1,190 by 2035, marking a rise of 75.25 percent compared to 2025. 

Their share of the region’s total fleet will grow from 43 percent to 47 percent. One of the key advantages of narrow-body aircraft is their superior fuel efficiency. Their streamlined design and lighter weight make them an environmentally favorable choice for airlines aiming to cut carbon emissions and lower fuel consumption. 

The number of widebody aircraft in the region is projected to reach 1,307 in 2035, representing a rise of 63.17 percent compared to 2025. The number of Turboprop aircraft in the Middle East region will be 37 by 2035, followed by regional jets at 23. 

Global outlook 

The analysis projects the global fleet to surpass 38,300 aircraft by 2035, with production challenges prompting airlines to delay retiring older planes, raising the fleet’s average age. 

Narrowbody aircraft are expected to maintain their dominance, with their share increasing from 62 percent to 68 percent by 2035. 

The report highlighted that emerging regions like China, India, and the Middle East are poised to capture a larger share of the global aviation market, reflecting shifting industry dynamics. 

India’s commercial airline fleet is projected to grow at a compound annual rate of 8.5 percent from 2025 to 2035. 

The report forecasts aircraft production to reach 1,800 units in 2025, rising to 2,200 by 2029 and just over 2,400 by 2035. 

In December, a separate IATA report projected the aviation industry’s net profit to climb to $36.6 billion in 2025, up from $31.5 billion in 2024. 

The industry body also estimated passenger numbers will hit 5.2 billion in 2025 — a 6.7 percent increase from 2024 — marking the first time global travelers surpass the 5 billion mark. 

IATA further projected cargo volumes to rise 5.8 percent year on year to 72.5 million tonnes in 2025. 


Tadawul approves Merrill Lynch Kingdom of Saudi Arabia as market maker for 20 listed securities

Tadawul approves Merrill Lynch Kingdom of Saudi Arabia as market maker for 20 listed securities
Updated 34 sec ago
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Tadawul approves Merrill Lynch Kingdom of Saudi Arabia as market maker for 20 listed securities

Tadawul approves Merrill Lynch Kingdom of Saudi Arabia as market maker for 20 listed securities

RIYADH: Saudi Exchange has approved Merrill Lynch Kingdom of Saudi Arabia to act as market maker for 20 listed securities across the main trading platform and the parallel index.

This decision allows the company to enhance market liquidity and improve price efficiency in accordance with regulations and procedures.

Among the securities listed on the main index, Merrill Lynch Kingdom of Saudi Arabia will act as a market maker for Naseej International Trading Co., ensuring a minimum presence of orders at 70 percent, maintaining a size of SR75,000 ($19,995), and adhering to a maximum spread of 0.75 percent, with a minimum value traded of 5 percent.

Similarly, it will provide services for the National Co. for Glass Industries under the same trading obligations as Naseej International Trading Co.

The National Co. for Learning and Education will have a minimum order presence of 70 percent, a minimum size of SR50,000, a maximum spread of 0.75 percent, and a minimum value traded of 5 percent.

Meanwhile, Al Hassan Ghazi Ibrahim Shaker Co. will adhere to the same market-making requirements as Naseej International Trading Co. and the National Co. for Glass Industries.

Sustained Infrastructure Holding Co. and Theeb Rent a Car Co. will also be covered under similar obligations, ensuring a minimum presence of orders at 70 percent, a minimum size of SR75,000, a maximum spread of 0.75 percent, and a minimum value traded of 5 percent.

Saudia Dairy and Foodstuff Co. will have a minimum order presence of 80 percent, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a minimum value traded of 5 percent.

Dallah Healthcare Co. will operate under the same market-making conditions as Naseej International Trading Co., while Gulf Insurance Group will have a minimum order presence of 60 percent, a minimum size of SR50,000, a maximum spread of 1 percent, and a minimum value traded of 5 percent.

Aldawaa Medical Services Co. will be subject to a minimum order presence of 80 percent, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a minimum value traded of 5 percent.

Meanwhile, Tourism Enterprise Co. will ensure a minimum order presence of 50 percent, a minimum size of SR250,000, and a maximum spread of 3 percent, with no specified minimum value traded.

On Nomu, Merrill Lynch Kingdom of Saudi Arabia was approved as a market maker for Atlas Elevators General Trading and Contracting Co., Riyadh Steel Co., Sure Global Tech Co., and Ladun Investment Co.

Additionally, the firm will provide market-making services for MOBI Industry Co., Molan Steel Co., and Fesh Fash Snack Food Production, as well as Yaqeen Capital Co. and Lana Medical Co.

For each of these securities, the firm will ensure a minimum presence of orders at 50 percent, maintain a minimum size of SR50,000, and adhere to a maximum spread of 5 percent, with no minimum value traded requirement.

Merrill Lynch Kingdom of Saudi Arabia’s participation in market making is expected to contribute to greater liquidity and a more efficient trading environment, reinforcing the development of the country’s capital market.

This move aligns with the Kingdom’s ongoing efforts to attract global financial institutions and strengthen its capital markets by promoting transparency, efficiency, and investor confidence.


Oil Updates — prices rise on demand outlook strength, weaker US dollar

Oil Updates — prices rise on demand outlook strength, weaker US dollar
Updated 20 March 2025
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Oil Updates — prices rise on demand outlook strength, weaker US dollar

Oil Updates — prices rise on demand outlook strength, weaker US dollar

LONDON: Oil prices rose on Thursday, boosted by a strong outlook for demand in the United States after fuel inventories fell more than expected, and a weaker US dollar.

Brent crude futures rose 43 cents, or 0.6 percent, to stand at $71.21 a barrel by 7:23 a.m. Saudi time, their highest level since March 3. US West Texas Intermediate crude gained 38 cents, or 0.6 percent, to $67.54.

US government data showed a higher-than-expected drawdown last week in distillate inventories, including diesel and heating oil, which fell by 2.8 million barrels, outstripping a drop of 300,000 barrels expected in a Reuters poll.

“US oil demand outlook remains healthy despite lower air travel passenger volumes,” JP Morgan analysts said in a note, adding that reduced US travel activity did not signal broader weakness in demand outlook.

Global oil demand averaged 101.8 million barrels per day, an annual increase of 1.5 million bpd, the analysts said.

US crude inventories, rose 1.7 million barrels, however, exceeding expectations for an increase of 512,000 barrels in an earlier Reuters poll.

A weaker greenback also contributed to oil gains, with the dollar on a downtrend since the end of February.

“Throughout the week, the weakness of the dollar appeared to provide some support for dollar-denominated oil prices,” said Phillip Nova senior market analyst Priyanka Sachdeva.

Oil investors stay hopeful of the prospect of the Federal Reserve easing interest rates by 50 basis points by year’s end, she added.

Global risk premiums rose after Israel launched a new ground operation on Wednesday in Gaza after breaking a ceasefire of nearly two months.

The US kept up airstrikes on Houthi targets in Yemen in retaliation for the group’s attacks on ships in the Red Sea. President Donald Trump has also vowed to hold Iran responsible for future Houthi attacks.

On Wednesday, Ukrainian President Volodymyr Zelensky said a halt to strikes on energy facilities in the war with Russia could come quickly, suggesting both sides were moving closer to a ceasefire that could lead to the easing of sanctions and the return of Russian supply to the market.

Trump’s Middle East envoy, Steve Witkoff, has said another round of talks will be held in Saudi Arabia on Sunday by Russian and US officials aiming to halt the war. 


Closing Bell: Saudi main index edges down 0.7% to close at 11,709

Closing Bell: Saudi main index edges down 0.7% to close at 11,709
Updated 19 March 2025
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Closing Bell: Saudi main index edges down 0.7% to close at 11,709

Closing Bell: Saudi main index edges down 0.7% to close at 11,709

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Wednesday, as it shed 82.97 points or 0.70 percent to close at 11,709.43.

The total trading turnover of the benchmark index was SR4.55 billion ($1.21 billion), with 66 stocks advancing and 174 declining.

The Kingdom’s parallel market, Nomu, also shed 35.29 points to close at 30,683.64. The MSCI Tadawul Index declined by 0.59 percent to 1,484.07.

The best-performing stock on the main market was United International Holding Co. The firm’s share surged by 3.49 percent to SR172.

Conversely, the share price of the Mediterranean and Gulf Insurance and Reinsurance Co. declined by 10 percent to SR20.70.

On the announcements front, several major Saudi companies released their annual financial results for the period ending Dec. 31, 2024, showcasing mixed performances across industries.

Sahara International Petrochemical Co., also known as SIPCHEM, reported a 63.74 percent decrease in net profit, reaching SR462.1 million, compared to SR1.175 billion in the previous year. This decline was primarily due to higher feedstock and raw material costs, a decline in revenue, and decreased zakat expenses during the year.

The company saw a 2.99 percent drop in its share price on Wednesday to settle at SR21.46.

Rabigh Refining and Petrochemical Co. posted a 3.15 percent decrease in net profit, reaching SR4.54 billion, down from SR4.69 billion in the prior year. The company, in a statement to Tadawul, said this decline was due to a one-time expense, lower sales and margins, and higher costs of key feedstock.

Its share price saw a 0.43 percent increase to reach SR6.93.

Meanwhile, Saudi Real Estate Co. saw a significant 218.19 percent increase in net profit to SR215.1 million, up from SR67.7 million in the previous year. The increase was primarily attributed to a 42.64 percent increase in operating profit, a 181 percent increase in the company’s share of profit from an associate and the joint venture, and a 39 percent decrease in zakat expenses recorded during 2024.

Saudi Real Estate Co.’s stock price shed 1.76 percent to reach SR25.75.

The National Shipping Company of Saudi Arabia, or Bahri, reported a 34.46 percent increase in net profit, reaching SR2.169 billion, compared to SR1.613 billion in the previous year. The growth was driven by the improvement of operational performance and global shipping rates in several business units of the group.

The company’s stock price grew 2.33 percent to reach SR30.20.


Saudi Arabia dominates Forbes’ 2025 list of MENA’s most valuable banks

Saudi Arabia dominates Forbes’ 2025 list of MENA’s most valuable banks
Updated 19 March 2025
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Saudi Arabia dominates Forbes’ 2025 list of MENA’s most valuable banks

Saudi Arabia dominates Forbes’ 2025 list of MENA’s most valuable banks
  • Financial institutions from the Kingdom made up nearly a third of the total $600.8 billion market capitalization of the listed banks
  • Al-Rajhi Bank retained its position as the region’s most valuable bank, leading with a market capitalization of $105.6 billion

RIYADH: Saudi Arabia dominated Forbes’ “30 Most Valuable Banks 2025” ranking, with 10 entries boasting a combined market value of $269 billion. 

According to the business-focused media outlet, financial institutions from the Kingdom made up nearly a third of the total $600.8 billion market capitalization of the listed banks. 

The UAE followed with seven facilities valued at $153.4 billion, while Qatar contributed six banks worth $76.7 billion. Morocco and Kuwait placed three and two banks on the list, with market values of $23.7 billion and $68.4 billion, respectively. 

The Middle East and North Africa region’s banking sector remains resilient and is set for strong growth in 2025, driven by economic diversification, favorable financial conditions, and a projected 3.5 percent economic expansion fueled by infrastructure projects and rising non-oil activity, according to a recent report by Ernst & Young

In a statement announcing its latest rankings, Forbes said: “This year’s list features banks from seven countries, with 26 entries being Gulf-based. Saudi Arabia represents a third of the list with 10 entries, with an aggregate market value of $269 billion.”

The media firm noted that the total market value of the 30 banks increased by 3.4 percent year over year, rising from $581.1 billion in February 2024 to $600.8 billion as of Jan. 31, 2025. 

Al-Rajhi Bank holds the top spot 

Al-Rajhi Bank retained its position as the region’s most valuable bank, leading with a market capitalization of $105.6 billion — representing 17.6 percent of the total market value of the 30 banks. 

It was followed by Saudi National Bank at $54.7 billion, and the UAE’s First Abu Dhabi Bank, valued at $43.7 billion.

Beyond the top three, Qatar’s QNB Group and Kuwait Finance House ranked fourth and fifth, with market values of $41.2 billion and $38.3 billion, respectively. 

They were followed by the UAE’s Emirates NBD Group at $28.9 billion and Kuwait’s National Bank of Kuwait at $27.1 billion. 

Other notable banks in the ranking include Abu Dhabi Commercial Bank and Riyad Bank. The list also features banks from Morocco and Oman. 

A resilient sector 

MENA’s banking sector has shown stability over the past year, supported by higher interest rates and robust oil prices. 

According to a Fitch Ratings report published in 2024, the economic environment in the region has sustained liquidity levels, profitability, and strong capital buffers for most Gulf Cooperation Council banks. 

Forbes Middle East compiled the ranking based on reported market values of publicly listed banks across the Arab world as of Jan. 31, 2025. Subsidiaries of listed companies were excluded from the ranking, and currency exchange rates were taken as of the same date.


Saudi Arabia grants $97.5m exploration licenses for first mineral belts at Jabal Sayid, Al-Hajjar

Saudi Arabia grants $97.5m exploration licenses for first mineral belts at Jabal Sayid, Al-Hajjar
Updated 19 March 2025
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Saudi Arabia grants $97.5m exploration licenses for first mineral belts at Jabal Sayid, Al-Hajjar

Saudi Arabia grants $97.5m exploration licenses for first mineral belts at Jabal Sayid, Al-Hajjar
  • Jabal Sayid and Al-Hajjar cover a combined area of 4,788 sq. km
  • Among the successful bidders, Ajlan and Bros-Norin for Mining secured the license for the southern Al-Hajjar site
  • Competition saw 14 local and international companies submit bids after passing the pre-qualification stage

JEDDAH: Saudi Arabia has granted exploration licenses worth SR366 million ($97.5 million) to local and international companies for its first mineral belts at Jabal Sayid and Al-Hajjar.

These two sites, covering a combined area of 4,788 sq. km, are part of the Ministry of Industry and Mineral Resources’ efforts to accelerate the exploration and development of the Kingdom’s estimated SR9.3 trillion ($2.48 trillion) in mineral resources.

Among the successful bidders, Ajlan and Bros-Norin for Mining secured the license for the southern Al-Hajjar site.

A consortium consisting of Artar, Gold and Minerals Ltd Co., and Jacaranda, owned by Australian company Hancock Prospecting, won the license for the northern Al-Hajjar site. Vedanta Ltd, a major Indian mining giant, received the first exploration permit for the Jabal Sayid belt, while a second license for the same site went to a consortium of Ajlan & Bros Mining and Zijin Mining, a Chinese mining giant ranked among the world’s top five.

Saudi Arabia is focused on making mining a key pillar of its economy, alongside oil and petrochemicals. The Ministry of Industry and Mineral Resources is working to unlock natural resources to diversify the economy, create jobs, and position the Kingdom as a global mining hub in alignment with Vision 2030.

The competition saw 14 companies, both local and international, submit bids after passing the pre-qualification stage. The submissions were evaluated based on technical expertise, proposed work plans, and social and environmental commitments, according to the Ministry’s statement.

The newly awarded licenses cover two areas within the Jabal Sayid belt, which spans 2,892 sq. km and contains valuable minerals such as copper, zinc, lead, gold, and silver. Additionally, two more licenses were granted for the Al-Hajjar site, covering 1,896 sq. km and rich in natural resources.

The ministry emphasized that the involvement of major international mining companies like Zijin Mining, Hancock Prospecting, and Vedanta Ltd. underscores the growing global interest in Saudi Arabia's mining sector and the opportunities it offers through exploration license competitions.

It also confirmed that the total exploration investment from the winning companies will surpass SR366 million over the next three years, with an extra SR22 million pledged for community development projects near the mining sites, aimed at creating job opportunities for local residents.

Ajlan and Bros-Norin for Mining, which secured the southern Al-Hajjar site, will invest SR209 million in exploration, which includes over 119,000 meters of drilling. Furthermore, they will allocate SR11.2 million for community-focused initiatives, such as building intermediate schools for girls in nearby provinces.

The consortium of Artar, Gold & Minerals Ltd., and Jacaranda will invest more than SR62 million in exploration at the northern Al-Hajjar site, including 52,000 meters of drilling. They will also direct SR4.2 million toward local infrastructure projects.

Vedanta Ltd., the Indian mining giant, has committed SR33 million for exploration at Jabal Sayid 1, covering 22,000 meters of drilling. In addition, they will invest SR3 million in community development projects, focusing on local employment and training programs.

The consortium of Ajlan & Bros Mining and Zijin Mining has pledged approximately SR62 million for exploration at Jabal Sayid 2, including 51,000 meters of drilling. They will also allocate SR4 million for community initiatives, particularly aimed at developing road infrastructure in the surrounding area.

In line with these efforts, the Ministry of Industry and Mineral Resources has launched the second phase of the Mining Exploration Enablement Program, in collaboration with the Ministry of Investment, to mitigate risks for companies during the early stages of mining exploration.

The Kingdom also offers incentives under the mining investment system, such as allowing foreign companies to fully own operations and providing up to 75 percent funding for capital costs through the Saudi Industrial Development Fund.

During the fourth edition of the Future Minerals Forum, held in January, the Ministry of Industry announced the offering of 50,000 sq. km of mineralized belts containing gold, copper, and zinc.

This initiative is part of the ministry’s efforts to enhance exploration and create an attractive investment environment for local and international mining companies. Applications for these opportunities can be submitted through the Taadeen platform.