PIA partners with Saudi company to boost tourism, air travel between Pakistan and Kingdom

Representatives of Pakistan International Airlines and Funadiq Travel & Tourism Services, the official marketing representative of the Saudi Tourism Authority, pose for a picture after signing a memorandum of understanding to boost air travel and tourism between the two nations in Islamabad, Pakistan on Sept. 23. PIA/X
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Updated 25 September 2024
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PIA partners with Saudi company to boost tourism, air travel between Pakistan and Kingdom

  • Partnership aims to promote Saudi Arabia as top tourist destination among Pakistanis through joint marketing initiatives, travel packages
  • Agreement expected to strengthen Pakistan-Saudi Arabia relations, enhance both countries’ tourism potential, says Pakistan’s flag carrier

ISLAMABAD: Pakistan International Airlines and Funadiq Travel & Tourism Services, the official marketing representative of the Saudi Tourism Authority in the country, this week inked an agreement to boost air travel and tourism between the two nations, Pakistan’s national flag carrier said. 

The memorandum of understanding was signed between the two parties on the occasion of Saudi Arabia’s 94th National Day on Sept. 23. The partnership aims to promote Saudi Arabia as a top tourist destination for Pakistani travelers through joint marketing initiatives, co-branded travel packages, and sustainable tourism practices, the PIA said. It added that the collaboration also supports the broader objectives of Saudi Arabia’s Vision 2030 program. 

“This partnership reflects PIA’s commitment to providing enhanced travel experiences for our passengers,” Amir Hayat, PIA’s CEO, said in a statement. “By working with Funadiq and the Saudi Tourism Authority, we aim to make travel between Pakistan and Saudi Arabia more accessible and enjoyable for our customers.”

Funadiq CEO Mohammad Salman Arain said the company was “thrilled” to join hands with the national flag carrier to promote the Kingdom as a world-class destination. 

“Together, we will ensure that Pakistani tourists enjoy seamless travel experiences while exploring the rich cultural and historical heritage of Saudi Arabia,” Arain said. 

The partnership is expected to strengthen Pakistan-Saudi Arabia relations, enhance tourism potential, and offer new opportunities for both countries to collaborate on multiple fronts, PIA said. 

Thousands of Pakistanis travel to Saudi Arabia every year to perform the Hajj and Umrah pilgrimages. The two countries enjoy strong cultural, defense and economic ties and the Kingdom is home to over 2 million Pakistanis. For years, it has remained the largest contributor to the South Asian country’s remittance inflows.


Aramco expands global retail network with 25% stake in Philippines’ Unioil

Updated 4 sec ago
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Aramco expands global retail network with 25% stake in Philippines’ Unioil

  • Deal aims to capitalize on the expected growth of the high-value fuels market in the Philippines

RIYADH: Saudi oil giant Aramco has signed definitive agreements to acquire a 25 percent equity stake in Unioil Petroleum Philippines, marking its entry into the Southeast Asian nation’s retail fuel market as part of a broader global expansion strategy. 
The deal, subject to regulatory approvals and customary closing conditions, is aimed at capitalizing on the expected growth of the high-value fuels market in the Philippines, the company said in a press release.  
It also advances Aramco’s downstream expansion by seeking additional outlets for its refined products. The investment follows similar acquisitions in Chile and Pakistan, reinforcing the company’s push to strengthen its retail network in key markets. 
“This investment represents another step forward in our global strategy to expand Aramco’s retail network, and we look forward to introducing Aramco’s high-quality products and services to customers in the Philippines,” said Yasser Mufti, Aramco’s executive vice president of products and customers. 
“Our international expansion aims to capture additional value and enhance our participation in vibrant economies, in collaboration with established partners. We are delighted to embark on the next stage of this journey with Unioil, a dynamic player in the fast-growing Philippines fuels market,” he added. 
Founded in 1966, Unioil operates 165 retail stations and four storage terminals across the Philippines. 
Upon completion of the deal, Aramco plans to extend its brand, introduce competitive retail offerings, and supply Valvoline-branded lubricants to select Unioil stations. 
The expansion underscores Aramco’s efforts to diversify its downstream footprint and capitalize on emerging market opportunities. The company has been expanding its global reach not just through acquisitions but also by influencing crude pricing trends. 
Aramco recently raised its official selling prices for Asian buyers to the highest levels in more than a year, citing rising demand from China and India, as well as supply disruptions linked to US sanctions on Russian oil. The price adjustments highlight Aramco’s ability to navigate shifting market dynamics while maintaining its dominance in crude supply. 
With recent investments in Chile, Pakistan, and now the Philippines, Aramco is pushing deeper into international retail markets, securing outlets for refined products and strengthening its presence in high-growth economies. 


Closing Bell: Saudi main index closes in red at 12,317

Updated 35 min 52 sec ago
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Closing Bell: Saudi main index closes in red at 12,317

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 16.08 points, or 0.13 percent, to close at 12,317.59.

The total trading turnover of the benchmark index was SR6.03 billion ($1.60 billion), as 49 of the listed stocks advanced, while 189 retreated.   

The MSCI Tadawul Index increased by 2.71 points, or 0.18 percent, to close at 1,538.30.

The Kingdom’s parallel market Nomu rose, gaining 50.75 points, or 0.16 percent, to close at 31,430.32. This came as 47 of the listed stocks advanced, while 36 retreated.

The best-performing stock was Electrical Industries Co. with its share price surging by 7.14 percent to SR7.35.

Other top performers included Etihad Etisalat Co., also know as Mobily, which saw its share price rise by 5.47 percent to SR59.80, and Mobile Telecommunication Co. Saudi Arabia known as ZAIN KSA, which saw a 3.70 percent increase to SR11.20.

The worst performer of the day was SAL — also known as Saudi Logistics Services Co. — whose share price fell by 7.93 percent to SR253.20.

Saudi Fisheries Co. and Nice One Beauty Digital Marketing Co. also saw declines, with their shares dropping by 4.62 percent and 4.53 percent to SR124 and SR65.30, respectively.

On the announcements front, SAL revealed its annual financial results for 2024, with net profits reaching SR661.4 million, up 29.7 percent compared to the previous year.

In a statement on Tadawul, the company said the surge was attributed to “remarkable topline growth, effective cost control measures, savings from major lease terminal rentals, and finance income from short-term murabaha deposits.” In today’s trading session, the firm was the worst performer.

Moreover, Yamama Cement Co. shared its interim financial results for the period ending Dec. 31, with net profits amounting to SR420.7 million, reflecting a 38.2 percent surge compared to the same period in the previous year.

The company attributed the surge in profits to high sales value, and its shares traded 1.89 percent lower on the main market today to close at SR36.25.

In another announcement, Mobily revealed its annual consolidated financial results for 2024.

The company’s net profit in 2024 reached SR3.1 billion, up from SR2.2 billion in the previous year, driven by higher revenue and operational efficiency. Gross profit rose by 6.9 percent, while earnings before interest, taxes, depreciation, and amortization climbed 8.6 percent year-on-year.  

This was supported by a withholding tax reversal of SR284 million, an 18.6 percent increase in operating profit, and a 10.8 percent drop in financial charges. Additionally, zakat and income tax declined to SR86 million, reflecting a reduced debt portfolio.

In Wednesday’s trading session, the company’s shares traded 5.47 percent higher on the main market to close at SR59.80.


Saudi Cabinet approves land transport system to enhance efficiency, sustainability 

Updated 19 February 2025
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Saudi Cabinet approves land transport system to enhance efficiency, sustainability 

JEDDAH: Saudi Arabia’s Cabinet has approved a comprehensive land transport system aimed at modernizing road networks and integrating advanced technologies to enhance efficiency and sustainability. 

The system, approved at a Cabinet session in Riyadh and chaired by Crown Prince Mohammed bin Salman, is designed to streamline regulations and drive environmentally friendly growth in the industry, the Saudi Press Agency reported. 

It also aligns with global trends toward sustainable and connected transport infrastructure, reinforcing Saudi Arabia’s ambition to lead in logistics and mobility innovation.

With more than 73,000 km of roads, Saudi Arabia ranks among global leaders in terms of connectivity, according to the Transport General Authority. 

Saleh bin Nasser Al-Jasser, minister of transport and logistics services and chairman of the TGA board, said the decision supports the regulation and development of land transport across various sectors, aligning it with the Kingdom’s rapid economic expansion. 

“This includes the adoption of modern technologies in transportation and sustainable mobility, the regulation of transport facilities, the activation of professional and technical qualifications, and the establishment of clear obligations for licensees, along with defining the rights and responsibilities of beneficiaries,” Al-Jasser said. 

The new system, he noted, reflects the leadership’s ongoing support for the transport and logistics sector, reinforcing its role in driving economic growth and investment. 

It is also expected to contribute to the objectives of the National Transport and Logistics Strategy, which seeks to improve mobility, enhance quality of life, and facilitate economic activities with high standards of safety, efficiency, and service delivery. 

Al-Jasser emphasized that the system would create investment opportunities, ensure fair competition, and strengthen the private sector’s role as a key partner in development. 

“This will increase the sector’s contribution to the national economy and further establish the Kingdom as a global leader in integrated transport services, in line with Saudi Arabia’s Vision 2030, helping to build a sustainable and prosperous future,” he said. 

Under the new framework, the TGA will classify key road transport activities, including passenger and cargo transport, and car rentals. Service providers will be required to comply with operational and technical conditions set by regulators, while violations will be subject to penalties. 

The system also introduces stricter rules on foreign cargo truck operations, aiming to regulate entry and enforce compliance with local transport laws. 

Additionally, passenger transport operators will be prohibited from soliciting customers directly, such as calling out to passengers or following them to offer services. 


Brazil adheres to OPEC+ cooperation letter; no output caps

Updated 19 February 2025
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Brazil adheres to OPEC+ cooperation letter; no output caps

SAO PAULO: Brazil has decided to adhere to the declaration of cooperation of the OPEC+ group of oil-producing countries, the local energy ministry said on Tuesday, formalizing a move it had initially announced in 2023.

Brazil is the largest oil producer in South America. Its output hit 4.32 million barrels of oil equivalent per day in 2024, according to the country’s oil regulator.

It will join nations such as Saudi Arabia and Russia in the group’s declaration, but is not expected to take part in its coordinated output caps.

The move shows Brazil’s “growing relevance in the oil and gas market,” the mines and energy ministry said in a statement, adding, however, that the country would “continue to develop its energy policy in line with its own interests.”

“It is important to highlight that the declaration does not include the participation of countries in decisions aimed at cutting oil production,” the ministry said.

Brazil first said it was going to join the OPEC+ cooperation in late 2023, but President Luiz Inacio Lula da Silva reiterated at the time the country had no intention to be a full member, instead acting as an “observer.”

The country on Tuesday has also decided to become a member of the International Renewable Energy Agency (IRENA) and the International Energy Agency (IEA), the government said.


Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

Updated 19 February 2025
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Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

RIYADH: Saudi utility giant ACWA Power has strengthened its portfolio by acquiring a $693 million stake in power generation and water desalination companies in Bahrain and Kuwait.

The company has secured holdings in four companies after buying the shares held by the regional subsidiary of French utility developer Engie.

The deal includes a 45 percent interest in both the Al-Ezzel and Al-Dur projects as well as a 30 percent holding in the Al-Hidd facility, all situated in Bahrain. 

It also sees ACWA Power acquire an 18 percent stake in Az Zour North in Kuwait.

The move falls in line with ACWA Power’s strategy to be at the forefront of the energy transition by delivering reliable and responsible power, desalinated water, and green hydrogen at low cost in Saudi Arabia and the wider Gulf Cooperation Council and attractive high-growth markets based on a de-risked and contracted business model.

“This acquisition represents a pivotal milestone for ACWA Power, reinforcing our position as global leader in water desalination. We consolidate our presence in Bahrain where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant,” CEO of ACWA Power Marco Arcelli said. 

“Reinforcing our presence in each country will allow us to further develop our people there and localize our operations more, providing safe and reliable supplies to the local communities and industries,” he added.

ACWA Power will also acquire a portfolio of companies responsible for the operation and maintenance of the four assets, specifically Az Zour North O&M Co., with a 50 percent stake and complete ownership of Al-Ezzel O&M Co.

The deals cover operating capacities of 4.61 gigawatts of gas-fired power generation and 1.11 million cubic meters per day of water desalination facilities, as well as the related operations and maintenance companies in the two countries, according to a statement.

Chief Investment and Development Officer of ACWA Power Thomas Brostrom said: “By making its inaugural entry into the Kuwaiti market through the acquisition of a stake in the Az-Zour North Facility, ACWA Power has achieved a significant milestone in its strategic efforts to expand its presence within the regional energy and water desalination sector.”

The secured contracted revenue streams from the acquired assets align well with the firm’s broader strategy of tripling its assets under management to $250 billion by 2030.