KUALA LUMPUR: Malaysian former prime minister Najib Razak, fighting dozens of charges over a multi-billion-dollar graft scandal at state fund 1MDB, faces his first verdict on Tuesday in a landmark case that tests the country’s efforts to stamp out corruption and could have big political implications.
Najib was voted out in a historic 2018 election amid public anger over allegations that $4.5 billion was stolen in a globe-spanning scheme from 1Malaysia Development Berhad (1MDB), a fund he co-founded. Prosecutors allege more than $1 billion made its way into his personal accounts.
His party returned to power this year in an alliance led by Prime Minister Muhyiddin Yassin, prompting some to question how whether the return would affect several corruption cases against Najib and his allies.
For Najib, the verdict in the years-long saga, which has seen a spectacular fall from extreme opulence and a dominant position in Malaysian politics, marks a reckoning for the urbane, British-educated politician — potentially decades in jail or a partial vindication.
It also comes just four days after the announcement of a $3.9 billion settlement with Goldman Sachs in return for Malaysia dropping criminal charges against the investment bank over its role in helping 1MDB sell $6.5 billion in bonds.
Najib will first hear the verdict on seven charges he faces over receiving $9.9 million from former 1MDB unit SRC International in 2014. He has pleaded not guilty to criminal breach of trust, money laundering and abuse of power.
“We believe we have adduced more than enough evidence to cast reasonable doubt on the prosecution’s case,” defense lawyer Harvinderjit Singh said.
If convicted, Najib could face hefty fines and jail terms of as much as 15 to 20 years on each charge.
It is unclear if he would be sentenced immediately if found guilty. Singh said sentencing could be delayed or suspended due to the complex nature of the case.
The verdict and Friday’s settlement, seen as a boost to Muhyiddin’s fledgling four-month old administration, come amid speculation the prime minister may call elections soon. Muhyiddin has a slim majority in parliament, and the opposition is gearing up for polls.
Liew Chin Tong, an opposition politician, said a guilty verdict for Najib could boost Muhyiddin’s popularity. But it could also create tensions within the ruling coalition — Najib’s party is the biggest component — and increase calls for a snap election, he said.
Najib no longer leads the party but remains highly influential.
He declined to comment on the upcoming verdict but appeared relaxed on Thursday, celebrating his 67th birthday by sharing a cake with supporters at the Kuala Lumpur courthouse where he has become a regular presence the past two years.
Low, who faces charges in Malaysia and United States over his central role in the case, also denies wrongdoing. The offices of the prime minister and the attorney-general did not respond to requests for comment.
Muhyiddin this month said he would work to implement broad anti-corruption reforms, amid concerns raised by activists over the fate of several high-profile graft trials.
Prosecutors last month withdrew charges against Najib ally Musa Aman, shortly after settling a $248 million 1MDB-related case involving the ex-premier’s stepson Riza Aziz.
“If you continuously have high-profile cases being dropped, people can’t believe that,” said Transparency International Malaysia director Muhammad Mohan. “The real victory will come only when there are convictions.”
The global watchdog expects Malaysia’s ranking on its corruption perception index to fall this year.
The verdict also comes as Najib enjoys a resurgence in popularity after embarking on an extensive public makeover, adopting a more personable tone to replace his image as a wealthy elite.
He maintains an active social-media presence, hitting out at the opposition and posting light-hearted updates on Facebook, where he has over 4 million followers, more than any other Malaysian politician.
Malaysia faces crucial graft test as former PM Najib Razak’s first 1MDB verdict looms
https://arab.news/6ma32
Malaysia faces crucial graft test as former PM Najib Razak’s first 1MDB verdict looms
- Najib Razak was voted out in a historic 2018 election amid public anger
- Prosecutors allege more than $1 billion made its way into his personal accounts
Middle East airlines to lead global profit margins at 8.7% in 2025, IATA says
RIYADH: Middle East airlines are forecast to post the world’s highest net profit margin in 2025 of 8.7 percent, outpacing global peers, according to the latest industry report.
The forecast, released by the International Air Transport Association during its 81st Annual General Meeting in New Delhi, also projects that airlines operating in the Middle East will generate a net profit of $6.2 billion this year — slightly up from $6.1 billion in 2024. The region is also expected to earn $27.20 per passenger.
Globally, airlines are projected to record a net profit of $36 billion, with total industry revenue reaching $979 billion — below IATA’s earlier $1 trillion estimate, due in part to macroeconomic uncertainties and supply constraints.
The growth of the aviation sector in the Middle East reflects broader regional expansion, as countries such as Saudi Arabia and the UAE continue to bolster the industry as part of their economic diversification efforts.
In its report, IATA stated: “The Middle East will generate the highest net profit per passenger among the regions. Robust economic performance is supporting strong air travel demand, both for business and leisure travel.”
It added: “However, with delays in aircraft delivery, the region will see limitations in capacity as airlines embark on retrofit projects to modernize their fleet, hence limiting growth.”
According to IATA, revenue per passenger in 2025 is expected to reach $11.10 in North America, followed by $8.90 in Europe, $3.40 in Latin America, $2.60 in Asia Pacific, and $1.30 in Africa.
Global outlook
While airlines globally are expected to earn a collective $36 billion in profit in 2025, up from $32.4 billion in 2024, the figure is slightly below the $36.6 billion projected in December. The average net profit per passenger remains modest at $7.20, according to IATA.
IATA Director General Willie Walsh said the first half of 2025 has brought notable uncertainty to global markets. Still, he noted, airline performance is expected to surpass 2024 levels, though it will fall slightly short of earlier forecasts.
“The biggest positive driver is the price of jet fuel which has fallen 13 percent compared with 2024 and 1 percent below previous estimates,” he said.
Walsh added: “Moreover, we anticipate airlines flying more people and more cargo in 2025 than they did in 2024, even if previous demand projections have been dented by trade tensions and falls in consumer confidence.”
He noted that considering the headwinds, this is a strong result that “demonstrates the resilience that airlines have worked hard to fortify.”
Operating profit for global airlines is expected to reach $66 billion in 2025, up from $61.9 billion the previous year. Total expenses are projected at $913 billion in 2025, marking a 1 percent increase from 2024.
“Our profitability is not commensurate to the enormous value that we create at the heart of a value chain supporting 3.9 percent of global GDP and providing and supporting jobs for 86.5 million people,” said Walsh.
Passenger revenue in 2025 is expected to increase by 1.6 percent year on year to reach an all-time high of $693 billion.
Passenger growth, measured in revenue passenger km, is projected at 5.8 percent — a normalization following the double-digit growth during the pandemic recovery.
Cargo revenues are expected to decline by 4.7 percent to $142 billion in 2025, driven by sluggish global economic growth and trade-dampening protectionist measures, including tariffs.
Air cargo growth is expected to slow to 0.7 percent in 2025 from 11.3 percent in 2024. Cargo yield is also projected to decline by 5.2 percent, reflecting slower demand growth and lower oil prices.
Fleet and backlog issue
The IATA director general criticized aircraft manufacturers for long delivery backlogs, noting that more than 17,000 aircraft are on order, with wait times of up to 14 years, stalling growth opportunities across regions.
“The number of deliveries scheduled for 2025 is 26 percent less than what was promised a year ago,” said Walsh.
He warned that the backlog will negatively impact revenues as demand remains unmet, while scarcity drives up maintenance and leasing costs.
“It’s just not acceptable that manufacturers estimate it could take until the end of the decade to sort this mess out,” said Walsh.
Walsh also highlighted recent infrastructure advancements, including the opening of new secondary airports in New Delhi and Mumbai, and the phased launch of the world’s largest airport in Dubai.
“Governments around the world are building a competitive future for aviation because they want aviation to contribute even more to their societies and economies,” added Walsh.
Sustainability and SAF
Walsh also emphasized the importance of sustainability in aviation, urging the sector to leverage all available decarbonization tools.
He called for global cooperation to advance decarbonization efforts.
IATA reported that sustainable aviation fuel production is expected to double in 2025 to 2 million tonnes — still only 0.7 percent of total industry fuel usage.
The average cost of SAF in 2024 was 3.1 times higher than jet fuel, adding $1.6 billion in costs.
In 2025, SAF is expected to cost 4.2 times more than jet fuel, primarily due to “compliance fees” levied by European fuel suppliers to hedge against the cost of meeting a 2 percent SAF mandate in jet fuel supplies.
“The behavior of fuel suppliers in fulfilling the SAF mandates is an outrage. The cost of achieving net-zero carbon emissions by 2050 is estimated to be an enormous $4.7 trillion,” said Walsh.
He added: “Fuel suppliers must stop profiteering on the limited SAF supplies available and ramp up production to meet the legitimate needs of their customers.”
Walsh added that under the Carbon Offsetting and Reduction Scheme for International Aviation, airlines are expected to face a $1 billion cost in 2025.
Under CORSIA, operators must purchase and cancel emissions units to offset increases in CO2 emissions.
“CORSIA must be successful. It is a credible and verifiable system that requires carbon credits of only the highest standard, making its positive impact on climate unquestionable,” said Walsh.
Oil Updates — crude jumps after OPEC+ sticks to same output hike in July versus June
SINGAPORE: Oil prices rebounded more than $1 a barrel on Monday after producer group OPEC+ decided to increase output in July by the same amount as it did in each of the prior two months, which came as a relief to those who expected a bigger increase.
Brent crude futures climbed $1.46, or 2.33 percent, to $64.24 a barrel by 9:26 a.m. Saudi time after settling 0.9 percent lower on Friday. US West Texas Intermediate crude was at $62.45 a barrel, up $1.66, or 2.73 percent, following a 0.3 percent decline in the previous session.
Both contracts were down more than 1 percent last week.
The Organization of the Petroleum Exporting Countries and their allies decided on Saturday to raise output by 411,000 barrels per day in July, the third month the group known as OPEC+ increased by the same amount, as it looks to wrestle back market share and punish over-producers.
The group had been expected to discuss a bigger production hike.
“Had they gone through with a surprise larger amount, then Monday’s price open would have been pretty ugly indeed,” analyst Harry Tchilinguirian of Onyx Capital Group wrote on LinkedIn.
Oil traders said the 411,000-bpd output hike had already been priced into Brent and WTI futures.
“The headline motive has centered on punishing OPEC+ members like Iraq and Kazakhstan that have persistently produced above their pledged quotas,” said the Commonwealth Bank of Australia in a note on Monday.
Kazakhstan has informed OPEC that it does not intend to reduce its oil production, according to a Thursday report by Russia’s Interfax news agency citing Kazakhstan’s deputy energy minister.
Looking ahead, Goldman Sachs analysts anticipate OPEC+ will implement a final 410,000 bpd production increase in August.
“Relatively tight spot oil fundamentals, beats in hard global activity data, and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6th,” the bank said in a note dated Sunday.
Meanwhile, low levels of US fuel inventories have stoked supply jitters ahead of expectations for an above-average hurricane season, analysts said.
“More encouraging was a huge spike in gasoline implied demand going into what’s considered the start of the US driving season,” ANZ analysts said in a note, adding that the gain of nearly 1 million bpd was the third-highest weekly increase in the last three years.
Traders are also closely watching the impact of lower prices on US crude production which hit an all-time high of 13.49 million bpd in March.
Last week, the number of operating oil rigs in the US fell for a fifth week, down four to 461, the lowest since November 2021, Baker Hughes said in its weekly report on Friday.
New center positions Saudi Arabia for advanced manufacturing leadership
- Integrated initiatives aim to enhance industrial productivity and efficiency
- Center brings together programs and initiatives that enable the adoption of modern manufacturing technologies
RIYADH: The global industrial sector is witnessing a radical transformation toward adopting Fourth Industrial Revolution technologies, prompting countries to reconsider traditional manufacturing methods and adopt smart solutions that include automation, artificial intelligence, robotics, and data-driven systems to improve production efficiency and reduce operational costs.
According to the Saudi Press Agency, the Kingdom is not only keeping pace with the global industrial transformation but also aims to lead it through strategic initiatives and specialized programs that promote smart industry practices and accelerate the adoption of advanced manufacturing technologies.
This will enhance the competitiveness of Saudi Arabia’s industrial sector both regionally and globally, aligning with the goals of Vision 2030 and the National Industrial Strategy to position the Kingdom as a leading industrial power, one that supports global supply chains and exports high-tech products globally.
The Ministry of Industry and Mineral Resources is undertaking this ambitious transformation by establishing an integrated and comprehensive national system to enhance advanced manufacturing, according to SPA.
It has launched the Advanced Manufacturing and Production Center, which brings together all programs and initiatives that enable the adoption of modern manufacturing technologies and stimulate smart and innovative industrial solutions.
This initiative is in cooperation with various government entities related to the technology, research, and innovation sectors and in partnership with several global leaders in industrial technology.
The efforts under the Advanced Manufacturing and Production Center include the Future Factories Program Initiative, the Industrial Beacons Program, the Accelerated Manufacturing Program, the Capability Centers Network, and the Operational Excellence Program, reported SPA.
These initiatives collectively support the center’s vision of becoming a unified national platform that accelerates the adoption of advanced manufacturing technologies. They also serve as a bridge to help local manufacturers access cutting-edge solutions that improve efficiency, enhance quality, and reduce costs across the industrial sector.
The center aims to boost productivity and competitiveness in the manufacturing sector by localizing advanced and sustainable technologies, creating an attractive environment for industrial investment, and supporting skill development through its Capability Centers Network. It also offers experiential learning opportunities and provides advisory services to help industrial establishments adopt advanced manufacturing practices.
The efforts of the ministry are aligned with several government entities that support the center’s vision and objectives.
In 2022, the ministry launched the Future Factories initiative to support the smart transformation journey of industrial establishments, aiming to automate 4,000 Saudi factories and increase their production efficiency, reduce reliance on unskilled labor, and promote the adoption of advanced industrial solutions and practices.
The initiative offers numerous incentives and enablers to support the digital transformation of national factories, including financing solutions, consulting services, and the development and qualification of human resources to leverage the latest manufacturing technologies.
It also helps industrial establishments assess their technological maturity and develop transformation plans to adopt operational excellence practices and advanced manufacturing solutions, including AI, robotics, the Internet of Things, and big data analytics.
To support industrial transformation in the Kingdom and achieve global leadership in adopting advanced manufacturing technologies, the ministry launched the Industrial Beacons program.
This undertaking aims to enable leading Saudi factories to adopt Fourth Industrial Revolution technologies, thereby enhancing their production efficiency and qualifying them to receive international recognition within the Global Lighthouse Network, an affiliate of the World Economic Forum, by 2030.
During the launch ceremony of the Advanced Manufacturing and Production Center, the Ministry announced 10 national industrial companies that committed to achieving the standards of the Industrial Beacons initiative.
With the launch of the Advanced Manufacturing and Production Center and its targeted initiatives to promote advanced technologies and foster research and innovation in the industrial sector, the Kingdom signals that its ambitions extend beyond simply keeping pace with global industrial trends.
Global production of sustainable aviation fuel to reach 2m tonnes in 2025: IATA
- Ensuring success of Carbon Offsetting and Reduction Scheme for International Aviation is crucial, says IATA head
- Sufficient government measures needed to meet decarbonization efforts, Willie Walsh added
RIYADH: Global sustainable aviation fuel production is expected to double to reach 2 million tonnes in 2025 compared to the previous year, according to the International Air Transport Association.
In a press statement issued during IATA’s Annual General Meeting, Director General Willie Walsh noted that the projected 2 million tonnes of SAF will account for just 0.7 percent of total fuel consumption this year.
The use of SAF has been increasingly prominent in recent years, as most countries have set stipulated targets to achieve net zero as part of their energy transition efforts.
“While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7 percent of aviation’s total fuel needs,” said Walsh.
He added: “And even that relatively small amount will add $4.4 billion globally to the fuel bill. The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate.”
The IATA official further stated that sufficient government measures, including the implementation of effective policies, are needed to meet decarbonization efforts.
He added that ensuring the success of the Carbon Offsetting and Reduction Scheme for International Aviation is crucial to offsetting carbon emissions in the aviation sector.
Under CORSIA, an initiative launched by the International Civil Aviation Organization, airplane operators must purchase and cancel “emissions units” to offset the increase in CO2 emissions.
“Advancing SAF production requires an increase in renewable energy production from which SAF is derived. Secondly, it also requires policies to ensure SAF is allocated an appropriate portion of renewable energy production,” said IATA in the statement.
In a separate statement, IATA said that $1.3 billion in airline funds are blocked from repatriation by governments as of the end of April.
The industry body, however, noted that this figure also represents a 25 percent improvement compared to the $1.7 billion reported for October.
The aviation body also urged governments to remove all barriers preventing airlines from the timely repatriation of their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.
“Ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations. Delays and denials violate bilateral agreements and increase exchange rate risks,” said Walsh.
He added: “Economies and jobs rely on international connectivity. Governments must realize that it is a challenge for airlines to maintain connectivity when revenue repatriation is denied or delayed.”
Closing Bell: Saudi main index closes in red at 10,825
- MSCI Tadawul Index decreased 21.69 points to close at 1,382.11
- Parallel market Nomu lost 140.52 points to end at 26,669.23
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Sunday, losing 165.14 points, or 1.50 percent, to close at 10,825.27.
The total trading turnover of the benchmark index was SR4.27 billion ($1.13 billion), as 31 of the listed stocks advanced, while 215 retreated.
The MSCI Tadawul Index decreased by 21.69 points, or 1.55 percent, to close at 1,382.11.
The Kingdom’s parallel market Nomu dipped, losing 140.52 points, or 0.52 percent, to close at 26,669.23. This comes as 20 of the listed stocks advanced while 61 retreated.
The best-performing stock was Emaar The Economic City, with its share price surging 3.91 percent to SR13.28.
Other top performers included Sinad Holding Co., which saw its share price rise by 2.56 percent to SR10.42, and Alkhaleej Training and Education Co., which saw a 2.22 percent increase to SR25.35.
The shares of Al Yamamah Steel Industries Co. and Morabaha Marina Financing Co. also rose by 2.19 percent and 1.85 percent to SR30.30 and SR11, respectively.
On the downside, United Carton Industries Co. was the day’s weakest performer, with its share price declining 9.31 percent to SR40.90.
Raydan Food Co. and Makkah Construction and Development Co. also saw declines, with their shares dropping by 8.04 percent and 7.02 percent to SR13.50 and SR90, respectively.
Moreover, the shares of Gulf Insurance Group and Saudi Fisheries Co. dipped by 6.54 percent and 5.94 percent to SR24.02 and SR95, respectively.
On the parallel market, Digital Research Co. led the gains, with its share price rising 13.02 percent to SR59.90.
Future Care Trading Co. and Saudi Parts Center Co. also saw a positive change, with their shares increasing by 9.32 percent and 7.14 percent to SR3.52 and SR45, respectively.
Conversely, Amwaj International Co. was the weakest performer on Nomu, with its share price falling 9.78 percent to close at SR36.90.
Fad International Co. and Dar Almarkabah for Renting Cars Co. followed with decreases of 9.42 percent and 9.26 percent to SR76 and SR2.45, respectively.
