https://arab.news/89u53
RIYADH: The National Observation of Labor (NLO) revealed an increase of 1 percent in the Saudization rate in the private sector, adding about 60,000 more employees to the labour market during the third quarter of 2021.
The current rate of Saudization is 23.6 percent of total employees in the private sector, according to the Saudi Press Agency (SPA).
NLO revealed that more than 200,000 Saudis joined the market labour through the private sectors this year.
RIYADH: Saudi Arabia’s holdings of US Treasury securities stood at $126.9 billion in January, reflecting a $10.6 billion decrease from December, according to the latest US Treasury data.
This marks a 7.71 percent month-on-month decline.
The change could reflect market fluctuations or potential portfolio rebalancing as the Kingdom navigates global economic conditions.
Official data showed that Saudi Arabia retained its 17th position among the largest holders of US Treasury securities in January. It remains the only Gulf Cooperation Council country to rank among the top 20 holders.
In a press release, the US Department of the Treasury said: “The sum total in January of all net foreign acquisitions of long-term securities, short-term US securities, and banking flows was a net TIC (Treasury International Capital) outflow of $48.8 billion. Of this, net foreign private outflows were $74.8 billion, and net foreign official inflows were $26.0 billion.”
The Kingdom’s holdings rose 1.4 percent in December compared to November, the report noted.
Saudi Arabia’s portfolio was split between $105.3 billion in long-term bonds — accounting for 83 percent of the total — and $21.6 billion in short-term bonds, representing 17 percent.
The press release noted that foreign residents increased their holdings of long-term US securities by $200 million, with private investors buying $59.2 billion, while foreign official institutions recorded net sales of $59 billion.
US residents also increased their holdings of long-term foreign securities, with net purchases totaling $45.4 billion.
Meanwhile, foreign residents boosted their US Treasury bill holdings by $32.3 billion, contributing to a $53.9 billion rise in total dollar-denominated short-term US securities.
Conversely, banks’ net dollar-denominated liabilities to foreign residents dropped by $57.5 billion.
Top holders of US Treasury bonds
Japan remained the largest investor in US Treasury securities in January, with holdings totaling $1.07 trillion, a 1.9 percent increase from December.
China ranked second with $760.8 billion in holdings, followed by the UK at $740.2 billion. Luxembourg and the Cayman Islands were ranked fourth and fifth on the list, with treasury holdings amounting to $409.9 billion and $404.5 billion.
Belgium secured the sixth spot with holdings worth $377.7 billion, closely followed by Canada with portfolios of $350.8 billion.
France came in eighth with treasury reserves worth $335.4 billion, followed by Ireland and Switzerland, with assets amounting to $329.7 billion and $301.1 billion, respectively. Taiwan was ranked 11th on the list, with treasury holdings worth $290.4 billion.
Hong Kong occupied the 12th spot with assets amounting to $255.9 billion, followed by Singapore and India, with holdings worth $247.6 billion and $225.7 billion, respectively.
Brazil held US treasury holdings worth $199.1 billion by the end of January. Norway followed with its holdings standing at $173.1 billion.
JEDDAH: Over 2.5 million Syrian residents in Saudi Arabia will benefit from direct flights between Dammam and Damascus, reconnecting families and enhancing transport between the two countries.
Routes between the two cities resumed on March 19 after a 13-year hiatus, with a Syrian Air plane departing King Fahd International Airport in Dammam for Damascus.
The morning flight complements the direct service from the Kingdom’s three major cities to Syria after Syrian Air resumed operations at Saudi airports last year.
Passenger flights between the two countries were halted in 2012 when Riyadh severed ties with Damascus over Bashar Assad’s crackdown on anti-government protesters at the start of the country’s civil war.
Services between Syria and the Kingdom resumed temporarily in May for pilgrims participating in the annual Hajj pilgrimage. The first group of 270 Syrian travelers arrived in Jeddah on May 28, just a few days after Saudi Arabia appointed Faisal bin Saud Al-Mujfel as its ambassador to Syria.
Commercial flights between Saudi Arabia and Syria resumed in July following a 12-year freeze amid improving relations. A Syrian Air plane carrying 170 passengers from Damascus landed in Riyadh, marking the return of regular services.
This was followed by the reinstatement of flights between Damascus and King Abdulaziz International Airport in Jeddah in November.
Mohammed Ayman Soussan, Syria’s ambassador to the Kingdom, who took office in Riyadh in January 2024, said the two countries had agreed to operate one round-trip flight per week between the two capitals.
After the diplomatic gap, Saudi Arabia and Syria agreed to resume consular services in April 2023 and restored full relations in May 2023.
Global flights resumed at Damascus International Airport in January for the first time since the ouster of President Bashar Assad last month.
Saudi Arabia has sent relief planes to Syria following the fall of the former president to assist with the ongoing crisis. These humanitarian efforts, organized by the King Salman Humanitarian Aid and Relief Center, also known as KSrelief, have delivered essential supplies, including food, shelter, and medical aid, to help the Syrian people cope with their challenging circumstances.
Additional flights to Syrian destinations are expected soon, following the reopening of Aleppo International Airport — the country’s second major airport — after nearly three months of closure.
The airport was closed in November during the offensive by rebel groups against the regime of Bashar Assad in early December.
RIYADH: Abu Dhabi Developmental Holding Co., a sovereign investment entity from the UAE, and Energy Capital Partners are joining forces to establish a $25 billion energy partnership aimed at meeting power needs across 25 gigawatts of US-based projects.
The collaboration will see the UAE-based firm partner with the largest private owner of power generation and renewable energy in the US in a 50-50 venture.
This partnership will focus on developing new power generation and energy infrastructure tailored to support data centers, hyperscale cloud companies, and other energy-intensive industries.
The combined initial capital contribution from both partners is expected to reach $5 billion, according to a report from the Emirates News Agency or WAM.
A portion of the funds may also be directed toward investment opportunities in select international markets.
This strategic move is aligned with recent findings from the International Energy Agency, which forecasts the world’s electricity consumption to increase at its fastest rate in years. The surge is driven, in part, by rising demand from data centers and industrial electrification. In the US, electricity demand is expected to rise by an amount equivalent to California’s current power consumption over the next three years.
The partnership also supports predictions that global power demand from data centers will increase by 50 percent by 2027 and may grow by as much as 165 percent by 2030. This surge is largely driven by the expansion of artificial intelligence and high-density data centers.
The US Department of Energy further reports that data center load growth has tripled over the past decade and is expected to double or triple again by 2028.
In a statement, UAE Investment Minister Mohamed Hassan Al-Suwaidi, who also serves as managing director and group CEO of ADQ, emphasized the strategic importance of this collaboration. He stated: “The rapid acceleration of AI and its widespread adoption presents significant opportunities to address the growing power and infrastructure needs of data centers and hyperscalers. Meeting these power demands poses evolving challenges for governments worldwide to ensure a secure, stable, and commercially competitive electricity supply.”
“As an active investor with a strong focus on critical infrastructure and a proven ability to build long-term partnerships, we are well-positioned to address these shifting dynamics. Our partnership with ECP enables us to invest meaningfully in power generation and related infrastructure assets that will meet the growing demand for electricity, support industry progress, and help future-proof economies,” Al-Suwaidi added.
The statement further highlighted the critical need for reliable and consistent power in high-growth sectors, underscoring the necessity of nearby captive power plants to meet these demands. The partnership is designed to address these long-term needs, focusing on greenfield developments, new projects, and expansion opportunities, positioning it as a leader in power generation for the expanding US economy.
Doug Kimmelman, founder and executive chairman of ECP, remarked: “We are honored to collaborate with ADQ to provide the electricity resources required by the rapidly expanding AI and data center sector. The build-out of new power generation resources in the U.S. will necessitate significant, patient capital with a long-term investment horizon.”
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.
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.
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.
Tadawul’s recent initiatives, such as the introduction of the Fixed Income Market Making Framework, underscore the commitment to bolster market liquidity and efficiency.
These developments are integral to attracting both domestic and international investors, fostering a more dynamic and robust capital market environment in the Kingdom.
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.
