Pakistan vows to foster efficiency, sustainable growth in public entities amid privatization push

In this file photo, staff of Pakistan International Airlines (PIA) talk with passengers at a PIA office in Karachi on Feb. 27, 2019. (AFP/File)
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Updated 14 May 2024
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Pakistan vows to foster efficiency, sustainable growth in public entities amid privatization push

  • Finance minister chairs cabinet committee meeting to review privatization agenda of public entities
  • Pakistan agreed to overhaul loss-making entities in exchange for a financial bailout from IMF last year

KARACHI: Key ministers of the government, including Finance Minister Muhammad Aurangzeb this week vowed to ensure efficiency and sustainable growth in Pakistan’s public entities as Islamabad moves to privatize state-owned enterprises (SOEs) that have accumulated losses worth billions over the years. 

Pakistan agreed to overhaul its public entities under a $3 billion financial bailout agreement it signed with the International Monetary Fund (IMF) last year, a deal that helped it avert a sovereign debt default in 2023. The IMF has said Pakistan’s SOEs whose losses are burning a hole in government finances would need stronger governance. Pakistan is currently negotiating with the international lender for a larger, longer program for which it must implement an ambitious reforms agenda, including the privatization of debt-ridden SOEs.

Among the main entities Pakistan is pushing to privatize is its national flag carrier, Pakistan International Airlines (PIA). The government is putting on the block a stake ranging from 51 percent to 100 percent.

Aurangzeb chaired a meeting of the Cabinet Committee on State-Owned Enterprises on Monday which was attended by ministers of maritime affairs, economic affairs, housing and works, the governor of Pakistan’s central bank and other officials. The meeting was held to evaluate the performance of the country’s public entities and review the progress of the government’s privatization agenda. 

“The meeting concluded with a commitment to fostering transparency, efficiency, and sustainable growth within the State-Owned Enterprises, reflecting the government’s dedication to ensuring the optimal utilization of public resources,” the finance ministry said. 

Aurangzeb directed concerned ministries and divisions to submit proposals for the categorization of their respective public entities by May 20. The step is aimed at reviewing the rationale for retaining any commercial functions within the public sector, the ministry said. 

“The objective is to retain only the essential functions within the public sector & to assign the remaining functions to the private sector,” it said. “At the same time the entities which remain in public sector have to be more competitive, accountable, and responsive to the needs of citizens.”

The finance minister noted that there were gaps in the governance and financial management of some companies which needed to be addressed. He directed the vacancies on the Board of Directors (BoD) of some companies to be filled and for others to have their accounts audited. 

“The Chairman emphasized that continued losses & fiscal haemorrhage had to be stopped as a national priority,” the finance ministry said. “Therefore SOEs restructuring & privatization agenda needed to be expedited in order to improve the efficiency of these entities.”
 
Prime Minister Shehbaz Sharif has assured the business community that the privatization process would be a transparent one and has warned the country’s bureaucracy that the government would not tolerate any delays in it. 


Dubai International Airport sets H1 passenger record with 46m travelers

Updated 57 min 11 sec ago
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Dubai International Airport sets H1 passenger record with 46m travelers

  • Average monthly traffic during the first half stood at 7.7 million passengers
  • DXB handled 222,000 flights and processed 41.8 million bags in the first half

RIYADH: Dubai International Airport handled 46 million passengers in the first half of 2025, marking its busiest six-month period on record despite regional airspace disruptions and global headwinds. 

In a press release, operator Dubai Airports said the 2.3 percent year-on-year increase underscores the continued strength of the emirate’s aviation sector and the terminal’s operational resilience. 

The growth came despite temporary airspace restrictions in May and June, which forced several Gulf carriers to reroute flights and adjust schedules due to heightened military activity and no-fly zone declarations in parts of the Middle East. 

Paul Griffiths, CEO of Dubai Airports, said: “DXB’s continued growth through a period of regional challenges highlights the strength of Dubai and the UAE, the agility of our operations, and the commitment of our airport community.” 

In the second quarter alone, the airport handled 22.5 million passengers, a 3.1 percent increase over the same period last year. April was the busiest month of the quarter and the most active April on record, with 8 million travelers. 

Average monthly traffic during the first half stood at 7.7 million passengers, with daily volumes averaging 254,000. January was the busiest month, setting a new monthly record with 8.5 million passengers. 

DXB also handled 222,000 flights and processed 41.8 million bags in the first half, with 91 percent delivered within 45 minutes of arrival. The mishandled baggage rate stood at 2 bags per 1,000 passengers, well below the industry average of 6.3, the release added. 

“As we enter the second half of the year, travel activity is expected to accelerate, beginning with the late-summer peak and leading into a winter season filled with high-profile events across entertainment, sport, and business,” said Griffiths. 

He said the Dubai Airshow 2025 will be a standout event, poised to break previous records and highlight the bold vision driving the future of aviation and aerospace. 

“Based on our performance to date and a positive outlook, we expect the annual traffic to reach 96 million this year, bringing us closer to the symbolic 100 million milestone,” added Griffiths. 

India remained DXB’s top market in the first half of the year, with 5.9 million passengers, followed by Saudi Arabia with 3.6 million. The UK accounted for 3 million passengers, while Pakistan and the US recorded 2.1 million and 1.6 million, respectively. 

London was the busiest city destination with 1.8 million passengers, followed by Riyadh, Mumbai, Jeddah, New Delhi, and Istanbul. 

DXB also processed more than 1 million tonnes of cargo during the first half of 2025, a 0.1 percent increase compared with the same period last year. The airport is connected to more than 269 destinations in over 107 countries and is served by 92 international carriers. 


Saudi Arabia tops MENA private equity activity in H1: MAGNiTT 

Updated 29 July 2025
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Saudi Arabia tops MENA private equity activity in H1: MAGNiTT 

RIYADH: Saudi Arabia emerged as the most active private equity market in the Middle East and North Africa during the first half of 2025, accounting for 45 percent of all recorded transactions.

According to MAGNiTT’s MENA Private Equity Report, the Kingdom posted 13 deals, an 8 percent increase year on year, outpacing the UAE, which recorded 12 transactions, representing a 25 percent annual decline. 

Combined, the two markets comprised 86 percent of total regional PE deal activity, highlighting their growing dominance in the MENA investment landscape. 

Overall, the region continued to see a contraction in transaction volumes, with total activity dropping by 38 percent year on year to account for just 29 percent, marking the third consecutive half-year decline.

Disclosed deal value dropped only 11 percent from the first half of the year 2024 to $2.88 billion, as capital shifted toward larger, high-conviction investments. 

“The MENA region’s PE recalibration is being led by scale-ready SMEs (small and medium-sized enterprises) and high-conviction strategies, not withdrawal,” said Farah El-Nahlawi, research department manager at MAGNiTT, adding: “The growing dominance of $100M+ deals signals a maturing landscape ready to absorb larger pools of capital.” 

The Kingdom’s PE growth aligns with its venture capital growth. According to a separate report by MAGNiTT, Saudi Arabia led MENA VE activity in early 2025, raising $860 million — a 116 percent year-on-year increase — driven by sovereign backing and rising foreign investor interest. 

The report recorded 114 VC deals in the first half of the year, up 31 percent from the same period in 2024, highlighting the broader momentum across the nation’s investment ecosystem and its growing appeal as a capital destination for both private equity and venture capital. 

Investor activity varied notably among key markets. In Saudi Arabia, 12 out of 13 transactions involved local investors, highlighting strong domestic momentum.

In contrast, two-thirds of the UAE’s deals — eight out of 12 — were led by international investors, reaffirming the UAE’s role as a regional gateway for cross-border capital. 

The concentration of capital into larger deals was a defining trend. Transactions in the $500 million to $1 billion range rose to 29 percent of the total in the first half of 2025, while $1 billion-plus deals accounted for 14 percent — both the highest shares in five years. 

At the same time, smaller deals under $50 million dropped to just 14 percent, the lowest level on record. 

On a value basis, transactions in the $500 million to $1 billion bracket made up 42 percent of disclosed capital, overtaking the $1 billion-plus segment, which declined from 45 percent in 2024 to 36 percent in the first half of 2025. 

This evolution aligns with broader global investment patterns. According to S&P Global, international PE deal value rose 18.7 percent year on year in the first half of 2025 despite a 6 percent decrease in volume, suggesting an industry-wide pivot toward fewer but more substantial transactions. 

“Despite global macro uncertainty, the GCC, particularly Saudi Arabia and the UAE, continues to demonstrate structural strength and investor confidence,” El Nahlawi said, adding: “Backed by sovereign support, maturing SMEs, and a favorable regulatory environment, the region is poised to anchor future PE activity.” 

Beyond the Kingdom and the UAE, Egypt, Jordan, Morocco, and Qatar each recorded a single transaction, jointly accounting for the remaining 14 percent of regional activity. Egypt experienced the sharpest drop, with dealings down 89 percent year on year.


Saudi Arabia, UAE rank among top 20 nations for AI talent density

Updated 29 July 2025
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Saudi Arabia, UAE rank among top 20 nations for AI talent density

RIYADH: Saudi Arabia and the UAE have emerged as global hubs for artificial intelligence expertise, ranking among the world’s top 20 countries by talent density, a new survey showed.

According to the latest Global AI Competitiveness Index, issued as a collaboration between the International Finance Forum and Deep Knowledge Group, the Kingdom holds 0.7 percent of the global AI talent pool. In comparison, the UAE holds 0.4 percent, placing it ahead of countries like Russia and Italy.

This supports the nation’s National Strategy for Data and AI, which aims to place Saudi Arabia among the world’s top 15 in AI, the top 10 in the Open Data Index, and the top 20 for data and AI-related publications.

It also aligns with projections from PwC that AI will contribute $235.2 billion, around 12.4 percent, to the Kingdom’s gross domestic product by 2030.

“Saudi Arabia and the UAE’s strategic focus on AI, their significant investments in education, infrastructure, and innovation, and their ability to attract top talent and investments are setting the stage for a new era of growth in the region,” Dmitry Kaminskiy, general partner at Deep Knowledge Group, said in a press release.

“Both nations are making substantial strides toward becoming global AI leaders, with the UAE positioning itself as a major player in AI governance and technology, while Saudi Arabia is building a robust ecosystem for AI talent and applications,” Kaminskiy added.

The report further indicated that in a major milestone, King Abdullah University of Science and Technology has joined the ranks of the top 150 universities worldwide for AI talent production, making it the highest-ranking institution in the Middle East as a whole.

It also showed that the Kingdom has committed $20 billion to partnerships with leading institutions, including Stanford University, to establish KAUST as home to one of the world’s top AI research labs. Complementing this, national initiatives such as the 10,000 Coders program are equipping young Saudis with advanced AI skills to build local talent and drive innovation.

As part of Saudi Vision 2030, AI is recognized as a key pillar of the Kingdom’s economic transformation. The strategy aims to position the nation among the world’s top 10 countries in AI research and implementation by 2030, while drawing in $20 billion in investments and generating 200,000 high-tech jobs.

The Kingdom created the Saudi Data and Artificial Intelligence Authority to lead the country’s AI strategy. Key initiatives enjoy fast-track approvals, with decisions usually finalized within 30 days.

Sovereign wealth is also driving AI expansion, with the Kingdom’s Public Investment Fund launching a $1.5 billion fund dedicated to AI investments.

The nation is also channeling substantial resources into initiatives like Neom, where over 30 percent of the $500 billion budget is allocated to AI infrastructure, redefining the future of smart cities.


Oil Updates — prices steady amid economic concerns, US rate decision awaited

Updated 29 July 2025
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Oil Updates — prices steady amid economic concerns, US rate decision awaited

  • Brent crude had hit highest level since July 18 on Monday
  • US and China officials at Stockholm for trade talks
  • Market looks to U.S. Fed Reserve interest rate decision -analyst

SINGAPORE: Oil prices were steady on Tuesday amid uncertainty about the global economic outlook following the US-EU trade deal, and as investors awaited the US Federal Reserve’s interest rate decision.

Brent crude futures were up 1 cent at $70.05 a barrel at 8:10 a.m. Saudi time, while US West Texas Intermediate crude was at $66.69, down 2 cents.

Both contracts settled more than 2 percent higher in the previous session, and Brent touched its highest level since July 18 on Monday.

The trade agreement between the US and the European Union, while imposing a 15 percent import tariff on most EU goods, sidestepped a full-blown trade war between the two major allies that would have rippled across nearly a third of global trade and dimmed the outlook for fuel demand.

The agreement also calls for $750 billion of EU purchases of US energy in the coming years, which analysts say the EU has virtually no chance of meeting, while European companies are to invest $600 billion in the US over the course of President Donald Trump’s second term.

While the US-EU trade deal finalization came as a relief for global markets amid heightened uncertainty, the timeline and milestones targeted for the investments are unclear, said ANZ analysts in a note.

“We think the 15 percent rate will pose headwinds to the Euro area’s growth outlook but is unlikely to push the economy into recession.”

Meanwhile, top economic officials from the US and China met in Stockholm on Monday for more than five hours of talks to resolve longstanding economic disputes at the center of a trade war between the world’s top two economies. The discussions are expected to resume on Tuesday.

Oil market participants are also awaiting the US Federal Open Market Committee meeting on July 29-30, where the Fed is widely expected to hold rates but could signal a dovish tilt amid signs of cooling inflation, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova.

“Momentum favors the upside in the near term, but the market is vulnerable to volatility triggered by central bank surprises or a breakdown in trade negotiations,” said Sachdeva.

“The likelihood of an economic slowdown and the Federal Reserve’s potential rate cuts remain uncertain, limiting the upside in oil.”

Meanwhile, Trump set a new deadline on Monday of “10 or 12 days” for Russia to make progress toward ending the war in Ukraine or face sanctions. Trump has threatened sanctions on both Russia and buyers of its exports unless progress is made.


Neom port cuts cargo transit time with new trade corridor

Updated 28 July 2025
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Neom port cuts cargo transit time with new trade corridor

RIYADH: Neom port has completed a trial of a new multimodal regional trade corridor linking Saudi Arabia, Egypt, and Iraq, cutting cargo transit times by more than half, according to the Saudi Press Agency.

The pilot, conducted in partnership with the Logistics Partnership Council, demonstrated significantly faster delivery compared to traditional shipping routes.

The trial shipment originated in Cairo, Egypt, and traveled via Safaga Port across the Red Sea to Neom port. From there, it continued overland to Irbil in northern Iraq, covering more than 900 km.

The initiative brought together multiple government and regulatory bodies — including the Transport General Authority and the Zakat, Tax and Customs Authority — alongside private sector stakeholders such as shipowners, exporters, importers, export councils, and logistics firms.

The successful test comes as Neom port accelerates infrastructure upgrades and moves toward full automation. In June, it received Saudi Arabia’s first remote-controlled ship-to-shore and electric rubber-tyred Gantry cranes. Operated from ergonomic control rooms, the cranes mark a milestone in the development of Terminal 1.

A 900-meter quay wall has also been completed, and the port’s access channel has been deepened to 18.5 meters, enabling it to accommodate the world’s largest container ships.

As part of Neom’s workforce development strategy, the crane operations program includes training Saudi women in advanced technical roles.

According to SPA, the new trade corridor achieved high levels of operational efficiency across each stage of the journey, offering an integrated logistics solution that enhances competitiveness.

“This pilot project is a pivotal step in implementing a long-term vision to enhance Neom port’s role as a major logistics and maritime hub in the Kingdom of Saudi Arabia,” the agency stated.

Strategically located on the Red Sea and near the Arar border crossing — a key entry point into Iraq — Neom port aims to become a regional gateway connecting global trade routes and streamlining movement across Asia, Africa, Europe, and the Middle East.

The corridor project aligns with Saudi Arabia’s Vision 2030 objective of building a world-class logistics ecosystem by integrating ports, land crossings, and customs centers. It also presents a scalable model to strengthen domestic logistics connectivity and reinforce the Kingdom’s position as a central player in regional and international trade.