Egypt aims to boost renewable energies to over 42% by 2035: Electricity minister
The minister indicated that Egypt is the largest holder of electrical capacities in the MENA region
Updated 21 October 2021
Arab News
Egypt will aim to increase the share of renewable energies to over 42 percent by 2035, after the country reached 2022’s target for boosting renewables to 20 percent early this year.
The minister of electricity and renewable energy, Mohamed Shaker, noted that Egypt has allocated 7,650 square kilometres of unused lands to new and renewable energy projects, during a meeting with CEO of Lekela Power, Chris Antonopoulos.
The minister indicated that Egypt is the largest holder of electrical capacities in the MENA region and has the capacity to produce up to 90 gigawatts of wind and solar capacity, citing Wind Atlas.
The meeting was held to support and enhance cooperation between Egypt’s electricity sector and the company, which boasts high expertise in the field of wind energy power plants.
Riyadh mall rents up 4% as demand increases: Knight Frank
Updated 5 sec ago
Nadin Hassan
RIYADH: Saudi Arabia’s capital is spearheading the Kingdom’s retail transformation, with mall rents seeing a 4% annual rise and 2.2 million sq. meters of shop space to be developed by 2030.
According to Knight Frank’s Spring 2025 Saudi Arabia Retail Market Overview, Riyadh accounts for the largest share of the 4.9 million sq. meters of retail developments planned across the Kingdom’s five largest cities by 2030.
These areas include Jeddah, Dammam Metropolitan Area, Khobar, and Dhahran.
The need for more retail space is evidenced by the average mall rent in the Saudi capital rising to SR2,848 ($765) per sq. meter by the end of March, according to the report, with occupancy rates up five percent to reach 92 percent in the first quarter of 2025.
The findings come as Saudi Arabia steps up efforts to become a global hub for tourism and business by the end of the decade, with the Real Estate General Authority projecting the property market to reach $101.62 billion by 2029, driven by an anticipated compound annual growth rate of 8 percent from 2024.
According to Knight Frank, Riyadh’s retail transformation is being accelerated by a combination of population growth, both domestic and expatriate, along with rising disposable incomes.
“Developers are prioritizing experiential formats, with over half of upcoming projects incorporating entertainment zones, dining experiences, and cinemas. These trends align with Vision 2030’s objective to create vibrant, leisure-centric urban spaces,” the report said.
In Jeddah, the retail market expanded with approximately 225,000 sq. meters of new space delivered in 2024, including Phase 1 of Souq 7 and Al Bahr Mall. The city’s total retail stock reached 2.9 million sq. meters. Rents in regional and super-regional malls rose two percent to SR2,513 per sq. meter, while occupancy declined slightly to 86 percent.
Jeddah is also set to see the launch of the Jawharat Mall by Cenomi Centers, a dedicated luxury retail district spanning 87,000 sq. meters, expected to be completed by the end of 2025. Another significant development, the Cove by Ezdihar, will deliver 70,000 sq. meters along Jeddah’s waterfront.
In the Dammam Metropolitan Area, retail performance remained stable. Rents in regional and super-regional malls rose slightly to SR2,285 per sq. meter, with community centers seeing a 1.25 percent increase. Occupancy rates held steady at around 90 percent.
New supply additions of 31,000 sq. meters in 2024 brought total retail stock to 1.4 million sq. meters.
Regional malls typically range from 30,000 sq. meters to 90,000 sq. meters and offer a broad mix of retail stores and services, often anchored by one or two department stores.
Super-regional malls exceed 90,000 sq. meters and include a wider variety of retail, dining, and entertainment options, serving a larger trade area and drawing visitors from across an entire metropolitan region.
Consumer spending in Saudi Arabia grew by 7 percent year-on-year to reach SR1.41 trillion in 2024, fueled by a surge in point-of-sale and e-commerce transactions, according to Knight Frank.
Of this, point-of-sale transactions reached SR668 billion, marking a 9 percent annual increase, while e-commerce grew by 26 percent to SR197.4 billion, reflecting the Kingdom’s accelerating shift toward digital consumption
Flagship destinations such as Riyadh Park and Al Nakheel Mall have continued to benefit from strong tenant demand and rising foot traffic, driven by integrated entertainment offerings, including cinemas and family attractions.
Riyadh’s total retail supply stood at 4 million sq. meters during the first quarter, bolstered by the launch of key projects like Solitaire Riyadh, a 65,000 sq. meter development blending upscale retail with leisure experiences.
An additional 540,000 sq. meters of retail space is expected to be added in 2025, bringing the total to 5.2 million sq. meters in 2026.
The report highlights that more than half of the upcoming projects are integrating entertainment zones, dining venues, and cinemas, aligning with Vision 2030’s goals of creating vibrant, leisure-centric urban environments.
Luxury retail is also gaining momentum, with international brands expanding their footprint to meet the growing demand for premium shopping.
Omnichannel strategies are becoming critical as digital payments and e-commerce continue to reshape consumer behavior.
The food and beverage sector emerged as a key contributor to retail activity, with restaurants and cafes accounting for 29.7 percent of all point-of-sale transactions in 2024.
This translates to SR198.6 billion, according to data from the Saudi Central Bank.
Projects such as Qiddiya, The Avenues Riyadh, and Jawharat Riyadh are expected to further redefine the urban retail landscape, offering lifestyle-oriented spaces that support the Kingdom’s broader economic diversification and quality-of-life goals.
Co-processing can help Middle East become sustainable aviation fuel hub: IATA official
Senior vice president of sustainability and chief economist at IATA said the world should act now to increase the production of SAF
Marie Owens Thomsen said governments in the Middle East region should create investment policies to attract more co-processing
Updated 02 June 2025
Nirmal Narayanan
NEW DELHI: The Middle East has all the potential to emerge as a global hub for sustainable aviation fuel production thanks to co-processing opportunities available in the region, according to a top official.
Speaking to Arab News on the sidelines of the International Air Transport Association’s Annual General Meeting in New Delhi, Marie Owens Thomsen, senior vice president of sustainability and chief economist at IATA, said that the world should act now to increase the production of SAF to meet decarbonization targets.
This comes as the region accelerates efforts to produce the fuel, with Saudi Arabia’s Nordic Electrofuel-backed project announcing in January a Jubail plant targeting 350 million liters annually by 2029, using renewable hydrogen and solar PV.
The UAE, meanwhile, aims for 700 million liters by 2031, supported by Emirates, Etihad, and Air Arabia. Emirates has secured over 3 million gallons from Neste for 2024–25 flights, while Shell began supplying SAF at Dubai Airport in 2023.
In her interview, Thomsen said: “The Middle East has huge opportunities for co-processing. What we are seeing across the world is insufficient production of SAF.”
Co-processing is the use of renewable feedstock in conventional fossil fuel units. This method allows existing traditional fuel refineries to seamlessly integrate renewable feedstocks into their production processes without the need for extensive infrastructural changes.
“The world’s most positive growth policy is peace. Our industry is uniquely affected by fragmentation and that fragmentation comes with conflict and impairs networks and spreads across the globe” said Marie Owens Thomsen SVP Sustainability &
Chief Economist, IATA. #IATAAGMpic.twitter.com/cSapima2ap
She added: “If this co-processing happens, then boom — we have a SAF plant. Clearly, the Middle East is uniquely positioned for this.”
Thomsen further said that governments in the Middle East region should create investment policies in such a way that oil producers will be more attracted to co-processing.
The use of SAF is widely considered a crucial development for the global aviation industry, as most countries have stipulated targets to achieve net zero as part of their energy transition efforts.
According to Thomsen, the world, on its current trajectory, is expected to produce 400 million tonnes of SAF by 2050, up from an estimated 2 million tonnes in 2025 and 1 million tonnes in 2024.
Amid this projected growth, Thomsen revealed that the world would require at least 500 million tonnes of SAF by 2050 to meet energy transition and sustainability goals.
“On the current trajectory, we will be a 100 million tonnes short in 2050. That is a dramatic shortfall. If we do not address it today, this shortfall may be even greater by the time we reach 2050,” said Thomsen.
She said this presents a challenge and dilemma because as long as jet engines power our flights, liquid fuels remain essential.
Policy shortcomings are putting SAF production at risk
While it is encouraging that SAF production is expected to double in 2025, the pace of progress in ramping up production & gaining efficiencies to reduce costs must accelerate.
“Again, I repeat, the Middle East is uniquely positioned to help the world take a big step forward if we could immediately co-process. There are also lower-carbon fuels which occur naturally in the Middle East, which the world should explore,” she added.
Thomsen revealed that the aviation industry’s net profit margin is lower compared to other sectors, and expenses could rise as SAF gains.
However, she made it clear that effective ways should be adopted to increase the production of the fuel, so that the energy transition targets could be achieved by 2050.
On the opening day of the AGM, Willie Walsh, director general of IATA, also shared identical views, and said that sufficient government measures, including the implementation of effective policies, are needed to achieve decarbonization targets.
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.
KARACHI: Pakistan’s annual inflation rate rose to 3.5% in May, higher than the April 2025 reading of 0.3%, data from the statistics bureau showed on Monday.
On a month-on-month basis, inflation decreased by 0.2% in May 2025, as compared to a decrease of 0.8% in the previous month and a decrease of 3.2% in May 2024. The CPI inflation average during 11MFY25 stood at 4.61%, compared to 24.52% in 11MFY24.
Inflation has cooled significantly, easing from 37.97% in May 2023.
The CPI reading is higher than the government’s expectations. In its monthly economic report released last week, the finance ministry expected inflation to ease to between 1.5% and 2% year-on-year in May, before picking up to 3%-4% in June.
“CPI inflation General, increased to 3.5% on year-on-year basis in May 2025 as compared to 0.3% of the previous month and 11.8% in May 2024,” the Pakistan Bureau of Statistics (PBS) said in its monthly report.
“On month-on-month basis, it decreased by 0.2% in May 2025 as compared to a decrease of 0.8% in the previous month and a decrease of 3.2% in May 2024.”
Food items, whose prices recorded an increase, included Eggs (24.38%), Chicken (8.63%), Condiments and Spices (5.50%), Sugar (4.07%), Gur (3.66%), Milk Powder (2.80%), Potatoes (1.64%), Butter (1.31%), Fresh Fruits (1.21%), Pulse Gram (1.09%), Beverages (0.87%), Meat (0.82%), Sweetmeat (0.79%) and Pulse Moong (0.53%).
Non-food items that witnessed an increase in rates were Cotton Cloth (3.20%), Motor Vehicles (1.86%), Postal Services (1.74%), Major Tools & Equipment (1.23%), Readymade Garments (1.02%), Tailoring (0.95%) and Cleaning & Laundry (0.65%).
The latest CPI reading was also higher than projections made by several brokerage houses.
JS Global projected Pakistan’s headline inflation to inch up to 2.7% in May.
“Pakistan’s CPI is expected to clock in at 2.7% for May. The base effect is now fading, signaling a return to normalized price trends. This is likely to take 11MFY25 average inflation to 4.7%, down from 11MFY24 average of 24.9%,” JS Global had said in a report.
Last month, the State Bank of Pakistan cut the key interest rate by 100 basis points (bps) to 11%, the lowest policy rate since March 2022 (9.75%). The central bank has cut the rate by 1,100 bps since June from an all-time high of 22%.
Qatar and Kuwait sign tax agreement to boost economic ties
Deal seeks to eliminate all forms of double taxation on income
It aims to enhance cooperation in the financial sector
Updated 02 June 2025
Nadin Hassan
RIYADH: Qatar and Kuwait have signed an agreement to eliminate double taxation and prevent tax evasion and avoidance, aiming to enhance economic coordination and commercial ties.
The accord seeks to establish a legal framework to eliminate all forms of double taxation on income and to reinforce bilateral cooperation in tax matters by aligning with international standards, the Qatar News Agency reported.
The deal was signed by Qatari Minister of Finance Ali bin Ahmed Al-Kuwari and Kuwaiti Minister of Finance and Minister of State for Economic Affairs and Investment Noura Sulaiman Al-Fassam.
The countries currently do not impose personal income tax on individuals, but both levy corporate tax on foreign entities. Qatar enforces a flat 10 percent corporate income tax, while Kuwait applies a 15 percent tax on profits earned by foreign companies operating in the country.
“This agreement will contribute to supporting international standards of transparency through the exchange of verified financial information, as part of both countries’ commitment to strengthening coordination and cooperation in tax matters and economic relations,” Al-Kuwari said during the signing, as quoted by QNA.
وعلى هامش الاجتماع، وقعت اليوم مذكرة تفاهم للتعاون في المجال المالي مع معالي وزيرة المالية ووزيرة الدولة للشؤون الاقتصادية والاستثمار في دولة الكويت المهندسة نورة سليمان الفصام، تهدف إلى تعزيز وتطوير العلاقات بين الوزارتين وزيادة التعاون بينهما في المجال المالي بما يخدم المصالح… pic.twitter.com/Vr9nAykQY1
— محمد عبدالله عبدالعزيز الجدعان | Mohammed Aljadaan (@MAAljadaan) June 1, 2025
The agreement also aims to enhance commercial cooperation, broaden investment opportunities for government entities and individuals, combat tax evasion, and support neutrality and fairness in the treatment of taxpayers.
In addition, Kuwaiti Minister Al-Fassam signed a memorandum of understanding with Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan, who led a Saudi delegation participating in the 123rd meeting of the Financial and Economic Cooperation Committee of the GCC in Kuwait.
“During the meeting, participants discussed several topics related to enhancing financial and economic cooperation among GCC member states in a way that contributes to further joint Gulf cooperation,” Al-Jadaan said in a post on X.
The deal, signed on the sidelines of the meeting between Saudi Arabia and Kuwait, aims to enhance cooperation in the financial sector.
“The MoU will deepen bilateral ties and foster enhanced cooperation in the financial sector, advancing the shared strategic interests of both brotherly nations,” Al-Jadaan added.
The deal seeks to develop and strengthen ties between the two ministries and increase collaboration in support of shared interests between the two countries.
Middle East airlines to lead global profit margins in 2025, IATA says
Global airlines are projected to record a net profit of $36 billion, with total industry revenue reaching $979 billion
Saudi Arabia and the UAE continue to bolster the industry as part of their economic diversification efforts
Updated 02 June 2025
Nirmal Narayanan
NEW DELHI: 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.
IATA Director General Willie Walsh said the first half of 2025 has brought notable uncertainty to global markets. Screenshot
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.
IATA Director General Willie Walsh emphasized the importance of sustainability in aviation, urging the sector to leverage all available decarbonization tools. Screenshot
“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.
“The rate of growth in the industry has slowed down as a result of supply chain issues. Growth is lagging demand. There are customers who are not getting the opportunity to travel when they want." said Willie Walsh, IATA's Director General at #IATAAGM press briefing. pic.twitter.com/VgKndiownQ
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.
Operating profit for global airlines is expected to reach $66 billion in 2025, up from $61.9 billion the previous year. Screenshot
“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.
"Our customers have told us they want flying to be even safer, more accessible & sustainable. Our association’s first eight decades of working together put us on the right path" said Willie Walsh, IATA's DG.
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.
The first half of 2025 has brought significant uncertainties to global markets.
But by many measures including net profits, 2025 will still be a better year for airlines than 2024, although slightly below previous projections.
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.
