Bahrain Airshow concludes with key deals, record aircraft displays

Bahrain Airshow concludes with key deals, record aircraft displays
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Organized by Bahrain’s Ministry of Transportation, the Royal Bahrain Air Force, and Farnborough International, the event underscored the kingdom’s position as a global aviation hub. Supplied
Bahrain Airshow concludes with key deals, record aircraft displays
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Organized by Bahrain’s Ministry of Transportation, the Royal Bahrain Air Force, and Farnborough International, the event underscored the kingdom’s position as a global aviation hub. Supplied
Bahrain Airshow concludes with key deals, record aircraft displays
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Organized by Bahrain’s Ministry of Transportation, the Royal Bahrain Air Force, and Farnborough International, the event underscored the kingdom’s position as a global aviation hub. Supplied
Bahrain Airshow concludes with key deals, record aircraft displays
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Organized by Bahrain’s Ministry of Transportation, the Royal Bahrain Air Force, and Farnborough International, the event underscored the kingdom’s position as a global aviation hub. Supplied
Bahrain Airshow concludes with key deals, record aircraft displays
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Organized by Bahrain’s Ministry of Transportation, the Royal Bahrain Air Force, and Farnborough International, the event underscored the kingdom’s position as a global aviation hub. Supplied
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Updated 17 November 2024

Bahrain Airshow concludes with key deals, record aircraft displays

Bahrain Airshow concludes with key deals, record aircraft displays
  • Three-day showcase attracted over 55,000 industry professionals and visitors
  • Defense forums showcased advancements in combat technology

MANAMA: The Bahrain International Airshow 2024 concluded with a flurry of major business deals, including a contract between Bahrain’s Ministry of Transportation and Telecommunications and Leonardo to modernize the country’s air traffic radar and surveillance systems.

The agreement is set to enhance Bahrain International Airport’s efficiency and safety through advanced primary and secondary radar technologies.

The seventh edition of the airshow, held on Nov. 13 — 15 at Sakhir Air Base, set a record with over 125 aircraft displayed, a 25 percent increase from the previous event.

The event saw Bahrain’s national carrier Gulf Air extending its long-standing collaboration with Amman-based Joramco, boosting maintenance, repair, and overhaul capabilities.

Other key agreements included a partnership between Infracorp and Mena Aerospace to develop specialized aircraft hangars to position Bahrain as a regional hub for advanced aviation services.

The event also saw Valo Aviation secure Bahrain’s first business jet operator license, with plans to operate 15 aircraft by 2026, and a strategic cybersecurity alliance between Iron Net and Asterion to bolster critical infrastructure protection.

Aircraft showcases

Debut appearances at the event included the US Department of Defense’s B-52H Stratofortress and flydubai’s latest static display models.

The three-day showcase, inaugurated by Bahrain’s Crown Prince Salman bin Hamad on behalf of King Hamad, attracted over 40,000 industry professionals and visitors.

After touring the exhibition, Crown Prince Salman emphasized Bahrain’s focus on priority sectors as drivers of economic diversification, national development, and progress. He highlighted the role of the kingdom’s national talent in sustaining achievements and shaping future aspirations, according to the state news agency.

He underscored the importance of strategic sectors in supporting his country’s ambitions and contributing to its comprehensive development journey under the leadership of the monarch. He also reaffirmed Bahrain’s strong tradition of hosting successful international exhibitions and conferences, stressing the importance of maintaining this legacy.

Air displays included performances by the Saudi Hawks, Bahrain’s F-16s, and the US Navy’s P-8 Poseidon, showcasing their capabilities. Static displays featured a range of aircraft, including Gulf Air’s B787-9 and the Pakistan Air Force’s JF-17.

The Saudi Hawks team showcased green, red, and white trails in a nod to the strong ties between and Bahrain.

The Royal Saudi Air Force’s Typhoon, piloted by Maj. Faris bin Ali Al-Zahrani, demonstrated its capabilities with a series of maneuvers and high-speed passes.

Organized by Bahrain’s Ministry of Transportation, the Royal Bahrain Air Force, and Farnborough International, the event underscored the kingdom’s position as a global aviation hub.

Sustainability and innovation

Sustainability dominated discussions at the Airport and Airlines Forum, where executives from Gulf Air Group, Airbus, and Rolls-Royce explored the adoption of sustainable aviation fuel and net-zero technologies. Regulatory support and innovation were highlighted as essential to making sustainable aviation fuel commercially viable.

Mohammad Al-Khuraisi, vice president of strategy and business intelligence at the Saudi General Authority of Civil Aviation, said the agency’s participation in the Bahrain International Airshow highlights his country’s achievements in aviation, showcases the key pillars of the Kingdom’s aviation strategy, and presents future investment opportunities.

Ali Rajab, GACA’s executive vice president of Air Transport and International Cooperation, said the authority’s presence at the event underscores new regulations aimed at fostering growth and innovation in the aviation sector.

Rajab added that the Saudi aviation strategy, which targets $100 billion in investment and aims to increase annual passenger numbers to 330 million, serves as the foundation for these advancements.

Defense forums showcased advancements in combat technology, including autonomous systems, AI-driven cybersecurity, and electronic warfare, emphasizing the importance of collaboration between governments and the private sector.

Aviation milestones

Bahrain International Airport was recognized as the world’s first to receive the International Air Transport Association’s Environmental Assessment Certification, aligning with the kingdom’s broader sustainability goals.

Bahrain’s National Space Science Agency also announced an initiative to train 100 students in satellite image analysis and space science, part of its STEM-focused educational efforts.

Growing reputation

At a press conference, Sheikh Abdullah bin Ahmed, chairman of the airshow’s supreme organizing committee, expressed pride in its success in attracting leading global companies and organizations.

“This is by far the most successful international airshow hosted in Bahrain in terms of connectivity, engagement, and diversity,” said Sheikh Abdullah.

He added: “Bahrain is a strategic hub for the aviation industry, and this year, we are celebrating 75 years of aviation. Bahrain has consistently played a pivotal role in fostering regional growth and innovation.”

The chairman said the numerous agreements and deals signed during the event reflect Bahrain’s growing global stature, with the strong turnout of exhibitors, participants, and visitors further cementing the kingdom’s reputation as a hub for excellence and innovation.

Sheikh Abdullah highlighted Bahrain’s ongoing success in hosting major international events, positioning it as a preferred destination for business and innovation.

“This year’s edition of the airshow has already welcomed 40,000 international and regional aerospace professionals, delegates, and visitors, with expectations to surpass 55,000 by the end of the day.”

He also said that the airshow is a key driver for the aviation sector, aligning with Bahrain’s vision for technological advancement and creative growth.

With 177 organizations participating and 80 percent of exhibitors being international, the biennial event underscored Bahrain’s commitment to its Economic Vision 2030 by fostering investment, digital transformation, and sustainable growth.


Pakistan prequalifies four investors for PIA, greenlights Roosevelt Hotel joint venture deal

Pakistan prequalifies four investors for PIA, greenlights Roosevelt Hotel joint venture deal
Updated 15 sec ago

Pakistan prequalifies four investors for PIA, greenlights Roosevelt Hotel joint venture deal

Pakistan prequalifies four investors for PIA, greenlights Roosevelt Hotel joint venture deal
  • Pakistani state-owned enterprises lose over $2.87 billion annually, total government support pushes burden past $3.59 billion
  • PIA has roughly accumulated over $2.5 billion losses, while Roosevelt remains one of Pakistan’s most politically sensitive assets

KARACHI: Pakistan has prequalified four investors for the sale of Pakistan International Airlines (PIA), while its Cabinet Committee on Privatization (CCOP) has approved the transaction structure for the denationalization of the Roosevelt Hotel in New York under a joint venture, the ministry of privatization said on Tuesday.

Pakistan has been seeking to sell a 51-100 percent stake in the struggling national airline to raise funds and reform cash-draining, state-owned enterprises as envisaged under a $7 billion International Monetary Fund program. It would be the country’s first major privatization in nearly two decades.

Among the bidding groups, one is a consortium of major industrial firms Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures. Another is led by investment firm Arif Habib Corp. and includes fertilizer producer Fatima Fertilizer, private education operator The City School, and real estate firm Lake City Holdings. Additionally, Fauji Fertilizer Company, a military-backed conglomerate, and Pakistani airline Airblue, have been approved to bid for PIA.

“The prequalified parties will now proceed to the buy-side due diligence phase — a critical next step in the transparent and competitive privatization process of PIACL,” the privatization commission’s statement said.

PIA, once a respected carrier in Asia, has been propped up by taxpayers for decades due to political interference, corruption and inefficiencies. The airline’s privatization has repeatedly collapsed amid union resistance, legal hurdles and low investor appetite.

Pakistani state-owned enterprises post annual losses of more than Rs800 billion ($2.87 billion), and when subsidies, grants and other support are included, the burden swells beyond Rs1 trillion ($3.59 billion), Finance Minister Muhammad Aurangzeb told parliament while presenting the budget for fiscal year 2025–26 earlier this month.

PIA has been one of the government’s most costly liabilities, which has accumulated over $2.5 billion in losses in roughly a decade and been surviving on repeated bailouts that have weighed heavily on Pakistan’s strained budget.

Last month, five consortiums submitted expressions of interest for a 51–100 percent stake in PIA after the government restructured its balance sheet to make the deal more attractive. It also scrapped the sales tax on leased aircraft and is providing limited protection from legal and tax claims. Around 80 percent of the airline’s debt has been transferred to the state.

ROOSEVELT HOTEL

Separately, the CCOP approved the transaction structure for Roosevelt Hotel under a “Joint Venture model with multiple options.”

“This option is aimed at maximizing long-term value for the country, while ensuring flexibility, multiple exit opportunities, and minimizing future fiscal exposure,” the privatization commission said.

How much money the hotel ultimately brings in, and its overall valuation, depends on the type of transaction structure adopted, Privatization Commission Chairman Muhammad Ali told Arab News in an interview last month. If the government formed a joint venture with a private investor, sharing both the risks and future profits, the hotel could be worth four to five times more than its as-is valuation, he said at the time.

“So, depending on what sort of structure you have, how much risk you take, how much effort the government puts in, we can make a lot of money from this asset,” the privatization chief had said.

The Roosevelt, a 1,015-room historic hotel in Midtown Manhattan, has long been one of Pakistan’s most prominent but politically sensitive overseas assets. Acquired by Pakistan International Airlines Investment Limited (PIAIL) in 1979, the hotel occupies a full city block on Madison Avenue and 45th Street. Over the past two decades, successive Pakistani governments have floated plans to sell, lease, or redevelop the property, but no proposal has advanced beyond early-stage planning.

Operations at the Roosevelt were suspended in 2020 following steep financial losses during the COVID-19 pandemic. In 2023, Pakistan entered a short-term lease with the City of New York to use the property as a temporary shelter for asylum seekers, generating more than $220 million in projected rental income. That agreement ended in 2024 and no new revenue stream has since been announced.

The Roosevelt Hotel is one of several state assets the government hopes will contribute to its target of raising Rs86 billion ($306 million) in privatization proceeds during the fiscal year starting July 1, alongside the sale of PIA and three electricity distribution companies.


Foreign currency sukuk issuance projected to reach $80bn in 2025

Foreign currency sukuk issuance projected to reach $80bn in 2025
Updated 08 July 2025

Foreign currency sukuk issuance projected to reach $80bn in 2025

Foreign currency sukuk issuance projected to reach $80bn in 2025

RIYADH: The global sukuk market is poised to maintain its strength in 2025, with foreign currency-denominated issuances expected to reach between $70 billion and $80 billion, according to a new report by S&P Global.

In the first half of 2025, foreign currency sukuk issuances rose 8.94 percent year on year to $41.4 billion, driven by increased activity in the UAE, Bahrain, and Kuwait. remained a key player, contributing 38.9 percent of the total market volume, as local banks continued to support Vision 2030-related initiatives.

Earlier this year, Fitch Ratings shared a similar outlook, forecasting that would remain a major driver of US dollar-denominated sukuk and debt issuance in 2025 and 2026. Banks in the Kingdom alone are expected to issue over $30 billion as institutions seek to diversify their funding sources.

The increase in global sukuk issuance came despite external headwinds, including new US tariffs and delayed interest rate cuts. S&P noted that issuers in core Islamic finance markets took advantage of brief periods of market stability to secure funding.

“We expect performance in the second half of the year to depend on the evolving geopolitical situation in the Middle East. However, since we don’t expect a full-scale regional war, we think the resilient foreign currency issuance trends observed in the first half will continue,” S&P Global said in the report.

“It will also be supported by the Fed’s expected reduction in interest rates. Therefore, we maintained our forecasts for foreign currency-denominated issuances to reach about $70 billion to $80 billion for the full year in 2025,” it added.

Foreign currency sukuk issuance had already climbed to $72.7 billion in 2024, a 29 percent increase from the previous year, supported by significant financing needs in Islamic finance hubs and fiscal pressures due to lower oil prices.

According to S&P, geopolitical tensions are not expected to significantly disrupt issuance this year. Instead, market activity will hinge on the direction of monetary policy, domestic liquidity conditions, and investment trends in key Islamic finance countries.

Local currency issuance

Despite the robust performance of foreign currency sukuk, total sukuk issuance globally fell 15 percent in the first half of 2025 to $101.3 billion. The decline was largely due to a steep drop in local currency sukuk, which fell to $59.8 billion from $81 billion a year earlier. Malaysia, , Qatar, and the UAE all reported weaker domestic issuance.

S&P attributed this to liquidity constraints in some markets and improved fiscal performance in others, reducing the need for domestic borrowing.

“For example, we have observed a significant drop in local currency issuances in , where banks’ liquidity is instead being channeled into financing Vision 2030. The drop was mainly underpinned by lower issuances from the government,” the agency said.

Shariah Standard 62

S&P also pointed to ongoing uncertainty surrounding the implementation of Shariah Standard 62 by the Accounting and Auditing Organization for Islamic Financial Institutions .

In April, AAOIFI announced amendments to the draft standard following industry feedback but did not provide details or a timeline.

The proposed guidelines aim to harmonize key elements of the sukuk structure, including asset backing, ownership transfer, and trading rules.

“The implementation process following the amendment is also uncertain. This means that it is now very difficult to determine the implications of adopting the new standard on market performance,” S&P noted.

“The need to issue prior to the adoption of the standard may also abate since issuers and investors no longer perceive the disruption as imminent,” it added.

Fitch Ratings had earlier warned that the standard could significantly reshape the sukuk market and potentially increase fragmentation if adopted in its current form.

Sustainable sukuk

Sustainable sukuk issuance surged 27 percent in the first half of 2025 to $9.3 billion, up from $7.4 billion in the same period last year, according to S&P.

Banks, led by the Islamic Development Bank, accounted for nearly half of the total, followed by corporates from the GCC and Malaysia. These instruments fund environmentally friendly projects such as renewable energy and green infrastructure.

Saudi issuers dominated the market, accounting for over 60 percent of total sustainable sukuk issuance. S&P attributed this to the alignment of Islamic finance with sustainability principles, the central role of the Islamic Development Bank, and strong funding demand from local banks.

In January, Fitch projected that outstanding ESG sukuk globally would exceed $50 billion in 2025, with playing a leading role.

The total value of ESG-focused sukuk climbed 23 percent year on year to $45.2 billion in 2024, according to Fitch.

In February, also raised €2.25 billion ($2.36 billion) through a euro-denominated bond offering under its Global Medium-Term Note Program, including its first green tranche.


Saudi chocolate industry expands as Riyadh leads in manufacturing registrations

Saudi chocolate industry expands as Riyadh leads in manufacturing registrations
Updated 08 July 2025

Saudi chocolate industry expands as Riyadh leads in manufacturing registrations

Saudi chocolate industry expands as Riyadh leads in manufacturing registrations

JEDDAH: ’s cocoa and chocolate manufacturing sector is seeing growing entrepreneurial interest, with the number of active commercial registrations reaching 3,532 by the end of June.

A report by the Ministry of Commerce revealed that the Riyadh region topped the list with 1,490 active commercial registrations, followed by the Makkah region with 909 and the Eastern Province with 416. Al-Qassim and Madinah ranked fourth and fifth with 213 and 149 filings, respectively.

The chocolate manufacturing landscape in the Kingdom has evolved considerably, establishing itself as the largest producer among Gulf Cooperation Council countries, according to a release by Mordor Intelligence, a market research firm specializing in data-driven industry insights.

“The industry has shown remarkable progress in adopting advanced manufacturing technologies and sustainable practices, particularly in response to increasing consumer demand for premium chocolate products,” the release highlighted.

The analysis, published in May, indicates that had over 1,000 chocolate-producing facilities in 2023, with Riyadh accounting for around 35 percent of these production sites.

It also notes that the country’s chocolate market is segmented by confectionery variants — dark, milk, and white chocolate — and by distribution channels, including convenience stores, online retail, supermarkets, and others.

The report highlighted that this strong manufacturing base enables the country to produce around 50 percent of its chocolate domestically, thereby reducing reliance on imports while maintaining high-quality standards.

The firm estimates the Saudi chocolate market size at $1.23 billion in 2025 and projects it to reach $1.53 billion by the end of the decade, growing at a compound annual growth rate of 4.5 percent during the forecast period from 2025 to 2030.

“The chocolate market is experiencing significant transformation driven by changing consumer demographics and preferences. With over half the population under 25 years old as of 2023, the market is heavily influenced by younger consumers who are increasingly health-conscious yet maintain strong chocolate consumption patterns,” the Mordor Intelligence study stated.

It added that this demographic shift has led to interesting consumption patterns, with “studies showing that two-thirds of Saudi children consume chocolate twice daily in 2023.”

The firm believes that consumer spending patterns in the Kingdom’s chocolate market reflect the country’s growing affluence and changing preferences.

“In 2023, the annual chocolate expenditure per person in reached $41, significantly higher than the Middle Eastern average of $4. This high per capita spending is particularly noteworthy given that over 66 percent of consumers in claimed they were willing to pay more for quality products in 2022,” the analysis said.

The study noted that the trend toward premiumization has prompted chocolate manufacturers in the Kingdom to introduce more sophisticated product lines and innovative flavor combinations.

According to Mordor Intelligence’s global chocolate market analysis, the industry is experiencing a notable shift in consumption patterns, particularly in established markets where sophisticated consumer preferences are driving product innovation.

“Europe stands as a testament to this trend, processing 35 percent of the world’s cacao and accounting for 45 percent of global chocolate consumption in 2022. Switzerland leads this consumption pattern with an impressive chocolate consumption per capita of 11 kg in 2022, setting benchmarks for premium chocolate consumption globally,” the firm said in its release.

It added that this high consumption rate has encouraged manufacturers to expand their premium product lines and experiment with new flavors and formulations.

The company further reported that global chocolate demand is rising, driven by increased per capita consumption and a strong gifting culture. It added that Europe leads consumption, accounting for nearly 48 percent of the market, with the UK and Switzerland having the highest per capita rates.


Closing Bell: Saudi main index slips to 11,294

Closing Bell: Saudi main index slips to 11,294
Updated 08 July 2025

Closing Bell: Saudi main index slips to 11,294

Closing Bell: Saudi main index slips to 11,294

RIYADH: ’s Tadawul All Share Index slipped on Tuesday, shedding 51.39 points, or 0.45 percent, to close at 11,294.07. 

The total trading turnover on the benchmark index reached SR5.32 billion ($1.42 billion), with 65 stocks advancing and 187 declining. 

The Kingdom’s parallel market Nomu also edged down by 119.05 points to close at 27,343.79, while the MSCI Tadawul Index declined by 0.35 percent to 1,449.23. 

The best-performing stock on the main market was Arabian Centers Co., also known as Cenomi Centers, with its share price rising 7.60 percent to SR21.10. 

Arabian Drilling Co. also gained 5.66 percent to close at SR88.60, while Tourism Enterprise Co. climbed 5.49 percent to SR0.96. 

BAAN Holding Group Co. shares slipped 4.35 percent to SR2.42, ranking among the weaker performers of the day. 

On the announcement front, Alinma Bank launched a US dollar-denominated sukuk under its Trust Certificate Issuance Program, with the offering opening and closing on July 8, according to a Tadawul filing. 

The sukuk, which has a five-year maturity, requires a minimum subscription of $200,000, with increments in multiples of $1,000.

The bank noted that the sukuk will be listed on the International Securities Market of the London Stock Exchange, and issued in reliance on Regulation S under the US Securities Act of 1933. 

Following the announcement, Alinma Bank’s share price declined 0.74 percent to SR27. 

Meanwhile, Riyad Bank announced it had completed the issuance of US dollar-denominated Tier 2 trust certificates under its International Trust Certificate Issuance Program, with a total value of SR1.2 billion. 

According to a Tadawul statement, the bank issued 6,250 certificates, each with a nominal value of $200,000. These certificates will also be listed on the London Stock Exchange’s International Securities Market. 

Riyad Bank’s share price edged down 0.07 percent to close at SR28.88. 


, Kuwait forge AI partnership to advance governance, innovation


, Kuwait forge AI partnership to advance governance, innovation

Updated 08 July 2025

, Kuwait forge AI partnership to advance governance, innovation


, Kuwait forge AI partnership to advance governance, innovation


JEDDAH: and Kuwait have taken a significant step toward strengthening regional collaboration on artificial intelligence governance and innovation by forming a strategic partnership focused on advancing standards, research, and responsible development in the Artificial Intelligence of Things.

The Kingdom’s Artificial Intelligence Governance Association, which operates under the technical supervision of the Saudi Data and Artificial Intelligence Authority, has signed a memorandum of understanding with Kuwait’s Association of Artificial Intelligence of Things.

The agreement is aimed at enhancing cooperation on AI governance standards, promoting knowledge exchange, supporting scientific research, and driving innovation in the emerging AIoT sector.

A report by Boston Consulting Group published in April highlighted the Gulf region’s strategic prioritization of AI, noting that all GCC nations have launched national strategies to foster economic diversification and digital transformation.

The memorandum was signed by AIGA Chairwoman Dhabia bint Ahmed Al-Buainain and Sheikh Mohammed bin Ahmed Al-Sabah.

In a post on X, Al-Buainain said: “The agreement stems from a shared vision to enhance regional cooperation in artificial intelligence and its governance, and to build strategic partnerships that advance responsible and innovative AI policies and applications across the Gulf states.”

According to the BCG report, the UAE and are leading in infrastructure development and adoption, while Oman and Kuwait are working to expand their capabilities through global partnerships. However, the study pointed out that despite significant state-led investments, challenges remain in private sector funding, research output, and talent development, which hinder the region's ability to fully harness AI’s potential.

As reported by the Saudi Press Agency, the agreement marks AIGA’s first international memorandum of understanding, underscoring its intention to play a broader regional role in the responsible governance of advanced technologies.

The partnership highlights both associations’ commitment to supporting regional initiatives, strengthening governance frameworks, and fostering the exchange of expertise. It also aligns with national and regional objectives to develop knowledge-based economies fueled by emerging technologies.

In a statement, AIGA described the memorandum as a strategic move to deepen regional cooperation in AI governance. The signing ceremony was attended by senior officials from both organizations, along with representatives from SDAIA and AIGA.

Sheikh Mohammed bin Ahmed Al-Sabah, chairman of AAIOT, welcomed the agreement and described it as a “promising opportunity to exchange experiences and develop joint projects that serve the interests of our communities.”

He also emphasized that the deal supports efforts in both countries to advance AI capabilities according to the highest ethical and organizational standards.

AIGA underscored the importance of the memorandum, stating: “This agreement is particularly significant as it is the first international memorandum of understanding signed by the Artificial Intelligence Governance Association outside the Kingdom, representing a step toward expanding cooperation in the field of governance of responsible advanced technologies.”

The association added that the partnership aims to create new avenues for collaboration in setting AI governance standards, promoting research, and encouraging innovation in AIoT — all contributing to a more sustainable and ethically driven technological future.