Happy Thursday everyone!

Saudi’s trade numbers with UAE and other Arab countries are out for Q4 2024, Aviation added $18B to UAE’s economy, according to IATA, and lastly, Red Sea Global has unveiled a new island despite PIF’s budget cuts.

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UAE Tops Saudi Arabia’s Arab Trade Partners in Q4 2024, Leading SAR23.5 Billion in Exports

📰 What is it about?

• The United Arab Emirates emerged as Saudi Arabia’s top Arab export destination in Q4 2024, receiving SAR23.512 billion in goods.

• Other top Arab trade partners included Bahrain (SAR8.423B), Egypt (SAR8.353B), Oman (SAR4.434B), and Jordan (SAR2.999B).

• Total Saudi trade with Arab League nations, including GCC countries, hit SAR87.768 billion, accounting for 17.2%of the Kingdom’s global trade.

• Saudi Arabia’s trade surplus with Arab League countries surged 37.3% YoY to SAR30.461 billion in Q4.

• Exports to Arab nations reached SAR59.114 billion, while imports from the region totaled SAR28.653 billion.

💡 Why it matters?

• The strong trade numbers reflect the deepening economic ties between Saudi Arabia and its Arab neighbors, especially the UAE.

• These figures highlight the impact of Vision 2030, with the Kingdom ramping up non-oil exports and expanding regional trade influence.

• The UAE’s position as the top export market reaffirms its role as Saudi Arabia’s closest economic partner in the Arab world.

• The 6.2% YoY growth in Arab trade shows regional integration is gaining momentum, supporting broader GCC and Arab League cooperation goals.

🔜 What’s next?

• As Saudi Arabia diversifies away from oil, expect non-oil trade volumes with the UAE and other GCC countries to continue rising.

• The Kingdom’s strategic geographic position—linking Asia, Europe, and Africa—will further enhance its trade connectivity.

• Future quarters may see deeper bilateral agreements and logistics partnerships between Riyadh and Abu Dhabi to streamline trade.

• Continued investments in infrastructure and customs modernization are likely to sustain and accelerate trade growth within the Arab region.

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Markets

Aviation Powers UAE Economy With $18.2 Billion Contribution, Nearly 1 Million Jobs: IATA

📰 What is it about?

• Aviation and aviation-related tourism contributed $18.2 billion to the UAE’s GDP in 2023, according to the International Air Transport Association (IATA).

• The sector supported 992,000 jobs, including:

  • 74,500 directly employed by airlines

  • 132,300 in related aviation services

  • 297,300 in aviation-related tourism

• The UAE handled 3.1 million tons of air cargo last year, cementing its role as a global logistics hub.

• IATA's Director General Willie Walsh praised the UAE’s strategic leadership, smart regulation, and investment in aviation infrastructure.

💡 Why it matters?

• Aviation accounts for 18.2% of the UAE's GDP, underlining its role as an economic cornerstone.

• The UAE serves as a "super connector" linking trade, tourism, and investment, driving cultural and economic prosperity.

• IATA highlighted the UAE’s ability to set global standards in aviation—from infrastructure to regulation.

🔜 What’s next?

• Sustainability: The UAE aims to produce 700 million liters of Sustainable Aviation Fuel (SAF) annually by 2030 and has launched a SAF Registry to support net-zero goals.

• Infrastructure: Ongoing developments at Al Maktoum International Airport (DWC) and Zayed International Airport (AUH) aim to meet rising demand while keeping the UAE cost-competitive.

• Workforce Development: The UAE is investing in training and has opened a new IATA training center in Abu Dhabi to ensure a skilled pipeline of aviation professionals.

Red Sea Global Unveils New Island Despite PIF Budget Cuts

What is happening?

• Red Sea Global has launched Laheq Island, its first development beyond phase one of the $23.6 billion Red Sea giga-project.

• Despite widespread spending cuts across Public Investment Fund (PIF) companies, this new island marks a major milestone.

• Laheq Island spans 400 hectares and is set to open in 2028, focusing on residential and luxury tourism development.

• Key features include The Ring—an 800m-wide centerpiece with luxury apartments, hotels, and retail—plus a 115-berth marina, sailing schools, watersports, an 18-hole golf course, and two luxury resorts.

• The project is designed by Foster and Partners, a UK-based architectural firm.

Why it matters:

• The launch comes amid significant budget cuts by the $925 billion PIF, which is Red Sea Global’s main backer.

• Sources say spending reductions of up to 60% are being implemented across over 100 PIF-owned entities following a board decision in December.

• Red Sea Global and Neom have reportedly been hit hardest due to their high costs, ambitious scale, and slower ROI.

• The move signals Saudi Arabia’s commitment to flagship tourism projects, even while reprioritising giga-projects.

What’s next?

• Red Sea Global aims to deliver 11 resorts at the Red Sea and 8 at Amaala by 2025, per earlier company statements.

• By 2030, the full Red Sea development is expected to feature 50 resorts, 8,000 hotel rooms, and 1,000+ residencesacross 22 islands and six inland sites.

• Saudi Arabia targets 19 million annual visitors to its Red Sea developments and west coast resorts as part of its wider Vision 2030 tourism strategy.

🔍In other news…

• Saudi Arabia’s United Carton Industries Company (UCIC), the largest paper packaging company in the Middle East by sales, plans to sell shares to the public to fund expansion.

• Korea's exports to Middle East rise 3.5% in Q1.

• Lebanese depositors to get frozen funds back over time, Economy Minister pledges.

• Real-time pollution tracking to help clear the air in Abu Dhabi.

• Average real airfares in the UAE have fallen by 35 per cent in 12 years due to the launch of new low-cost airlines.

• Abu Dhabi's Shorooq denies selling crypto before $5bn crash of OM.

• Egypt’s largest wind farm begins operations ahead of schedule.

• The Dubai Gold Rate has just hit a new all-time high – of Dh365.25 for a gram of 22k.

• “We are in the final stages of defining what the Jaywan credit card scheme will be,” Jan Pilbauer, CEO of Al Etihad Payments.

• e& AGM approves cash dividend of 83 fils per share for the fiscal year 2024

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