Author

Friday, March 29, 2024 | Daily Newspaper published by GPPC Doha, Qatar.
 Pratap John
Pratap John
Pratap John is Business Editor at Gulf Times. He has mainstream media experience of nearly 30 years in specialties such as energy, business & finance, banking, telecom and aviation, and covered many major events across the globe.
TotalEnergiesu2019 senior vice-president for Mena, Laurent Vivier during his exclusive interview with Gulf Times in Doha. PICTURE: Thajudheen
Business
800MWp Al Kharsaah solar plant ‘major accomplishment’ towards developing renewable energy: Vivier

The 800 megawatt-peak (MWp) Al Kharsaah solar plant being constructed by Qatar with partners including TotalEnergies is a major accomplishment towards developing renewable energy, said TotalEnergies’ senior vice-president for Middle East and North Africa (Mena) Laurent Vivier. “We expect the plant to start producing in the coming months. It is another practical example of our co-operation with QatarEnergy. Something of this scale – 800 megawatt – in one single location is a huge accomplishment,” Vivier said in an exclusive interview with Gulf Times. Located just 80km west of capital Doha, the Al Kharsaah Solar PV Independent Power Producer (IPP) project is the country’s first large-scale solar power plant and is set to significantly reduce the environmental footprint. “Our worldwide renewable energy capacity is 10GW now. We want to go to 35GW in 2025. Our ambition is to achieve 100GW capacity by 2030,” Vivier noted. Electricity demand is set to rise faster than global demand for energy as a whole in the coming years. According to the International Energy Agency’s Sustainable Development Scenario, renewable energies will represent more than 35% of the world’s energy mix in 2040. Vivier said there is a huge potential to develop the solar production capacity in Qatar. TotalEnergies would support Qatar in this regard. “We want to use our experience in Qatar and our expertise to develop a PV plant in Iraq,” Vivier said. He said, “I know Qatar has a lot of focus on renewable energy now. I think Qatar will inspire many other energy-rich countries also to consider sustainable energy.” “By using solar energy for electricity generation, you can free up some natural gas that can be utilised in the international market,” he noted. TotalEnergies continues to expand across the entire renewable energy value chain based on an integrated approach. The energy major designs and finances photovoltaic solar plants, and builds and operates them as well. To ensure success and meet the growing demand for electricity, TotalEnergies is strengthening its expertise in renewable energies, especially in solar energy, given its many advantages. Combating climate change is an integral part of both TotalEnergies’ long-term growth strategy and its ambition to get to net-zero emissions for all its businesses by 2050, together with society. On Total’s transformation into TotalEnergies, Vivier said, “Our ambition is to be a world-class player in the energy transition. In the last one year, we have seen QP also becoming QatarEnergy.” In Qatar, TotalEnergies has been present since 1936, and is active in exploration and production, refining and petrochemicals, and marketing of lubricants, and renewable energies.    

Gulf Times
Business
Mena region has resources to catch up on climate transition: Oxford Economics

The Middle East and North Africa (Mena) region possesses the financial and natural resources to transition towards low-carbon energy sources, Oxford Economics said in a report. By leveraging current economic diversification plans, the region can bridge the investment gap with "greener" capital stock. In doing so, some countries in the GCC could emerge as leaders in the fight against climate change. The report noted Mena has great potential for solar and wind energy, which can be harnessed with improvements in storage technology. The region also has potential for hydrogen and carbon capture, storage, and use (CCUS), it said. Yet, while the abundance of natural resources points to untapped renewable potential, electricity generation from renewables in Mena still lags the rest of the world. However, decarbonisation and encouraging green growth will require the right incentives. Carbon pricing will help renewable energy become more competitive, given the abundance of cheap fossil fuels in the region. Support for those adversely affected by the carbon transition, such as workers in fossil-fuel-related sectors, will also be necessary. That said, the transformation to a decarbonised economy can help the Mena region save on costs by increasing energy efficiency and seeking growth opportunities in renewables. Two GCC countries are already looking to develop their capabilities in blue and green hydrogen. Mena countries can also adapt to existing climate threats of rising temperatures and drought, and in doing so, reap the benefits of reduced pollution in their cities, Oxford Economics said. The World Bank estimates the Mena region needs to spend 8.2% of GDP to meet its infrastructure goals by 2030. Historically, the region has spent around 3% of GDP, with most of it coming from the public sector. This is consistent with observed gross fixed capital formation figures, which show that investment in the region currently lags the world average. “As the region strives to fill this gap, additional capital investments can be climate-friendly from the start, as it is easier to invest in green initiatives than having to clean up existing carbon-intensive industries,” Oxford Economics added.  

A traveller in the deserted hall at Hong Kong International Airport. International air traffic remains largely stagnant in Asia-Pacific due to ongoing travel restrictions in major markets, particularly China.
Business
International air traffic in key Asia-Pacific markets largely stagnant due to travel restrictions

Beyond the Tarmac International air traffic remains largely stagnant in Asia-Pacific due to ongoing travel restrictions in major markets, particularly China. The reopening of international air travel to and from China will not only accelerate growth in the region, but also provides a thrust to the aviation industry across the globe. China plays a key role in the region as most of South East Asian Airports and Australia are largely dependent on Chinese travellers, according to Airports Council International (ACI). The industry showed encouraging signs of recovery in the first quarter of 2022 — capacity was rebuilding in many parts of Asia Pacific and Middle East (ME) region; domestic passenger traffic made considerable progress; cargo growth has proven to be resilient and is above pre-pandemic levels. Despite the subdued pandemic environment, airports in the region continued to provide a safe and high service quality for the benefit of their passengers, noted a report by Airports Council International Asia-Pacific (ACI APAC) developed in partnership with Mott MacDonald — a global engineering, management and development consultancy. However, travel restrictions ranging from mandatory quarantines in designated facilities to pre-departure testing and on-arrival; suspension of international air travel in some parts of the region; geopolitical conflict and subsequent impacts on macroeconomic factors have proved to be detrimental to the overall growth of aviation. “Analysis shows that travel restrictions have to a large degree failed to prevent the spread of Covid-19 mainly due to the high infectious nature of the omicron variant and have turned out to be a deterrent for the recovery of aviation, impacting the economy of the region. Cargo business proves on the contrary the leading role that Asia-Pacific plays in the global economy. “Despite an improving trend, airport financial margins remained far below pre-pandemic levels and are economically unsustainable. It is therefore time to remove ineffective restrictions and enable nations to accelerate their economic growth. “To achieve a truly sustainable recovery from the slump caused by Covid-19, co-operation and the establishment of standards that harmonise the processes for international travel between states are crucial. The global recovery will only be realised with the escalation of vaccination campaigns, development of digital health passes, and supportive policies from governments,” said Stefano Baronci, Director General, ACI Asia-Pacific. Boosted by high rates of vaccination (70% or above in the six largest aviation markets), since early 2022, many countries have been easing entry requirements, but parts of Emerging and Developed East Asia (Japan, Republic of Korea, Chinese Taipei, Hong Kong, Macau, China, Mongolia and Democratic People’s Republic of Korea) have kept quarantine requirements in place. In Asia Pacific and ME, currently 20 countries have no significant entry restrictions, the report noted. While domestic passenger traffic has made considerable progress, with the easing of restrictions within some countries, international traffic, which is the key revenue driver for airports in terms of passengers’ commercial spend, has remained largely stagnant due to restrictions and geopolitical tensions in and around the region. Considering airline seat capacity as a proxy to measure the flow of passengers, as compared to 2019 Q1 data, domestic traffic has made a recovery of 92% of pre-pandemic levels, but international seat capacity was still down 67% during Q1 as travel restrictions, quarantine and testing requirements continued to hamper the growth of air travel. The total domestic seat capacity is expected to recover to levels exceeding 2019 by Q2, 2022 by approximately +4%. This is driven largely by Emerging East Asia (notably China), which has 15% more departing seats scheduled in 2022 than in 2019. Middle East domestic capacity remains below 2019 levels. In contrast, total international seat capacity in 2022 is 49% below 2019 levels, with significant variation between sub-regions. South Asia and the Middle East are only down about 15% on 2019 levels, while Emerging East Asia (China, Mongolia, Democratic People’s Republic of Korea) is still down by 81%, and is once again experiencing stringent travel restrictions. Cargo growth has proven to be resilient in comparison with passenger traffic, and remains significantly above pre-pandemic levels. As passenger airlines returns providing more belly capacity, air cargo is expected to continue its growth trajectory, the ACI APAC - Mott MacDonald noted. The sub-regions with the largest cargo shares are Developed Asia (Japan, Republic of Korea, Chinese Taipei, Hong Kong, Macau) with 32%, followed by Emerging East Asia with 29% and Middle East 16%. Developed East Asia was the only region in Q4, 2021 that recorded traffic levels above 2019 pre-Covid level. All other regions reported levels around 0.85% or above compared to 2019. The EBITDA and net profit margins, based on a selection of sampled airports handling 30% of total annual regional traffic volumes in 2030, indicates improving conditions in Q4 2021 (October to December), driven by an increase in passenger traffic and optimisation of operating costs. However, the margins remained far below pre-pandemic levels and are economically unsustainable. Quarterly revenues remain 58% below the same period last year. Although revenues are improving slowly with traffic recovery, they remain at low levels, leading to large operating losses for airports. Total operating expenditures have declined since the start of the pandemic, with the decline having halved in percentage terms in Q4, 2021 compared to the same quarter in the previous year. Overall satisfaction scores for airports have increased continuously throughout the pandemic up to Q4, 2021, and were around 5% higher compared to the same period in 2019. Similarly, Middle East performance is also above 2019 levels. With capacity rebuilding in many parts of Asia Pacific and the Middle East, the region's aviation industry is clearly experiencing green shoots of recovery. Pratap John is Business Editor at Gulf Times. Twitter handle: @PratapJohn    

HE Sheikh Bandar bin Mohamed bin Saoud al-Thani at The Euromoney Qatar Conference on Sunday. PICTURE: Shaji Kayamkulam
Qatar
Qatari economy stronger than in 2020, GDP expected to grow 3.5% in 2022: QCB Governor

Qatar’s economy is much stronger than it was in 2020, HE the Governor of Qatar Central Bank (QCB) Sheikh Bandar bin Mohamed bin Saoud al-Thani said and noted the country’s GDP is expected to grow 3.5% in 2022. In his opening keynote at The Euromoney Qatar Conference on Sunday, Sheikh Bandar noted that occupies a distinguished position as one of the world's leading countries in the production and export of clean liquefied natural gas (LNG). The event was held under the patronage of HE the Prime Minister and Minister of Interior Sheikh Khalid bin Khalifa bin Abdulaziz al-Thani. HE Sheikh Bandar said the country's economy has proven strength and resilience despite the economic challenges imposed by the outbreak of the Coronavirus (Covid-19) pandemic. “This is a result of the directives of the wise leadership, and the economic and financial support plan that was implemented to assist the sectors affected by the measures to limit the spread of the pandemic,” the QCB Governor said. Qatar, he said succeeded in protecting the society from the catastrophic effects of the pandemic by adopting a balanced approach and taking measures and policies in the field of public health, which allowed a smooth and safe return to normal life. HE Sheikh Bandar said the existence of a flexible economy provides a strong basis that helps to plan for the future, as this flexibility is evident through the data related to the government budget and the current account, the official reserves of the state, and the strength of the financial sector, in addition to economic diversification. “The prospects are still bright, as economic activity is recovering, driven by several factors, including the recovery in domestic demand, the growth of private sector credit, and preparations to host the FIFA World Cup Qatar 2022,” he said. With the rise in global oil and gas prices, international institutions expect higher GDP growth in Qatar in the range of 3.5% in 2022. On the other hand, inflation levels appear relatively moderate compared to the global rates. The current geopolitical tensions in Europe have not affected significantly on the levels of inflation, as it remained moderate. “Despite the low risks associated with the pandemic, we must stress the need to closely monitor the risks of supply chain disruptions. And despite the difficult challenges that the global financial sector has witnessed in recent times, Qatari banks still enjoy a good amount of capitalisation, high liquidity and they maintain the quality of their assets. The profitability of banks has remained stable, while the percentage of non-performing loans is still considered among the lowest in the region. “Moreover, (local) banks have been able to support their customers and borrowers during the pandemic, which confirms the strength and effectiveness of banking systems backed by the regulatory and supervisory framework.” Based on the positive data achieved by the economy and the banking sector in particular, he said a decision was taken to start the phase of gradual exit from the banking sector support measures. A plan was drawn up to end the facilities provided by Qatar Central Bank to banks by the end of this year in conjunction with the interim assessment of the banks situation. Interest rates were also raised in line with the policy of maintaining the exchange rate, with the continued emphasis on following up on everything related to global developments in order to protect the strength and safety of our banking sector. With the expectation that oil prices will continue at their current average rates, this will support the continued recovery in the country’s economic growth in the medium term, HE Sheikh Bandar said. This, he said “will allow us to absorb the cycle of financial tightening that has already begun by most central banks around the world”. Qatar Central Bank, the Governor, said is working on developing the regulatory environment to enhance the “digital society and the advanced financial environment”, through which “we seek to make Qatar a regional leader in the field of digital banking services”. To meet the increasing payment needs of residents and visitors, the number of companies providing financial technology services has been increased in the experimental virtual environment before licensing them, ensuring that the companies are more efficient and secure. As part of the current update of the payment system - a fully integrated payments platform will be implemented, including a Central Infrastructure System for an instant payments network at the national level. Qatar Central Bank is establishing the necessary infrastructure to enable banks to accept payments from digital wallets and in this regard, the bank is working on designing a new strategy for financial technology and intends to launch it during the last quarter of this year, he added.    

Abdulla Mubarak al-Khalifa, QNB Group Chief Executive Officer.
Business
More than 90% of QNB customer interface already digitised: Group CEO

More than 90% of QNB’s customer interface has already been digitised helping Qatar’s top bank “to achieve the highest levels of satisfaction and security,” said Abdulla Mubarak al-Khalifa, QNB Group Chief Executive Officer. In his keynote address at the Euromoney Qatar Conference yesterday, al-Khalifa said as part of its group-wide strategy, QNB defines innovation as a strategic enabler to identify new sources of revenue and create cost-saving opportunities. “We believe that innovation requires us to be more creative and flexible to respond to the complexities of the new normal. We are working to use and benefit from the latest technologies to provide digital banking services with a human touch. From this standpoint, we consider ourselves pioneers in digital transformation.” He noted that the Covid-19 pandemic has caused significant challenges around the world. The unprecedented monetary and financial support measures taken by central banks and governments contributed to providing support to the global economy and enabled it to weather the storm and achieve recovery. He said the State of Qatar has also taken many measures to protect its economy and society in order to reduce the impact of this global shock. As a result, the impact of the pandemic has been limited. “Thanks to the effective management and support provided by the Government of the State of Qatar and the Qatar Central Bank, our banking sector enjoys flexibility and quality, with high levels of capital, liquidity, assets and profitability,” he said. As a result, he noted Qatar's economic performance is strong and its future prospects are stable. The Qatar National Vision 2030, backed by a massive programme of infrastructure development and investment spending, aims to transform the country into a knowledge-based economy. “The State of Qatar is actively working to enhance the contribution of the private sector and is making every effort to ensure the success of hosting the FIFA World Cup 2022.” Qatar has one of the largest natural gas reserves in the world and is the main exporter of liquefied natural gas. Qatar decided to increase its production by 64% by 2027 through the expansion of the North Field. This will ensure the continuity of achieving growth in the country in the medium and long term. Al-Khalifa noted, “QNB Group was also able to overcome the challenges of the pandemic, as we continued to adhere to our goal of promoting prosperity and sustainable growth for our shareholders and communities. “Thanks to these efforts, we achieved a strong financial performance in 2021, and remain the largest financial institution in Qatar and a leading banking and brand in the region.” In Qatar, QNB offers a full range of comprehensive banking services that focus on sectors such as public services, transportation and logistics in addition to projects related to hosting the World Cup and expanding the North Field. “We are also keen to play a major role in supporting the hosting of the World Cup. We aim to help facilitate all services related to payments and transactions in order to provide a seamless experience during the tournament. Our strategic partnership with FIFA is an opportunity to promote the QNB name. I believe this will help us strengthen our brand, image and reputation worldwide. “All these achievements confirm the success of the State of Qatar, the banking sector and QNB Group in overcoming the impact of the pandemic.” However, al-Khalifa said, “We acknowledge that the pandemic has changed our way of life both professionally and personally. We know that the world has become more volatile and uncertain. Our operating environment has also become more complex and the number of factors to be taken into account when making decisions has increased significantly. “The pandemic has led to structural, technological and cultural shifts in the economic and social landscape. We are now dealing with a new normal that challenges all the ways of working, communicating, and thinking we were accustomed to. “Customers are moving from physical interaction channels to remote channels, and this digital transformation is affecting the banking sector. In addition, the focus on sustainability, ESG, and climate change is expected to impact portfolios, balance sheets, and banking institutions' operations.” Al-Khalifa said, “Under the Qatar National Vision 2030, innovation plays an important role in transforming the economy. Since the pandemic, innovation and digital transformation have remained a key priority, helping to enhance productivity, cost efficiency, customer focus and ultimately increase profitability.”

HE Akbar al-Baker: PICTURE: Shaji Kayamkulam
Qatar
Easy entry guaranteed for World Cup Qatar fans on shuttle flights

Seamless immigration, security processing for overseas football fans arriving on shuttle flights: Al-Baker Four GCC carriers – flydubai, Kuwait Airways, Oman Air and Saudi Arabian (Saudia) – will operate some 168 daily shuttle flights to Doha International Airport under the Match Day Shuttle Flights. Flydubai will operate up to 60 daily flights from Dubai carrying up to 2,500 fans, while Oman Air will run up to 48 daily flights from Muscat carrying up to 3,400 fans. Kuwait Airways will run up to 20 flights a day from Kuwait City carrying up to 1,700 fans. Saudia will operate up to 40 daily flights carrying up to 10,000 fans from Riyadh and Jeddah. Etihad and Air Arabia may join the GCC airlines agreement to organise shuttle service to Qatar during FIFA World Cup Qatar 2022. The shuttle service will help overseas fans avoid lodgings in Qatar. “Like anywhere else there has always been a shortage of accommodation, so we are not unique. The biggest challenge for us is because everything is happening in one place,” Qatar Airways Group Chief Executive HE Akbar al-Baker said. All the shuttle flights would be reserved for fans with World Cup tickets and who have carried out special registration, including biometric details. HE al-Baker promised “seamless” immigration and security processing that would see them treated as though they were arriving on a domestic flight. The new partnership between the GCC national carriers was sealed with the signing of a Memorandum of Understanding (MoU) here yesterday. HE al-Baker, Yasir al-Jamal, Ghaith al-Ghaith, Maen Mahmoud Razouqi, Abdulaziz al-Raisi, and Captain Ibrahim S Koshy were the main attendees at the event. In September 2021, Qatar Airways launched unique travel packages, inclusive of match tickets, return flights and accommodation options. Fans can guarantee their match tickets to support their favourite team during the FIFA World Cup Qatar 2022 by visiting qatarairways.com/FIFA2022 The tournament will be held across eight world-class stadiums which are designed to inspire the various symbols of Qatari and Arab culture. Al Bayt Stadium will host the opening game with a capacity of 60,000 seats, while Lusail Stadium is set to host the final match of the tournament, with a capacity of 80,000 seats. The remaining stadiums will house 40,000 spectators. These include: Ahmad Bin Ali Stadium, Al Janoub Stadium, Khalifa International Stadium, Education City Stadium, Stadium 974 and Al Thumama Stadium.

Qatar Airways Group Chief Executive HE Akbar al-Baker: PICTURE: Shaji Kayamkulam
Business
New international airlines apply for scheduled Qatar flights during winter: Al-Baker

New international airlines have already applied for scheduled flights during the winter season to start operating to Doha, Qatar Airways Group Chief Executive HE Akbar al-Baker has said. He, however, did not name them. “Wait… and you will get to know. Everyone wants to come,” al-Baker told journalists yesterday. Speaking to Gulf Times, al-Baker said football fans from countries outside of the GCC will be arriving on both scheduled and charter flights. “Depending on the capacity of the runway, they will land either at Hamad International or Doha International airports. Some will land at HIA and some at Doha,” he said. To facilitate entry into Qatar of thousands of overseas football fans, al-Baker said, “Some of Qatar Airways routes to countries not involved in the 32-nation tournament would be halted and others reduced. Qatar Airways would cut flights to destinations that are irrelevant to the FIFA World Cup, so that we could increase flights to countries taking part.” More than 20,000 fans could come in each day on shuttle flights from neighbouring GCC countries of Saudi Arabia, UAE, Kuwait and Oman. The tournament will be held across eight world-class stadiums which are designed to inspire the various symbols of Qatari and Arab culture. Al Bayt Stadium will host the opening game with a capacity of 60,000 seats, while Lusail Stadium is set to host the final match of the tournament, with a capacity of 80,000 seats. The remaining stadiums will house 40,000 spectators. These include: Ahmad Bin Ali Stadium, Al Janoub Stadium, Khalifa International Stadium, Education City Stadium, Stadium 974 and Al Thumama Stadium.    

HE Akbar al-Baker: PICTURE: Shaji Kayamkulam
Qatar
Seamless immigration, security processing for overseas football fans arriving on shuttle flights: Al-Baker

Four GCC carriers - flydubai, Kuwait Airways, Oman Air and Saudi Arabian (Saudia) - will operate some 168 daily shuttle flights to Doha International Airport under the Match Day Shuttle Flights. Flydubai will operate up to 60 daily flights from Dubai carrying up to 2,500 fans, while Oman Air will run up to 48 daily flights from Muscat carrying up to 3,400 fans. Kuwait Airways will run up to 20 flights a day from Kuwait City carrying up to 1,700 fans. Saudia will operate up to 40 daily flights carrying up to 10,000 fans from Riyadh and Jeddah. Etihad and Air Arabia may join the GCC airlines agreement to organise shuttle service to Qatar during FIFA World Cup Qatar 2022. The shuttle service will help overseas fans avoid lodgings in Qatar. "Like anywhere else there has always been a shortage of accommodation, so we are not unique. The biggest challenge for us is because everything is happening in one place," Qatar Airways Group Chief Executive HE Akbar al-Baker said. All the shuttle flights would be reserved for fans with World Cup tickets and who have carried out special registration, including biometric details. HE al-Baker promised "seamless" immigration and security processing that would see them treated as though they were arriving on a domestic flight. The new partnership between the GCC national carriers was sealed with the signing of a Memorandum of Understanding (MoU) here yesterday. HE al-Baker, Yasir al-Jamal, Ghaith al-Ghaith, Maen Mahmoud Razouqi, Abdulaziz al-Raisi, and Captain Ibrahim S Koshy were the main attendees at the event. In September 2021, Qatar Airways launched unique travel packages, inclusive of match tickets, return flights and accommodation options. Fans can guarantee their match tickets to support their favourite team during the FIFA World Cup Qatar 2022 by visiting qatarairways.com/FIFA2022. The tournament will be held across eight world-class stadiums which are designed to inspire the various symbols of Qatari and Arab culture. Al Bayt Stadium will host the opening game with a capacity of 60,000 seats, while Lusail Stadium is set to host the final match of the tournament, with a capacity of 80,000 seats. The remaining stadiums will house 40,000 spectators. These include: Ahmad Bin Ali Stadium, Al Janoub Stadium, Khalifa International Stadium, Education City Stadium, Stadium 974 and Al Thumama Stadium.    

Officials during the press conferencee.
Qatar
Qatar Airways partners with 4 GCC carriers for World Cup Match Day Shuttle Flights

Qatar Airways has tied up with flydubai, Kuwait Airways, Oman Air and Saudia to connect FIFA World Cup Qatar 2022 match ticket holders to Doha via Match Day Shuttle Flights. By choosing to book a Match Day Shuttle flight, fans will arrive in the morning and depart in the evening, with no hotel accommodation required. Additionally, a no check-in baggage policy will “simplify an easy-in, easy-out travel itinerary” for passengers. Passengers who book one of the Match Day Shuttle services will benefit from a smooth journey, which includes dedicated on-ground transportation between the airport and stadium. Football fans based in Kuwait, Oman, Saudi Arabia and the UAE will soon be able to book their Match Day Shuttle flights, Qatar Airways Group Chief Executive HE Akbar al-Baker told a press conference in Doha on Thursday. The four GCC carriers will operate some 168 daily shuttle flights to Doha International Airport, al-Baker said at the media event where agreements were signed between Qatar Airways and the four GCC carriers - flydubai, Kuwait Airways, Oman Air and Saudia. Flydubai will operate up to 60 daily flights from Dubai, the region's tourism hub, carrying up to 2,500 fans, while Oman Air will run up to 48 daily flights from Muscat carrying up to 3,400 fans. Kuwait Airways will run up to 20 flights a day carrying up to 1,700 fans. Saudia will operate up to 40 daily flights carrying up to 10,000 fans from Riyadh and Jeddah. He said Etihad and Air Arabia may join the GCC airlines agreement to organise shuttle service to Qatar during world cup. Match Day Shuttle tickets will kick-off at extremely competitive prices along with rotating frequencies from Dubai, Jeddah, Kuwait City, Muscat and Riyadh. Fans are invited to visit qatarairways.com/MatchDayShuttle and the partner airlines’ websites to learn more and secure their flights. Qatar Airways will also be adding more Match Day Shuttle flights across the GCC in the future, as well as flying in football fans from around the world on its extensive global network. HE al-Baker said, “Connecting fans and a shared love for football are at the heart of this game-changing partnership. We are immensely privileged to have the opportunity to unite fans from all walks of life to enjoy the beautiful game at its best, while introducing them to our hospitable culture and traditions. The FIFA World Cup Qatar 2022 will be the first in the Middle East and Arab world, and we have always believed that a win for Qatar is a win for the region.” Yasir al-Jamal, director-general, Supreme Committee for Delivery & Legacy, said: “Right from the start, we have said Qatar 2022 is a FIFA World Cup for the entire region – and the announcement of the Match Day Shuttle service will make it even easier for many thousands of fans to be able to attend the first tournament in the Middle East and Arab world. "Our digital Hayya (Fan ID) will enable a seamless fan journey for those visiting for the tournament, and with the amazing opportunity of attending more than one match in a day, we look forward to welcoming fans from across the region as they immerse themselves in the exciting football and enjoy our famous hospitality. Our sincere thanks to Qatar Airways and their partners for delivering this special project, which will help us host a memorable and outstanding edition of the FIFA World Cup,” he added. Ghaith al-Ghaith, chief executive officer, flydubai, said, “We are very pleased to be part of this game-changing partnership with Qatar Airways and the other partner GCC national carriers. This will allow us to welcome more football fans and visitors from all over the world to experience the warm hospitality and rich culture of our region. “Having recently hosted a global event in Dubai, we know first-hand the positive impact such events have not only on the travel and hospitality sectors, but also on the wider economy and the overall morale. We are honoured to be able to play a part in supporting the FIFA World Cup Qatar 2022; enabling more people to share in the joy of the beautiful game via our 30 daily return Match Day Shuttle flights between Dubai and Doha.” Kuwait Airways chairman Captain Ali Dukhan said, “We are proud to facilitate the transfer and travels of fans to and from Qatar for this monumental event. Not only does this agreement enhance the connectivity of our Gulf nations, but also facilitates the social and economic growth emphasised by Kuwait’s government. We hope to share the excitement of the residents of Kuwait, the GCC, and the world throughout the FIFA World Cup Qatar 2022 and beyond by playing our role in the aviation industry in connecting Kuwait to the world.” Oman Air chief executive officer Abdulaziz al-Raisi said, “We are immensely proud to join our partners as we connect football fans to the sport they love and enhance their experience with convenient and seamless travel options tailored to busy schedules. Match Day Shuttle flights are a great way for fans to see more of the rich and vibrant cultures that abound in the region. As the football world comes together in Qatar, Oman Air is ready to welcome everyone on board to enjoy the signature warmth and hospitality Omanis are renowned for.” Saudia chief executive officer Captain Ibrahim S Koshy added, “Saudi Arabian Airlines is pleased to be offering flights from two main gateways, Riyadh and Jeddah, for fans to conveniently travel to attend the highly-anticipated FIFA World Cup Qatar 2022. Through the spirit of sport, we look forward to welcoming guests from around the world to visit the region and experience the signature Saudi hospitality onboard, in addition to exploring a unique culture and heritage.” Total flights per day * flydubai, Dubai - 60 * Kuwait Airways, Kuwait City - 20 * Oman Air, Muscat - 48 * Saudia, Riyadh and Jeddah - 40    

Travellers with their baggage at Kuala Lumpur International Airport 2 in Sepang. Tourism Malaysia places a strong emphasis on attracting tourists from Qatar and elsewhere in the GCC following the reopening of the Southeast Asian countryu2019s borders for international tourists on April 1, 2022.
Business
Enhanced air services to and from Qatar: Advantage Malaysian tourism

Beyond the Tarmac Malaysian tourism sector is expected to gain considerably with the launch of Malaysian Airlines direct daily flights to Doha and its “deep code share” with Qatar Airways. Pre-pandemic, in 2019, Malaysia received 397,726 tourists from Mena region, according to Tourism Malaysia. Tourism Malaysia places a strong emphasis on attracting tourists from Qatar and elsewhere in the GCC following the reopening of the Southeast Asian country’s borders for international tourists on April 1, 2022. Malaysian Airlines Group chief marketing & customer experience officer Lau Yin May. PICTURE: Thajudheen Now that the country’s borders are fully open again, officials are confident that they will witness a strong rebound in tourism numbers, to bolster the recovery of Malaysian economy. Qatar Airways already operates non-stop flights to Malaysia. Malaysian Airlines Group chief marketing & customer experience officer Lau Yin May said, “The crucial expansion to Doha will allow us to extend the Malaysian hospitality, which proudly embodies our culture and traditions through superior service and offerings.” She said, “As a leisure and tourism player, we are delighted to play a significant role in attracting a mixture of business and leisure passengers globally and provide seamless connectivity to financial capitals and major tourist destinations in Malaysia, Southeast Asia, the Middle East, Africa, Europe, the United States, Australia and New Zealand. “Through our existing partnership with Qatar Airways, passengers will also gain access to a combined 96 codeshare destinations via the two strategic hubs – Doha and Kuala Lumpur, which will further boost the recovery of the sector as we work towards achieving 70% of our pre-Covid-19 capacity by the end of the year.” Speaking to Gulf Times, Yin May said travellers from Qatar and elsewhere could make use of ‘MHholidays’, the tour operating arm of Malaysia Airlines. “We offer products and services that enable guests to tailor-make holidays with the combination of flights, accommodation, ground transfer services as well as holiday packages in a single platform,” Yin May said. On the recent expanded partnership with Qatar Airways, Malaysian Airlines oneworld alliance partner, she said, “As air travel recovers it is vital for airlines to foster stronger relationships. Besides expanding the scope of destinations, tightening ties between countries and enhancing passenger services, partnerships will help rebuild traffic, boost the recovery and resume faster frequencies up to pre-pandemic level.” Recently, Malaysian Airlines and Qatar Airways have unveiled the roadmap outlining the next phase of their strategic partnership, following Malaysia Airlines’ announcement to launch a non-stop service from Kuala Lumpur to Doha from May 25. The two partners will significantly expand their codeshare co-operation, allowing passengers to travel the world and enjoy seamless connectivity via their leading hubs in Kuala Lumpur and Doha. The codeshare expansion, which adds 34 destinations to the existing 62 codeshare destinations, marks another milestone in the long-standing relationship between the two countries' national carriers and oneworld partners. The agreement benefits travellers from across the globe who will have access to a much greater combined network and enjoy a seamless travel experience on both airlines with a single ticket including check-in, boarding and baggage-check processes, frequent flyer benefits and world-class lounge access for the entire journey. Starting May 25, customers flying on Malaysia Airlines’ new Kuala Lumpur to Doha service will have access to some 62 codeshare destinations within Qatar Airways' broad network to the Middle East, Africa, Europe and North America. Likewise, Qatar Airways customers travelling from Doha to Kuala Lumpur can seamlessly transfer to some 34 Malaysia Airlines’ destinations including their entire domestic network and key markets in Asia, such as Singapore, Seoul, Hong Kong, and Ho Chi Minh City, subject to governmental approval. In linking both route networks, the partners are striving to develop Kuala Lumpur as a leading aviation hub in the Southeast Asia Region connecting Malaysia, Southeast Asia, Australia and New Zealand with the Middle East, Europe, the Americas, and Africa. Furthermore, Qatar Airways and Malaysia Airlines will leverage synergies across multiple business areas and develop innovative products to benefit their customers worldwide. The enhanced co-operation will also include reciprocal loyalty benefits allowing Qatar Airways Privilege Club members to earn and redeem ‘Avios’ points when flying on Malaysia Airlines, with similar benefits for Malaysia Airlines ‘Enrich’ members when travelling on Qatar Airways’ services. Malaysia Airlines and Qatar Airways’ strategic partnership evolved progressively beginning 2001 and have significantly expanded the collaborative partnership with the signing of a Memorandum of Understanding in February this year to leverage each other’s network strengths and provide robust access for passengers to travel to new destinations beyond their individual network, and ultimately lead Asia-Pacific travel.  

Gulf Times
Business
Qatar banking sector total assets decline 1.1% month-on-month in April to QR1.812tn: QNB Financial Services

Qatar banking sector total assets declined by 1.1% month-on-month (MoM -0.8% in 2022) in April to QR1.812tn, QNB Financial Services has said in a report. The banking sector’s total loan book went down by 0.4% MoM (-0.5% in 2022) and deposits moved down by 1.2% MoM (-1.9% in 2022) in April. Loans declined by 0.4% during April to QR1,210.6bn. Loans drop in April was due to a decline by 1.4% from the public sector and 3.5% from outside Qatar. Loans have so far declined by 0.5% in 2022, compared to a growth of 7.8% in 2021. Loans grew by an average 7.6% over the past five years (2017-2021) QNBFS said. Deposits went down by 1.2% during April to QR956.1bn. Deposits decline in April 2022 was mainly due to a 6.5% cutback in non-resident deposits, the report said. Deposits have so far gone down by 1.9% in 2022, compared to a growth of 7 .6% in 2021. Deposits grew by an average 6.1 % over the past five years (2017-2021), QNBFS noted. As deposits moved down by 1.2% in April, the LDR went up to 126.6% compared with 125.6% in March. The overall loan book moved lower by 0.4% in April 2022. Domestic Public Sector loans went down by 1.4% MoM (-3.6% in 2022). The government segment’s (represents nearly 35% of public sector loans) loan book declined by 3.0% MoM (-10.4% in 2022), while the semi-government institutions’ segment moved down by 5.5% MoM (+2.7% in 2022). However, the government institutions’ segment (represents nearly 60% of public sector loans) edged up marginally MoM (+0.4% in 2022). Outside Qatar loans declined by 3.5% MoM (-5.7% in 2022) during April. Total Private sector loans moved up by 0.3% MoM (+1.5% in 2022) in April 2022. Real estate, consumption & others and general trade segments mainly contributed toward the private sector loan growth in April. Real estate segment (contributes nearly 21% to private sector loans) increased by 1.3% MoM (+1.5% in 2022). Consumption and others (contributes nearly 22% to private sector loans) went up by 0.7% MoM (+2.7% in 2022). General trade (contributes nearly 22% to private sector loans) moved up by 0.5% MoM (+2.3% in 2022). However, services (contributes nearly 28% to private sector loans) declined by 0.7% MoM (+0.9% in 2022) during the month of April 2022. Non-resident deposits declined by 6.5% MoM (-13.9% in 2022) in April resulting in the overall drop in the Qatar banking sector deposits. However, public sector deposits went up by 1.7% MoM (+2.6% in 2022). Looking at segment details, the government institutions’ segment (represents nearly 55% of public sector deposits) increased by 2.4% MoM (+7.1% in 2022), while the government segment (represents nearly 32% of public sector deposits) gained by 0.4% MoM (-5.0% in 2022) and the semi-government institutions’ segment moved up by 1.8% MoM (+4.7% in 2022). Private sector deposits moved up by 0.1% MoM (+3.3% in 2022). On the private sector front, the companies and institutions’ segment went up by 0.2% MoM (+3.2% in 2022), while the consumer segment edged down marginally MoM (+3.4% in 2022).

Qatar Airways Group on Monday published Sustainability Report for FY2019-21, a special two-year edition themed u201cResponse, Relief, Recovery, Resilienceu201d.
Business
Qatar Airways preparing for Phase IV of EU Emissions Trading System

Preparations are ongoing at Qatar Airways and Qatar Executive for Phase IV of the European Union Emissions Trading System (EU ETS), which will cover the period from 2021-2030, according to the national airline’s latest Sustainability Report. Qatar Airways and Qatar Executive have already completed Phase III of European Union Emissions Trading System (EU ETS), it said. As part of the regulatory requirements, Qatar Airways has established processes to comply with the following trading schemes: ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), United Kingdom Emissions Trading Scheme (UK ETS) in addition to EU ETS. EU ETS covers flights between countries within the European Economic Area (EEA). Qatar Airways and Qatar Executive are required to report intra-EEA CO2 emissions and surrender European Union Allowances (EUAs) to cover their reported emissions. Since January 2020 the Swiss Emissions Trading System has been linked with the EU ETS ensuring expanded sector coverage. The ICAO CORSIA is the first global scheme adopted by the states to mitigate increasing CO2 emissions from international civil aviation. CORSIA highlights the collective effort taken by global international aviation industry to stabilise CO2 emissions and achieve the carbon neutral growth from 2020. The UK ETS, established through the United Kingdom Greenhouse Gas Emissions Trading Scheme Order 2020, has replaced the country's participation in the European Union Emissions Trading System, post Brexit. Qatar Airways and Qatar Executive will be reporting emissions under this scheme for flights between UK and EEA and intra UK, and have put in place all the necessary arrangements to meet this compliance requirement. “It is our ambition as an airline to minimise our impact on the environment, and facilitate continued global travel and commerce while limiting carbon emissions,” said Qatar Airways Group Chief Executive HE Akbar al-Baker. Qatar Airways officially launched an offset programme providing an option for its passengers to offset carbon emissions associated with their journey. The programme is built on a partnership with the International Air Transport Association’s (IATA) Carbon Offset Programme, where passengers are assured that the credits bought to offset emissions are from projects delivering independently verified carbon reductions, in addition to environmental and social benefits. Qatar Airways Group yesterday published Sustainability Report for FY2019-21, a special two-year edition themed “Response, Relief, Recovery, Resilience”. Acknowledging the unprecedented circumstances the global aviation community faced in 2020, the approach of this two-year report differs from previous years, due to the impact of the Covid-19 pandemic on its business as usual operation. The latest report details how the airline group was able to quickly respond to the needs of its customers, and its relief efforts in providing repatriation to people stranded and transport of essential medical and other supplies, as well as the airline’s strategy to recover and build resilience to ensure long-term business sustainability. Qatar Airways was adept in aligning short-term emergency responses with investments into long-term economic, social and environmental objectives to ensure the safety, security and well-being of its passengers and employees. It maintained its mission of ‘Connecting people and moving cargo’ safely and hygienically, becoming an airline customers can trust and rely on. Al-Baker said: “The Covid-19 pandemic challenged the industry, businesses large and small, local and national governments, families, and individuals in ways few of us could have imagined. While it impacted every aspect of our business in 2020 and 2021, we worked to address the pandemic while continuing to drive industry’s agenda toward net-zero. “Our industry recognises that there is more work to be done. We will continue to share our progress and be responsible for ensuring a safe and sustainable industry for future generations.” During the peak of the pandemic, Qatar Airways remained steadfast in its ambition to demonstrate leadership in environmental sustainability, and continued to work on cementing the path towards a sustainable recovery and contributing to the conservation of global biodiversity with its zero-tolerance policy towards illegal trafficking of wildlife and its products. Together with oneworld member airlines, Qatar Airways committed to net-zero carbon emissions by 2050, becoming the first global airline alliance to unite behind a common target to achieve carbon neutrality. It also partnered with IATA to launch its voluntary carbon offset programme for passengers, which has now extended to include its cargo and corporate clients, while continuing to improve our environmental performance and securing the accreditation to the highest level in the IATA Environmental Assessment Programme (IEnvA).    

During the period of Marchu2013June 2020, Qatar Airwaysu2019 share of the air cargo market increased significantly. Based on the International Air Transport Association statistics, Qatar Airways became the largest cargo airline in the world (excluding express operator FedEx)
Business
Qatar Airways Cargo destinations double to 122 in 2020–21: Sustainability report

The number of Qatar Airways Cargo destinations has doubled from 63 in 2019–20 to 122 in 2020–21, according to Qatar Airways Group Sustainability Report. Cargo flights increased from pre-Covid operations of up to 60 flights a day (freighter only) to 180 flights a day during Covid (freighter and belly hold). During the period of March–June 2020, Qatar Airways’ share of the air cargo market increased significantly. Based on the International Air Transport Association statistics, Qatar Airways became the largest cargo airline in the world (excluding express operator FedEx). The addition of 30 new destinations to its network by June 2020 contributed to its ability to move cargo in response to increased market demand. In January 2021, Qatar Airways Cargo added three brand new Boeing 777 freighters to its fleet to support the national airline’s long-haul scheduled routes as well as cargo charters. As the pandemic progressed, Qatar Airways Cargo helped transport essential supplies, pharmaceuticals, perishables and other vital cargo around the world. It continued to operate its scheduled freighters while operating more than 500 freight charters of relief goods, personal protective equipment and medical aid to impacted countries. Qatar Airways noted the global pandemic affected its cargo operations. Ground handlers reduced the number of aircraft they were able to service, along with travel restrictions and operational uncertainty contributed to flight cancellations. Cargo operations adapted to effectively and efficiently maintain a state of readiness for its customers and partners. Its network planning was coordinated to maximise belly hold carriage whilst working with reduced manpower. Other adaption and response measures included the conversion of six B777-300ER into mini-freighters and the rotation of fleet. According to IATA, airlines transport over 52mn metric tonnes of goods a year, representing more than 35% of global trade by value but less than 1% of world trade by volume. With a value of more than $6.8tn worth of goods transported annually, air cargo is a critical enabler of global trade. Cargo is essential for the swift transportation of critical time-sensitive goods and materials such as vaccines, medical supplies and equipment, thereby supporting the global supply chains. As of March 2021, air cargo continued to expand strongly with industry-wide cargo tonne-kilometres rising by 4.4% compared pre-crisis levels.    

Based on the International Air Transport Association statistics, Qatar Airways became the largest cargo airline in the world (excluding express operator FedEx).
Business
Qatar Airways Cargo destinations double to 122 in 2020–21: Sustainability report

The number of Qatar Airways Cargo destinations has doubled from 63 in 2019–20 to 122 in 2020–21, according to Qatar Airways Group Sustainability Report. Cargo flights increased from pre-Covid operations of up to 60 flights a day (freighter only) to 180 flights a day during Covid (freighter and belly hold). During the period of March–June 2020, Qatar Airways’ share of the air cargo market increased significantly. Based on the International Air Transport Association statistics, Qatar Airways became the largest cargo airline in the world (excluding express operator FedEx). The addition of 30 new destinations to its network by June 2020 contributed to its ability to move cargo in response to increased market demand. In January 2021, Qatar Airways Cargo added three brand new Boeing 777 freighters to its fleet to support the national airline’s long-haul scheduled routes as well as cargo charters. As the pandemic progressed, Qatar Airways Cargo helped transport essential supplies, pharmaceuticals, perishables and other vital cargo around the world. It continued to operate its scheduled freighters while operating more than 500 freight charters of relief goods, personal protective equipment and medical aid to impacted countries. Qatar Airways noted the global pandemic affected its cargo operations. Ground handlers reduced the number of aircraft they were able to service, along with travel restrictions and operational uncertainty contributed to flight cancellations. Cargo operations adapted to effectively and efficiently maintain a state of readiness for its customers and partners. Its network planning was coordinated to maximise belly hold carriage whilst working with reduced manpower. Other adaption and response measures included the conversion of six B777-300ER into mini-freighters and the rotation of fleet. According to IATA, airlines transport over 52mn metric tonnes of goods a year, representing more than 35% of global trade by value but less than 1% of world trade by volume. With a value of more than $6.8tn worth of goods transported annually, air cargo is a critical enabler of global trade. Cargo is essential for the swift transportation of critical time-sensitive goods and materials such as vaccines, medical supplies and equipment, thereby supporting the global supply chains. As of March 2021, air cargo continued to expand strongly with industry-wide cargo tonne-kilometres rising by 4.4% compared pre-crisis levels.

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Qatar's credit availability set to improve on higher liquidity, rising business confidence: Dun & Bradstreet

Dun & Bradstreet expects the availability of credit in Qatar to improve as higher oil prices boost liquidity in the country’s banking system and business confidence recovers on a successful vaccine rollout. In its latest ‘Country risk update,’ the researcher said the country’s outlook is “stable”. The credit environment score is at ‘DB3b’ on an “improving” trend as the fiscal balance is forecast to be in surplus in 2022 on account of higher oil and gas prices. Qatar's government debt/GDP ratio (81% in 2021) is high compared to its peers and the government has high contingent liabilities. However, Dun & Bradstreet noted the government's strong asset position, including the $450bn sovereign wealth fund, provides a comfortable buffer against external financing pressures. In terms of ‘supply environment’, Dun & Bradstreet said the supply environment score outlook has been set to 'stable' with a ‘DB3d’ rating. In March, Qatar inaugurated the Barzan gas plant, which will help meet domestic power generation and water desalination requirements. Moreover, the recently approved Flight Information Region has given the country its airspace for the first time, and secures an important trading channel for the import-dependent nation. On global crude prices, Dun & Bradstreet said Brent crude spot price to average $107 per barrel in the second quarter (Q2) of the year, it said. Global oil demand is at 3.4mn barrels per day in 2022, Dun & Bradstreet said. Oil prices ended mixed on demand and supply concerns and rising crude inventories. Covid-related lockdowns in China continued to exert downward pressure on the oil market. Positively, the People’s Bank of China pledged to provide monetary policy support, prioritise stability and take steps to boost confidence after the lockdown. The Energy Information Administration (EIA) estimated that the Brent crude spot price will average at $107/barrel in Q2, 2022, and $103/barrel in H2, 2022 due to potential future sanctions on Russia and uncertainty surrounding oil supply disruption. Meanwhile, Opec in its Monthly Oil Market Report (May 2022), decided to downgrade its forecast for global oil demand to 3.4mn barrels per day for 2022 from 3.7mn barrels per day in the previous month’s assessment due to geopolitical concerns and the Covid-19 pandemic restrictions. The EIA reported that the US crude inventories increased by 8.5mn barrels from the previous week. Gold: Gold price continued to settle lower due to a stronger dollar on expectations of an another hike in the interest rate by the US Fed, Dun & Bradstreet said.    

A woman carrying luggage is silhouetted as she walks past aircraft operated by China Southern Airlines sitting on the tarmac at Terminal 2 of the Guangzhou Baiyun International Airport in China.
Business
Asia-Pacific air travel may see a bumpy recovery

Beyond the Tarmac Air travel in Asia-Pacific is trailing the rest of the world and should expect a bumpy recovery as countries in the region have been slower to open borders than other destinations. The region continued to lag the recovery in 2021. In the first quarter of this year, international travel in Asia-Pacific stood at only 17% of the 2019 level. However, this was an improvement upon the region’s 2021 average of 7%. With North Asian countries still largely restricting entry and Southeast Asian countries reopening cautiously, the region's tourism recovery will not be quick, Laura Houldsworth, Booking.com managing director for Asia-Pacific told Reuters. Asia-Pacific is one of the biggest and most important international markets in the world, according to the International Air Transport Association. The region should also expect a hit from fewer arrivals from Russia after its invasion of Ukraine triggered a spike in flight cancellations last month. Beach destinations in Thailand, Indonesia, India and the Maldives are usually popular among Russian tourists. Globally, the pandemic-hit aviation industry is now showing signs of recovery following removal of travel restrictions and reopening of borders in many countries. International travel in 2021 stood at only 25% of what was recorded in 2019. But in the first quarter of this year, it has recovered to 48%. And indeed some parts of the world including Europe, North America, and Latin America, the recovery has reached around 60%, according to IATA Director General Willie Walsh. Walsh urged Asia-Pacific governments to continue easing measures and bring normalcy to air travel by removing all restrictions for vaccinated travellers. At a recent industry event in Singapore, he stressed the need to remove quarantine and Covid-19 testing for unvaccinated travellers, where there are high levels of population immunity, which is the case in most parts of Asia. “Lift the mask mandate for air travel when it is no longer required in other indoor environments and public transport,” Walsh suggested. “Supporting and more importantly accelerating the recovery will need a whole of industry and government approach. Airlines are bringing back the flights. Airports need to be able to handle the demand. And governments need to be able to process security clearances and other documentation for key personnel efficiently,” said Walsh. There are two big gaps in the Asia-Pacific recovery story – China and Japan. “So long as the Chinese government continues to maintain their zero-Covid approach, it is hard to see the country’s borders reopening. This will hold back the region’s full recovery. “While Japan has taken steps to allow travel, there is no clear plan for the reopening of Japan for all inbound visitors or tourists. More needs to be done to further ease travel restrictions, starting with lifting quarantine for all vaccinated travellers, and removing both the on-arrival airport testing and daily arrival cap. I urge the government of Japan to take bolder steps towards recovery and opening of the country’s borders,” said Walsh. Certainly, things are improving, but they will not improve fast enough unless countries follow the initiative of countries like Singapore and remove the requirements for tests and quarantine for vaccinated travellers. “The science supports these initiatives. We now have two years of rich data to support new decisions by governments and I believe, indeed, in IATA, we're convinced that this science supports the removal of testing and quarantine for unvaccinated travellers from areas of high population immunity, including many parts of this region. “We also believe that where mask mandates are removed for indoor environments and public transport they should also be removed for air transport,” Walsh noted. It's been a very difficult two years, but fortunately the industry is beginning to see some positive signs. But all segments of the industry now need to work together to ensure that this strong underlying demand can be capitalised. Airports need to be ready for the increase in passenger numbers. And despite obvious headwinds such as the war in Ukraine, high oil prices and increase inflation, IATA says it remains "very optimistic" about the recovery this year and into 2023. But Asia-Pacific region will lag this recovery as China continues to pursue zero-Covid policy. However, it would be great to see countries like Japan take a bold decision, remove restrictions on international tourists and rebuild the work that that country did in growing their tourism industry. Countries and destinations with less cumbersome entry rules will have a distinct advantage when travellers in many countries take to the skies again! Pratap John is Business Editor at Gulf Times. Twitter handle: @PratapJohn    

The risk of cyberattacks appears even higher for banks with greater geographic diversification
Business
Gulf banks' strong capitalisation supports resilience to cyber risk: S&P Global Ratings

Banks in the Gulf Co-operation Council (GCC) are managing their exposure to cyber risk effectively, including through investment in digital security, S&P Global Ratings has said in a report. Banks in the GCC have reported only a handful of minor cyberattacks over the past decade. Yet, management of cyber risk has taken on greater importance as the region's banks moved activities to online platforms during the pandemic, S&P Global Ratings said in a report entitled ‘Gulf Banks' Strong Capitalisation Supports Resilience to Cyber Risk’, published Tuesday. That shift has been conducted with minimal disruption, thanks to years of investment in infrastructure and systems. At the same time the banks' strong profitability, capitalisation, and liquidity provide a financial buffer against potential incidents, said S&P Global Ratings. Guidewire, a cyber security specialist, estimates that the region's top 19 banks (for which data was available) would suffer an average 7.5% fall in net income and a 0.6% decline in equity, based on figures from the end of 2021, under a high-severity cyber incident; at the same time, the banks' average operational risk capital charge was 3.6% of total equity. “We believe the data suggests that GCC banks appear to have sufficient operational risk capital to cover losses related to cyber risk. The risk of cyberattacks appears even higher for banks with greater geographic diversification (particularly those with operations in regions more prone to cyber-attacks than the GCC) and banks with extensive retail operations, which have proven more likely to attract the interest of hackers.” Guidewire's findings suggest that the cyber risk profile of GCC banks is comparable to developed markets, rather than emerging market banks. It is notable that emerging markets are significantly more prone than the GCC to indirect business interruption issues, which stem from problems at third-party service providers. “That could be explained by GCC countries' significant investment in infrastructure, which appears to have reduced indirect business interruption risks,” S&P Global Ratings said.

Gulf Times
Business
Near-term conditions appear negative for gold: Emirates NBD Research

Near-term conditions "appear negative" for gold, particularly in the context of the current move in financial markets away from assets with any potential risk characteristics, Emirates NBD Research has said in a report. Gold prices have failed to hold on to the gains catalysed by a jump in geopolitical risk premiums related to Russia’s invasion of Ukraine. After hitting a 2022 peak of $2,070/troy oz in early March, spot gold has now fallen to around $1,820/troy oz. Gold is dealing with several near-term headwinds. Most salient is the rise in US Treasury yields. Yields on the 10-year US Treasury have pushed up to near 3% in response to the Federal Reserve starting to normalise policy and preparing to continue with further aggressive rate hikes, the researcher noted. “We expect another two 50bps hikes at the June and July FOMC meetings while the Fed will also start to wind down its balance sheet from June onward which will help to push yields higher yet again. Inflation-protected yields have also moved higher, close to or into positive territory as of mid-May, giving gold’s ‘inflation hedge’ characterisation a more tradeable alternative,” according to Edward Bell, senior director (Market Economics) at Emirates NBD Research. As yields have been going higher so has the dollar against all peer currencies, including gold. Central bank policy differentials still heavily favour the USD against other currencies, even as other central banks are starting to fall in step with the Fed on hiking rates. A strong dollar will add a further drag on gold and commodity prices from a policy perspective alone, the researcher noted. But gold is also losing out on the geopolitical risk haven bid to the dollar as well. Prices jumped higher following Russia’s invasion of Ukraine but have steadily given back those gains and are now basically flat year to date, compared with as much as 12% higher in the days following the start of the war. Conversely the dollar is up 9% since the start of the year (DXY basis) with no immediate barriers to further gains. Multiple asset classes – equities, foreign exchange, corporate credit, cryptocurrencies – are all suffering thanks to the prospect of even higher US rates, a slowdown in global growth and still high geopolitical risks. Investors also look to be increasingly bearish on gold. Managed money short positions have risen for the last six weeks in a row, bringing net longs as a share of total open interest in gold futures and options down to 11%, lower than its five-year average level and with considerable scope for further liquidation of long positions. Holdings in gold exchange-traded funds look to have hit a crest in the last few weeks and have begun to come off modestly too. In the near term the risks for gold look to us to be weighted to the downside and we are adjusting our price expectations accordingly. “We had thought gold would dip lower in the second half of the year on the back of rising yields and waning growth but are now bringing that outlook forward and expect gold at an average of $1,920/troy oz in Q2 before falling to an average of $1,850/troy oz in Q4. “But once markets start to price in a stabilisation for rates then we believe it could set up another push higher in gold prices. In the last hiking cycle from 2015-18, one-year forward Fed fund futures peaked at around 2.8% before markets started to price in rate stabilisation. That occurred in tandem with a move higher in gold prices from around $1,200/troy oz to $1,400/troy oz before rate cuts in 2019 helped to propel gold considerably higher,” Emirates NBD Research said.