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Friday, February 14, 2025 | Daily Newspaper published by GPPC Doha, Qatar.
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Business

The banks and consumer goods counters witnessed higher than average demand as the 20-stock Qatar Index settled mere three points or 0.03% higher this week

US tariff concerns limit gains in QSE; M-cap melts about QR1bn

Uncertainties over the US’ tariff policy had its reflection in the Qatar Stock Exchange (QSE), which closed almost flat this week despite foreign institutions’ strong buying interests.The banks and consumer goods counters witnessed higher than average demand as the 20-stock Qatar Index settled mere three points or 0.03% higher this week which saw the International Monetary Fund (IMF) project 4.75% medium-term growth for Qatar.The foreign retail investors were increasingly net buyers in the bourse this week which saw the IMF find Qatar’s banks as highly capitalised and profitable.The foreign funds’ weakened net selling had its influence in the main market this week which saw Ooredoo report net profit of QR3.44bn in 2024.The Arab institutions’ marginally higher net buying was seen in the main bourse this week which saw Barwa report net profit of QR1.24bn in 2024.However, the Gulf funds were increasingly net sellers in the main bourse this week which saw a total of 0.1mn AlRayan Bank-sponsored exchange-traded fund QATR worth QR0.23mn trade across 26 deals.The Arab individuals were net profit takers in the main market this week which saw as many as 0.01mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.12mn change hands across 12 transactions.The local individuals were seen net sellers in the main bourse this week which saw as many as 0.11mn sovereign bonds worth QR1.06bn change hands across three deals.The Islamic index was seen gaining faster than the main barometer of the main market this week, which saw QNB’s shogun bond issuance for QR500mn.Market capitalisation melted QR0.97bn or 0.16% to QR620.3bn on the back of small and microcap segments this week which saw Estithmar Holding and United Development Company report net profit of QR404mn and QR426mn respectively in 2024.Trade turnover and volumes were on the decline in the main market; while it surged in junior bourse this week which saw no trading of treasury bills.The Total Return Index was up 0.03% and the All Islamic Index by 0.06%; while the All Share Index was down 0.04% this week which saw the industrials, banking and consumer goods sectors together constitute more than 68% of the total trade volumes.The banks and financial services sector index rose 0.24% and consumer goods and services 0.21%; while transport declined 0.98%, real estate (0.67%), telecom (0.46%), industrials (0.24%) and insurance (0.08%) this week which saw Al Faleh Educational Holding ink pact with Qatari Diar for a prime plot in Lusail.Major gainers in the main bourse included Qatar Cinema and Film Distribution, Doha Bank, Gulf International Services, Qatar Islamic Bank, QLM, Qatar National Cement, Estithmar Holding and Vodafone Qatar. In the venture market, both Al Mahhar Holding and Techno Q saw their shares appreciate in value this week which saw Capital Intelligence assign ratings to Al Khaleej Takaful.Nevertheless, Widam Food, Gulf Warehousing, Qatar Oman Investment, Baladna, UDC, Dlala, Al Faleh Educational Holding, Qatar Electricity and Water, Industries Qatar, Qamco, Mazaya Qatar, Ooredoo, Nakilat and Milaha were among the shakers in the main bourse this week.The domestic funds’ net buying increased substantially to QR138.49mn against QR56.41mn the week ended February 6.The foreign individual investors’ net buying expanded markedly to QR6.58mn compared to QR0.9mn the previous week.The Arab institutions’ net buying strengthened marginally to QR0.79mn against QR0.42mn a week ago.The foreign funds’ net selling declined significantly to QR15.02mn compared to QR56.24mn the week ended February 6.However, the Gulf funds’ net profit booking grew drastically to QR112.23mn against QR23.02nmn the previous week.The Gulf individual investors’ net selling shot up noticeably to QR9.45mn compared to QR4.79mn a week ago.The Arab individuals were net sellers to the tune of QR4.82mn against net buyers of QR3.67mn the week ended February 6.The local retail investors turned net profit takers to the extent of QR4.37mn compared with net buyers of QR22.82mn the previous week.The main market witnessed a 45% plunge in trade volumes to 0.48bn shares, 35% in value to QR1.48bn and 36% in deals to 50,618 this week.In the venture market, trade volumes jumped more than five-fold to 4.9mn equities and value by more than six-fold to QR14.03mn but on 19% contraction in transactions to 136.

Alex Macheras

Airbus delays its hydrogen-powered jets

The aviation industry's path towards decarbonisation has encountered a notable speed bump. Airbus, the world's largest commercial aircraft manufacturer, has announced a delay in the development of its hydrogen-powered aircraft, which was originally expected to enter service by 2035. The postponement is a stark reminder of the immense challenges associated with transitioning aviation to alternative fuels. While hydrogen remains a long-term goal, its practical adoption faces significant hurdles, from infrastructure limitations to economic feasibility.Hydrogen has long been heralded as a transformative energy source for aviation. As a fuel that produces no carbon emissions when burned or used in fuel cells, it presents a compelling pathway for the industry’s sustainability ambitions. Airbus unveiled its ZEROe initiative in 2020, showcasing three potential aircraft configurations powered by hydrogen, with the ambitious target of launching commercial operations by 2035.Unlike traditional jet fuel, which emits CO2, nitrogen oxides, and other pollutants, hydrogen can be used in two primary ways:Combustion in modified gas turbines, similar to traditional jet engines but with zero carbon emissions.Fuel cell technology, where hydrogen generates electricity to power electric motors, offering a fully electric propulsion system.Yet, despite these promising developments, Airbus’s latest announcement signals that the road to hydrogen-powered flight may be longer and more complex than anticipated.One of the biggest barriers to hydrogen adoption in aviation is infrastructure. The industry’s current global fuelling network is designed entirely around Jet A-1 fuel, meaning a transition to hydrogen would require an extensive—and costly—overhaul.Airports worldwide lack the necessary storage and refuelling infrastructure for liquid hydrogen. Hydrogen must be stored at -253°C to remain in liquid form, requiring cryogenic tanks and specialised refuelling systems. Retrofitting existing airports to accommodate hydrogen refuelling would necessitate massive investment and years of development.The availability of hydrogen at scale is another pressing issue. Currently, most hydrogen is derived from fossil fuels, a process that emits significant CO2. The alternative—green hydrogen, produced using renewable energy—is still in its infancy, with limited production capacity and high costs. Even if green hydrogen production expands, transporting it safely and efficiently to airports would require new pipelines, refuelling trucks, and regulatory approvals.Unlike Jet A-1 fuel, hydrogen is not energy-dense by volume, meaning that aircraft would require much larger storage tanks, potentially altering their design and reducing passenger or cargo capacity. Furthermore, its flammability necessitates rigorous safety measures, further complicating its adoption.The financial viability of hydrogen-powered aircraft remains uncertain. Airbus’s decision to delay its program reflects not only technological and infrastructure limitations but also economic concerns. Developing hydrogen propulsion systems from scratch requires billions of dollars in research and development. While Airbus remains committed to its vision, it is clear that further technological advancements and regulatory support are needed before hydrogen can be commercially viable.Airlines operate on razor-thin profit margins and are unlikely to adopt hydrogen-powered aircraft unless they are both cost-competitive and practical. With infrastructure still years away from readiness, many carriers are focusing on alternative pathways to emissions reduction, such as Sustainable Aviation Fuels (SAFs) and next-generation efficient aircraft.With hydrogen's delay, SAFs have become the industry's immediate solution for decarbonisation. Unlike hydrogen, SAFs can be used in existing aircraft and infrastructure with minimal modifications. They are produced from renewable sources such as waste oils, agricultural residues, and even captured CO2, offering up to 80% lower emissions compared to conventional jet fuel.However, SAFs are still costly, and production volumes remain insufficient to meet global aviation demand. The European Union, the UK, and the US are implementing policies to accelerate SAF adoption, but it will take years before SAFs can be produced at scale at a competitive price.Governments and regulatory bodies will play a crucial role in determining the pace of hydrogen adoption in aviation. Policies that incentivise green hydrogen production, infrastructure investment, and research into hydrogen-powered propulsion systems will be essential in ensuring that the technology progresses.The European Union has been a vocal supporter of hydrogen aviation, providing funding for research and development. However, without co-ordinated international support and standardised regulations, the hydrogen transition will remain fragmented and slow.Despite the delay, Airbus has not abandoned its hydrogen ambitions. The company remains engaged in research and development, collaborating with energy providers, airports, and regulatory bodies to address existing barriers.Looking ahead, the following developments will be key:Green Hydrogen Scaling – Expanding the production of green hydrogen at a lower cost will be essential for hydrogen aviation to be viable.Airport Infrastructure Pilot Projects – Establishing hydrogen refuelling capabilities at select major airports could serve as a proof-of-concept for broader adoption.Hybrid Solutions – While full hydrogen-powered aircraft may be delayed, hybrid solutions combining hydrogen fuel cells with SAFs or electric propulsion could be introduced sooner.Government Funding and Incentives – Continued investment in hydrogen aviation technology will be necessary to bridge the gap between development and commercial deployment.The author is an aviation analyst. X handle @AlexInAir.

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