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AVIATION
The Public Investment Fund’s new flagship carrier Riyadh Air plans to run direct flights connecting the Saudi capital with Australia and New Zealand once it stocks up on aircraft and its passenger flow picks up, the airline’s CEO Tony Douglas told Executive Traveller, without giving a specific timeframe. Riyadh Air, which plans to debut its commercial flights next year, eyes adding eight cities in Australia — including Sydney, Melbourne, Brisbane, Perth, and Adelaide — and three in New Zealand.
Riyadh Air will rely on partners in the short term: For a start, Riyadh Air is considering leveraging Singapore Airlines’ network, which it recently signed an MoU with, to offer interline flights to Australia and New Zealand, Douglas said. “In the early stage of building our network, we’re more likely to put on a ‘thick route’ into Singapore,” Douglas said. “Giving people a wonderful guest experience on Riyadh Air… and the final leg [to Australia or New Zealand] on an equally incredible product and experience with Singapore Airlines.”
In context: Only Emirates and Singapore Airlines currently fly to all five major Australian cities, according to Executive Traveller.
INFRASTRUCTURE-
Emir of Madinah Prince Salman bin Sultan broke ground on 65 environmental, water, and agricultural development projects worth over SAR 11.5 bn, state news agency SPA reported. The newly launched projects include phase 4 of the Yanbu-Madinah Water Transmission System which has a transmission capacity of 550k cubic meters per day and the Yanbu Phase III gas feed line project with a production capacity of 640 mn standard cubic feet of gas per day. It also includes a project by Saudi Water Partnerships Company with the private sector for a desalination plant based on reverse osmosis technology in Yanbu. The project will have a production capacity of 450k cubic meters per day.
DEBT WATCH-
Tadawul-listed drugmaker Avalon Pharma has lined up Shariah-compliant bank facilities worth SAR 70 mn from Emirates NBD, it said in a disclosure to Tadawul. The one-year loan will help Avalon finance its operations. No further details were provided. Avalon Pharma made its market debut on Tadawul in February after a SAR 492 mn IPO.
TRANSPORT-
Saudi, Romania to cooperate on developing the logistics sector: Transport Minister Saleh bin Nasser Al Jasser signed an MoU with his Romanian counterpart Sorin-Mihai Grindeanu to cooperate on developing the countries’ logistics sector by exchanging expertise on logistics zones, facilities, infrastructure, shipping services, and policies, according to state news agency SPA.
RETAIL-
#1- Taiwanese bubble tea chain Gong Cha made its MENA debut with its first Saudi store at Cenomi’s The View Mall in Riyadh, it said in a post on Linkedin. The entry to the region comes months after it signed with local food services company Shahia Foods Group its “largest-ever franchise agreement in the Middle East.” The agreement in January sees Shahia open branches for the brand in the UAE and Bahrain next year under a goal to open at least 300 stores across the region.
One more to come: A second Gong Cha outlet will open in the “coming weeks,” the bubble tea brand said, without disclosing the location.
#2- Lulu opens its 61st store in the Kingdom: UAE-based hypermarket chain Lulu Group inaugurated a new store in Riyadh’s Laban Square, according to a LinkedIn post from the company. This marks the company’s 61st store in the Kingdom, according to Arab News. The hypermarket chain said last year that it plans to have a total of 100 stores nationwide.
ICYMI- Lulu is reportedly eyeing a dual listing on Tadawul and ADX in 2H 2024, in an offering that could be worth as much as USD 1 bn.
REAL ESTATE-
#1- More Optimo fitness centers are coming to Riyadh: Nomu-listed Armah Sports has signed a SAR 127.6 mn, 21.5-year ground lease agreement to set up two fitness centers under its Optimo brand in Al Wadi District in Riyadh, it said in a disclosure to Tadawul. The agreement will also see Armah develop commercial and office spaces for leasing. Optimo currently has three branches, according to its website.
#2- Al Othaim Markets gets its land leases renewed for shopping mall, showrooms in Dammam: Abdullah Al-Othaim Markets Company has renewed two ground lease contracts with the General Organization for Social Ins. for a shopping mall and commercial showrooms it operates in Dammam, according to disclosures to Tadawul (here and here). With each getting a 15-year term renewal, the new leases will go into effect on 9 June 2028, after the previous 25-year agreements expire.
By the numbers: The land lease agreement for the shopping mall was valued at SAR 331.5 mn, while that for the showrooms was valued at SAR 91.2 mn. Both agreements are pending Al Othaim Markets’ shareholders approval.
EDUCATION-
The Human Resources and Social Development Ministry wrapped up the first phase of its vocational verification program for expat workers, it said in a statement. The program aims to ensure that incoming expat workers hold authentic academic academic qualifications and have the required skills for the local job market. The first phase covered 128 countries.
