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Qatar's fiscal balance as a percentage of GDP is expected to be 8.9% this year and 8.2% in 2024, Oxford Economics has said in a report.The country’s current account as a percentage of GDP is expected to be 16% this year and 14.5% in 2024.Qatar’s real GDP growth has been forecast at 2.6% this year and 2.6% in 2024.Oxford Economics estimates Qatar’s inflation to average 2.3% (year-on-year) in 2023 and 1.8% in 2024.In its last update, Oxford Economics noted although commodity prices have softened amid weaker global growth, they remain elevated, providing support to Qatar's macroeconomic environment.Qatar is not involved in the Opec+ agreement on production quotas, and output will likely rise further above 600,000 barrels per day (bpd) this year. That said, following two years of production increasing, output slipped 0.6% last year.The North Field gas expansion project will have a positive medium-term impact, increasing LNG capacity nearly 65% to 126 mtpy by 2027, from 77 mtpy.Qatar is in the process of signing other multi-year supply contracts, following agreements with China and Germany for LNG output set to be added in the first phase of the project due in 2026.The non-energy sector expanded by 6.8% in 2022, exceeding Oxford Economics’ 6.3% projection and marking the fastest pace since 2015. But growth will slow to 3.2% this year, as momentum eases after the World Cup, maintaining a similar pace in 2024/25.Tourism will be among the sectors that will support non-oil recovery this year, thanks to major events, including the Asian Football Cup and Formula 1 Qatar Grand Prix, and in the medium term.Qatar attracted 2.56mn tourists in 2022, and data for January and February show foreign arrivals were about three and four times higher than in the respective months last year.The 2023 budget, based on an oil price $65/b, up from $55/b in 2022 budget, projects a surplus of QR29bn, equivalent to 3.4% of GDP.“Our 2023 forecast for Brent is now at $87/b (up from $85 last month), above the budgeted price, though LNG prices undershot our projection in Q1. On that basis and with spending growth moderating, we see a budget surplus of 9.6% of GDP this year,” Oxford Economics said.The government ran a surplus of QR89bn (10.3% of GDP) in 2022.Oxford Economics noted Qatari banks have been resilient and are well capitalised and profitable, with low levels of non-performing loans. Banks' reliance on foreign funding has eased, thanks to improved domestic liquidity and a decline of 31% y/y in non-resident deposits, but remains high.

The multi-billion dollar North Field expansion has entered a new phase with value added partners (VAPs) joining the project, beginning with China National Petroleum Corporation (CNPC).On June 20, QatarEnergy signed definitive agreements with China National Petroleum Corporation, covering the supply of 4mn tonnes of LNG annually for 27 years and a 5% stake for CNPC in the North Field East LNG expansion project (NFE).The two energy majors signed an LNG sales and purchase agreement (SPA) for the delivery of 4mn tonnes of LNG per year from the NFE project to CNPC’s receiving terminals in China over a span of 27 years, marking the industry’s longest term SPA commitment.The two parties also signed a share sale and purchase agreement pursuant to which QatarEnergy will transfer to CNPC a 5% interest in the equivalent of one NFE train with a capacity of 8mn tonnes per year.This transfer will see CNPC become a partner (value added) in the NFE project and will not affect the participating interests of any of the other shareholders in the project.The North Field expansion comprises North Field South (NFS) and North Field East (NFE) will increase Qatar’s LNG production capacity from the current 77 MTPY to 126 MTPY.Speaking to Gulf Times at a media event held on the sidelines of the event at QatarEnergy, HE the Minister of State for Energy Affairs, Saad bin Sherida al-Kaabi said, “Our project provides lucrative returns in the industry. So the returns are very high.”He said, “The way we have structured the project is that 75% in each venture will be with us - QatarEnergy - and the remaining 25% tendered out to competition for international oil companies (IOCs).“Of the 75% stake we have, 5% is potentially for value added partners. We will only give up 5% of our stake in the project if someone actually secures a long-term market. And add value to the project, long-term. Today’s agreement shows that value addition through CNPC,” al-Kaabi told Gulf Times.He said many Asian countries are in talks with QatarEnergy to take an equity stake in Qatar’s North Field expansion project.“There is a hot competition to associate with the prestigious North Field expansion project. We expect to have a few more VAPs in our project.”Al-Kaabi also said China is now Qatar's top buyer of liquefied natural gas."China is the largest consumer of LNG from Qatar by far...China is our number one customer. China is also the world's biggest buyer of liquefied natural gas."Al-Kaabi said, “Last year, Qatar sold 15mn tonnes of LNG to China. China is also a huge market for LPG, helium and condensates, of which Qatar is the world's top producer.”

Many Asian countries are in talks with QatarEnergy to take an equity stake in Qatar’s North Field expansion project, HE the Minister of State for Energy Affairs, Saad bin Sherida al-Kaabi said Tuesday.“There is a hot competition to associate with the prestigious North Field expansion project,” al-Kaabi told Gulf Times at a media event at the QatarEnergy headquarters.The North Field expansion, comprising North Field South (NFS) and North Field East (NFE), will increase Qatar’s LNG production capacity from the current 77 MTPY to 126 MTPY.Al-Kaabi said China is now Qatar's top buyer of liquefied natural gas."China is the largest consumer of LNG from Qatar by far...China is our number one customer. China is also the world's biggest buyer of liquefied natural gas."Al-Kaabi said, “Last year, Qatar sold 15mn tonnes of LNG to China. China is also a huge market for LPG, helium and condensates, of which Qatar is the world's top producer.”QatarEnergy Tuesday signed definitive agreements with China National Petroleum Corporation, covering the supply of 4mn tonnes of LNG annually for 27 years and a 5% stake for CNPC in the North Field East LNG expansion project (NFE).At a ceremony held at QatarEnergy headquarters Tuesday, the two parties signed an LNG sales and purchase agreement (SPA) for the delivery of 4mn tonnes of LNG per year from the NFE project to CNPC’s receiving terminals in China over a span of 27 years, marking the industry’s longest term SPA commitment.The two parties also signed a share sale and purchase agreement pursuant to which QatarEnergy will transfer to CNPC a 5% interest in the equivalent of one NFE train with a capacity of 8mn tonnes per year.This transfer will see CNPC become a partner in the NFE project and will not affect the participating interests of any of the other shareholders in the project.The agreements were signed by HE al-Kaabi, also the President and CEO of QatarEnergy; and Dai Houliang, chairman of CNPC, in the presence of senior executives from both the companies.In his remarks at the signing ceremony, al-Kaabi welcomed CNPC as a “valuable” partner in the NFE project.

QatarEnergy signed definitive agreements with China National Petroleum Corporation, covering the supply of 4mn tonnes of LNG annually for 27 years and a 5% stake for CNPC in the North Field East LNG expansion project (NFE).At a ceremony held at QatarEnergy headquarters Tuesday, the two parties signed an LNG sales and purchase agreement (SPA) for the delivery of 4mn tons of LNG per year from the NFE project to CNPC’s receiving terminals in China over a span of 27 years, marking the industry’s longest term SPA commitment.The two parties also signed a share sale and purchase agreement pursuant to which QatarEnergy will transfer to CNPC a 5% interest in the equivalent of one NFE train with a capacity of 8mn tons per year. This transfer will see CNPC become a partner in the NFE project and will not affect the participating interests of any of the other shareholders in the project.The agreements were signed by HE the Minister of State for Energy Affairs, Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy and Dai Houliang, chairman of CNPC, in the presence of senior executives from both the companies.In his remarks at the signing ceremony, al-Kaabi welcomed CNPC as a valuable partner in the NFE project.The minister said, “We are pleased to embark on this partnership with CNPC and to build on the excellent relations between the People’s Republic of China and the State of Qatar. These agreements demonstrate our unwavering commitment to our customers and partners and to our shared ambition for a sustainable future facilitated by a cleaner, and more eco-friendly energy source that would catalyze substantial socio-economic development.”Al-Kaabi expressed his thanks and appreciation to the teams from CNPC and QatarEnergy for their dedication and for working tirelessly to finalize the agreements.The minister concluded his remarks by stating: “We are forever grateful for the wise guidance of His Highness the Amir Sheikh Tamim bin Hamad al-Thani and for his continued support of the energy sector.”Later al-Kaabi told Gulf Times that China is now Qatar's top buyer of liquefied natural gas."China is the largest consumer of LNG from Qatar by far...China is our number one customer. China is also the world's biggest buyer."Last year, al-Kaabi said, Qatar sold 15mn tonnes of LNG to China. China is also a huge market for LPG, helium and condensates, of which Qatar is the world's top producer.On his part, Houliang said, “Our collaboration over the NFE project represents a major achievement and excellent practice of both CNPC and QatarEnergy in delivering on the strategic consensus of the leaders of our countries. It is another milestone in forming a strategic synergy between China’s ‘Belt and Road’ Initiative and Qatar’s National Vision 2030.“It lays a solid foundation for the energy cooperation between the two sides in the next three decades. From this brand-new starting point, CNPC will continue to actively discuss with QatarEnergy all-round cooperation across the hydrocarbon industry chain and other areas like green and low carbon energies, so as to build a stable, long-term, and multi-dimensional strategic partnership.”

Boeing sees demand for 3,025 jets in the Middle East over the next 20 years, the plane maker said in its 2023 Commercial Market Outlook (CMO) released in advance of the Paris Air Show.The total fleet in the region seen at 3,360 (in 2042) at a projected traffic growth rate of 6%, Boeing said Sunday.In its CMO, Boeing said with a resurgence in international traffic and domestic air travel back to pre-pandemic levels, the projected global demand for 42,595 new commercial jets by 2042 is valued at $8tn.The new CMO comes three years after the pandemic grounded most of the global fleet.According to Boeing, passenger traffic will continue to outpace global economic growth of 2.6%.It sees the global fleet nearly doubling to 48,600 jets, expanding 3.5% per year and airlines replacing about half of the global fleet with new, more fuel-efficient models."The aviation industry has demonstrated resilience and adaptability after unprecedented disruption, with airlines responding to challenges, simplifying their fleets, improving efficiency and capitalising on resurgent demand," said Brad McMullen, Boeing senior vice-president (Commercial Sales and Marketing)."Looking to the future of air travel, our 2023 CMO reflects further evolution of passenger traffic tied to global growth of the middle class, investments in sustainability, continued growth for low-cost carriers, and air cargo demand to serve evolving supply chains and express cargo delivery."Boeing's projections for regional demand and key trends through 2042 include:Asia-Pacific markets to represent more than 40% of global demand with half of that total in China.South Asia's fleet will expand more than 7% annually, the world's fastest rate, with India accounting for more than 90% of the region's passenger traffic.North America and Europe each will account for about 20% of global demand.Low-cost carriers will operate more than 40% of the single-aisle fleet in 2042, up from 10%, some 20 years ago.After omitting demand for Russia and Central Asia in last year's CMO due to uncertainty in the region, this year's forecast covers Russia and Central Asia in the Eurasia region, which comprises about 3% of the global fleet by 2042.Commercial Services forecasts a total served market worth $3.8tn, including digital solutions that increase efficiency and reduce cost; robust demand for parts and supply chain solutions; growing maintenance and modification options; and effective training to enhance safety and support the pilot and technician pipeline.Also in the 20-year forecast period, Boeing anticipates demand for these models: new single-aisle airplanes will account for more than 75% of all new deliveries, up slightly from the 2022 outlook, and totalling more than 32,000 airplanes.New widebody jets will be nearly 20% of deliveries, with more than 7,400 airplanes enabling airlines to open new markets and serve existing routes more efficiently.Air cargo will continue to outpace global trade growth, with carriers requiring 2,800 dedicated freighters. This includes more than 900 new widebodies as well as converted narrow-body and widebody models.

The value of the aggregate sales for Middle East's top 100 listed companies’ has jumped 38.5% to $1.1tn this year, with profits increasing by 37.7% to hit $277.7bn, according to Forbes Middle East.In 2023, the aggregate market value of the Middle East’s Top 100 listed companies has decreased marginally by 5%, from $4tn in 2022 to $3.8tn.The value of their aggregate assets has also risen by 9.5% to $4.6 trillion as of 2022 end.GCC countries dominate 91% of the list, with Saudi Arabia being the most represented with 33 entries, followed by the UAE with 28, Qatar 16, and Kuwait with nine.The world’s largest oil and gas giant, Aramco, retains the top spot with $604.4bn in sales and a market value of $2.1tn, followed by Sabic, Qatar’s QNB Group, and the Saudi National Bank.The UAE’s International Holding Company jumped from the 12th rank in the 2022 list to the fifth spot this year, with $235.9bn in market value and total assets of $62.1bn.Despite the fallout from the collapse of Silicon Valley Bank, the banking and financial services sector still dominates, with 42 entries holding a total of $3tn in assets and generating $45.4bn in net income. However, the energy sector — led by Aramco — generated the bulk of the profits, hitting $162.4bn in 2022, Forbes Middle East noted.The 2023 list welcomed several newly-listed entities, including Qatar’s Dukhan Bank, UAE-based Multiply Group, and Americana Restaurants, along with Saudi Aramco Base Oil Company (Luberef) and Marafiq, Forbes Middle East said.

Qatar's GDP is estimated to reach $217bn this year and $271bn in 2027, FocusEconomics said in its latest research.Next year, the country’s GDP will scale up to $222bn, $234bn in 2025 and $253bn (2026).GDP per capita has been estimated to reach $82,900 this year, $85,754 (2024), $91048 (2025), $99,794 (2026) and $107,791 (2027), FocusEconomics said.The researcher estimates Qatar’s real GDP growth at 2.6% this year, 2.5% (2024), 3.7% (2025), 3.8% (2026) and 5% (2027).Fiscal balance (as a percentage of GDP) has been estimated at 7% this year, 5.6% (2024), 4.9% (2025), 6.2% (2026) and 6.3% (2027).FocusEconomics estimates Qatar’s current account balance (as a percentage of GDP) at 18.7% this year, 16% (2024), 12.7% (2025), 14.3% (2026) and 14.9% (2027).Current account balance has been estimated to total $40.5bn this year, $35.6bn (2024), $29.6bn (2025), $36.2bn (2026) and $40.3bn (2027).Merchandise trade balance has been estimated at $78.7bn this year, $75.5bn (2024), $75.9bn (2025), $82.2bn (2026) and $87.9bn (2027).According to FocusEconomics, Qatar’s public debt as a percentage of GDP will be 43.9% this year, 40.5% (2024), 43% (2025), 40.5% (2026) and 37.8% (2027).Unemployment (as a percentage of active population) will remain at a meagre 0.2% until 2027.According to FocusEconomics, the economy clocked a multi-year high GDP growth rate of 8% in the fourth quarter (Q4) of 2022, driven by the FIFA World Cup, although the energy sector also recorded robust growth.“Turning to 2023, available data is positive,” FocusEconomics noted.The non-oil private-sector PMI rose sharply from February, recording the strongest reading since last July in April amid accelerating demand for goods and services.In addition, visitor arrivals in the first quarter (Q1) averaged over triple the level observed in Q1 last year and well above pre-pandemic levels, suggesting a durable boost to tourism from last year’s hosting of the World Cup.Moreover, energy output surged in annual terms in February–March. However, the end of the World Cup and higher interest rates have dampened the construction sector, with building permits declining year on year in Q1, FocusEconomics noted.The researcher says economic activity will “slow” this year on softer building activity, interest rate hikes and flagging external demand.That said, ongoing energy sector development—both in fossil fuels and renewables—and a burgeoning tourism industry will provide support.Improved relations with Arab neighbours are an upside risk. FocusEconomics panellists see GDP expanding 2.6% in 2023, which is up by 0.1 percentage points from one month ago, and expanding 2.5% in 2024.Inflation fell to 3.7% in April from 4% in March, on easing external price pressures and tighter monetary policy.Qatar Central Bank hiked rates by 25 basis points in May, with the lending rate hitting 6%. On average in 2023, panellists see inflation moderating from last year as borrowing costs rise, the World-Cup-related demand surge ends and commodity prices recede. FocusEconomics panellists see consumer prices rising 2.9% on average in 2023, which is unchanged from one month ago, and rising 2.2% on average in 2024.

The current “one-to-one” investment ratios for renewables to fossil fuels must evolve rapidly, according to an HSBC spokesperson, who called for a global shift in the global energy economy.Zoe Knight, HSBC Group Head, Centre of Sustainable Finance, Head of Climate Change MENAT, lauded Qatar’s cleantech initiatives and efforts to add more renewables into its energy mix.Recognising the programmes initiated by Qatar to advance its renewable-to-fossil transition, Knight emphasised the urgency for accelerated progress on a global scale.“Qatar is sort of ‘leapfrogging’ some other markets in terms of its rapid energy transition, which is noteworthy, ” Knight told Gulf Times in an exclusive interview on the sidelines of Qatar Economic Forum, Powered by Bloomberg, where she participated in the breakout session ‘Scaling Up Climate Finance: Overcoming Barriers to Green Growth’.“But at the same time, the energy economy globally needs to move from investment ratios of ‘one-to-one’ (renewables to fossil fuels) to scaling up renewables to ‘10-to-one’ by 2050,” she stressed.Knight further explained that “from the one-to-one today, we need to go to four-to-one in favour of renewables by 2030, six-to-one by 2040, and 10-to-one by 2050. Whilst that enabling environment in Qatar is particularly good to try and get the renewable to fossil ratio up, on a global scale, we need to try and make it happen faster.”The Investment Promotion Agency Qatar (IPA Qatar) reported in its ‘Cleantech Sectoral Study’ that government policies and advanced technological infrastructure present investment opportunities worth $75bn in Qatar’s cleantech sector by 2030.In the pipeline are investments to develop 100% electric vehicles by 2030, the plan to provide and install over 600 charging devices in various domestic facilities, and the establishment of the “world’s largest e-bus depot,” the report stated.In terms of energy initiatives, QatarEnergy’s new sustainability strategy includes plans to reduce the carbon intensity of its LNG facilities by 35% by 2030 and mandates the deployment of Carbon Capture and Storage (CCS) facilities to capture more than 7Mtpa of CO2 in the country.The report also stated that Qatar was the first GCC country to implement a waste-to-energy programme that currently generates over 30MW of electricity from its Domestic Solid Waste Management Centre (DSWMC) at Mesaeeid.Qatar is also moving towards solar energy adoption and is utilising renewable resources, stated the report, citing the installation of an 800 megawatt (MW) additional capacity of renewable energy sources that range from gas-based to photovoltaics (PV) and wind power, as well as major solar projects like Al Kharsaah (Siraj solar power plant), and Qatar Solar Technologies’ (QSTec) aim to develop a $1bn polysilicon production facility.In the GCC region, where oil and gas supplies are abundant, Knight emphasised the need for “balancing the economy-wide framework that allows for clean electrification of processes.”“This decarbonises the operations of gas-fired power stations and oil extraction so that the carbon intensity of those fossil fuels is going down, and the volume of capacity in clean energy is going up, at a globally significant rate,” Knight stressed.Asked about HSBC’s role in overcoming specific challenges and opportunities in scaling up climate finance, Knight said HSBC can bring new businesses and new technologies, as well as capacity building, to the Qatar market to help with the transition of the energy system to renewables.“But an important aspect is that we can provide global investors with the assurance that Qatar is focused on the climate agenda and scaling up a clean energy system. In Qatar and in other markets, we’ve got subject matter experts who have worked in policy-enabling environments and for governments,” she said.

Qatar has supportive policies that include carbon dioxide (CO2) reduction targets directed at carbon capture, utilisation, and storage (CCUS), noted Gagan Porwal, GE Gas Power head (International Market Partnerships).The country is among promising locations globally to develop active CCUS hubs, Porwal said and noted: “Qatar has several unique advantages that make it ideal for CCUS projects in general and carbon hubs in particular.”In a recent interview with Gulf Times, Porwal said: “The country has large natural gas reserves, which provide abundant feedstock for blue hydrogen production. It has optimal design of industrial areas which allows for a homogenous CO2 flows and optimal concentration levels that are critical to designing an efficient capture hub. It has a favourable geology, with saline aquifer formations that appear ideal for CO2 storage.“The existing pipeline infrastructure can be leveraged to transport CO2, given its proximity to CO2 producing facilities. This can reduce CCUS project costs by reducing complexities around transportation.”According to Porwal, the Ras Laffan Industrial City is an “ideal location for a world-scale carbon hub” for several reasons.First, it is home to more than 80 GE gas turbines, and to major LNG trains and power plants, all of which provide for a benefit of proximity, homogeneity, and consistent volume flows for building a capture hub that can truly operates as a central emissions reduction entity creating a template for the other such regions to follow and learn from.“At the same time, the hub is in close proximity to near oil and gas fields, which can be ideal for storing CO2. As government pushes for its ambition for CCS, we expect to see encouraging development on this side of the equation as well complemented by existing infrastructure, including pipelines,” said Porwal, who recently spoke at the CCUS Forum in Doha, where he provided his perspective on how regional and international co-operation can support the development of CCUS.Co-located in Ras Laffan, there are other heavy industry facilities that generate carbon for capture or can benefit from the low-carbon electricity generated by power plants in the industrial city with CCUS.GE with its capabilities on integration, control systems and being original equipment manufacturer of these power generation assets is bringing its unique capabilities that positions for implementation of carbon capture system with potential of optimum cost and maximum performance.With carbon capture, Qatar has decades of experience and expertise dealing with hydrocarbons and has access to depleted wells and deep saline aquifers that can unlock the most critical element of carbon capture called storage, he said.On the ‘Decarb MoU’ GE signed with QatarEnergy, Porwal said the MoU aims to accelerate collaboration to develop a carbon capture roadmap for the energy sector in Qatar.The roadmap includes the potential development of carbon capture and sequestration, the utilisation of hydrogen, and the potential usage of ammonia in GE gas turbines to reduce their carbon emissions.The focus is to explore the feasibility of developing a world-scale carbon hub at Ras Laffan Industrial City, which as of today, is home to more than 80 GE gas turbines. It is in line with QatarEnergy’s Sustainability Strategy and the efforts to reduce emissions and produce cleaner energy using the latest technologies.“We at GE will pursue all available avenues including the use of clean energy carriers such as hydrogen as a fuel for gas turbines and carbon capturing technologies from such turbines. Exploring pre- combustion technologies such as the use of low carbon fuels to generate power, and post combustion technologies such as carbon capture and sequestration, can potentially significantly reduce the CO2 emissions from QatarEnergy’s facilities,” he said.

India’s leading airline IndiGo, which now flies to 11 GCC destinations including Doha with 386 weekly services, is committed to providing “on-time, hassle-free and affordable” travel experience to passengers, said CEO Pieter Elbers.Speaking to media on the sidelines of IATA’s Annual General Meeting in Istanbul, Elbers said IndiGo now flies, besides Doha, to Abu Dhabi, Bahrain, Dammam, Dubai, Jeddah, Kuwait, Ras Al Khaimah, Riyadh, Sharjah and Muscat.As to why some of the high-demand routes like Thiruvananthapuram in South India had been dropped (from Doha) by IndiGo, Elbers told Gulf Times, “We try to optimise our schedules. And some of these routes and bilateral agreements are based on seat numbers. So, if you add a bigger aircraft in one route, you may have to drop another route. So, we are constantly optimising our network and making sure that we can meet demand in various areas. In the overall optimisation, we sometimes trade off a specific route versus large aircraft.”Asked whether there are plans to add business class cabin in IndiGo, he said, “Today, we are happy with the product we have. We have on order Airbus A321XLRs (which are long range). The moment A321XLRs come in, we will be able to further expand our network. We will be able to fly further into Europe and other places in Asia.”He also told Gulf Times that IndiGo has no “immediate plans” to join any airline alliance.“We have partnerships with different airlines. For example, we work with Qatar Airways, Turkish Airlines, Qantas, Air France – KLM and Virgin. We work with different types of airlines...depending on where it is mutually beneficial and where it serves the need of the two airlines.“In that context and again with India’s geographical position, it makes perfect sense to work with different partners on different routes. Some of them are Star, some of them are oneworld and some of them are SkyTeam. So, if your home is the largest country in terms of population, why should we restrict ourselves to one alliance?”Elbers, the former president and CEO of Dutch flag carrier KLM, said IndiGo aimed to carry 100mn passengers in the year ending March 2024, as the carrier adds more domestic and international routes.The carrier flew 86mn passengers in the financial year FY23. And as on May 21 this year, the airline served 300,000 customers a day.Elbers said the airline expects to have around 350 planes in its fleet by the end of this fiscal (FY24). Currently, the carrier has more than 300 aircraft.Currently, IndiGo is India’s largest airline with more than 57% domestic market share.To a query on bilateral flying rights, Elbers said it is up to the government to decide on whether to give more rights or not. It requires a “tailor-made approach,” he added.

Blocked funds remain a significant challenge for airlines whose eligible money has been held by many countries, particularly those in Africa and Middle East..text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[39918]**As of April, globally, there is a total $2.3bn, in blocked funds. Of this, 80% is blocked in Africa and Middle East, for a total of $1.9bn, and out of that, nearly $1.6bn (70%) is tied up in African countries.In a recent interview with Gulf Times in Istanbul, IATA regional vice-president Kamil al-Awadhi said GCC carriers are badly affected as they cover the region extensively, Africa in particular.He cited the example of Nigeria, which has blocked a massive $812mn, funds which foreign airlines are eligible for.“It is the most amount blocked by any single African country. This having a negative socio-economic impact on Nigeria,” al-Awadhi noted.Because of blocked funds, Nigeria now faces reduction of airlines capacity, connectivity, higher ticket price, negative perception about the country’s overall business environment, discouraging investors into the Nigerian economy and impact on foreign direct investments“In view of these, many Nigerian travel agencies have downed their shutters,” noted al-Awadhi, the former CEO of Kuwait Airways.Cash flow is key for airlines’ business sustainability - when airlines are unable to repatriate their funds, it severely impedes their operations and limits the number of markets they can serve.He noted the consequences of reduced air connectivity include the erosion of that country’s competitiveness, diminished investor confidence and reputational harm caused by a perception that it is a high-risk place to do business.Strong connectivity is an economic enabler and generates considerable economic and social benefits.Globally, the top five countries account for 68% of blocked funds. Besides, Nigeria, the countries in the list are; Bangladesh ($214.1mn), Algeria ($196.3mn), Pakistan ($188.2mn) and Lebanon ($141.2mn).International Air Transport Association (IATA), the global body of more than 300 member airlines, urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate these funds arising from the sale of tickets, cargo space, and other activities.Airlines incur unnecessary costs when they are unable to repatriate their overseas sales funds, freely or in a time-bound manner, industry analysts say.Typically, such costs occur when airlines' funds are forced to sit idle in foreign bank accounts as a result of foreign exchange shortages or regulatory obstacles put in place by certain governments.By blocking airline funds from ticket sales, various countries are depriving the aviation industry of the much-needed cash, in contravention of bilateral agreements and global standards.Holding back money belonging to airlines also discourages other carriers from serving the particular market, thereby reducing connectivity and options for passengers.For airlines, this can lead to cash flow problems, reduced profitability, operational difficulties, reduced investment and reputation damage.Blocked funds can cause significant cash flow problems for airlines, as they may not be able to access funds that are owed to them. This can impact their ability to pay for fuel, salaries, and other essential expenses, which could ultimately lead to financial difficulties and even bankruptcy.When funds are blocked, airlines may have to accept lower profits or even losses on their international routes. This is because they may be forced to sell tickets in local currency and then hold onto that currency until they can access it, which can result in exchange rate losses.These can also make it difficult for airlines to operate effectively. For example, they may be unable to pay their suppliers or service providers, which could impact their ability to maintain their aircraft, provide in-flight services, or even pay for landing fees and other airport charges.Trapped funds can discourage airlines from investing in new routes or expanding their operations in certain countries. This can limit the growth potential of airlines and may lead to missed business opportunities.IATA Director General Willie Walsh said: “Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets. Governments need to work with industry to resolve this situation so airlines can continue to provide the connectivity that is vital to driving economic activity and job creation.”Al-Awadhi insisted that blocked funds was a major issue that airlines encountered, particularly in the Middle East and North Africa region.“I will be visiting some of the African countries this month and hope to meet authorities there. I wish to press them on releasing funds to airlines. Among them are GCC carriers who are badly hit because of funds blocked.“Covid-19 has decimated the airline industry, one of the worst crises hitting the industry in a century. Post-pandemic, airlines are trying to build up. Every penny counts now. We, therefore, call on governments to prioritise aviation in the access to foreign exchange on the basis that air connectivity is a vital key economic catalyst for the country,” al-Awadhi noted.

Istanbul: The International Air Transport Association (IATA) has urged governments around the world to live up to longstanding international treaty obligations to publish timely and thorough aviation accident reports. “Safety is aviation’s highest priority,” IATA Director General Willie Walsh said at a media briefing here Tuesday.Failure to publish prompt and complete accident investigation reports deprives operators, equipment manufacturers, regulators, infrastructure providers and other stakeholders concerned of critical information that could make flying even safer.“The accident investigation process is one of our most important learning tools when building global safety standards. But to learn from an accident, we need reports that are complete, accessible and timely,” Walsh noted.He said the requirements of the Convention of International Civil Aviation (Chicago Convention) Annex 13 are “clear”.Walsh said states in charge of an accident investigation must submit a preliminary report to the International Civil Aviation Organisation (ICAO) within 30 days of the accident, publish the final report, which is publicly available, as soon as possible and within 12 months of the accident.They must also publish interim statements annually should a final report not be possible within 12 months.Only 96 of the 214 accident investigations during the period 2018-2022 conform with the requirements of the Chicago Convention, Walsh noted.Just 31 reports were published in less than one year of the accident with the majority (58) taking between one to three years. In addition to the fact that final reports regularly take more than a year, interim statements often provide little more than what was presented in the preliminary report.“Over the past five years, fewer than half of the required accident reports meet the standards for thoroughness and timeliness. This is an inexcusable violation of requirements stated clearly in the Chicago Convention.“As an industry we must raise our voice to governments in defence of the accident investigation process enshrined in Annex 13. And we count on ICAO to remind states that the publication of a complete accident report is not optional, it is an obligation under Annex 13 of the Chicago Convention,” Walsh added.

Istanbul: Global aviation industry expects overall renewable fuel production to reach an estimated capacity of at least 69bn litres (55mn tonnes) by 2028.Sustainable Aviation Fuels (SAF) will comprise a portion of this growing output, which is being achieved through new renewable fuel refineries and the expansion of existing facilities.Importantly, the expected production has a wide geographic footprint covering North America, Europe and Asia Pacific.IATA counts more than 130 relevant renewable fuel projects announced by more than 85 producers across 30 countries. Each of these projects has either announced the intent or commitment to produce SAF within their wider product slate of renewable fuels. Typically, there is a three to five year lag between a project announcement and its commercialisation date. This implies that further renewable fuel capacity out until 2030 could still be announced over the following years.“The expected production increase is extremely encouraging. Seeing this, we need governments to act to ensure that SAF gets its fair production share. That means, in the first instance, production incentives, to support aviation’s energy transition. And we need continued approval for more diversification of methods and feedstocks available for SAF production.”IATA’s Director General Willie Walsh said, “With these two measures successfully in place, we can be confident that the expected 2028 production levels will be realistically aligned with our recently published roadmaps to net zero carbon emissions by 2050. That is important as we are counting on SAF to provide about 62% of the carbon mitigation needed in 2050.”Trends supporting this optimistic outlook are already visible. In 2022, SAF production tripled to some 300 million litres (240,000 tonnes) and project announcements for potential SAF producers are rapidly growing.If renewable energy production reaches 69bn litres by 2028 as estimated, the trajectory to 100bn litres (80mn tonnes) by 2030 would be on track. If just 30% of that produced SAF, the industry could achieve 30bn litres (24mn tonnes) of SAF production by 2030.“Achieving the necessary SAF percentage output from these new and expanding facilities is not a given. But with governments the world over agreeing at ICAO to a long-term aspirational goal (LTAG) of net zero by 2050, they now share accountability for aviation’s decarbonisation. That means establishing a policy framework to ensure that aviation gets the needed share of renewable energy production in SAF,” said Walsh.The case for diversification, within current sustainability criteria, is clear. At present, it is expected that 85% of future SAF volume over the next five years will be derived from just one of nine certified pathways, being Hydrotreated Esters and Fatty Acids (HEFA), which is dependent on limited availability of feedstock such as waste fat, oil and grease feedstocks (FOGs, recognised by industry as second-generation feedstock).A recent IATA survey revealed significant public support for SAF. Some 85% of travellers agreed that governments should provide incentives for airlines to use SAF.“People have experienced governments’ role in the transition to green energy for electricity. They now expect it for SAF. The G7 leaders are among the latest to reiterate their understanding that SAF is critical for sustainable aviation. Now they must support their declarations with effective policies.“To promote SAF production, there are many tried and tested tools including tax credits, grants, or even direct investments in emerging technologies and solutions. The market is there. Airlines want to purchase SAF. Anything to meaningfully incentivise SAF production will be a step forward,” Walsh added.

Istanbul: The Middle Eastern carriers are expected to post a net profit of $2bn this year, driven by network rebuilding, IATA has said in a report.According to IATA Director General Willie Walsh, the Middle East carriers have been swiftly rebuilding their international networks and in March 2023, while the region’s international connectivity has returned to 98% of its pre-Covid level.The region’s return to profitability in 2022 (estimated at $1.4bn) was supported by a significant increase in the passenger load factor of almost 25 percentage points, outstripping the performance of the other regions.Airline industry is en route to a profitable, safe, efficient, and sustainable future, Walsh said on Monday and noted that with $803bn of revenues, airline net profits are expected to reach $9.8bn in net profit this year.The estimated net profit this year is more than double the previous forecast of $4.7bn in December 2022.Some 4.35bn people are expected to travel in 2023, which is closing in on the 4.54bn who flew in 2019.Cargo volumes are expected to be 57.8mn tonnes, which has slipped below the 61.5mn tonnes carried in 2019 with a sharp slowing of international trade volumes.“Resilience is the story of the day and there are many good reasons for optimism. Achieving profitability at an industry level after the depths of the Covid-19 crisis opens up much potential for airlines to reward investors, fund sustainability, and invest in efficiencies to connect the world even more effectively. That’s a big ‘to do’ list to achieve with just a 1.2% net profit margin. That’s why we call on governments to keep their focus on initiatives that will strengthen safe, sustainable, efficient, and profitable connectivity,” Walsh noted.He said priorities for 2023 include sustainable aviation fuel (SAF) production incentives to accelerate progress toward net zero carbon emissions, ensuring the integrity of CORSIA as the economic measure applied to international aviation, eliminating inefficiencies in air traffic management and applying global standards consistently.“Passengers are counting on a safe, sustainable, efficient and profitable airline industry. A recent IATA poll of travellers in 11 global markets revealed that 81% of those surveyed emerged from the pandemic with a greater appreciation of the freedom that flying makes possible,” Walsh added.

Istanbul: The airline industry’s biggest focus is on sustainable aviation fuel (SAF), which will be the biggest contributor to net zero success, IATA director general Willie Walsh said here Monday.International Air Transport Association recently unveiled a series of roadmaps aimed at providing step-by-step detailing of critical actions and dependencies for aviation to achieve net zero carbon emissions by 2050.These roadmaps address aircraft technology, energy infrastructure, operations, finance, and policy considerations leading to net zero.Walsh noted, ‘SAF production is less than 0.1% of what we need for net zero. But the trend is positive. In 2022, SAF production tripled to 300mn litres. And while critics of our industry dismiss that figure as irrelevant, it’s important to remember that airlines used every single drop costing almost $350mn.“With the right supportive policies, reaching 30bn litres by 2030 is challenging but achievable. That would be about 6% of the 450bn litres annual production capacity we need in 2050. We think it will be the tipping point because achieving it will establish the trajectory needed to scale up for 2050.”On why the airline industry was not moving faster on the issue, he said, “The willingness of airlines to use SAF is definitely not the issue. As I have said, every drop of SAF ever produced has been purchased and used. The problem is insufficient production capacity to meet demand.“That’s why we must increase the number of pathways for SAF production and diversify feedstocks — of course while maintaining their sustainability credentials. Doing so will open production opportunities best suited to particular geographical locations.”Governments, he said should be jumping over themselves to be first in line for the job creation, local economic stimulus, and biodiversity protection that SAF production brings — significant benefits for both developed and developing economies alike.“Unfortunately, the politicians have not made good on their COP26 promise to stop financing fossil fuels. We have not seen a major shift of fossil fuel subsidies to green energy — certainly not for SAF.”The US approach to SAF is the most advanced with a system of tax credits to drive up production levels. This will be more effective than purchase mandates being considered as far and wide as Singapore, India and Europe. When there is not enough supply, a purchase mandate will drive prices up, stall innovation and limit competition long before supply increases.And if there is an early policy decision that is needed, it is to establish global standards for a SAF book and claim system that can fairly allocate SAF credits with no double counting, he noted.Just as location makes no difference on the impact of CO2 emissions, it has no impact on where SAF is uplifted and used either. A global approach to book and claim for SAF credits will help facilitate economies of scale in SAF production.And it will avoid the long-distance shipping (or even importation) of SAF, which would only degrade its climate credentials.Walsh added, “It is important that we get these basics of energy transition done — production incentives, more diversified production pathways and a book and claim system. Our commitment to net zero by 2050 is fixed and firm. We have the roadmaps for an energy transition. Now we need these tools to get the job done!”

Istanbul: The International Air Transport Association (IATA) and the United Nations Environment Programme (UNEP) have signed a memorandum of understanding (MoU) aligned with the UN 2030 Agenda for Sustainable Development to address sustainability challenges in the aviation industry.Reduction of problematic single use plastics products (SUPP) and improving the circularity in the use of plastics by the industry is the initial focus of the partnership as UNEP leads global efforts to develop an international legally binding instrument on plastic pollution, including in the marine environment, by the end of 2024.Making aircraft cabins more sustainable is a priority for airlines and their passengers. The complex and asymmetrical regulatory environment, however, often poses an obstacle by preventing circular economy best practices. In the absence of a global approach, differing regulations at both ends of a journey severely limit the actions that airlines can take.IATA advocates for a simplified and harmonised regulatory environment that would enable a reduction in plastic utilisation and greater reuse, and recycling of cabin waste, including plastics, where they are needed.To this end, the partnership will step up IATA’s engagement with UNEP to ensure that aviation’s unique challenges and opportunities are represented in the upcoming international legally binding agreement to end plastic pollution.Already, IATA and UNEP are working on joint guidance on Re-thinking Plastics in Aviation. This comprehensive resource will encompass an overview of regulations, guidance on SUPP replacement, and recommended best practices for both industry and regulators.“World Environment Day reminds us that sustainability is our number one global challenge. Formalising IATA’s longstanding collaboration with UNEP will help airlines move even faster on improving the sustainability of the aircraft cabin. It’s critical that we achieve a harmonised global regulatory framework to enable airlines to implement more comprehensive and common circular economic solutions in all markets.“For example, currently our hands are tied with outdated regulations focused on incineration rather than reuse and recycling. Modernising that will be a big step forward for sustainability,” said Marie Owens Thomsen, IATA’s senior vice-president (Sustainability) and chief economist.“UNEP is looking forward to working with IATA, to helping the industry transition to net zero, reduce food waste and move away from SUPP. The aviation industry can also help by raising awareness among passengers and staff, and ensure that all stakeholders of the aviation value chain are engaged, and most importantly act in a joined-up way to end plastic pollution,” said Sheila Aggarwal-Khan, director, UNEP’s Industry and Economy Division.More than 400mn tonnes of plastic is produced every year, half of which is designed to be used only once. Of that, only 9% is recycled, with the pollution it generates making it extremely urgent that global action is taken.Under this partnership, IATA and UNEP also plan to work together on knowledge sharing, guidance and networking in other key sustainability challenges including sustainable aviation fuel (SAF), sustainable finance, climate adaptation, biodiversity conservation including preventing wildlife trafficking and sustainable tourism.

Istanbul: The International Air Transport Association (IATA) released a new analysis showing that reported unruly passenger incidents increased in 2022 compared to 2021.IATA called for more states to take the necessary authority to prosecute passengers under Montreal Protocol 2014 (MP14).Latest figures show that there was one unruly incident reported for every 568 flights in 2022, up from one per 835 flights in 2021. The most common categorisations of incidents in 2022 were non-compliance, verbal abuse and intoxication.Physical abuse incidents remain very rare, but these had an alarming increase of 61% over 2021, occurring once every 17,200 flights.“The increasing trend of unruly passenger incidents is worrying. Passengers and crew are entitled to a safe and hassle-free experience on board. For that, passengers must comply with crew instructions. While our professional crews are well trained to manage unruly passenger scenarios, it is unacceptable that rules in place for everyone’s safety are disobeyed by a small but persistent minority of passengers. There is no excuse for not following the instructions of the crew,” said Conrad Clifford, IATA’s deputy director general.Although non-compliance incidents initially fell after the mask mandates were removed on most flights, the frequency began to rise again throughout 2022 and ended the year some 37% up on 2021.The most common examples of non-compliance were: smoking of cigarettes, e-cigarettes, vapes and puff devices in the cabin or lavatories; failure to fasten seatbelts when instructed; exceeding the carry-on baggage allowance or failing to store baggage when required; and consumption of own alcohol on board.A two-pillar strategy focusing on regulation and guidance to prevent and de-escalate incidents is in place for the needed zero-tolerance approach to unruly behaviour, Clifford noted.“In the face of rising unruly incident numbers, governments and the industry are taking more serious measures to prevent unruly passenger incidents. States are ratifying MP14 and reviewing enforcement measures, sending a clear message of deterrence by showing that they are ready to prosecute unruly behaviour. For the industry’s part, there is greater collaboration.“For example, as the vast majority of intoxication incidents occur from alcohol consumed prior to the flight, the support of airport bars and restaurants to ensure the responsible consumption of alcohol is particularly important.“No one wants to stop people having a good time when they go on holiday, but we all have a responsibility to behave with respect for other passengers and the crew. For the sake of the majority, we make no apology for seeking to crack down on the bad behaviour of a tiny number of travellers who can make a flight very uncomfortable for everyone else,” Clifford added.

Istanbul: Airline industry is en route to a profitable, safe, efficient, and sustainable future, the International Air Transport Association (IATA) Director General Willie Walsh said and noted that with $803bn of revenues, airline net profits are expected to reach $9.8bn in net profit this year.The estimated net profit this year is more than double the previous forecast of $4.7bn in December 2022. In his report to the 79th IATA Annual General Meeting here Monday, Walsh said global air passenger traffic is currently more than 90% of 2019 levels.Some 4.35bn people are expected to travel in 2023, which is closing in on the 4.54bn who flew in 2019. Cargo volumes are expected to be 57.8mn tonnes, which has slipped below the 61.5mn tonnes carried in 2019 with a sharp slowing of international trade volumes.Total revenues are expected to grow 9.7% year over year to $803bn. This is the first time that industry revenues will top the $800bn mark since 2019 ($838bn). Expense growth is expected to be contained to an 8.1% annual increase.“Airports are busier, hotel occupancy is rising, local economies are reviving, and the airline industry has moved into profitability. The pandemic years are behind us, and borders are open as normal. Despite economic uncertainties, people are flying to reconnect, explore, and do business.Walsh said: “Airline financial performance in 2023 is beating expectations. Stronger profitability is supported by several positive developments. China lifted Covid-19 restrictions earlier in the year than anticipated. Cargo revenues remain above pre-pandemic levels even though volumes have not. And, on the cost side, there is some relief. Jet fuel prices, although still high, have moderated over the first half of the year“Margins are, however, wafer thin. With $803bn of revenues, airlines will share $9.8bn in net profit this year. Put another way, airlines will make, on average, $2.25 per passenger. So, the value retained by airlines for the average plane trip won’t even buy a subway ticket in New York City.“Clearly that level of profitability is not sustainable. But considering we lost $76 per passenger in 2020, the velocity of the recovery is strong,” Walsh noted.The IATA chief, however, insisted “challenges remain.” He said: “Inflation continues, cost pressure is acute, and in some areas, labor is in short supply. Unfortunately, many of those we do business with are adding to these pressures.”On safety, Walsh said: “We can also be impressed by the industry’s safety record. This year marks 20 years of the IATA Operational Safety Audit (IOSA). In September 2003, Qatar Airways was the first to join the IOSA registry. Today, over 400 airlines are on the registry. It is the global standard for managing operational safety.“More importantly, it is clear that IOSA helps to improve safety. In 2022, IOSA registered carriers outperformed those not on the registry by a factor of four. It is never ‘job done’ on safety. So, we are marking two decades of success by making IOSA even more effective with a transition to a risk-based approach.“Of course, IOSA is not the only global standard improving safety. We prevent future accidents by learning from accident reports. But, of the 214 accidents in the last five years, only 96 final accident reports are available. This is an inexcusable violation of the Chicago Convention and a disservice to the safety of our passengers and crew. Governments and their agencies must improve.”As an industry connecting people and goods across jurisdictions, global standards are at the core of airlines’ success—starting with safety and permeating everything they do.For example, Walsh noted: “Consumers the world over appreciate the ability to purchase air travel in a single currency for any destination in absolute confidence. That’s achieved with the global standard processes of the IATA Financial Settlement Systems. With half a century of experience and global scale, they are cost effective, safe and reliable. And we are constantly evolving them to deliver the value you expect.”