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Istanbul: Global aviation industry’s blocked funds have increased by 47% to $2.27bn in April this year from $1.55bn in April 2022, International Air Transport Association (IATA) announced here Sunday.IATA, which is holding its three-day Annual General Meeting here, warned that rapidly rising levels of blocked funds are a threat to airline connectivity in the affected markets.The top five countries account for 68% of blocked funds. These countries are; Nigeria ($812.2mn), Bangladesh ($214.1mn), Algeria ($196.3mn), Pakistan ($188.2mn) and Lebanon ($141.2mn).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.”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.

Air passenger numbers in the Middle East will double to 550mn by 2040, International Air Transport Association (IATA) regional vice-president (Middle East) Kamil al-Awadhi said Sunday.GCC carriers will continue to drive the Middle Eastern growth, al-Awadhi told Gulf Times in Istanbul.However, IATA did not provide a breakup of the projected passenger numbers in the GCC region during the review period.Al-Awadhi also said the Middle Eastern carriers, particularly, those based in energy-rich GCC, are looking increasingly at sustainable aviation fuel (SAF) because of their focus on environment.But, he admitted, that there was not enough SAF in the market to meet the growing needs of airlines.“Airlines cannot do much about it; they don’t produce SAF,” al-Awadhi noted.Recently, Qatar Airways signed a deal with Shell to source 3,000 metric tonnes of neat SAF at Amsterdam Schiphol airport. It encompasses the existing jet fuel contract with Shell at Amsterdam which will now see Qatar Airways using at least a 5% SAF blend over the contract period for the fiscal year 2023-2024.Qatar Airways' bilateral agreement with Shell is part of a wider effort initiated by the oneworld alliance, which has set the target of using SAF for 10% of combined fuel volumes by 2030.Qatar Airways is the first carrier in the Middle East and Africa to procure a large SAF amount in Europe beyond government mandates. SAF offers significant potential for decarbonisation as the neat fuel can reduce full lifecycle emissions by up to 80% compared to conventional jet fuel.This means that Qatar Airways will be reducing its emissions on flights from Amsterdam by approximately 7,500 tonnes of CO2 for the fiscal year.Meanwhile, IATA’s latest data indicate Middle Eastern airlines posted a 38% traffic increase in April this year compared to a year ago. Capacity climbed 27.8% and load factor rose 5.6 percentage points to 76.2%.On the cargo side, Middle Eastern carriers experienced a 6.8% year-on-year decrease in volumes in April this year. This was a slight decline in cargo sector performance compared to the previous month (-5.5%). Cargo capacity increased 10.0% compared to April 2022.Middle East will be one of world’s fastest-growing aviation markets in the next decade, according to management consulting firm OliverWyman.In a recent report, OliverWyman noted the Middle East remains among the fastest-growing aviation markets in the world, with the regional fleet set to expand 5.1% annually over the next decade. The maintenance, repair, and overhaul (MRO) sector will grow at a compound annual growth rate (CAGR) of 4.9% during the same period.The Middle East aviation market is heavily dependent on international travel, which has been slower to rebound to pre-pandemic levels than domestic travel. However, last year the region benefitted from air traffic around events such as the World Cup, which was held in Qatar in the final two months of the year.The Middle East’s share of the global fleet will grow over the decade from 4.9% in 2023 to 6% in 2033. Meanwhile, the global fleet is projected to expand one-third by 2033, to well over 36,000 aircraft, with Oliver Wyman also anticipating a record number of aircraft deliveries over the next 10 years (despite current supply chain constraints).The Middle East fleet’s growth over the next decade will primarily be driven by the addition of narrow bodies. Historically, the Middle Eastern fleet has been primarily made up of wide bodies.But moving forward, narrow bodies will increase to 48% of the fleet from 39%, while wide bodies will decline to 48% from 56%, OliverWyman said.

Long-term investments in the Qatar Stock Exchange (QSE) are rewarding, according to Shahnawaz Rashid, Commercial Bank executive general manager and head of retail banking. “If you look at the last 15 years of Qatar Stock Exchange growth in terms of capital appreciation, on an average, the QSE has given 15% to 17% returns, if you stay invested for 15 years. On the other hand, S&P and some of the other global indices are 8% to 9%, which means QSE has substantially outperformed others,” Rashid told Gulf Times on the sidelines of a Commercial Bank seminar in Doha recently. Rashid said: “The other good thing about the Qatar Stock Exchange is that the dividend yield in the QSE is ‘very steady’. All these blue chip companies on the QSE give 4% to 6% every year. They also encourage their investors to stay for a longer period of time.” Talking about Commercial Bank Financial Services, which provides customers with a secure platform for trading on QSE-listed stocks, bonds & T–bills, Rashid noted: “We are among the top brokerage houses in Qatar. We have almost QR800mn of capital base. So that is the kind of investment our Board has put into CB Financial Services. “And if you look at our volumes in the last five years, it has grown between eight and 10 times in terms of the local market. Today, 50% of our volumes are coming through our award-winning, feature-packed mobile application.” He said: “Commercial Bank's strategy is to give our customers a world-class and customised experience. One of the reasons why we have these lounges in Commercial Bank is that we want customers to come and have a discussion with us. And after proper risk profiling of the customers, we offer them the products that are suitable for them, depending on their age, the size of the family and income.” He said: “Commercial Bank Financial Services is our brokerage arm, where we do trading, margin financing and asset management. And in Sadara lounges, we do wealth management products like international shares trading, mutual funds, structured notes, bonds etc. We give customers a variety of products and services.” Speaking about Commercial Bank’s recent seminar on ‘Investment Opportunities in Qatar’s Stock Market: New Products and Insights on the Local Economy’, Rashid said: “This event is in partnership with the Qatar Stock Exchange. And we wanted to educate and talk really about various products that are there in the market. “Commercial Bank continues to put its customers at the heart of everything we do. This forum not only aimed at providing insightful information to our customers, but also to provided a unique space for them to engage directly with market experts and our top executives.” “Our CB Premium Lounges serve as a vital gateway for our premium customers to explore and capitalize on the best local investment opportunities, which cements our targeted focus to provide world-class banking services like no other, keeping our customers aware and well-informed about the best investment opportunities,” Rashid added. The Commercial Bank seminar held at its D-Ring Road branch was hosted by Reham Sabri, assistant general manager and senior director (Premium Banking) at Commercial Bank. The event featured two distinguished speakers from the Qatar Stock Exchange: Samer Abo-Zaghla, education manager, and Abdulrahman al-Sayed, director (Strategy and Investment).

QatarEnergy will sign liquefied natural gas (LNG) supply deals with European customers likely after the summer, HE the Minister of State for Energy Affairs, Saad bin Sherida al-Kaabi said on Thursday.“Agreements with several European destinations... are very close to being finalised,” he said at a media event at the QatarEnergy headquarters on Thursday.Replying to a question by Gulf Times, al-Kaabi said, “We are talking to many companies in different countries. We are in advanced discussions with some customers. If I put everything that we have on the table and assume that we are going to be successful in signing everything that we are negotiating today, a big portion of it will be going to Asia, the other will be going to Europe and we will be more than sold out as far as volumes of North Field East (NFE) and the North Field South (NFS) are concerned.”QatarEnergy’s LNG trading arm, QatarEnergy Trading, yesterday entered into a long-term LNG Sale and Purchase Agreement (SPA) with Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) to supply up to 1.8mn tonnes per year (MTPY) of LNG to Bangladesh for 15 years, starting in 2026.The gas would come from the ongoing North Field expansion, which seeks to enhance the country's liquefied natural gas (LNG) production capacity from 77 MTPY to 126 MTPY by 2026 or 2027.North Field expansion comprises the North Field East (NFE) and the North Field South (NFS) expansion projects and is the industry’s largest ever LNG project.Al-Kaabi reiterated Qatar’s commitment to honouring its contracts and said, “Until now we have not defaulted even on one cargo. We will honour our contracts fully and it is very important for us as an LNG producer and exporter. These supply arrangements reinforce our unwavering dedication to safeguarding the energy security of valued customers".”He noted, “Today, we are proud to be the largest LNG supplier to Bangladesh and Petrobangla by a large margin, delivering more than 3.5mn tonnes per year from Qatar to Bangladesh. These supply arrangements reinforce our unwavering dedication to safeguarding the energy security of valued customers like Bangladesh and delivering the reliable energy they require for socio-economic development and prosperity.”

QatarEnergy’s LNG trading arm, QatarEnergy Trading, has entered into a long-term LNG Sale and Purchase Agreement (SPA) with Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) to supply up to 1.8mn tonnes per year (MTPY) of LNG to Bangladesh for 15 years, starting in 2026. The SPA signing at QatarEnergy’s headquarters in Doha was witnessed by HE the Minister of State for Energy Affairs, Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy, and Nasrul Hamid, Bangladesh’s State Minister for Power, Energy, and Mineral Resources on Thursday. The gas would come from the ongoing North Field expansion, which seeks to enhance the country's liquefied natural gas (LNG) production capacity from 77mn tonnes per year to 126Mtpy by 2026 or 2027. North Field expansion comprises the North Field East (NFE) and the North Field South (NFS) expansion projects and is the industry’s largest ever LNG project. The project is unique in that it is characterised by the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible. North Field expansion is a "strategic" step in cementing Qatar's position as the leading LNG producer and it will play a major role in meeting the increasing global demand for LNG. It is also in line with Qatar's long-term vision to develop the country's natural resources. In his remarks during the signing ceremony, al-Kaabi said, “Today, we are proud to be the largest LNG supplier to Bangladesh and Petrobangla by a large margin, delivering more than 3.5mn tons per year from Qatar to Bangladesh. These supply arrangements reinforce our unwavering dedication to safeguarding the energy security of valued customers like Bangladesh and delivering the reliable energy they require for socio-economic development and prosperity.” Concluding his remarks, al-Kaabi thanked the working teams from both sides for their dedicated work to reach this agreement, adding: “I would also like to express our gratitude to His Highness the Amir, Sheikh Tamim bin Hamad al-Thani for his wise leadership and continued guidance to and support of the energy sector.” Al-Kaabi told Gulf Times that “a majority of supplies from NFE and NFS would go to Asia and with the rest likely to go to European customers. We are in advanced discussions with some customers. We will be more than sold out as far as NFE and NFS are concerned.” Hamid said Bangladesh attached top priority to liquefied natural gas and LNG imports from Qatar to meet his country’s growing energy needs. “LNG will have a significant component in our energy mix as we seeks to boost supplies to our industries, textile sector in particular, Hamid said in reply to a question by Gulf Times at a media event at QatarEnergy’s headquarters on Thursday. Qatar currently delivers more than 3.5mn tons per year of LNG to Bangladesh. With this new SPA, QatarEnergy reaffirms its position as the LNG supplier of choice for its partners in the South Asia LNG markets. Qatar will add 65mn tonnes per year of LNG to meet the growing needs of the world from its North Field expansion and its project in the United States, al-Kaabi said at the recently concluded Qatar Economic Forum in Doha.

The Covid-19 pandemic severely impacted the travel and tourism sector, leading to disruptions, job losses, and economic challenges.However, as the world recovers from the pandemic, the sector is expected to regain its significance and contribute to global economic recovery and growth.According to global tourism body, World Travel & Tourism Council (WTTC), nearly half of the 185 countries will have either fully recovered to pre-pandemic levels or be within 95% of full recovery by the end of 2023.In 2023, the sector is forecast to reach $9.5tn, just 5% below 2019 pre-pandemic levels when travel was at its highest. Some 34 countries have already exceeded the 2019 levels.The recovery will speed up this year as Chinese travellers re-enter the market, WTTC noted in a research paper recently. The decision by the Chinese government to reopen its borders from early this year will propel the sector and see it recover to pre-pandemic levels in 2023 and beyond.According to the research conducted by WTTC in collaboration with Oxford Economics, the global tourism body also forecasts that the sector will recover to 95% of the 2019 job level.Travel and tourism provides 300mn jobs worldwide, the global tourism body says.Over the next 10 years, the global tourism body is forecasting that the sector will grow its GDP contribution to $15.5tn by 2033 representing 11.6% of the global economy.By 2033, the sector will employ 430mn people around the world, with almost 12% of the working population employed in the sector.Last year, despite the economic and geopolitical difficulties, the travel and tourism sector’s recovery continued at pace, growing 22% year-on-year to reach $7.7tn.This recovery represented 7.6% of the global economy in 2022, the highest sector contribution since 2019, although its global GDP is still 22.9% behind its 2019 peak.In 2021 the global sector grew 24.7% year-on-year, and last year it grew a further 22% to reach a GDP contribution of $7.7tn.The research shows that the ongoing conflict in Ukraine and prolonged travel restrictions imposed by a number of countries such as China had a significant impact on the global recovery. But the recent decision by the Chinese government to reopen its borders will propel the sector and see it recover to pre-pandemic levels next year.From a pre-pandemic high of more than 334mn, the Covid-19 pandemic ravaged employment in the sector which saw losses of more than 70mn to bring the total number employed in 2020 to just 264mn.Following the recovery of 11mn jobs in 2021, the sector created 21.6mn new jobs in 2022 to reach more than 295mn globally – one in 11 jobs worldwide.Spending from overseas visitors grew by a record 82% to reach $1.1tn in 2022, showing that international travel is firmly back on track.WTTC President & CEO, Julia Simpson said: “The travel and tourism sector continues to recover at pace, demonstrating the resilience of the sector and the enduring desire to travel.“By the end of the year, the sector’s contribution will be within touching distance of the 2019 peak. We expect 2024 to exceed 2019. Travel and tourism will be a growth sector over the next ten years.”The travel and tourism sector has a significant impact on the global economy, contributing to economic growth, job creation, foreign exchange earnings, and infrastructure development.It stimulates various sectors, such as hospitality, transportation, entertainment, and retail. As people travel, they spend money on accommodation, food, attractions, shopping, and transportation, generating revenue for businesses and governments.The travel and tourism segment is a major employer worldwide, creating direct and indirect employment opportunities in areas like hotels, restaurants, airlines, travel agencies, tour operators, transportation services, and tourist attractions.This obviously helps reduce unemployment rates and improve livelihoods, particularly in regions heavily dependent on tourism.The sector generates foreign exchange earnings through international tourism. When visitors from other countries spend money within a destination, it contributes to the local economy and helps balance trade deficits.Countries with attractive tourism offerings can benefit from a steady inflow of foreign currency, which supports economic stability and development.To accommodate tourists, destinations invest in infrastructure development, including airports, roads, hotels, restaurants, and recreational facilities. This leads to improvements in public services and creates a favourable environment for business and investment. Infrastructure development also benefits local communities and residents by enhancing their quality of life.According to industry analysts, the travel and tourism sector acts as a natural catalyst for other industries such as agriculture, manufacturing, and handicrafts.As tourism grows, it jacks up the demand for local products and services, thereby benefiting various sectors of global economy.Pratap John is Business Editor at Gulf Times. Twitter handle: @PratapJohn

Market correction is seen across all rental sectors of Qatar's property market, researcher ValuStrat said and noted rents continue to moderate in the country.In its first 2023 review of Qatar’s real estate market, ValuStrat noted that after witnessing sizeable rent growth last year, it has recorded “market correction” in all rental sectors of the property market in the country.Average leasing rates in the residential, office, and retail segments declined compared to fourth quarter (Q4) 2022.On the other hand, hotel average daily rates (ADRs) grew by 5% year-on-year (y-o-y). As a result, the ValuStrat Price Index (VPI), representing residential capital values, remained marginally stable.ValuStrat's general manager (Qatar) Pawel Banach commented: "With the advent of 2023, we are observing a new phase of the real estate market in Qatar. After hosting one of the most significant global sporting events,“Qatar is undergoing a period of adjustment. In all the sectors, there was a substantial expansion in terms of supply last year. Post-FIFA World Cup Qatar 2022, we have observed a fall in demand.“The increase in oversupply is contributing to pervasive market corrections. As the overall real estate sector evolves in 2023, we are projecting the downward adjustments to continue, and the extent of the fall will depend upon the expectations and actions of all involved public and private stakeholders."The VPI for Q1, 2023 remained broadly consistent, recording a marginal dip of 0.2% quarter-on-quarter (QoQ).Despite the minor quarterly decrease, the VPI saw a 0.3% annual rise at 65.1 points, corroborating stabilisation in the residential sales market.Regarding housing supply, an estimated 1,500 units were added during Q1, 2023, increasing residential stock to 336,440 units. Compared to Q4, 2022, median monthly rental rates declined to QR9,250, reflecting a 5.1% depreciation.While market corrections were expected after hosting the FIFA World Cup 2022 last quarter, the median asking rent in the residential market is still 3% higher y-o-y, ValuStrat noted.After a streak of quarterly increases in the villa sub-market during 2022, the median asking rent in the villa sub-market dropped by 3.1% QoQ.However, the median asking rents in apartment and villa markets remained higher than in Q1, 2022. It is also observed that the quarterly decline in leasing rates is higher in prime areas compared to secondary locations.On the commercial front, with the completion of 177,000sq m gross leasable area (GLA) of office space in Q1, 2023, office stock has reached 6.78mn sq m GLA. Approximately 500,000sq m GLA remains in the pipeline for 2023, with 85% of the new commercial supply expected in West Bay and Lusail.Despite the additional supply in the market, the citywide median monthly asking rent for offices recorded a quarterly dip of 1.4%, standing at QR70 per sq m.With the expansion of oversupply, rents for offices are projected to continue to decline significantly in secondary commercial districts, ValuStrat said.ValuStrat Qatar head (Research) Anum Hasan commented: "We are experiencing a period of decline, which might not be detrimental to the dynamics of the sector. Prices and rents are adjusted to correct the demand and supply gap.“Although we have observed the performance to vary amongst sub-asset classes, the extent of the decline is not consistent for all. The rental trend of the villa market is relatively more stable than the apartment market.“Fall in leasing rates are softening in secondary residential locations targeting low-income households. Grade-A offices are experiencing a slower rent decline than Grade B/C office projects. The underlying forces of supply and demand are in play in all markets."The organised retail sector experienced a minor growth in supply over the last quarter, with the total stock reaching 2.4mn sq m GLA, after the opening of Aventura Mall (11,000sq m GLA) in Ain Khaled.In terms of median monthly rent for shopping centres, rates softened slightly to QR200 per sq m, marking a 4.8% quarter-on-quarter (QoQ) and a 7% y-o-y decrease, respectively. Nevertheless, malls across Qatar experienced increased footfall due to tourism initiatives such as Shop Qatar 2023.Following the legacy of hosting the FIFA World Cup 2022, visitor numbers exceeded 1.1mn in Q1, 2023, marking a staggering 268% y-o-y surge.While the ADR experienced a 71% reduction to QR429 in the first two months of 2023, this quarterly decline was expected after rates skyrocketed to accommodate FIFA tourists last quarter.Notably, the ADR still reflects a 5% increase y-o-y, despite the surge in the supply of hotel rooms last year, ValuStrat said.

There is bound to be significant volatility and cyclicality within the crypto industry as it is still a relatively small market, noted Peter Smith, co-Founder & CEO, Blockchain.com.Speaking on the future of cryptocurrencies at ‘Qatar Economic Forum, Powered by Bloomberg’ on Thursday Smith said, “2023 has been largely positive for the industry. If you look at ‘year to date’ returns, the digital assets class would be the strongest performing asset class in the financial markets with about 45% on the year, so far.”He said it was worth discussing what happened to the crypto industry last year.“In the crypto industry, we experience an incredible cyclical market with a roughly four-year cycle. One of the reasons for its cyclicality is that it's still a relatively small market. If you combine the total value of all major cryptocurrencies in existence today, it amounts to approximately 0.6 times that of Apple.“Consequently, there is bound to be significant volatility and cyclicality within this market. What made 2022 unusual was the occurrence of numerous counterparty failures and company collapses within the crypto space, with one of the most notable examples being FTX (a company that formerly operated a cryptocurrency exchange and crypto hedge fund)."Smith noted, “2022 was the crypto version of the great financial crisis, but it turns out that without a federal bank to backstop, the impact was much more volatile. In crypto, there is no overnight window, and you are completely on your own.“This means that only the strongest players will survive. If you look at the 12 most valuable companies in crypto a year and a half ago, only four of us are still standing."Talking on growth markets, he noted, “The biggest growth we are seeing on the consumer side is ‘rest of world’ markets. We are growing very quickly in Nigeria, Ghana, Colombia, Argentina. We also grew a lot in Ukraine because we made our service entirely free in Ukraine. We have seen a lot of growth in these markets, which is mainly driven by stable points’ usage.”Smith said, “We are incredibly active in the institutional business today and have picked up a lot of market share over the last six to 12 months [primarily through consolidation].”He said, "One of the most robust price movements we witnessed this year was when US banks started failing. I believe that if the US government defaults, we will probably see a quick pullback and then a very strong upward push in the crypto market."“The trend has been positive for crypto globally. We have gotten closer and closer to regulatory certainty. Crypto in the US has now become a bit of a political issue, because there are a few people in the Democratic Party who have certain views on it.Within the US you have the SCC, which is probably what people refer to as being hostile, then you have state regulators, who are very collaborative, you have the CFTC, that is very collaborative, the Treasury is a collaborative regulator, so the US is very nuanced and complicated regulatory environment for financial services companies.Compared to Singapore, who has one central regulator, the US has some 57 regulators to regulate financial markets, so it is impossible to categorise whether they are hostile or friendly.”Smith added, “I would be genuinely concerned if there were fewer developers contributing to open-source crypto projects today compared to three years ago. In each cycle, we have observed a slight decline in the number of contributing developers, and it is something we closely monitor.“However, in this current cycle, we are actually experiencing growth in the developer community, even in 2022. As I mentioned earlier, the crypto industry is still relatively small today. If we aspire to be significant in the future, we need substantial development efforts. Without active contributors, our potential value in the future would be limited. Therefore, one of the most encouraging aspects of the crypto market today is the genuine growth and development of our community.”

Builder.ai, the AI-powered composable software platform, has announced an investment of over $250mn in a Series D funding led by the Qatar Investment Authority (QIA).The new funding takes the total amount raised by the company to over $450mn with an up to 1.8 times increase in its valuation.The latest round of capital will fuel the company’s continued industry leadership and innovation pipeline allowing further investments in talent, partnerships, and technology; with a bigger focus on using human conversation as the primary user interface for allowing people to build software rather than the expert-laden white-canvas systems we are used to seeing in the no-code/low-code space.With customer demand at an all-time high, and AI advancing every day, the company has almost doubled its headcount since January 2022, and extended its UK HQ footprint with four new offices opened since 2021 – including the USA, the UAE, Singapore, and France.Continued investor support – combined with strategic partnerships, customer tailwinds and acclaimed industry innovation – helped drive the company’s momentum with 2.3 times revenue growth and over 40,000 features deployed to customers within the last year.The Series D round included participation from additional existing and new investors including Iconiq Capital, Jungle Ventures & Insight Partners.“Builder.ai was founded on the promise that everyone should be empowered to unlock their human potential. Today this means being able to build software to be able to do more with less. We are entering an incredible time in history where the very notion of software is changing; from something that had a shelf life of years to what will eventually have a shelf life of a conversation and the volume of what is being created is only going to grow exponentially” said Sachin Dev Duggal, chief wizard and founder of Builder.ai.Duggal added “With the support of our investors and the dedication and drive of our team, we are further empowered to unlock our own potential. Our growth strategy has always been driven by a DNA based on being able to do more with less and this has weaved into our shared vision with our customers around the world as everyone pushes the envelope to do more.“It is what attracted our first-round investors in 2018, and what drives this Series D today. Our team is already investing this capital in our AI and automation capabilities, not only keeping pace with the fast-moving industry, but leading from the front so we can empower our customers more and at the same time use new frontier technology responsibly.”Ahmed Ali al-Hammadi, CIO for Europe, Turkiye and Russia at QIA noted, “QIA is very excited to be partnering with the leader in this space. We are confident that Builder.ai’s innovative technology and proven approach positions the company for a future of substantial growth. This investment is aligned with QIA’s strategy of supporting innovative companies shaping the future of the global economy.”

Middle East sovereign funds have revolutionised capital and providing capital for all kinds of different projects, investments, funds and co-investments, noted Stephen A Schwarzman, chairman, CEO, and co-founder of Blackstone.He was speaking at a panel session on ‘A new global growth story’ at the Qatar Economic Forum, powered by Bloomberg and joined by Francine Lacqua, anchor, Bloomberg Television.On Middle Eastern sovereign funds reshaping private equity: “I started coming to the Middle East in 1991 and a lot of the countries have just started funds, and now the Middle East sovereign funds have revolutionised capital and providing capital for all kinds of different projects, investments, funds and co-investments.“It is one of the most vital parts of the world because the amount of money that needs to go into the individual countries is less than the amount of income that keeps increasing the scale of the funds. There is an enormous professionalisation of the investment process over the last 30 years.”Schwarzman said: “Capital is still flowing, trade has been affected, and there is the start of capital flows being affected. I think that is a negative for the global economy, and I think everyone is concerned about that and even geopolitically, muscular politics can only go so far before it starts creating very adversarial types of relationships, which are not good for any country.”On the world economy, inflation, fragmentation, and its relationship with deal-making Schwarzman said: “We are already seeing activity in Europe in real estate for example, because people become sellers, given the dramatic increase in interest rates and financial institutions wanting to provide less leverage. The owners of assets have become structural sellers to reduce their leverage, so we are already seeing terrific opportunities there, and it’s just a matter of time before that happens in other places in the world.”

The International Monetary Fund (IMF)’s managing director Kristalina Georgieva expressed confidence that the United States will reach a deal on the debt ceiling and avoid a default.At a panel session at the Qatar Economic Forum Wednesday Georgieva urged central banks around the world to keep monetary policy tight in the face of inflation risks.“History tells us that US will wrestle with this notion of default but come the 11th hour it gets resolved. And I have confidence we will see that play it again. But such high uncertainties are unnecessary for the global economy. We should be mindful that the risk is there.”The US government could fall behind on its bills next month - and even default on its debt - if Congress doesn't raise a $31.4tn cap on government borrowing, a failure that could trigger economic calamity and panic on global financial markets, a Reuters’ dispatch said.The latest round of talks on the debt ceiling between representatives of President Joe Biden and congressional Republicans ended without progress on Tuesday, as the June 1 deadline inched closer."History tells us that the US would wrestle with this notion of default... but come the 11th hour it gets resolved and I have confidence we will see that play again," Georgieva said.Finance ministers from Saudi Arabia and Qatar, who joined Georgieva for the panel discussion, agreed that a resolution was needed sooner rather than later.Georgieva said that the US dollar is likely to remain a global reserve currency despite increasing discussion on moves by countries to reduce their reliance on the greenback, known as "de-dollarisation"."This story of de-dollarisation has been with us for some time. The dollar has been going slightly down. It was 70% of reserves, but now it is slightly below 60% of reserves. Understandably, there are other currencies gaining.“We don't expect a rapid shift in (dollar) reserves because the reason the dollar is a reserve currency is because of the strength of the US economy and the depth of its capital markets...Don't kiss your dollars goodbye just yet," Georgieva said.The IMF chief said while headline inflation generally was going down, the core inflation primarily because of stubbornly high food prices is still not trimming down the way it should.“What that means is that the central banks should stay the course. Because if they move back on interest rates prematurely, then inflation may become a problem for growth for a longer period of time. So, stay put...the interest rates are high...they will stay high for longer...but we are expecting in 2024 or early 2025 the picture to change.Georgieva Wednesday met His Highness the Amir Sheikh Tamim bin Hamad al-Thani.Qatar has pledged 20% of its Special Drawing Rights (SDR) holdings towards the IMF's Poverty Reduction and Growth Trust (PRGT) and Resilience Support Trust (RST) mechanisms for financial support, Georgieva said on Twitter.SDR is an international reserve asset created by the IMF to supplement other reserve assets of member countries. According to the IMF website, Qatar has SDR holdings of 985mn."The pledge made today would allow the IMF to expand concessional lending to low income countries and expand lending to vulnerable-to-climate-shocks countries," Georgieva said in a video shared by the Qatar News Agency.

The GCC region has the potential to emerge as a "global trade hub", considering its unique geographical location, noted Saudi Arabia’s Finance Minister Mohamed al-Jadaan.Speaking at a panel session at the Qatar Economic Forum Wednesday, al-Jadaan emphasised that the GCC region is in the middle of cross-trade routes that connect Asia, Africa, and Europe.“That gives you a competitive advantage. And we are actually seeing it in the number of ports listed in the top 10 worldwide, and they are from the region. The Gulf region has possibly the busiest airports worldwide in terms of international passenger traffic,” al-Jadaan said. The GCC region, he said, is a "very bright spot in a very difficult world today."“This did not come by coincidence. It came through very strong progress executed through long-time co-ordination, to diversify the economy.”He complimented Qatar for the hugely successful conduct of the FIFA World Cup and noted, “We are all proud of it.”“When I landed here (Doha) the previous night, I could not believe the developments that have happened here.”Al-Jadaan touched upon the kingdom’s long-term infrastructure development plans outlined in its Vision 2030, which focuses on diversifying the economy away from hydrocarbon resources.He said investing in infrastructure is part of Saudi’s long-term plans.“And we are not keeping it to ourselves. Actually, we are trying to make sure that not just the GCC, but the wider region gets benefits.”Al-Jadaan also highlighted the developmental milestones Saudi Arabia achieved over the past few years and said the kingdom was the fastest-growing economy among the G20 countries in 2022.Unemployment is the lowest-ever in Saudi Arabia, while employment in the private sector is the highest-ever, he noted.Al-Jadaan further pointed out that women’s participation in Saudi Arabia’s workforce is currently 36%, which is double the figure from five years ago.On the United States’ debt ceiling crisis, he said: “I hope wisdom will prevail and prevail sooner (rather than later) ... it is not easy to play with the international markets, and when they catch a cold, everybody will sneeze.”

Supply chain problems have hampered the aviation industry that relies heavily on a complex and interconnected global system to operate efficiently..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[33917]**Problems encountered by the aviation industry due to supply chain issues include component and parts shortages, increased costs, delays in aircraft production, maintenance and repair challenges, reduced service quality, risk of counterfeit or substandard parts and impact on global operations.Two leaders of the global aviation industry highlighted the impact of global supply chain issues at the ongoing Qatar Economic Forum.Supply constraints in the airline industry could drag on for more than half a decade, delaying deliveries to airlines and hampering the industry’s rebound from the Covid-19 pandemic, Boeing Company president and CEO David L Calhoun said.Qatar Airways Group Chief Executive HE Akbar al-Baker said that along with delays of new jet deliveries, supply constraints are also a hurdle for existing fleets, forcing airlines to ground some planes that need spare parts for everything from engines to avionics.“This is all the consequence of the Covid-19 pandemic,” al- Baker noted.Calhoun said: “I can see supply constraints for a very long time. We have backlogs that go out five to six years so if the backlogs would suggest supply constraints that far, that means it’s even further.”Calhoun noted it could take until the end of 2024 to iron out sector-wide supply chain problems that have hampered global jetliner production."Priority one for the two airplane manufacturers is stability," Calhoun said and noted: “We have to resolve the supply chain issues and the surprise associated with it; and we have to resolve it sort of once and for all.”"That is not a short-term job. It sounds like it might be, but I think it could take all of this year and probably all of next year."Calhoun's latest projection on the speed of recovery in the supply chain echoes comments by Airbus chief executive officer Guillaume Faury, who recently said that production would regain pre-pandemic levels at the end of 2024 or even in 2025.Despite the overall pattern of disruption, Calhoun said he did not think recent manufacturing problems with the best-selling 737 narrow-body jet would defer those production schedules for more than "maybe a month or a month and a half".Obviously, the aviation industry requires a wide range of components and parts to maintain and repair aircraft. Supply chain disruptions, such as delays or shortages in the production or delivery of these items, lead to grounded aircraft and extended maintenance periods, affecting flight schedules and overall operational efficiency.Supply chain disruptions result in increased costs for airlines. These disruptions cause price fluctuations in raw materials, components, and fuel.Additionally, airlines incur additional expenses to expedite shipments, find alternative suppliers, or manage inventory disruptions. Such cost increases put financial strain on airlines, potentially leading to higher ticket prices for passengers.Industry analysts say the manufacturing of aircraft involves a complex supply chain network spanning multiple countries and suppliers.Any disruption within this network, such as delays in the delivery of critical components, cause delays in aircraft production. This impact airlines' fleet expansion plans, their ability to retire older aircraft, and overall fleet optimisation.Timely maintenance and repair are crucial for aircraft safety and operational reliability. Supply chain issues lead to difficulties in sourcing the required spare parts, equipment, and qualified technicians.Extended downtime for maintenance or limited access to essential resources obviously reduce the availability of aircraft, impacting airlines' ability to meet their flight schedules.Supply chain disruptions also affect the overall service quality provided by airlines. For example, delays in catering services or the availability of in-flight amenities result in a diminished customer experience. In turn, this impacts customer satisfaction, loyalty, and the airline's reputation in the industry.When supply chain disruptions occur, analysts say there is a higher risk of airlines resorting to alternative or unfamiliar suppliers to fulfil their needs. This increases the possibility of acquiring counterfeit or substandard parts, which can compromise the safety and reliability of aircraft systems. Ensuring the authenticity and quality of components becomes challenging during such disruptions.The aviation industry operates on a global scale, with airlines relying on international suppliers and logistics networks. Supply chain issues, such as trade disputes, customs regulations, or geopolitical tensions, disrupt the flow of goods and services across borders.These disruptions then lead to operational inefficiencies and difficulties in coordinating international operations.Addressing these supply chain challenges requires collaboration and proactive measures from airlines, manufacturers, suppliers, and regulatory bodies.Improved contingency planning, diversified sourcing strategies, robust inventory management, and enhanced communication and co-ordination among stakeholders are essential to mitigate the impact of supply chain issues on the aviation industry.

Qatar has “shown global leadership” by pledging 20% of its Special Drawing Rights (SDR) holdings towards International Monetary Fund’s Poverty Reduction and Growth Trust (PRGT) and Resilience Support Trust (RST) mechanisms for financial support, IMF managing director Kristalina Georgieva said Wednesday.SDR is an international reserve asset created by the IMF to supplement other reserve assets of member countries. According to the IMF website, Qatar has SDR holdings of 985mn, according to Reuters."The pledge made today would allow the IMF to expand concessional lending to low income countries and expand lending to vulnerable-to-climate-shocks countries," Georgieva said in a video shared by the Qatar News Agency.Meanwhile, the official announcement between the State of Qatar, represented by the Ministry of Finance and the International Monetary Fund (IMF), titled State of Qatar’s SDRs commitment to the IMF, was issued Wednesday during the third edition of the Qatar Economic Forum.“The announcement demonstrates State of Qatar’s leadership role in supporting least developed countries overcome economic shocks and challenges,” Ministry of Finance said in a statement.“The global economy faces unique uncertainties, such as high inflation, increasing debt vulnerabilities, rising poverty and inequality, slowing growth and tighter financial conditions. These challenges require additional resources to be addressed, stemming notably from the rising south-to-south economy and the new growth opportunities it presents to the global business community.“The State of Qatar recognises these rising needs and has continued to deliver on its commitment to strengthen multilateral action to address the current challenges with the aim to contribute to the new global growth story,” Ministry of Finance said.

Supply constraints in the airline industry could drag on for more than half a decade, delaying deliveries to airlines and hampering the industry’s rebound from the Covid-19 pandemic, Boeing Company President and CEO David L Calhoun said in Doha Tuesday.Speaking at a panel session at the Qatar Economic Forum 2023 powered by Bloomberg, Calhoun said, “I can see supply constraints for a very long time. We have backlogs that go out five to six years so if the backlogs would suggest supply constraints that far, that means it’s even further.”Calhoun noted it could take until the end of 2024 to iron out sector-wide supply chain problems that have hampered global jetliner production."Priority one for the two airplane manufacturers is stability," Calhoun said and noted, “We have to resolve the supply chain issues and the surprise associated with it; and we have to resolve it sort of once and for all. That is not a short-term job. It sounds like it might be, but I think it could take all of this year and probably all of next year."On future developments, Calhoun said the industry was unlikely to introduce all-new jet designs before the mid-2030s."I think in our industry, because of some of the constraints both in propulsion and the design of the wing, it's going to be at least until the mid-2030s before we – in this case I'm just going to assume my competitor – will call out that airplane,” Calhoun noted.Aircraft manufacturers have struggled to increase production at a time when airlines are clamouring for new jets to meet the surge in demand for travel, Bloomberg said in a dispatch.Component shortages have restricted output as Boeing and arch-rival Airbus SE struggle to scale up production. Calhoun said only after the industry has regained what he called stability — a process that will take about a year and a half — can it really ramp up production rates.Asked whether the aviation industry will be able to achieve net zero emission by 2050, Calhoun said, “The only real contributor by way of engine technology is sustainable aviation fuel (SAF). That’s the only needle that will move between now and then. There will be advanced technologies – hydrogen included.”

HE the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi said Qatar potentially will run out of gas for supplies from the North Field expansion by the year-end, because of “very big demand” for long-term contracts.“We have signed a large contract with China. We have other deals that we are working on. With so many deals lining up, we will potentially run out of gas from the North Field – both North Field East and North Field South. There is very big demand. Additional gas from the North Field will be available by 2026; all contracts have been awarded,” al-Kaabi said at a ministerial session at the Qatar Economic Forum Powered by Bloomberg in Doha Tuesday.The expansion project will increase Qatar's liquefied natural gas (LNG) production capacity from 77mn tonnes per year (MTPY) to 126 MTPY, through the North Field East (NFE) and North Field South (NFS) expansion projects, with first LNG expected by 2026.Qatar will add 65mn tonnes per year of LNG to meet the growing needs of the world from its North Field expansion and its project in the United States, al-Kaabi said.“We don’t follow what others say we should do...we do what is technically possible with our fields. When it’s the right time and technically we can do it, we’ll definitely do more,” the minister said.Talking about the gas supply and demand situation in future, al-Kaabi said, “There is going to be a shortage in oil and gas in future, predominantly due to the push on (energy) transition. It is really aggressive without studying it. If you look at economic and environment stability, these are not mutually exclusive... we have to have both.“And if you push some countries into doing that, that doesn’t help humanity in general. The only thing that saved humanity and Europe this year was a warm winter and the slowdown in the economy worldwide. If the economy comes back in 2024, the worst is yet to come,” said al-Kaabi.“If you look at future, whether it is oil or gas, because of decade-long lack of investments, due to the push to transition of energy, there is going to be shortage for both.”Al-Kaabi emphasised the need to have a “mix” of all energy resources and said, “You need a mix of all energy sources and people need to realise that you need oil, gas and renewables. People talk about renewables as if it’s a fix-all.“If you look at renewables you can generate electricity from wind and solar, but you can’t make plastics or any sort of such products. So by saying renewables generate electricity does not solve the problem, you need a proper energy mix. And it can’t be driven by politics and politicians wanting to get in the seat to say this is the solution. It’s a nice pitch to say energy transition, but when you dig down and look at the reality, it’s not achievable.”Al-Kaabi said he was "thrilled" that the G7 final communique spoke about the need for more LNG for the world and warned the world would face a shortage of oil and gas due to a lack of investment."I am thrilled that finally the G7 in their final communique said they need more LNG to be supplied to the world. We've been saying this for the last 10 years,” al-Kaabi noted.

The Qatar Investment Authority (QIA) is examining artificial intelligence (AI) as a theme of investments and sees it as a "wonderful technology" in some applications, CEO Mansoor Ebrahim al-Mahmoud said Tuesday.Participating in a panel session at Qatar Economic Forum powered by Bloomberg he said, “From time to time we tell our teams to look at those things that are important and are coming. Make sure we build a portfolio that tap into this field. For example, the same thing for climate change, digitalisation, life science. These are long term themes.”In terms of AI, al-Mahmoud said: “We have been investing there. I think the level of using the AI in terms of extreme in that the machine will do everything...personally I have a mixed feeling about it. I feel we need some sort of legislation that could manage this.“But it is a wonderful technology in some applications such as marketing, or understanding businesses.“We (Qatar) are one of the leading countries in the region in terms of digitilisation and connectivity infrastructure that we have. We would like to really tap into this as a strength of the country to make sure that we can attract and invest in technologies such as Fintech.”QIA, al-Mahmoud said, has been very active in private and public credit over the past two years."Companies that have been feeling the tide, they have good business models but they have an issue with their balance sheet because of this acceleration of hikes of interest rates," al-Mahmoud noted."So normally institutions like us, which are very liquid, very long term, have a risk appetite in these types of investment. I would advise that for the next maybe one year, the credit space would be an interesting space to deploy some investment," al-Mahmoud said.Al-Mahmoud also expects the Adani Group to get through "smoothly".Earlier, the Indian conglomerate was pummelled by a US short seller (Hindenburg Research) critical report and lost billions of dollars in market value.

The airline industry’s impact on global economy and people’s lives is huge, Qatar Airways Group Chief Executive HE Akbar al-Baker said Tuesday.Participating in a panel session at Qatar Economic Forum powered by Bloomberg he said: “People will travel and are still dependent on aviation because it plays such a large part of our life for leisure, business, trade and economic development. There is no alternative to airplanes,” al-Baker noted.Referring to the debate on sustainability, especially in Europe, al-Baker said: “In one of the climate conferences a young girl wanted to prove to the world that they do not need planes and they can use the boat and she arrived at this conference in a boat. But where did she start the journey on the boat? How did she get there?“Majority of the distance she covered was on the airplane because she could not cover that distance on the boat for the time she wanted to be at the conference. I don’t want to criticise her, but we have to be realistic,” al-Baker said.Asked whether the aviation industry will be able to achieve net-zero emission by 2050, al-Baker noted: “I don’t think we will be able to achieve net zero emission by 2050. Everybody is talking about it. But let us be realistic. There is not enough production of SAF. The hydrogen project is in its infancy. People also do not know what hydrogen will generate when it flies at a high altitude.“The hydrogen technology is expected to mature by the second half the century. Which means, after 2050. So, I am sceptical about this.”In an interview with Bloomberg TV, al-Baker said Qatar Airways is ramping up routes to Europe, Africa, Asia, and big time in to China. Our fleet is already very young, so we can extend their operations further and when new technology that will be introduced we will then place orders for airplanes.”“In relation to China, not only are our airlines are packed. Now that the lockdown has ended in China there is a huge appetite for the Chinese to travel out of China. The amount of money they spent at our duty free shops is more than any other nationality. So, you can see the potential Chinese market holds for the international aviation industry, and at the same time, for the retail trade around the world,” al-Baker told the Qatar Economic Forum.