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Africa accounts for nearly 18% of the global population, but just 2.1% of air transport activities, cargo and passenger segments combined.Clearly, the potential for aviation in Africa is huge. By closing the demand-supply gap, Africa can benefit from the much-needed connectivity, jobs and overall economic growth that aviation enables. Africa’s aviation industry holds significant potential for growth and development, given the continent’s rising population, economic prospects, increasing urbanisation and the need for improved connectivity.Africa has one of the fastest growing populations in the world. A burgeoning middle class with rising disposable incomes is expected to increase demand for air travel.Undoubtedly, many African countries are experiencing rapid economic growth, which boosts both business and leisure travel. This growth will potentially lead to increased investments in the continent’s aviation infrastructure.Africa is home to numerous tourist attractions, including wildlife reserves, historical sites, and beautiful landscapes. Improved air connectivity, therefore, will enhance tourism, which is a vital sector for many African economies. However, the continent also faces several challenges that need to be addressed to fully realise these opportunities.Many African countries lack adequate aviation infrastructure, including modern airports, efficient air traffic control systems, and maintenance facilities.Safety and security are also critical concerns in the African aviation industry. Ensuring compliance with international safety standards and improving security measures are essential for gaining passenger trust. The development of air connectivity in Africa also requires certainty that markets will abide by global standards with respect to the repatriation of funds from sales activities. Airlines still struggle with the inability to repatriate blocked funds efficiently and in line with international agreements and treaty obligations in several African markets.The amount of blocked funds in African countries as of June this year stood at $880mn, just over 52% of the $1.68bn in blocked funds globally. This is an improvement following Nigeria clearing 98% of the total funds blocked ($831mn). Recently IATA, the global trade body of airlines, announced that Africa’s airlines are expected to earn a collective net profit in 2024 for the second year in a row.That is a welcome and hard-won result reflecting the sector’s resilience in its post-Covid recovery. The expected $100mn profit, however, translates into just 90 cents per passenger — well below the global average of $6.14.“The demand to travel is there. To meet it, the African airline sector needs to overcome many challenges, not least of which are infrastructure deficiencies, high costs, onerous taxation, and the failure to broadly implement a continent-wide multilateral traffic rights regime,” Kamil Alawadhi, IATA’s regional vice-president (Africa and the Middle East) noted recently.Tuesday’s announcement by Qatar Airways that it will pick up a 25% stake in Airlink, which is a privately-owned, premium, full-service regional airline based in South Africa, shows the huge potential for aviation in the African continent. The announcement is a continuation of the national airline’s ambition to further develop its operations across the African continent.The investment in Airlink, which flies to more than 45 destinations in 15 African countries will enhance a code-sharing partnership between the two airlines.The deal will bolster Qatar Airways’ Africa growth strategy and cement its role as a key driver to the continent’s economic success.Speaking to Gulf Times on Tuesday, Qatar Airways Group Chief Executive Officer Badr Mohamed al-Meer said: “Qatar Airways cannot cover the whole of Africa as an airline. The idea of having this partnership with Airlink is basically to cover as many destinations as possible, where we are not currently operating.“But we can now make sure we will be able to serve those passengers as well through Airlink. So, Airlink will be the airline that will be bringing all those passengers from that part of the continent where we don’t fly to.Qatar Airways fresh equity in Airlink will enable it to “shift to a high gear and grow faster”, noted the South African airline Chief Executive Rodger Foster.“This investment by Qatar Airways echoes Airlink’s faith in these markets and which we plan to add to our network in future. Crucially, Qatar Airways investments are set to bolster Airlink’s growth trajectory.The fresh equity will enable us to shift to a high gear, enabling the airline to grow faster, to unlock opportunities that enhance our competitiveness across all areas of our business,” Foster added.

Qatar Airways fresh equity in Airlink, which is a privately-owned, premium, full-service regional airline based in South Africa, will enable it to “shift to a high gear and grow faster”, noted Chief Executive Rodger Foster.Speaking to Gulf Times on Tuesday, Foster said: “We have over 60 modern aircraft and fly over 4mn passengers in a year to more than 50 destinations in 15 Southern and East Africa as well as to Madagascar and St Helena Island.“This investment by Qatar Airways echoes Airlink’s faith in these markets and which we plan to add to our network in future. Crucially, Qatar Airways investments are set to bolster Airlink’s growth trajectory. The fresh equity will enable us to shift to a high gear, enabling the airline to grow faster, to unlock opportunities that enhance our competitiveness across all areas of our business.”Asked whether Airlink planned to look beyond the continent in view of Qatar Airways’ investment in the airline, Foster said, “We don’t intend to expand beyond Africa.”Foster said, “Today marks a major milestone for Airlink with Qatar Airways committing to acquiring 25% equity stake in our airline business. Qatar Airways is a highly respected airline. It is widely celebrated for its achievements...it has created a formidable network and continually raises the bar with its service and product offerings. All of which have contributed to its revered brand status.He noted: “Qatar Airways has also been a strong commercial partner to Airlink over the years. And we are looking forward to deepening this relationship. Qatar Airways investment in Airlink is a vote of confidence in Airlink, our business model and our delivery of premium quality services and convenient connectivity to our customers and partner customers.Foster added: “Having Qatar Airways as an equity partner is a powerful endorsement of Airlink and echoes our faith in the markets we currently serve and plan to add to our network.“This transaction will unlock growth by providing efficiencies of scale, increasing our capacity and expanding our marketing reach. By bolstering Airlink and its business, this investment will strengthen all of the existing airline partnerships Airlink has nurtured over the years.”Airlink was established in 1992 and is Southern Africa’s premier privately-owned regional airline. With its fleet of over 65 modern jetliners, Airlink serves these cities and other destinations throughout Southern Africa as well as Madagascar and St Helena Island.A member of the International Air Transport Association and accredited under IATA’s safety audit programme, Airlink offers worldwide connections through its partners, which include Qatar Airways amongst many trusted and well-known inter-continental brands, and its FlyNamibia franchise.In addition, Airlink has launched its innovative ‘Skybucks’ frequent flyer rewards programme.

Qatar Airways partnership with Airlink will ensure that the national carrier be able to serve as many destinations as possible in Africa, Group Chief Executive Officer Badr Mohamed al-Meer has said.Speaking to Gulf Times on Tuesday, al-Meer said: “Qatar Airways cannot cover the whole of Africa as an airline. The idea of having this partnership with Airlink is basically to cover as many destinations as possible, where we are not currently operating.“But we can now make sure we will be able to serve those passengers as well through Airlink. So, Airlink will be the airline that will be bringing all those passengers from that part of the continent where we don’t fly to.Qatar Airways Group has acquired a 25% stake in Southern Africa’s premier independent regional carrier, Airlink.Al-Meer emphasised that the national carrier has had a long relationship with Airlink.“We are now strengthening this relationship and take it to a new level through our stake in Airlink.We have been in discussions with Airlink for a few months. We have had a very close dialogue with each other. We believe it is time to take this relationship to a new level. This helps us bolster our Africa growth strategy and contribute to the continent’s economic success. We could not find a better partner to realise our commitment to Africa than Airlink.Al-Meer added: “Our investment in Airlink further demonstrates how integral we see Africa being to our business’ future. This partnership not only demonstrates our confidence in Airlink, as a company that is resilient, agile, financially robust and governed on sound principles, but also in Africa as a whole, showing huge potential that I am delighted we are able to help start realising.”Qatar Airways currently flies to some 29 destinations in Africa, and there’s been strong growth in the market with new destinations added to the Qatar Airways network on the continent since December 2020.According to the national airline, Abidjan, Abuja, Accra, Harare, Kano, Luanda, Lusaka, and Port Harcourt are the African cities newly added to the extensive Qatar Airways network, while Cairo and Alexandria were resumed.

Qatar Airways Group has acquired a 25% stake in Southern Africa’s premier independent regional carrier, Airlink.The announcement is a continuation of the national airline’s ambition to further develop its operations across the African continent.The investment in Airlink, which flies to more than 45 destinations in some 15 African countries will enhance a code-sharing partnership between the two airlines.The deal will bolster Qatar Airways’ Africa growth strategy and cement its role as a key driver to the continent’s economic success.Speaking to reporters after an agreement signing in Doha Tuesday, Qatar Airways Group Chief Executive Officer Badr Mohammed al-Meer said, “Our investment in Airlink further demonstrates how integral we see Africa being to our business’ future. This partnership not only demonstrates our confidence in Airlink, as a company that is resilient, agile, financially robust and governed on sound principles, but also in Africa as a whole, showing huge potential that I am delighted we are able to help start realising.”Airlink Chief Executive Rodger Foster said: “Having Qatar Airways as an equity partner is a powerful endorsement of Airlink and echoes our faith in the markets we currently serve and plan to add to our network.“This transaction will unlock growth by providing efficiencies of scale, increasing our capacity and expanding our marketing reach. By bolstering Airlink and its business, this investment will strengthen all of the existing airline partnerships Airlink has nurtured over the years.”Both the executives did not disclose the value of the investment and al-Meer said, “We are working on obtaining the regulatory approvals and our teams are busy paving the road for the way forward.”The partnership between Qatar Airways and Airlink seeks to align both carriers’ loyalty programmes - Qatar Airways Privilege Club and Airlink Skybucks.Qatar Airways currently flies to some 29 destinations in Africa, and there’s been strong growth in the market with new destinations added to the Qatar Airways network on the continent since December 2020.According to the national airline, Abidjan, Abuja, Accra, Harare, Kano, Luanda, Lusaka, and Port Harcourt are the African cities newly added to the extensive Qatar Airways network, while Cairo and Alexandria were resumed.Airlink was established in 1992 and is Southern Africa’s premier privately-owned regional airline. With its fleet of over 65 modern jetliners, Airlink serves these cities and other destinations throughout Southern Africa as well as Madagascar and St Helena Island.A member of the International Air Transport Association and accredited under IATA’s safety audit programme, Airlink offers worldwide connections through its partners, which include Qatar Airways amongst many trusted and well-known inter-continental brands, and its FlyNamibia franchise.In addition, Airlink has launched its innovative ‘Skybucks’ frequent flyer rewards programme.Ends

Solid fiscal surpluses have been forecast for Qatar in 2024 and 2025 (around 7-8% of GDP) mainly on account of “modest projected increases” in hydrocarbon revenues, according to the National Bank of Kuwait.In its last country report, NBK said the country’s gross public debt, consequently, is expected to continue to decline to an estimated 45% of GDP in 2025 from above 60% in 2021.Qatar's nominal GDP has been forecast at $211.7bn this year and $218.8bn in 2025.Budget balance (as a percentage of Qatar's GDP) has been forecast at 8.1% this year and 6.9% in 2025.Current account balance (as a percentage of country's GDP) has been forecast at 13% this year and 11.7% in 2025.Qatar’s non-oil growth is expected to accelerate to 2-3% in 2024 and 2025, having dipped last year in the aftermath of the FIFA World Cup Qatar 2022.Year-on-year inflation has been forecast at a meagre 2.5% this year and 2.2% in 2025.A recent "pickup" in credit growth, above-50 PMI readings, and still elevated visitor numbers are supportive of domestic demand which should drive non-oil growth over the forecast period.The "fading" effects of an exceptionally strong 2022 and – eventually – interest rate cuts albeit from high levels are additional drivers, NBK said in a report published a few weeks ago.Total GDP growth, however, will be relatively modest amid growth-neutral budgets and negligible gains in hydrocarbon output until 2026, when the first phase of Qatar’s massive LNG capacity expansion is expected to be completed, bringing LNG output to 110 mtpy (43% increase).Crude output is seen broadly steady at 0.6 mb/d in 2024-25.“Beyond 2025 we see the potential for larger fiscal surpluses following the ramping up of LNG exports, which can be deployed on development plan-linked capital spending. Indeed, a near doubling of LNG capacity by 2030 to 142mn tpy (mtpy) from the current 77 mtpy is now planned, higher than earlier estimates of a 127 mtpy target, allowing Qatar to control a larger share of the global LNG market.“Given the above, risks are skewed to the upside, especially in the event of higher gas prices due to a shortage or stronger demand, while downside risks stem mainly from adverse geopolitics or lower gas prices and demand in the event of a global recession,” NBK noted.

Qatar remains the top liquefied natural gas exporter in the Gas Exporting Countries Forum and figures among the top three LNG exporters globally in July, latest report by GECF has shown.According to the Doha-headquartered GECF, the US, Qatar and Australia were the top three LNG exporters globally last month.In July 2024, global LNG exports increased marginally by 1.1% (0.36mn tonnes) y-o-y to 33.36mn tonnes.This growth, according to GECF’s monthly report was supported by higher exports from non-GECF countries and an uptick in LNG re-exports, which offset lower exports from GECF Member Countries. Non-GECF countries maintained their dominance in global LNG exports with a market share of 53.0%, up from 52.8% in July 2023. The market share of LNG re-exports also increased from 0.6% to 1.2% during the same period, while GECF’s market share declined slightly from 46.6% to 45.8%.Between January and July this year, global LNG exports reached 239.41mn tonnes, representing an increase of 1.1% (2.63 Mt) y-o-y.In July 2024, global LNG imports reached 32.7mn tonnes, marking a 1.8% y-o-y increase and reversing two consecutive months of declines, GECF noted.The growth was driven by the Asia Pacific and MENA regions, which offset declines in Europe and Latin America. A significant spot LNG price spread between Asia Pacific and Europe attracted more LNG cargoes to the Asia Pacific region.Additionally, hotter-than-usual weather supported higher LNG imports in Asia Pacific. Conversely, Europe's LNG imports declined due to lower gas consumption, high storage levels, and stable pipeline gas supply, with the EU LNG imports reaching 13.3bcm, which was the same level as one year ago.On the supply side, US LNG exports fell to their second-lowest monthly level in 2024 due to the impact of Hurricane Beryl on operations at the Freeport LNG facility.According to GECF, gas restocking continue in the EU in July, with the average volume of gas in storage increasing to 84.4bcm, which is equal to an average regional capacity of 81%. Similarly, in the US, the average gas storage level continued to trend above the five-year range, while increasing to 91.2bcm, or 68% of the country’s capacity.In Asia, the combined volume of LNG in storage in Japan and South Korea was at 14.2bcm.Gas and LNG spot prices in Europe and Asia declined after a four-month rally, GECF said.The average Title Transfer Facility (TTF) spot price was $10.24/MMBtu, reflecting a 5% m-o-m decrease.Similarly, the average North East Asia (NEA) spot LNG price experienced a 3% m-o-m decrease to $11.99/MMBtu (Million British thermal units).Additionally, in the US, Henry Hub prices plummeted, averaging $2.07/MMBtu.“Looking ahead, expectations of above-normal temperatures may increase gas demand for cooling, potentially supporting prices. However, high gas storage levels and robust LNG supply may temper any price gains,” GECF noted.

A regional turboprop plane crashed near Sao Paulo in Brazil on August 9, killing all 61 people on board.Video shared on social media showed the ATR-72 aircraft, which was bound for Sao Paulo’s international airport from Cascavel, in the state of Parana, spinning out of control as it plunged down behind a cluster of trees near houses, followed by a large plume of black smoke.Franco-Italian ATR, jointly owned by Airbus and Leonardo, is the dominant producer of regional turborprop planes seating 40-70 people.Despite the recent airline crash in Brazil and many other recorded airline incidents around the world, flying remains the safest mode of transport.A recent report by the International Civil Aviation Organisation (ICAO) indicated that 2023 was the safest year in the past five years in terms of safety indicators such as global accident rate, number of fatal accidents, total fatalities and fatality rate.According to ICAO data, the global passenger traffic continued to increase in 2023 with around 4.2bn passengers transported worldwide, up from 3.2bn passengers in 2022.Although still slightly below pre-pandemic (2019) levels with 4.5bn passengers having been transported worldwide, passenger traffic in 2023 increased 30% from 2022.The number of flight departures for scheduled commercial operations continued to increase by approximately 13% with over 35mn departures in 2023, compared to around 31mn in 2022.Yearly accident statistics indicate a slight increase in the total number of accidents and a decrease in the global accident rate in 2023.From 2022 to 2023, there was a 3.1% increase in the total number of accidents, as reported by states, noting that the flight departures increased around 13% during the same period of time.The global accident rate of 1.87 accidents per million departures in 2023 decreased by 17.9% from the 2022 rate of 2.05 accidents per million departures.In 2023, scheduled commercial air transport accidents resulted in 72 fatalities representing a more than 50 per cent decrease from 160 in 2022, as well as a decrease in fatality rate of 17 people per billion passengers from 50 per billion in 2022.The number of fatal accidents significantly decreased from seven in 2022, to one in 2023.Recently, the International Air Transport Association announced that the number of airline CEOs committing to the IATA Safety Leadership Charter has reached 73. This reinforces aviation’s already strong safety culture which contributed to some best-ever results in 2023, including no fatalities among IATA member airlines or the airlines on the IATA Operational Safety Audit Registry.“Strong leadership and strong safety culture are interdependent. And both are needed to drive continuous improvements in safety performance. By putting their names to the IATA Safety Leadership Charter, 73 airline CEOs have set an example for their airlines and for the industry. In doing so, the Charter is a call to action that keeps in focus the critical obligation of airline CEOs to lead a safety culture that keeps their passengers and staff safe,” noted Willie Walsh, IATA’s Director General.Walsh noted previously: “2023 safety performance continues to demonstrate that flying is the safest mode of transport. Aviation places its highest priority on safety and that shows in the 2023 performance. Jet operations saw no hull losses or fatalities. 2023 also saw the lowest fatality risk and all accident rate on record. A single fatal turboprop accident with 72 fatalities, however, reminds us that we can never take safety for granted. And two high profile accidents in the first month of 2024 show that, even if flying is among the safest activities a person can do, there is always room to improve. This is what we have done throughout our history. And we will continue to make flying ever safer.” Undoubtedly, the air transport industry plays a significant role in global economic activity and development. One of the key elements to maintaining the vitality of civil aviation is to ensure safe, secure, efficient and environmentally sustainable operations at the regional, national and global levels.n Pratap John is Business Editor at Gulf Times. X handle: @PratapJohn

Qatar's gross government debt (as a percentage of country's GDP) is expected to fall to 40.4% this year and 35.4% in 2027, researcher Oxford Economics has said in a report.Next year, Qatar’s gross government debt to its GDP has been estimated at 38.8% and 36% in 2026.While Qatar’s external debt burden became large due to heavy investment in a relatively short period of time, it trended up between 2013 and 2021 before declining last year- a trend Oxford Economics expects to continue this year and next.This, it said, is balanced by the large foreign assets (including over $40bn of official reserves), current account surpluses, sustained economic growth, and access to cheap external borrowing due to its high credit ratings.The country's large external surpluses have been invested abroad in property, financial, retail, and other sectors by the Qatar Investment Authority (QIA), which is estimated by the Sovereign Wealth Fund Institute to have assets of more than $300bn and the aim is to reduce the state's reliance on oil and gas earnings, Oxford Economics noted.As a result of solid growth, Qatar’s GDP per capita (on a purchasing power parity basis) has risen rapidly to make it officially the wealthiest country in the world. It also has one of the most advanced and extensive welfare and free education systems in the Gulf, Oxford Economics said.A heavy investment and diversification strategy has transformed the economy, driving a doubling of GDP and exports in five years and producing budget and current account surpluses until the downturn in the oil price in 2015.“While oil production capacity continued to increase, it was the investment in two LNG projects that changed the country's fortunes, backed by the largest non-associated gas field in the world and the second-highest proven gas reserves in the Middle East,” the researcher noted.Qatar is the world’s second-largest LNG exporter after the US. There is also heavy investment in gas-to-liquids, petrochemicals, a gas export pipeline, infrastructure, and tourism.Some $200bn has been spent on infrastructure, partly relating to the 2022 FIFA World Cup, and partly to an expanding population and the country’s long-term strategy, Qatar National Vision 2030.In addition, Qatar is developing into a significant regional financial and educational centre, the report said.

Point of sale (POS) transactions in Qatar have scaled up to QR7.1bn in July compared to QR6.48bn in the same period last year, Qatar Central Bank (QCB) said on sunday.The value of POS transactions in July 2023 stood at QR6.48bn and QR5.55bn in July 2022, QCB said in a posting on ‘X’.A point of sale transaction is a payment for goods or services, usually made in a retail setting. POS transactions can be conducted in person or online and are typically completed using credit or debit cards.The total number of POS transactions in Qatar stood at 32.45mn in July this year, QCB said.It was 27.21mn in July last year and 21.45mn in July 2022, the central bank noted.The total number of POS devices in Qatar stood at 74,092 in July this year. In July 2023, the number of POS devices in Qatar totalled 69,040 and in July 2022, it was 52,421.According to QCB, e-commerce transactions totalled QR3.63bn in July this year compared to QR2.85bn in July last year and QR2.59bn in July 2022.The volume of e-commerce transactions totalled 6.83mn in July this year compared to 5.05mn in July 2023 and 3.93mn in July 2022.QCB data indicated that debit cards issued by local banks outnumbered credit cards in the country.The total number of active (debit) cards in Qatar in July stood at 2.3mn (2,308,809), credit cards (726,744) and pre-paid cards (709,439).QCB introduced the National Network System for ATMs and Points of Sale (NAPS), which is the Central payment system, in 1996 to facilitate the acceptance of cards transactions (debit cards and prepaid) on ATM, POS and E-Commerce terminals throughout the GCC region and Egypt.Additionally, the system accept cards issued by QCB, GCC and Egypt regulated banks.According to QCB, NAPS is one of the first switches in the region to achieve full (EMV) compliance both as an acquirer and issuer.The system was upgraded in 2023 in line with the latest global standards in cards industry.It is a round-the-clock service, which supports card tokenisation and card-less payments.All banks in Qatar are members of the National Network System for ATMs and Points of Sale.

Qatar Airways will be the launch customer of Boeing's newest 777-8 freighter with a confirmed order of 34 next generation cargo jet and options for an additional 16 freighters, according to Omar Arekat, vice president, Boeing’s Commercial Sales / Marketing for Middle East.Since beginning of its partnership with the American planemaker, Qatar Airways has made “landmark” orders of Boeing 777s, 787 Dreamliners, 737 MAX and 777X, he said.“We are proud to be a part of Qatar Airways’ success story – and support Qatar’s ambitious growth plans in aviation, trade and tourism – with more than 130 Boeing passenger and cargo airplanes currently in the airline’s fleet and with more than 130 Boeing airplanes on order,” Arekat said in an interview with Gulf Times.“We are very proud to have Qatar Airways as one of the launch customers for the Boeing 777X family. Based on the 777, the most successful twin-aisle airplane ever, and with advanced technologies from the 787 Dreamliner family, the 777X family is designed to maximize efficiency and environmental performance while providing an exceptional experience,” Arekat noted.In 2013, Qatar Airways ordered 60 777X new widebody airplanes. In January 2022, Qatar Airways expanded its commitment to the 777X family by becoming the launch customer for the newest 777-8 Freighter, with a confirmed order of 34 airplanes and options for an additional 16 freighters.In July 2022, the Qatari carrier committed to up to 50 Boeing 737-10s with a firm order for 25 airplanes and options for 25 more. In April 2023, Qatar Airways took delivery of its first 737-8, the first Boeing single-aisle airplane in the airline’s fleet.During the Farnborough International Airshow last month, Boeing and Qatar Airways announced the Doha-based airline's order for 20 more 777-9 airplanes. The order, which expands the carrier's 777X order book to nearly 100 airplanes, was finalised earlier this year.On the current state of Boeing’s relationship with Qatar, Arekat said, “We have been partners since 2006, when Qatar Airways placed its first order for Boeing 777 airplanes. Since then, Boeing’s relationship with Qatar and our commitment to supporting Qatar National Vision 2030, have strengthened and grown.”In 2010, Boeing solidified its relationship with Qatar by establishing its office in Doha, he noted.With over 360 employees, Boeing is active in all sectors of aerospace in the country.“Thanks to the support and continuous partnership with the Government of Qatar, Invest Qatar, and the Qatar Foundation, Boeing’s investments have helped grow the local aerospace sector, creating jobs and driving innovation.“A proud moment for Boeing in Qatar was our contribution during the FIFA World Cup Qatar 2022. More than 60 teammates supported our airline customers, while our defense platforms were monitoring the safety and security of the airspace,” Arekat noted.

Total expected residential stock supply in Qatar for 2024 is 9,200 units, 40% of which will be located in Lusail, consulting and advisory group ValuStrat said in a report.During 2025, some 6,200 units are anticipated, ValuStrat said in its first quarter report.Residential stock during Q1, 2024 was estimated at 394,000 units, with around 148,000 villas and 246,000 apartments (Census 2020 was used as the base).The volume of transactions (residential segment) decreased by 34% compared to the previous quarter.The median transacted ticket size for residential units increased by 3.7% quarterly to QR2.8mn, while staying stable YoY. Doha and Al Rayyan had the highest volume of transactions for residential houses.The total number of mortgage transactions in Q1, 2024 was 233 valued at QR13.5bn.According to ValuStrat, the median monthly rental value of a residential unit was 3.6% lower QoQ and down by 6% compared to last year.The monthly leasing rate for apartments in Qatar was at QR6,000, depicting a 4% decline quarterly and 6.3% yearly.The median monthly leasing rate for a one-bedroom apartment was QR5,500, a two-bedroom was QR6,500, and a three-bedroom apartment was QR8,250.Approximately 15,000 lease contracts were signed during the quarter with Al Wukair, Al Mashaf, and Al Thumama being the top residential areas with an estimated 5,000 agreements (Ministry of Municipality and Environment).The villa sub-market decreased by 1% quarterly, and 4% annually. Villa lease rates in West Bay Lagoon and Al Wakra went up by 3.5% and 1.2% respectivelyThe median quoted rent for a 3-bedroom villa was QR11,750, a 4-bedroom was QR12,500, and a 5-bedroom was QR14,000.Approximately 5,000 lease agreements were signed during the quarter with Freej Al Soudan, Al Aziziya, Ghanim, and Murrah being the top residential areas, accounting for an estimated 600 contracts (Ministry of Municipality and Environment).The ValuStrat Price Index – Residential Capital Values, remained stable both quarterly and annually at 97 points.This is compared with 100 base points as of Q1, 2021.Valuations of apartment units witnessed no change compared to the previous quarter as they approached QR10,320 per sq m, prices were also stable for the past two years.Similarly, the villa market remained stable quarterly, but dipped by 1% annually with prices standing at QR5,544 per sq m.Top areas where villa prices performed well QoQ were Old Airport (6.3%), Al Thumama (4.1%), and Muaither (1.7%).Residential gross yields remained at 5.9%. Apartments contributed 8% while villas accounted for 4.8%. The price-to-rent ratio was estimated at 19 years.

A glitch to software developed by a cloud-based cybersecurity platform last month crashed millions of computers, grinding many critical systems worldwide to a halt.Diverse businesses were affected globally and the outage was believed to be largest one such in history, ironically far exceeding the worst any hack has succeeded in achieving.The cybersecurity company concerned said the debacle was “not a security incident or cyberattack.”But the technical fiasco was so severe that it has paralysed many airlines, banks, state agencies and even emergency services around the world.Bewildered travellers at some of the world’s busiest airports got stranded as they tried to get to urgent events.Numerous international airlines reported technical disruptions, along with airports across North America, Europe and Asia-Pacific.The IT outage disrupted flight scheduling systems, leading to delays and cancellations. This is because airlines around the world now rely heavily on these systems for managing flight operations, crew schedules, and aircraft rotations.Automated check-in kiosks and boarding systems became non-functional at many global airports, resulting in long queues and delays as airline staff have to resort to manual processes.Since IT systems manage baggage tracking and handling these days, the outage led to mishandled or lost luggage, creating further delays and customer dissatisfaction.“It was not an aviation crisis, but queues of people waiting at airports made for the most telegenic news reports trying to put a human face on the extraordinary events that unfolded,” noted Willise Walsh, IATA Director General.“Travellers were hit hard as it was one of the busiest weekends in the peak northern summer travel season. With systems managing everything from booking, to check-in, baggage and crew scheduling impacted, many airlines and airports were disrupted,” Walsh noted.In the third week of July, nearly 36,000 flights were delayed and around 10,000 cancelled worldwide.Fortunately, travellers for the most part seemed to understand that this was completely beyond airlines’ control and were very patient as software provider implemented fixes.Walsh, however, insisted safety was never compromised. Aircraft systems and air traffic control were unaffected. And ground crews reacted with ingenuity – using hand-written boarding passes and other documentation to keep flights moving. It was an extraordinary day, by any measure.But according to Walsh, “it is time to look at what this event has taught us.”“The first lesson is humility. IT glitches happen. And they can happen on a massive scale. My initial thought is to thank travellers for their patience and all those who worked long and hard to return our world to normality.“And that is quickly followed by a desire to understand how all industries could be better protected from and prepared for such failures. Indeed, questions are already being raised around the overall resilience of businesses and society to cope, which may lead to greater political scrutiny.”IT is a fact of life. It gives travellers options that they value. It has done much to keep travel affordable and as AI spreads its wings, the potential for future improvements is ripe with potential.“The final learning that I would highlight is the onus that must be on tech companies for reliability. Scale is not an excuse, it is a responsibility. The aviation industry offers a great example. Over the decades since mass air travel became a reality, we have become ever-safer and more reliable. This is the result of continual self-improvement through global standards and intense cooperation between industry and regulators.“We are not perfect, but the system has proven itself robust. Perhaps it is time the IT industry adopted similar levels of humility and transparency, so that we can be evermore confident in the security and safety of our digitised world,” Walsh added.A major IT outage like the one that occurred last month will have significant and widespread impacts on airlines around the world, affecting various aspects of their operations and customer service.Obviously, this will have a cascading effect on airline operations, customer service, financial stability and reputation.This makes it crucial for airlines around the world to invest in robust IT infrastructure and contingency planning.

Qatar’s banking sector assets rose 1.2% month-on-month (m-o-m) and (1.5% so far in 2024) to QR1.999tn in June, mainly due to the increase in both domestic credit and domestic investments, according to QNB Financial Services (QNBFS).Total assets were up 1.5% in 2024, compared to a growth of 3.4% in 2023. Assets grew by an average 6.8% over the past five years (2019-2023), QNBFS said in its ‘Qatar monthly key banking indicators’.Liquid assets to total assets moved higher to 30.7% in June, compared to 30.1% in May this year.Bank loans moved up by 0.4% during June to reach QR1,324.8bn.The loans increase in June was mainly due to gains (by 0.7%) in the private sector, particularly in the services segment.Loans increased by 2.9% in 2024, compared to a growth of 2.5% in 2023, while loans grew by an average 6.5% over the past five years (2019-2023).Loan provisions to gross loans was at 4.1% in June, compared to 3.9% in May.Deposits edged marginally down during June to QR1,031.8bn due to a drop by 2.4% in public sector deposits, even as non-resident deposits surged by 4.3% in June.Deposits increased 4.6% in 2024, compared to a decline by 1.3% in 2023. Deposits grew by an average 4.1% over the past five years (2019-2023).With deposits marginally declining in June, the loans to deposits ratio (LDR) went up to 128.4%, compared to 127.9% in May.According to QNBFS, the services sector was the main driver for the second consecutive month, pushing up the private sector loans in June.Services (contributes 32% to private sector loans) gained by 1.3% m-o-m (3.7% in 2024), while the real estate segment (contributes 20% to private sector loans) increased by 1% m-o-m (+4.3% in 2024) and general trade (contributes 22% to private sector loans) edged up by 0.2% m-o-m (+3% in 2024).However, consumption and others (contribute 20% to private sector loans) declined by 0.8% m-o-m (-3.3% in 2024) in June.Total public sector loans moved marginally up m-o-m (3.8% in 2024) in June. The government institutions’ segment (represents 66% of public sector loans) was the main driver for the public sector with an increase by 0.6% m-o-m (+4.7% in 2024), while the semi-government institutions segment went up by 1% m-o-m (-9.1% in 2024).However, the government segment (represents 29% of public sector loans) declined by 1.4% m-o-m (4.5% in 2024) in June.Outside Qatar loans dropped by 1.8% m-o-m (12.9% in 2024) in June.Public sector deposits fell by 2.4% m-o-m (7.1% in 2024) in June, driving the overall marginal decline in deposits.Looking at segment details, the government institutions’ segment (represents 56% of public sector deposits) dipped 3.2% m-o-m (6.4% in 2024), while the semi-government institutions’ segment went down 2.8% m-o-m (-13.9% in 2024) and the government segment (represents 32% of public sector deposits) moved lower by 0.9% m-o-m (19.8% in 2024) in June.Private sector deposits made a marginal gain of 0.1% m-o-m (+0.8% in 2024) in June 2024. The companies and institutions’ segment moved up by 0.6% m-o-m (-4.3% in 2024). However, the consumer segment edged down by 0.3% m-o-m (+5.3% in 2024).Non-resident deposits jumped by 4.3% m-o-m (+10.0% in 2024) in June.The banking sector's loan provisions to gross loans was at 4.1% in June, compared to 3.9% in May 2024. Liquid assets to total assets moved higher to 30.7% in June, compared to 30.1% in May 2024.An analyst told Gulf Times, “The key highlights for the month of June are the increase in total assets by 1.2%, which rose mainly due to the increase in both domestic credit and domestic investments (on the domestic assets side) and a spike in due from banks abroad on the foreign assets side.“The 0.4% increase in the overall loan book resulted mainly from a 1.3% gain in June from the services segment, signifying the further strengthening of tourism sector. Even as overall deposits were marginally down for the month, non-resident deposits witnessed a significant rise by 4.3% in June.”

In a push to the use of sustainable aviation fuels, Qatar Airways has pledged to use at least 10% SAF in its overall jet fuel consumption by 2030, the national airline has said in its latest annual report.Qatar Airways Group said it is committed to working in collaboration with industry stakeholders to advance the use of SAF and low carbon aviation fuels (LCAF) certified under a robust sustainability-criteria recognised by ICAO or the member states.Most recently, Qatar Airways joined the First Movers Coalition (FMC) of the World Economic Forum.In 2023, in-line with its commitments, the Group successfully completed the uptake of 3.9mn litres of neat SAF, with a 94.4% lower emission in the life-cycle compared to fossil jet fuel.This SAF represented more than 5% of total fuel uplifted by Qatar Airways for its operations in Amsterdam, Netherlands, over the course of the 2023-24 fiscal year.The Group continues to expand the scope of its voluntary carbon offsetting programme for passengers as well as corporate and cargo customers.Since the programme launched in November 2020, Qatar Airways’ customers have contributed to reducing or avoiding carbon dioxide emissions by supporting high-quality and accredited offsetting projects for renewable energy located in Africa and Asia.In addition to its customers’ contributions, the Group complies with the monitoring and reporting of the EU and UK emissions trading schemes.The Group also complies with the State of Qatar’s requirements, which is part of the voluntary phase of ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).CORSIA is a global scheme, which will result in greater levels of CO2 mitigation in international aviation than could be achieved through domestic policy measures.It is forecast that CORSIA will stabilise net CO2 emissions from international aviation at about 600mn tonnes of CO2, according to the global body of airlines, IATA.IATA estimates that, without CORSIA, the CO2 footprint of international aviation would increase from slightly over 600mn tonnes of CO2 in 2019 to almost 900mn tonnes of CO2 by 2035.In its annual report, Qatar Airways said it remains committed to demonstrating leadership in protecting the environment whilst exploring new initiatives that minimise environmental impact and cement a path for a sustainable future.From investing in the most advanced aircraft technology, to minimising single-use plastics and conserving water and energy, the environmental efforts of the group span every aspect of its network operations, establishing a well-balanced approach and a long-term strategy to support environmental sustainability.The group actively collaborates with industry stakeholders in leading global efforts to reduce carbon dioxide emissions and address climate change.Despite the challenging task to decarbonise the aviation sector, the Group is taking action to achieve its commitment of net zero emissions by 2050 in accordance with the Four Pillars Strategy adopted by IATA and ICAO.The group continues to invest in the most advanced aircraft technology and new generation engines, which position the group at the top of the industry in terms of fleet modernisation and its positive impact on operational efficiency.Maintaining an advanced fleet also contributes towards enhancing Qatar Airways’ capacity to drive future growth while reducing the overall fuel consumption and carbon emissions per passenger and cargo transported, the annual report noted.

Middle Eastern airlines saw a 9.6% year-on-year increase in passenger demand, data for June released by International Air Transport Association (IATA) has shown.Capacity increased 9.4% year-on-year and the load factor was 79.7% (+0.1ppt compared to June 2023).Total (global) demand, measured in revenue passenger kilometres (RPK), was up 9.1% compared to June 2023. Total capacity, measured in available seat kilometres (ASK), was up 8.5% year-on-year.The June load factor was 85.0% (+0.5 percentage points (ppt) compared to June 2023).International demand rose 12.3% compared to June 2023. Capacity was up 12.7% year-on-year and the load factor improved to 85.0% (-0.3ppt on June 2023).Domestic demand rose 4.3% compared to June 2023; capacity was up 2.1% year-on-year and the load factor was 85.0% (+1.7ppt compared to June 2023).Domestic markets:Domestic demand increased in June, with solid growth in most key markets, bar Japan and Australia. Brazil posted the largest gain with 7.6% year-on-year growth.Year-on-year June domestic ticket sales for July and August travel dipped -0.9%, pointing to a gradual moderation in demand back to pre-pandemic growth rates.IATA’s Director General Willie Walsh said, “Demand grew across all regions as the peak Northern summer travel season began in June. And with overall capacity growth lagging demand we saw a very strong average load factor of 85% achieved in both domestic and international operations. Operating with such high load factors is both good and challenging. It makes it even more important for all the stakeholders to operate with equal levels of efficiency to minimise delays and get travellers to their destinations on schedule.“As the Olympic Games unfold in Paris there is pride across the aviation industry for its continuing role in supporting the Olympic story by bringing many of the athletes, fans, and officials together. It is a great reminder of how aviation transforms our very big world into a global community. We wish France every success as the host of the games and cheer all the athletes who will demonstrate the best of human endeavour over the next weeks.”

The global average jet fuel price fell to $98.68/barrel as of July 26, down 2.1% compared to the week before.Jet fuel price, industry analysts say marked a significant 40% plus decrease from their peak in 2022.This reduction is generally seen as a welcome shift for the aviation industry, which faced severe financial strains due to soaring fuel costs in the wake of the Covid-19 pandemic.According to Statista, the current price of $2.39 per gallon represents a substantial decrease from the 2022 highs, reflecting a more stable period for fuel costs.However, the US Energy Information Administration (EIA) notes that current prices remain elevated compared to pre-pandemic levels, where prices were consistently between $1.80 and $1.90 per gallon in 2019.Despite the recent decline, high fuel costs continue to pose a challenge for airlines, impacting their operational expenses and profitability, financial analyst Noris Soto wrote in Invezz, which is an online investor platform.The recent drop in jet fuel prices provides some financial relief, but airlines are still grappling with the long-term impact of fuel costs.“The complex interplay between fuel prices, consumer demand, and industry regulations influences airline ticket prices,” Soto noted.Elevated fuel costs, combined with significant taxes and airport fees, often get passed on to consumers, affecting ticket affordability.Projections suggest that while jet fuel prices may remain stable, they will continue to impact the cost structure of airlines.This ongoing economic uncertainty requires the industry to navigate challenges with resilience and adaptability.According to Soto, airlines employ various strategies to manage the financial impact of fluctuating fuel prices.Fuel hedging is a key tactic, allowing airlines to lock in fuel prices at favourable rates and shield themselves from sudden price spikes.Additionally, airlines focus on operational efficiency improvements and fleet modernisation to reduce fuel consumption and lower costs.Other strategies include adjusting ticket prices, flexible scheduling, and capacity management.By implementing these measures, airlines aim to maintain operational stability and financial health despite volatile fuel markets.Global body of airlines - IATA forecasts that the average cost of jet fuel in 2024 will be roughly $2.7095/gallon, up from the $2.6643/gallon average forecasted for 20232.The jet fuel price is expected to average $113.8/barrel in 2024, translating into a total fuel bill of $281bn, accounting for 31% of all operating costs, IATA noted recently.Fuel is a major cost component of operating an airline, often accounting for 20-30% of operating costs, according to OAG, a UK-based global travel data provider.Fuel is such a large cost for airlines that it is the focus of intense efforts across the industry to find efficiency improvements.Such gains can take a variety of forms including replacing fleet with new aircraft, more efficient operations and efforts to persuade governments to remove the airspace and airport inefficiencies that waste around 5% of fuel burned each year.Industry experts say fuel costs constitute roughly one-third of an airline’s operating costs. Hence, a marginal change in crude oil prices can significantly impact its profitability.Jet fuel prices have long driven airline profitability and the aviation industry as a whole, representing between 14% and as much as 31% of airline operating costs in the past decade, an estimate shows.Consequently, airlines hedge a large portion of their annual fuel consumption at lower oil prices in order to protect themselves from the volatility in oil prices.Many experts have called for increased use of sustainable aviation fuel (SAF) to tide over the crisis.But according to IATA, the global production of sustainable aviation fuel (SAF) is only about 100mn litres a year, or 0.1% of all aviation fuel used.Various airlines have, however, committed to bringing this figure to 10% by 2030, a truly ambitious goal.Pratap John is Business Editor at Gulf Times. Twitter handle: @PratapJohn

Discover Qatar’s ‘Stopover programme’ continued to grow exponentially in 2023/24, with DQ's ambitious aim to double stopover passengers achieving growth of over 150% and room nights almost three-times higher than the previous year.“This impressive growth has, in part, been enabled by the addition of the beach-inclusive stopover package, premium hotels with beach access’, launched within the last six months to complement the existing stopover offerings,” Qatar Airways Group said in its latest annual report.Discover Qatar is Qatar Airways Group’s destination management subsidiary.In its annual report, Qatar Airways Group said that the 2023/24 fiscal year marked a “momentous” stride for Discover Qatar (DQ) in its first ‘business-as-usual’ year since 2019.“Over the past 12 months, DQ has delivered significant growth across core product streams, as well as operating a plethora of logistical arrangements and exceptional tourist experiences to international visitors through its global network of partners, tour operators and travel agents,” it said.In line with the group’s commitment to innovation and performance, the 2023/24 financial year saw the continuation of the success and growth of DQ’s Transit Tours with the 'City Tour' remaining the top seller, Qatar Airways said in its 'annual report'.Working in close collaboration with Group partner Qatar Duty Free (QDF), Transit Tours for Hamad International Airport travellers in February included a shuttle bus and tickets to visit the Qatar ExxonMobil Open 2024 and Qatar Total Energies Open 2024 tournaments, showcasing DQ’s ability to quickly introduce new product experiences into its product portfolio.As a result, transit tour passengers have significantly increased from 13,000 to 64,000 over the last 12 months – a rise of almost 400%.DQ has also provided support for a number of exceptional events hosted in Qatar “over the last 12 months”.For the 2023 AFC Asian Cup Qatar 2023, DQ provided logistic services to over 6,000 football fans throughout the tournament, ensuring fans and customers alike enjoyed a seamless experience during their visit to Qatar.With Formula 1 Qatar Airways Qatar Grand Prix 2023, DQ provided a range of services, including exclusive ticket and hotel packages to over 2,000 visitors.This success promises to replicate itself for next year, with DQ once again being the first provider in the world to offer exclusive access to tickets to its B2B partners, with forward sales for the 2024 event already approaching 50% of those delivered in 2023.DQ also facilitated and organised the World Scholar’s Cup (WSC) - Global Round, which took place in Doha, handling and accommodating 1,500 international students from over 50 countries.Ends

Qatar Airways has ordered 20 more Boeing 777-9 planes, expanding its order book for the US manufacturer’s 777X family of jets to 94.The national airline’s significant order of Boeing 777X aircraft, which is considered the world’s largest and most fuel-efficient twin-engine jet, was announced on the second day of the Farnborough International Airshow.The announcement also includes a commitment for 40 additional GE9X engines and spare engines, as well as a long-term services agreement.According to Boeing, Qatar Airways helped launch the 777X programme and now has on order for 60 777-9 passenger airplanes.Qatar Airways is also the inaugural launch customer for the 777-8 Freighter and has 34 of the next generation cargo jet on order.On the first day of Farnborough Airshow 2024, Qatar Airways showcased Qsuite Next Gen, the latest version of the ‘World’s Best Business Class’, which will be featured on the 20 additional order of the Boeing 777-9 aircraft, amongst other aircraft.The highly-anticipated Qsuite Next Gen includes updated features such as movable monitors with Bluetooth connectivity, companion suits with window views, larger lie-flat and double beds, lockable drawers, touchscreen passenger control unit and more.Qatar Airways Group Chief Executive Officer Badr Mohamed al-Meer said: “Qatar Airways is proud to announce an expansion to the existing Boeing 777X aircraft order with an additional 20, totalling 94 Boeing 777X aircraft.“We, as the ‘World’s Best Airline’, are an industry leader and operate one of the youngest fleets, offering unparalleled innovation and quality. Keeping an eye on the future, we continue to ensure that all Qatar Airways passengers are only met with the best products and services available in the industry.”Boeing Commercial Airplanes President and CEO Stephanie Pope said: “Qatar Airways is a leader in our industry, and we are honoured the airline added 20 more 777-9 jets to its large Boeing order book. We appreciate their confidence that Boeing’s market-leading widebody family will provide outstanding fuel efficiency and a superior passenger experience for its global operations.”GE Aerospace President and CEO, Commercial Engines and Services, Russell Stokes said: “We are pleased to extend our partnership with Qatar Airways to support the airline’s commitment to an excellent customer experience and best-in-class efficiency. To Page 5The GE9X is the world’s most powerful and most fuel-efficient turbofan and we look forward to continuing to support the growth of the Qatar Airways family with this technology.”Qatar Airways continues to lead the industry with one of the youngest fleets and this latest addition to the Boeing 777X order ensures future passengers a seamless journey on our ever-growing network of over 170 destinations worldwide.“Based on the popular Boeing 777 family and with advanced technologies from the 787 Dreamliner, the 777X programme is designed to set new standards of efficiency, environmental performance and passenger experience.“The 777-9 is the largest in the family and will help operators open new growth opportunities with capacity for 426 passengers in a typical two-class configuration and a range of 7,295 nautical miles (13,510km),” Boeing said.Earlier this month, Boeing began certification flight testing for the 777-9, which will offer a new level of passenger comfort with a spacious cabin, better humidity, a quiet environment and increased natural light.In addition to the 777X family, Qatar Airways has 12 787 Dreamliner and 25 737 MAX aircraft on order, Boeing said yesterday.Boeing’s 2024 Commercial Market Outlook forecasts that twin-aisle jets such as its 777X and 787 Dreamliner will make up 44% of the region’s fleet across Middle Eastern operators over the next 20 years.