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Qatar’s public spending is expected to pick up this year, while elevated energy prices support its revenue, Oxford Economics has said in its latest country report.The rise in the Brent oil price to above $85 per barrel supports the researcher’s projection that the budget surplus will average above 5.5% of GDP in 2024-2026.Oxford Economics forecasts the 2024 Brent oil price at $82.1 per barrel, much higher than the $60/barrel assumed in Qatar’s latest budget.“We still project a 2024 budget surplus at QR47.9bn (5.8% of GDP), similar to last year. This is a significantly better outcome than what is pencilled into Qatar's 2024 budget,” Oxford Economics noted.According to Oxford Economics, Qatar's oil output has been "relatively flat" in recent years at around 600,000 barrels per day (bpd).“As the country is not involved in the Opec+ pact on production quotas, we expect production to rise modestly this year,” Oxford Economics noted.A recovery in oil production will boost the energy sector to 1.7% growth this year, up from an estimated 1.5% expansion in 2023. Commodity prices have eased but are still elevated, supporting the macroeconomic environment.The North Field gas expansion project will have a "positive medium-term impact" on the economy. The target liquefied natural gas (LNG) capacity was raised to 142mn tonnes per year (mtpy) by the end of 2030, up nearly 85% from 77 mtpy currently and 13% on the intermediate target of 126mtpy by 2027.The new North Field West project is in the early stages.Last year, Qatar awarded a $10bn contract for the second phase of the project, North Field South, which will include the delivery of two LNG trains.Qatar is also "making progress" in contracting future gas output, Oxford Economics noted. In early June, the government signed a long-term supply contract with Taiwan for 4mn tonnes of LNG annually.It followed similar deals with India, China, France, Germany, and Hungary, with more likely in the coming months.Oxford Economics estimates the non-energy economy will grow by 2.5% this year, up from an estimated 0.8% in 2023.Available data showed a weak performance in the non-energy sector at just 0.7% year-on-year (y-o-y) growth in the first three quarters of 2023, with Q4-2023 data pending.

Qatar has already announced that its LNG production capacity will go up from current 77 MTPY to 142 MTPY by 2030LNG liquefaction annual capacity, which is under construction or approved for development as of February this year stood at 216.9mn tonnes globally, the International Gas Union (IGU) said in its latest report.In 2023, a total of 58.8 MTPY of liquefaction capacity was approved, mostly contributed by the Plaquemines LNG (T19-T36, 10 MTPY), Port Arthur LNG (13.5 MTPY), Rio Grande LNG (17.6 MTPY) in the US, and QatarEnergy LNG (15.6 MTPY) in Qatar.Already, Qatar has announced that its LNG production capacity will go up from the current 77 MTPY to 142 MTPY by 2030.QatarEnergy’s North Field East (NFE) project will raise Qatar’s LNG production capacity from its current 77mn metric tonnes per year to 110 MTPY.NFE represents the first phase of expansion, the second phase, the North Field South (NFS) project, will further increase Qatar’s LNG production capacity to 126 MTPY.A third phase, the North Field West (NFW) project will boost Qatar’s LNG production to 142 MTPY by the end of 2030.Meanwhile, global liquefaction capacity had reached 482.5 MTPY in 2023, IGU noted.As of February this year, there were some 21 markets operating LNG export facilities. The US remained the market with the largest operational liquefaction capacity at around 91.4 MTPY, followed by Australia with liquefaction capacity of 87.6 MTPY, and Qatar with 77.1 MTPA.The top three LNG export markets currently represent more than half of global liquefaction capacity, IGU noted.The focus on decarbonising the global energy sector has gained momentum in recent years, the report said. LNG is a major component of the global energy mix and decarbonising along the LNG value chain is a priority for many stakeholders in the industry. Driving down liquefaction sector emissions provides a significant opportunity to reduce GHG emissions in the value chain, and there has been a notable increase in efforts in this area.Several proposed projects – such as Cedar LNG 1 and Kitimat LNG in Canada – are looking to use hydropower to run their operations, with a CCS study planned for Egypt’s Idku LNG plant.The progress towards low-carbon LNG is also under way, with initiatives such as the use of renewable energy sources and the development of CCS technology at liquefaction facilities, IGU said.

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.Although Africa’s airlines are expected to earn a collective net profit in 2024 for the second year in a row, the International Air Transport Association (IATA) says the expected profit falls well below the global average.According to the global trade body of airlines, African airlines are set to achieve $100mn net post-tax profit this year, which translates into profit per passenger of only 90 US cents per passenger – well below the $6.14 of the sector globally.Profit margins also sit lower than the global net profit margin of 3.1%, at 0.6% of revenue.“The fact that Africa’s airlines are expected to earn a collective net profit in 2024 for the second year in a row is a hard-won result for the sector after the turbulence of Covid-19 pandemic,” IATA said in a recent report.Strong passenger growth is a boon across the region though, as revenue passenger kilometres (RPK) growth is forecasted at 8.5%. Load factor is also expected to reach 61.9%, slightly ahead of the 59.8% breakeven load factor for African Airlines.“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,” noted Kamil Alawadhi, IATA’s regional vice president (Africa and the Middle East).“The challenges facing African aviation are significant, but they are not insurmountable. IATA’s Focus Africa initiative is by no means a panacea, but it does lay out a framework to build a stronger aviation sector that will provide even better support to economic growth and social development.”Focus Africa aims to address key challenges and opportunities within the continent's aviation sector, emphasising six priority areas: Safety, infrastructure, connectivity, finance and distribution, sustainability, and future skills.On safety, Africa as a continent had no jet hull losses for the second year in a row and the 31 IOSA registered carriers continue to outperform non-IOSA registered carriers both on the continent and globally.Regarding connectivity, the Single African Air Transport Market (SAATM) seeks to liberalise civil aviation by removing limits on traffic rights for African airlines. It also helps the continent drive economic growth, but few states have implemented it.Non-compliance by African governments to bilateral air service agreements (BASAs) is another obstacle to achieving seamless regional connectivity and growth and IATA says that to develop economy-boosting intra-Africa connectivity “Africa’s governments must back SAATM with actions.”The amount of blocked funds in African countries in June this year stood at $880mn, just over 52% of the $1.68bn in blocked funds globally.IATA says this is an improvement after Nigeria cleared 98% of the total funds blocked, which sat at $831mn.The association has called on African governments to take advantage of its strong aviation sector as it seeks to revive economic and social development benefits across the continent.The African aviation industry has immense potential for growth, driven by economic expansion, increasing demand for air travel, and opportunities for tourism and trade.However, addressing the challenges of infrastructure, regulatory frameworks, operating costs, safety, connectivity, skilled workforce, and financing is essential to unlock this potential.By tackling these issues, the African aviation sector can become a key driver of economic development and integration on the continent.Pratap John is Business Editor at Gulf Times. Twitter handle: @PratapJohn

The national airline’s corporate jet subsidiary Qatar Executive has seen increase in total live flying hours of more than 18% in 2023-24 fiscal year, Qatar Airways said in its latest annual report.Since its launch in 2009, the VIP charter jet division of Qatar Airways has played an integral role in the group’s vigorous global growth strategy.As the world’s only business jet brand fully-owned and operated by a commercial airline, QE is “unwavering in its commitment” towards meeting customer requirements and expectations at every turn.This has resulted in consistent growth that has been reflected throughout the 2023-24 fiscal year, with increases in commercial charter sales revenues of more than 20% and total live flying hours of more than 18% as well as a strategic programme of fleet growth and enhancements to client experience.At a media ceremony in Doha in May, Group CEO Badr Mohamed al-Meer had said Qatar Executive would be adding more business jets to its fleet in view of rising demand from all over the world.“At Qatar Executive, we already have a fleet of 15 G650s. Qatar Executive expects an additional eight G700 to be delivered in the near future, with two aircraft already received and two more set to arrive within weeks,” al-Meer had said.The world’s first Gulfstream G700, a premium business jet owned by QE was “exclusively revealed” at the media ceremony at the Hamad International Airport in May.By welcoming two new Gulfstream G700 aircraft to the fleet, Qatar Executive has become the worldwide exclusive commercial operator of the aircraft.Meanwhile, in its latest annual report Qatar Airways said that over the course of the year, a continued programme of robust expansion has seen the QE global client base grow exponentially, particularly in Europe, the US and Asia, supporting the wider Group’s strategic focus on becoming the definitive business jet provider for ultra long-range flights.With a consistent focus on sustainability and innovation, QE has continued to invest in the most technologically-advanced aircraft that boast lower fuel consumption and sustainable aviation fuel (SAF) capabilities – streamlining its fleet and future fleet arrivals to meet the expectation of the ability to fly on SAF.Alongside this, QE strives to optimise its fleet journeys to ensure reduced fuel consumption, leading to lower carbon emissions overall.As part of its commitment to excellence, QE underwent audits for two international standards in April 2023 – International Standard for Business Aircraft Operations (IS-BAO) and Wyvern Wingman.As two of the most internationally recognised aviation safety standards in the business and charter jet fields, these audits focus on critical subjects, such as the Safety Management System (SMS) implemented in QE as an operator.QE was awarded both certifications in July 2023.On the world stage, QE took part in several key global aviation and business aviation events throughout 2023, including EBACE, Paris International Air Show and Dubai Airshow.

Chemical industry, on average, contributes between 5% and 6% of GCC region’s total GDP, which stood at $2.1tn in 2023, the Gulf Petrochemicals and Chemicals Association (GPCA) has said in a report.The region’s chemicals industry also accounts for almost 40% of the GCC’s total manufacturing GDP. As such, expansion in the chemical sector will continue to be a crucial component of the growing regional economy, GPCA noted in its annual report.According to GPCA analysis, overall Gulf Cooperation Council chemical production is estimated to have grown by 1.9% to 159mn tonnes in 2022-2023.Based on a three-year average between 2021 and 2023, GCC chemical industry output exhibited a CAGR of 3.4%.Growth in regional output is forecasted to grow at a rate of approximately 1% in upcoming years between 2023 and 2026 based on the imminent capacity addition of existing chemical projects.The GCC’s GDP in 2023 grew moderately by 1.5% in comparison to 2022, with an expected rebound forecasted at 3.6% this year and 3.8% in 2025, GPCA noted.For the GCC, the chemical industry benefitted from geopolitical instability in other regions. This is due to the region being able to constitute a large portion of global chemical exports in 2022, resulting in an overall GDP growth of 7.9%.In 2023, however, the chemical industry was negatively affected, particularly in the third quarter and fourth quarter of 2023, where Opec+ announcements of oil cuts to 2.2mn barrels per day, aimed at supporting the stability and balance of oil markets, led to a cut in chemical production in the last months of 2023.Although the chemical industry faced difficulty, growth in the region was primarily driven by the GCC’s economic diversification efforts, GPCA noted.Reduction in oil sector production, and subsequently, chemical industry activities, were compensated for by the non-oil sectors, which were estimated as growing by 3.9% in 2023.“The forecasted 3.6% in 2024 and 3.8% in 2025 growth in regional GDP is an important point to note. Global GDP growth is expected to grow at mildly lower rates of 2.4% and 3% in 2024 and 2025 respectively, as projected by the IMF and OECD,” GPCA said.Due to the GCC’s large global share in crude oil exports, expected production expansions from Opec+ are likely a factor contributing to more elevated regional GDP outlooks.In terms of the chemical industry’s contribution to manufacturing GDP, GPCA analysis suggests that chemical industry output is directly proportional to oil prices, due to them usually following similar trends.

Global airline industry has been found generating over 3.6mn metric tonnes of cabin and catering waste annually.A bulk of this- 65% is food and beverage waste while untouched meals account for 18% of all waste, a recent audit undertaken by IATA and involving some 25 short, medium, and long-haul flights at Singapore’s Changi Airport has shown.Cabin waste is generally made up of two main streams - cleaning waste and catering (galley) waste.A growing challenge for airlines is the sustainable management of millions of tonnes of waste generated within the cabin. Cabin waste is costing airlines money, consuming valuable resources, and undermining the sector’s credibility on sustainable operations.Cleaning waste is leftover rubbish from items given to passengers on the aircraft such as newspapers, paper towels, plastic bottles, food dropped on the floor, amenity kits and plastic wrapping from blankets, pillows and headsets.Cleaning waste also includes the contents of washroom bins and medical waste such as used syringes.Catering waste comes from inflight meals, snacks and beverages served to passengers and can consist of leftover food, drinks and packaging which is placed back in the trolleys, in static or compactor bins. This waste may contain high volumes of liquid from unconsumed beverages and ice.That said, collecting waste on flights, especially long-haul international flights, and ensuring proper separation (recyclables, organic waste) is logistically complex.Managing waste storage on aircraft and subsequent transport to appropriate disposal or recycling facilities poses logistical challenges, especially given the limited space on planes.But major global airlines are taking steps to address the issue and good practices are clearly emerging within the sector.IATA is collaborating with the Aviation Sustainability Forum (ASF) to launch a standardised Cabin Waste Composition Audit (CWCA), with the ASF Cabin Waste Composition Auditing Platform to be launched in September this year.Audit data will guide the airline industry and policy makers in their efforts to reduce the levels of waste produced and improve circularity by identifying opportunities for re-use and re-cycling. Previous IATA research identified the lack of a standardised methodology with respect to conducting cabin waste audits and, as a result, harmonised data is not available to underpin decision-making by policymakers, airlines, and caterers regarding waste-related issues.A standardised audit will help solve these issues and enable the sector to demonstrate progress towards waste reduction and improved circularity.“Managing and reducing waste is an important component of aviation’s overall sustainability. Obtaining standardised and comparable data regarding the composition and quantity of waste from flights will help the industry to reduce the waste it generates. Better data will also help policymakers to harmonise regulations, which in turn can help optimise the industry’s capability to sort, re-cycle and safely re-use waste that cannot be avoided. Working with ASF in developing this audit programme is a significant step forward in improving the circularity of the sector,” said Marie Owens Thomsen, IATA’s senior vice-president (Sustainability) and chief economist.“The ASF’s mission is to help the aviation sector reduce the levels of cabin waste generated and achieve higher levels of waste recovery and circularity. Working with IATA to develop a cabin waste composition auditing standard for the sector is a significant step forward. Effectively managing cabin waste is a challenge that can be solved with the backing of data. It is the responsibility of the sector and its regulators to come together, understand the problem and align on the needed solutions,” said Matt Crane, ASF’s founder.The airline industry has been always the subject of criticism for inadequate cabin waste recycling, which threatens the sector’s environmental reputation.A significant portion of cabin and catering waste often ends up in landfills, contributing to environmental degradation and greenhouse gas emissions.With a huge growth in passenger numbers expected in the coming decade, the volume of cabin waste could more than double in the next 10 years!This certainly calls for urgent action towards proper cabin waste recycling across the global airline industry.

QatarEnergy is once again at the forefront of the rising LNG vessel capacities, ordering eighteen 271,000cm vessels at Hudong-Zhonghua Shipbuilding in China, according to the International Gas Union (IGU).Eight of the 18 QC-Max size LNG vessels will be delivered in 2028 and 2029, while the other ten will be delivered in 2030 and 2031.In April, QatarEnergy had signed an agreement with China State Shipbuilding Corporation (CSSC) for the construction of 18 ultra-modern QC-Max size LNG vessels, marking a significant addition to its historic LNG fleet expansion programme.The new vessels, with a capacity of 271,000 cubic metres each, will be constructed at China's Hudong-Zhonghua Shipyard, a CSSC wholly-owned subsidiary, and will feature state of the art technological innovation and environmental performance.Also, 12 conventional-size LNG vessels are currently under construction at Hudong-Zhonghua, and that delivery of the first such vessels is expected by the third quarter of this year.IGU noted the vessels being built at Hudong-Zhonghua Shipbuilding are slightly larger than the 45 Qatari Q-Class newbuilds of over 200,000cm that were delivered during the 2007-2010 period.However, moving forward, 200,000cm vessels or larger could find favour due to their economies of scale for long-haul voyages. The current orderbook comprises 22 vessels, each with capacity of either 200,000cm or 271,000cm for delivery during the period 2024-2029.Of the 32 newbuilds delivered in 2023, all except three have a capacity of between 170,000 and 200,000cm, IGU noted.Vessels of this size remain within the upper limit of the Panama Canal’s capacity following its expansion in 2016, while still benefiting from economies of scale, particularly as additional LNG capacity is developed in the US Gulf Coast (USGC) for long-haul delivery to Asia.The global LNG fleet is relatively young due to the rapid increase in LNG trade over the past two decades, IGU said.Vessels under 20 years of age make up 85.3% of the active fleet. Newer vessels are larger, more efficient, and have superior project economics over their operational lifetime.Only 21 active vessels are 30 years or older, including eight that were converted into FSRUs or FSUs.The global LNG orderbook had a staggering 359 newbuild vessels under construction at end of February-2024, equivalent to over 51% of the current active fleet.This illustrates shipowners’ expectations that LNG trade will continue to grow in line with scheduled increases in liquefaction capacity, particularly from the US.An expected 77 carriers will be delivered in 2024, including the 11 already delivered.The orderbook includes 21 icebreaker-class vessels for the Arctic LNG 2 project. These, IGU noted, are highly innovative and CAPEX-intensive ships with the capabilities required to traverse the Arctic region.Due to the Russia-Ukraine conflict, these vessels have faced a risk of delayed deliveries or cancellations due to international sanctions on Russia that have complicated equipment delivery and payments.

Qatar's LNG liquefaction facilities have clocked a 102% utilisation rate in 2023, the International Gas Union (IGU) has said in its latest report.Qatar announced the country will be doubling its LNG production in a few years with the operation of North Field development projects and commencement of production at QatarEnergy’s LNG project in Texas, US.The LNG expansion projects at Qatar’s offshore North Field, the world’s largest non-associated gas field, are moving ahead on track towards an increased production capacity of 142mn tonnes per year.“Qatar’s LNG expansion projects are designed to help meet growing demand for cleaner energy driven by economic growth and rising populations and living standards,” QatarEnergy had said earlier.Recent studies have shown that the North Field contains huge additional gas quantities estimated at 240tn cubic feet, which raises Qatar’s gas reserves from 1,760tn cubic feet to more than 2,000tn cubic feet, and the condensates reserves from 70bn to more than 80bn barrels, in addition to large quantities of liquefied petroleum gas, ethane, and helium.Earlier QatarEnergy had said production capacity at the country’s LNG expansion projects in the North Field will reach 142mn tonnes per year by 2030.Qatar will sequester 11mn tonnes of carbon from that project. Add to that the construction of 104 LNG ships, all of which will be powered by LNG.The country is also building the largest blue ammonia plant in the world that has solar power and CO2 sequestration facilities. Qatar is also capturing CO2 from its production sites in the north and sending them via pipeline across the country to be injected in the oil field of Dukhan as part of the enhanced oil recovery efforts.Meanwhile, IGU noted global operational liquefaction capacity totalled 483.1mn tonnes per year (MTPY) as of end-February, with the weighted average utilisation rate in 2023 averaging 88.7% of pro-rated capacity1, similar to 89% in 2022.It is notable that no major unplanned LNG outages occurred in 2023. However, maintenance, feedstock challenges and other factors impacted production at some plants.Some export facilities have been running below average – for example, Equatorial Guinea LNG operated at below 80% of capacity due to a major triennial maintenance project in April and natural decline at its original feedstock field.Feedstock challenges notably reduced LNG production at SEGAS LNG in Egypt, NLNG in Nigeria, Darwin LNG in Australia, as well as others.“Despite outages and upstream supply disruptions, nine out of 20 LNG exporting markets achieved higher than global average utilisation rates in 2023,” IGU noted.

Gains in domestic credit and investments remained key drivers of Qatar’s banking sector, whose assets scaled up to QR1.975tn in May, QNB Financial Services (QNBFS) said in its latest report.Qatar banking sector total assets increased by 0.8% MoM (0.3% in five months up to May), QNBFS noted in its ‘Qatar Monthly Key Banking Indicators’.The assets gains in May was mainly due to a rise by 0.7% in domestic assets and 2.7% in foreign assets. Total assets were up by 0.3% 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), the report said.Liquid assets to total assets moved lower to 30.1% in May, compared to 30.3% in April this year, QNBFS said.According to QNBFS, loans disbursed by banks went up by 0.7% during May to reach QR1,320.2bn. The loans increase in May was mainly due to gains by 0.7% in the private sector and 0.5% in the public sector.Loans increased by 2.5% in 2024, compared to a growth of 2.5% in 2023.Loans grew by an average 6.5% over the past five years (2019-2023), QNBFS said and noted loan provisions to gross loans stood at 3.9% in both April and May.In respect of deposits, QNBFS noted these moved up 0.7% during May to reach QR1,032.2bn.The deposits increase in May was mainly due to a gain by 2.3% in non-resident deposits and by 0.8% in public sector deposits.Deposits increased 4.7% in 2024, compared to a decline by 1.3% in 2023, growing by an average 4.1% over the past five years (2019-2023), QNBFS data revealed.Loans to deposits ratio (LDR) stood at 127.9% as at May. Loans went up by 0.7% in May 2024 to reach QR1,320.2bn, while deposits moved up by 0.7% in May 2024 to reach QR1,032.2bn.The net interbank position remained negative at QR294bn (as of May), QNBFS said. "Due from banks" totalled QR171.7bn, while "due to banks" totalled QR465.3bn in May.On the other hand, "due to banks" abroad had reached a high of QR421.4bn in June last year.On the QNBFS banking indicators, an analyst said, “The key highlights for May are the increase in total assets by 0.8%, which went up by the gains in domestic credit and domestic investments on the domestic assets side and an uptick in due from banks abroad on the foreign assets side.“The rise of 0.7% in the overall loan book resulted mainly from a 2.5% surge in May from the services segment signifying the buoyant tourism sector in the country. Overall deposits were pushed higher increasingly by non-resident deposits.”

Qatar continues to drive the Middle East's international LNG trade flow, Asia in particular, according to the International Gas Union.In its latest report, IGU noted that the LNG trade flow between the Middle East and Asia accounted for 43.29mn tonnes in 2023, driven by Qatar LNG supplies to China, India and Pakistan.In 2023, global LNG trade flows remained concentrated within Asia Pacific, with Asia Pacific-to-Asia Pacific trade flows having the highest absolute value (95mn tonnes).The third largest trade flow was from the Middle East to Asia at 43.29mn tonnes last year, as compared to 41.25mn tons in 2022, which was a 4.93% or 2.03mn tonnes increase.Major contributors to this trade flow include Qatar to China (16.75mn tonnes), Qatar to India (10.92mn tonnes), and Qatar to Pakistan (6.32mn tonnes).The biggest contributors to the net increase were Qatar to China (+0.70mn tonnes), UAE to China (+0.56mn tonnes), and Qatar to India (+0.37mn tonnes).In 2023, inter-regional trade continued to be dominated by long-term imports, with 61.1% of net imports on the long-term, 3.8% on the short-term and 35.2% on spot.Asia and Asia Pacific remained heavy on long-term imports, with 68.9% and 69.5% of net imports on the long-term, whereas net imports on spot were only 28.2% and 27.2%, respectively.This is consistent with purchase patterns of major players in Asia and Asia Pacific that have historically preferred long-term contracts, with spot purchases being more opportunistic depending on prevalent prices and short-term demand.Europe has mostly purchased on the spot market, corresponding to about 48.4% of net imports, with only 46.4% on long-term. This is consistent with European purchase patterns as spot cargoes were required to make up for an abrupt loss in Russian pipeline flow. Latin America purchases most of its cargoes in preparation for winter in the Southern Hemisphere, of which 65.5% of net imports are on the spot market, while long-term purchases are at 34.5%.According to IGU, intra-Asia Pacific flows were made up primarily of flows coming from Australia, which contributed to 54.75mn tonnes.The most dominant intra-Asia Pacific trade flow was Australia-to-Japan (27.61mn tonnes), then followed by Australia-to-South Korea (10.74mn tonnes) and Malaysia-to-Japan (10.43mn tonnes).Intra-Asia Pacific trade flows declined by 2.1mn tonnes from 2022 to 2023. There were several notable increases from Australia to Thailand (+1.32mn tonnes), intra-Indonesia flows (+0.88mn tonnes), Malaysia to South Korea (+0.69mn tonnes).However, contributing to a slight net decrease was Australia to Japan (-3.11mn tonnes), Malaysia to Japan (-1.58mn tonnes) and Australia to South Korea (-1.08mn tonnes).The second largest trade flow between two regions was from North America to Europe at 56.63mn tonnes.The biggest drivers of this trade flow were from the US to the UK (8.81mn tonnes), the US to Spain (5.32mn tonnes) and the US to Germany (4.14mn tonnes).This trade flow remained almost constant year on year, mainly driven by the US to Netherlands (+4.95mn tonnes), the US to Germany (+4.14mn tonnes), and the US to Italy (+1.62mn tonnes).There were also decreases along this trade route, particularly the US to Spain (-3.12mn tonnes), the US to France (-1.14mn tonnes), and the US to Turkiye (-1.13mn tonnes).

Qatar Airways Cargo lifted more freight in 2023-24 as the national airline’s freight subsidiary celebrates 20 years of operations in 2024.With a tonnage of 1,569,512,700kg in chargeable weight, Qatar Airways Cargo increased market share to 7.1% in the fiscal 2023-24, national airline said in its latest annual report.As one of the carrier’s primary areas of business development focus, digitalisation and transformation has been the driving force behind Cargo’s key enhancement for the 2023/24 fiscal year – the introduction of real-time pricing to its online booking platform – ‘Digital Lounge’.The Digital Lounge enables customers to book cargo immediately at the “best price” available in the industry to date, with the portal taking more than 200,000 online bookings since its inception, contributing towards an increase in cargo’s market share to 7.1% during the 2023/24 financial year, up by 0.04% compared to previous financial year.As of March 31, Qatar Airways Cargo had a dedicated fleet of 29 aircraft. The subsidiary has a firm order for 34 Boeing 777-8 (and options for 16 more), to augment its streamlined fleet of Boeing 777 freighters.The report noted that Qatar Airways Cargo has maintained its position as the world’s leading air freight carrier in 2023-24, bringing great enhancements to its services and sharply accelerating its digital transformation by retiring its last Boeing 747 aircraft and transitioning to an all Boeing 777F fleet.The cargo carrier currently operates to more than 170 belly-hold and over 70 freighter destinations, utilising more than 200 passenger aircraft and its 28 Boeing 777 freighters.Qatar Airways Cargo continued to launch new freighter services, including Algiers, Bogota, Dallas Fort Worth, Dammam, Miami, Sharjah, and Warsaw during 2023/24.In the Middle East, Qatar Airways Cargo revamped its network to introduce new and resumed destinations, as well as adding more frequencies to Dubai and Riyadh and opening Sharjah.In Europe, the cargo carrier improved its footprint in Amsterdam and Frankfurt by adding a further weekly and eight weekly frequencies, respectively.In Asia, Qatar Airways Cargo expanded its presence to better serve e-commerce customers, adding services to Macau and charter operations to China.Additionally, passenger belly cargo flights were added to several destinations, including Chengdu and Chongqing (China) Tokyo Haneda and Osaka (Japan), Lyon, Nice, and Toulouse (France), Marrakech (Morocco), Penang (Malaysia) and Phnom Penh (Cambodia).

Global air freight continues to soar great heights lifted by trade growth, booming e-commerce and capacity constraints on maritime shipping.Air cargo markets around the world maintained double-digit year-on-year growth so far this year, latest data from International Air Transport Association (IATA) reveal.Total demand, measured in cargo tonne-kilometres (CTKs), rose by 14.7% compared to May 2023 levels (15.5% for international operations).This is the sixth consecutive month of double-digit year-on-year growth, IATA noted.Capacity, measured in available cargo tonne-kilometres (ACTKs), increased by 6.7% compared to May 2023 (10.2% for international operations).Air cargo demand moved sharply upwards in May across all regions, IATA noted. The sector benefitted from trade growth, booming e-commerce and capacity constraints on maritime shipping.Middle Eastern carriers saw 15.3% year-on-year demand growth for air cargo in May. The Middle East–Europe market performed particularly well with 33.8% annual growth, ahead of Middle East-Asia which grew by 18.6% year-on-year. May capacity increased 2.7% year-on-year.Asia-Pacific airlines saw 17.8% year-on-year demand growth for air cargo in May. Demand on the Africa-Asia trade lane grew by 40.6% year-on-year, while the Europe-Asia, within Asia and Middle East-Asia trade lanes rose by 20.4%, 19.2% and 18.6% respectively. Capacity increased by 8.4% year-on-year.Trade growth is clearly mirrored on the latest figures vis-a-vis industrial production, a measure of the output generated by industrial sectors such as mining, manufacturing, and utilities, recorded a small 0.5% rise over the previous month.Compared to 2023, the indicator pointed at expansion with an annual growth rate of 2.7%, thus marking the continuation of the moderate upward trend seen over the past years, which is also in line with pre-pandemic trends (2012-2019).Global cross-border merchandise trade also displayed expansions both month-on-month and year-on-year in April, with readings of 1.5% and 1.8%, respectively.In particular, April delivered the second month of positive annual growth in 2024 after February. This is an encouraging signal in a strained business environment that continues to be impacted by inflation, impaired supply chains, geopolitical tensions, and rising cross-border trade restrictions.The Purchasing Managers’ Index (PMI) gauges economic trends in manufacturing and services. For example, a PMI above 50 suggests that more purchasing managers expect their business to grow compared to the previous month, while a figure below 50 indicates fewer managers with that outlook.**media[165545]**Specifically, the manufacturing output and new export order PMIs are two leading indicators of global air cargo demand.The new export orders PMI, an indicator that can be understood as a measure of the perceived well-being of international trade, signalled expansion in May with a reading of 50.4 points (down from 50.5 in April).This, IATA noted is the second optimistic reading after the global indicator moved past the critical 50-point benchmark for the first time in over two years in April.It represents an encouraging signal that is aligned with the upward evolution of global merchandise trade discussed earlier (for April). As for the regional perspective, China and the US continued to experience optimistic expectations for new export orders last month, as they have for most of 2024.On the other hand, readings in Europe and Japan maintained their signals of contraction, although Europe exhibited the smallest contraction since early 2022.IATA Director General Willie Walsh noted: “Air cargo demand moved sharply upwards in May across all regions. The sector benefitted from trade growth, booming e-commerce and capacity constraints on maritime shipping. The outlook remains largely positive with purchasing managers showing expectations for future growth.“Some dampening, however, could come as the US imposes stricter conditions on e-commerce deliveries from China. Increased costs and transit times for shipments under $800 may deter US consumers and pose significant challenges for growth on the Asia-North America trade lane—the world’s biggest.”Pratap John is Business Editor at Gulf Times. Twitter handle: @PratapJohn

Travel and tourism sector is set to contribute an “all-time high” of QR90.8bn to the Qatari economy this year, which will account for 11.3% of total output, according to the World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR).The sector will support more than 334,500 jobs across Qatar, which will account for 15.8% of the total workforce in 2024, WTTC noted.Spending by international travellers is expected to increase significantly this year, with forecasts indicating a record spend of QR 69.6bn this year, while domestic spend is projected to reach QR12bn.“This success is testament of the government’s commitment in prioritising collaboration between the public and private sectors to boost Qatar’s travel and tourism, creating diverse and immersive experiences for visitors.“As part of these collaborative efforts, dedicated working groups across multiple industries have been established, with regular meetings planned to tackle challenges and leverage private sector expertise to drive travel and tourism growth,” WTTC said in its Economic Impact Research.WTTC President & CEO Julia Simpson said, “Qatar's travel and tourism sector is poised to break records this year, highlighting its significance as a leading destination in the Middle East.“While international visitor spending is lagging behind the previous peak, the government’s efforts and emphasis in collaboration will propel Qatar’s travel and tourism growth, setting the stage to play a crucial role in the national economic landscape, promising a future defined by prosperity and opportunity.”The global tourism body is forecasting that the sector will grow its annual GDP contribution to more than QR135bn by 2034, nearly 13% of Qatar’s economy, and is projected to employ nearly 458,000 people across the country, with one in five residents working in the sector.The Middle Eastern Travel & Tourism sector grew by more than 25% in 2023 to reach almost $460bn.Jobs reached nearly 7.75mn and international spending grew by 50% to reach $179.8bn. Domestic visitor spending grew by 16.5% to reach more than $205bn.WTTC is forecasting that Travel & Tourism across the region will continue to grow throughout 2024 with the GDP contribution set to reach $507bn.Jobs are forecast to reach 8.3mn, international visitor spending is forecast to reach $198bn and domestic visitor spending is expected to reach more than $224bn.World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR) has revealed the Qatari travel and tourism sector reached new heights last year, with GDP contribution, jobs and domestic traveller spend all surpassing previous peaks.Last year, travel and tourism GDP contribution grew by 31% to reach a record-breaking QR81.2bn, representing 10.3% of Qatar’s total economic output, demonstrating the sector’s importance to the national economy, WTTC noted.The sector also proved to be a vital source of employment, creating more than 20,300 new jobs, and raising the total to nearly 286,000 nationwide, representing one in every eight jobs across the country.Domestic visitor spend was also stronger than ever to reach QR1.4bn.“Yet despite holding the FIFA World Cup in the previous year (2022) and with spending by overseas visitors increasing by nearly 40% year-on-year to reach QR60.4bn, it was still behind the previous peak by QR1.2bn,” WTTC said.

Baggage mishandling is a major cause for passenger frustration and dissatisfaction in the global airline industry..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[193169]**Delayed or mishandled baggage delay flights, as time is spent locating and correctly loading them. Mishandled baggage often creates congestion in baggage claim areas, affecting overall airport efficiency.Obviously, high-profile incidents of baggage mishandling attract negative media attention, harming an airline’s reputation.Passengers often share their negative experiences on social media, which quickly spread and damage the particular airline's brand image.However, a recent industry report said there is an actual improvement in the air transport industry’s rate of mishandled baggage. This is despite passenger numbers rising above 2019 levels for the first time in five years, growing to 5.2bn, in 2023.According to SITA, which provides IT and telecommunication services to the air transport industry, the number of bags mishandled by the industry falling from 7.6 to 6.9 per 1,000 passengers in 2023.In its recent report, SITA noted the long-term trend underlines the positive impact of technology investments. A steep 63% drop in the mishandling rate from 2007-2023 happened as passenger traffic rose by 111%.But the industry still faces challenges, particularly managing surges in baggage volumes. Pushing ahead with the industry’s digitalisation agenda is vital, argues the survey, focusing on AI for data analysis and computer vision tech in automated baggage handling.That push must include full automation, good communication, and full visibility of each bag’s journey. Other SITA research reveals passenger anxiety about delays and cancellations (32% in 2023).It shows that two-thirds of airlines now offer unassisted bag drop, and 85% of airports offer self-service bag drop. This reflects industry demand for self-service tech for better passenger flows. At the same time, passengers want to use their mobile phones as they travel, including at bag collection.Today, 32% of passengers rely on bag collection information sent straight to their mobile. Better communication and visibility for passengers will encourage more use of digital self-service and give passengers control over their journey.Collaboration is critical. While airlines and airports share baggage data, there’s still room for improvement. At baggage collection only 58% of airlines share data.At the same time, 66% of airports share baggage delivery data with airlines. SITA’s Baggage IT Insights survey cites IATA’s call for full baggage tracking and real-time status data as part of its Resolution 753 initiative, with data sharing across the bag journey. The survey also points to Airports Council International’s call for self-service, real-time communication, and visibility for passengers to reduce stress and anxiety.David Lavorel, SITA CEO, said, “The improved mishandled baggage rate in 2023 is great news for passengers and for aviation. It’s especially impressive as global passenger traffic grew strongly in 2023 and is set to double by 2040.“We clearly see from the SITA Baggage IT Insights results that baggage automation is the way forward, with more collaboration, more communication with passengers, and investments in new technologies such as AI and computer vision to make the journey smoother.“From my own travel experiences, I can say this will be really welcome. Technologies like these are essential because they help us gather, integrate, and share data effectively. This means we can uncover important insights that make decision-making easier and more automated.”Looking at Asia Pacific, the SITA Baggage IT Insights report shows a steady long term baggage mishandling rate at 3.1 per 1,000 passengers in 2007 and 3.0 in 2023. However, this still reflects the best rate globally in terms of mishandled baggage.The report comments on the commendable and consistent levels in the region despite the challenges of recovery. It highlights the success of investments in digitalising the baggage handling process.Industry experts say that in order to mitigate mishandling, airlines need to invest in advanced tracking systems like Radio Frequency Identification (RFID).Proper training for baggage handling staff and maintaining adequate staffing levels are essential to reduce mishandling, requiring ongoing investment.Addressing baggage mishandling requires significant investment in technology, staff training, and operational processes to ensure efficiency and improve passenger satisfaction.

Qatar’s GDP growth projection for this year stands at 2.2% and is expected to rise to 2.9% in 2025, the Institute of Chartered Accountants in England and Wales (ICAEW) has said in a report.The latest ‘Economic Insight’ report for the Middle East, commissioned by ICAEW and compiled by Oxford Economics, predicts a slow recovery for the GCC region this year due to extended oil production curbs.The GCC growth forecast has been revised down to 2.2% from 2.7% three months ago, though non-energy sectors remain resilient, including in Qatar and Bahrain, it said.The Opec+ group’s extension of voluntary output cuts through Q3 implies a delayed recovery in GCC energy sectors. GCC oil output will now shrink by 2.6% this year instead of the 1.3% expansion forecasted three months ago, ICAEW noted.Saudi Arabia, which is cutting production to the greatest extent, will see oil activities contract by 5% this year, down from a predicted growth of 0.7% three months ago. However, as voluntary production cuts are reversed in 2025, energy sectors will begin making positive contributions to GCC growth.Bahrain’s GDP growth is 3.1% this year, but is expected to slow to 1.4% in 2025,“Since Qatar is not involved in the Opec+ production quotas, its gas sector is a priority, with authorities doubling down on the North Field gas expansion project, promising a positive medium-term impact,” ICAEW said.Bahrain, on the other hand, continues to diversify its economy and reduce reliance on oil revenues. Last year, its non-oil growth grew by 3.4%, accounting for nearly 84% of GDP.High-frequency data paints a positive outlook for non-energy sectors across the GCC.In Saudi Arabia, investments are expected to flow into key sectors supporting giga-projects, including construction, manufacturing, and transportation.Strong momentum in the sports and entertainment sector will also be seen as the country’s transformation continues. The hospitality sector will likely follow, with tourism remaining key to Saudi’s growth agenda.Tourism is a strategic sector in other countries too, and will remain a key growth driver. Tourism activity has rebounded strongly, with record visitor numbers across the GCC in 2023, extending into this year.According to ICAEW, non-oil economies will continue to grow despite the GCC’s fiscal positions deteriorating. Saudi Arabia, Bahrain, and Kuwait will likely see budget deficits this year and next as the current oil price level is below the fiscal breakeven point. “However, the overall GCC budget position will likely remain in surplus, bolstered by strong financial standings and favourable credit ratings, allowing continued access to funding from capital markets and IPOs,” ICAEW noted.Hanadi Khalife, head of Middle East, ICAEW, said: “While geopolitical risks present headwinds for the GCC and wider Middle East, we are encouraged by the ongoing commitment to diversification and sustainability targets.“Qatar, for example, became the first GCC sovereign to issue green bonds despite not having explicit net-zero targets. Bahrain is also aligning its non-oil economic growth with its Economic Vision 2030 and COP28 commitments to reduce carbon emissions by 30% by 2035.”Scott Livermore, ICAEW economic adviser, and chief economist and managing director, Oxford Economics Middle East, said: “Although the region faces escalating pressures amid slowing global economies, the GCC remains relatively positive due to strong bilateral deals and investment.“Qatar recently signed a 20-year supply contract with India for 7.5mn tonnes of liquefied natural gas annually, and a 27-year contract with Taiwan for 4mn tonnes.“Bahrain has also seen significant investment growth following the launch of the Golden License initiative in April 2023, which requires a minimum investment of $50mn and the creation of at least 500 jobs. Bahrain’s financial services sector contributed nearly 18% of GDP, surpassing oil, which contributed 16%.”The GCC inflation forecast for 2024 has been lowered by 0.3 percentage points to 2.2% this year, with a further slowdown to 2.1% expected next year.Excluding housing rents in some countries, notably Saudi Arabia, inflationary pressures remain contained, with rates below 2% in all GCC countries except Kuwait and the UAE.Given the exchange rate pegs against the US dollar, GCC central banks tend to track the US Federal Reserve's policy rates.The US Federal Reserve is expected to begin gradually cutting policy rates in September, totalling a 150bps reduction by the end of 2025, ICAEW added.

Hospitality industry revenue in Qatar expected to witness the highest growth rate in GCC until 2028, Alpen Capital has said in a report.Qatar’s hospitality sector is projected to rise at a compound annual growth rate (CAGR) of 11% (from $0.9bn in 2023) to $1.5bn in 2028.The growth will be fuelled by investments in developing luxury infrastructure and successful hosting of international sporting events, it said in its latest report on ‘GCC Hospitality Industry’.According to Alpen Capital, Qatar has grown as a global tourism destination driven by hosting large-scale sporting events and the continuous development of tourism-related infrastructure over the past two years.The growth momentum that built up since the FIFA World Cup 2022 is expected to continue, owing to the strategies implemented by the government since the conclusion of the tournament.Qatar offers visas on arrival to citizens from about 102 countries and has simplified its visa procedure by re-launching the Hayya platform in 2023, which serves as a centralised platform for all tourist and corporate visas.The report noted that Qatar has also developed a number of tourist attractions, including various cultural and modern landmarks, such as the Meryal Water Park, The Pearl Island, and the Katara cultural village.Under its national tourism strategy, the country aims to attract about 6mn visitors annually and increase the tourism sector’s contribution to GDP to 12% by 2030.“To achieve these targets, Qatar has placed its focus on hosting large-scale international events to attract tourists to the country,” Alpen Capital said.In 2024 alone, Qatar is slated to host over 80 events scheduled throughout the year, including cultural festivals, sports tournaments, e-mobility panels, summits, and others.These efforts from the government to increase the number of international tourists in the country are expected to drive demand for accommodations and hospitality services across the country. Therefore, the hotel room supply in Qatar is projected to grow at an annualised rate of 6.3% from 2023 to 2028, and the occupancy rate is estimated to expand to 65.0% by 2028.Consequently, the average daily rates (ADRs) are expected to grow at a CAGR of 2.1%, reaching $125 by 2028 from $112.6 in 2023, while revenue per available room (RevPAR) is anticipated to rise at a CAGR of 4.5% to reach $81.2 by 2028 from $65.3 in 2023.Besides Qatar, Kuwait is expected to grow above the GCC average over the forecasted period (2023 to 2028), Alpen Capital said.

Bird strikes on aircraft pose significant problems for the global airline industry. Safety risks include accidents that result in passenger and crew injuries or fatalities..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[190645]**Bird strikes damage critical parts of an aircraft, such as engines, windshields, and control surfaces, leading to potentially catastrophic failures.A few days ago, a Virgin Australia jet was forced to make an emergency landing in New Zealand following a "possible bird strike" following takeoff, which caused flames to shoot from its engines.Virgin Airlines VA148 – a twin-engine Boeing 737-800 that had 67 passengers and six crew on board – landed at Invercargill Airport on New Zealand’s South Island around an hour after departure, according to data from the flight-tracking website FlightAware.The airline said a bird strike likely caused the fire, with passengers reporting a series of loud bangs and flashes coming from the engine almost immediately after the plane's wheels left the tarmac."Virgin Australia can confirm that all passengers have disembarked VA148, which landed safely at New Zealand’s Invercargill Airport following a possible bird strike after departing from Queenstown Airport," noted Virgin Australia Chief Operations Officer Stuart Aggs.Industry sources say bird strikes occur at a rate of about four in every 10,000 flights, with the consequences varying in severity depending on where aircraft are hit.Bird strikes are collisions between aircraft and birds, although these also involve ground collisions with animals such as deer, rabbits, dogs, and even alligators.The first bird strike was recorded by Orville Wright in 1905, over a cornfield in Ohio.These incidents are not uncommon, occurring daily with some seasonal variation due to bird migratory patterns. One of the most famous bird strikes was the 2009 US Airways Flight 1549, which encountered a flock of Canadian geese shortly after takeoff from LaGuardia Airport, resulting in both engines failing and a successful emergency landing in the Hudson River by Captain Sully Sullenberger.More than 14,000 bird strikes are reported each year in the United States alone, according to the Federal Aviation Administration. In 2022, the United Kingdom’s Civil Aviation Authority reported nearly 1,500 bird strikes over the year, according to Al Jazeera.Between 2008 and 2017, the Australian Transport Safety Board recorded 16,626 bird strikes, while the Federal Aviation Administration in the United States reported 17,200 bird strikes in 2022 alone.According to the International Civil Aviation Organisation (ICAO), nearly 90% of bird strikes occur near airports during takeoff, landing, or at lower altitudes where bird activity is most common.The consequences of a bird strike can vary widely depending on factors such as the aircraft type.For instance, bird strikes may be fatal for single-engine planes. Globally, since 1988, there have been some 262 fatalities due to bird strikes and 250 aircraft destroyed.On the other hand, the recent incident involving the twin-engine Virgin Australia aircraft did not result in any death or serious injuries to passengers. This was because the Boeing 737-800 could continue flying on the other engine to an alternate airport.Birds ingested into aircraft engines often cause engine failure, requiring costly and time-consuming inspections and repairs.A study carried out in 2020 by German researchers at the Delft University of Technology and the Netherlands Institute of Flight Guidance at the German Aerospace Center, looked at the rate of bird strikes per movements of aircraft in several countries around the world. It found Australia had the highest bird strike rate – nearly eight for every 10,000 aircraft movements. The US had the lowest at 2.83.Most bird strikes occur early in the morning or at sunset when birds are most active. Pilots are trained to be vigilant during these times.Radar can be used to track flocks of birds. However, this technology is ground-based and not available worldwide so it can’t be used everywhere.Bird strikes rarely occur at higher altitudes. Collisions tend to occur when planes are in the same space where birds usually fly, such as when aircraft are approaching, landing at and departing from airports.Bird strikes pose a significant risk to aircraft safety, with potential consequences ranging from minor engine issues to catastrophic failure and accidents.Vigilance, training, and technological solutions are key components of efforts to prevent and mitigate these incidents.Bird strikes remain a persistent challenge and necessitate ongoing vigilance and innovation in mitigation strategies.