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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.

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).