Boeing wins huge Qatar Airways deal in blow to Airbus

Scion Industrial Engineering

Boeing Co. formally launched a freighter version of its 777X jetliner as Qatar Airways struck one of the largest cargo deals on record, giving the US planemaker an edge over longtime rival Airbus SE.

The Doha-based carrier placed a firm order for 34 of the 777-8 freighters plus options for an additional 16 jets, the companies said Monday. That total includes 20 jets converted from a previous order for a passenger version of the 777X. The outlines of the deal were first reported by Bloomberg last week.

Qatar also agreed to take 25 of the largest version of Boeing’s 737 Max narrowbody jet, with options for another 25 of the workhorse aircraft.

The blockbuster order bolsters Boeing’s decades-long strength in air freighters as Airbus, which is locked in a bitter feud with Qatar Air, tries to muscle into the market.

The deal also serves as a showcase of trade relations between the US and Qatar. The announcement came at a White House ceremony with Boeing Chief Executive Officer Dave Calhoun, Qatar Airways boss Akbar Al Baker and other officials that coincided with a meeting between Qatar’s ruling emir, Sheikh Tamim bin Hamad Al Thani, and US President Joe Biden.

“It will be an absolute world-beater,” Calhoun said of the freighter. “It will offer Qatar the highest payload and the lowest fuel costs.”

Boeing shares jumped 4.3 percent to $198.82 at 3:36 p.m. in New York, the largest gain on the Dow Jones Industrial Average. General Electric Co., which makes engines for the two plane models, rose 2 percent.

Boeing provided the first specifications for its newest freighter, including its market entry, which is targeted for 2027. The aircraft will be the world’s largest twin-engine cargo jet, with a range of 4,410 nautical miles and a maximum payload of 118 metric tonnes, Boeing said in a statement.

The plane is Boeing’s first new jet model since it unveiled the 737 Max 10 nearly five year ago. The 50-jet order represents two full years of production on the 777X assembly line, Calhoun said.

The launch comes as Airbus is trying to break Boeing’s longtime lock on air freighters with a cargo-hauling version of its A350 jetliner. Qatar Air’s CEO had pushed both airframers to step up with next-generation freighters before the airline flagged coating flaws with its fleet of A350 aircraft.

Tensions have escalated into a legal dispute, with Airbus revoking a contract for A321neo aircraft bound for Qatar Airways, an unusual step that underscored the friction between the company.

Qatar Airways also signed an order with GE for 30 GE9X engines for its 777X airplanes. The pact is valued more than $6.8 billion based on current list prices, and includes spares, services, maintenance and four GE90-115B engines, the US industrial giant said.

Source:https://www.arabianbusiness.com/industries/transport/boeing-wins-huge-qatar-airways-deal-in-blow-to-airbus

Qatar weighs alcohol sales in stadiums at 2022 World Cup

scion Industrial Engineering pvt. ltd.

Qatari officials are weighing whether to relax the country’s ban on alcohol at sporting events amid pressure from FIFA and Anheuser-Busch InBev to let fans drink beer in stadiums at the 2022 World Cup, according to people familiar with the matter.

Deliberations so far have centered on whether to make Bud Light or another lower-alcohol Budweiser product available inside the venues, said the people, declining to be named as the matter is confidential.

While Qatari officials have yet to announce a final decision, organisers have signalled increasing willingness to accommodate demands from fans as the tournament’s drawn closer.

For the World Cup, Qatar’s Supreme Committee on Delivery and Legacy has promised alcohol will be available in designated “fan zones” outside stadiums and other hospitality venues.

A spokesperson said the group is working with FIFA and Qatari stakeholders to “cater to all local and visiting fans,” and “further details will be communicated in due course.”

The tournament has been beset with controversies, ranging from scheduling complications due to Qatar’s summer heat to the treatment of migrant workers.

Difficulties could mount once fans arrive and face local norms, such as dress codes requiring men and women cover their bodies from shoulders to knees in many public spaces.

Alcohol availability has been a particular flashpoint for criticism around FIFA’s decision to hold the quadrennial soccer spectacle in a conservative Muslim country where public displays of affection, boisterousness and drunkenness are taboo.

Qatar prohibits alcohol sales at almost all restaurants not associated with a high-end hotel or resort. With employer permission, foreign residents can also buy bottles of liquor, beer and wine for home consumption from a single Qatar Airways-run depot on the outskirts of Doha.

Five years ago, Hassan Al Thawadi, the Supreme Committee’s Secretary-General, said he favoured a ban on alcohol in public areas and that drinking would be permitted only in “far-away places.”

In June, he promised that liquor would be “readily available” to those who want it, touting previous experiments with “fan zones” around Qatar.

FIFA and Budweiser maker AB Inbev, which have been in partnership since 1986, are pushing for more concessions. They’ve had success in the past – Brazil passed the so-called Budweiser Bill to overturn local laws that prohibited beer in stadiums for the 2014 World Cup.

But they’ll still need to persuade Qatari officials that alcohol can be sold at stadiums without leading to the kind of unrest that has marred other major soccer tournaments and prompted leagues either to ban or limit consumption at games.

Spokespeople for FIFA and AB InBev said they’re trying to create an atmosphere that’s “respectful” towards Qatar’s customs and traditions while still making alcohol available for those who want it.

“For many around the world, having a beer is part of the shared fan experience of enjoying major sports events,” AB InBev said in an emailed statement, also noting its non-alcoholic offerings. Neither commented on discussions with local organizers.

Source:https://www.arabianbusiness.com/lifestyle/lifestyle-sport/qatar-weighs-alcohol-sales-in-stadiums-at-2022-world-cup

Dubai-Doha fares to skyrocket in five-fold increase for FIFA World Cup in Qatar

Direct one way flights from Dubai to Doha, Qatar on November 20 cost $1,089, nearly five times the current airfare of $217

Flights from Dubai to Doha are set to witness a record upsurge in ticket prices, as the state of Qatar prepares to host the FIFA World Cup 2022 in November.

Direct one way flights from Dubai to Doha on 20 November cost $1,089 (AED4000) nearly five times the current airfare of $217 (AED800).

The price rise comes as the country gears up for the football mega-event set to take place between 21 November and 18 December.

Qatari flag carrier Qatar Airways has ramped up recruitment efforts to meet the anticipated surge in market demand ahead of the tournament. In addition, the airline has expanded its international network and stepped up efforts to restore pre-COVID-19 capacity.

Ticket applications for the FIFA World Cup opened in late January. Prices for a seat for a group-stage match starts at QAR250 for international visitors, although Qatar residents will get discounts to bring the cost down as low as QAR40. Ticket sales are ongoing and will end February 8.

The event, which was rescheduled to November to avoid the heat, is forecasted to host 1.2 million visitors from across the globe, and has raised hopes for significant economic growth and accelerated sector recovery.

Qatar has invested hundreds of billions of dollars in developing infrastructure and building stadiums to host the event. One key organiser estimated that the event could spur a $20 billion boost to the economy, Bloomberg previously reported, but risks of new coronavirus variants could upset projections.

The Qatari government has also set maximum rates for hotel rentals during the World Cup in a bid to counter potential price-gouging. In addition, Qatar Tourism has announced a simplified process to issue holiday homes licences for residential property owners to list their units for short-term rentals ahead the FIFA World Cup.

The entity is working with popular international websites such as Airbnb, Booking.com, Holidayhomes.com and Vrbo after receiving a growing number of inquiries on the licensing process from citizens and investors through its website.

“The spirit of hospitality is a distinct feature of Qatari tradition. As we prepare to host visitors from every corner of the world for the FIFA World Cup Qatar 2022, it is our chance to showcase our true essence,” Mohamed Al Ansari, director of tourism licensing, said at the time.

Source:https://www.arabianbusiness.com/industries/transport/dubai-doha-fares-to-skyrocket-in-five-fold-increase-for-fifa-world-cup-in-qatar

Gulf economies to grow faster in 2022, oil price fall biggest threat

scion

The economies in the six-member Gulf Cooperation Council will grow at their fastest paces in several years, according to a Reuters poll of economists who cautioned the risk to that outlook was skewed to the downside.

Crude oil prices, a major driver for Gulf economies, climbed to their highest since 2014 on Wednesday, driven by escalating global political tensions involving major producers including the United Arab Emirates and Russia, which could worsen already tight supplies.

That is bullish news for the six wealthy oil-exporting countries in the region.

The Jan. 11-19 poll of 25 economists forecast all six economies in the Gulf Cooperation Council would grow faster this year than was expected three months ago.

Saudi Arabia was predicted to top the list with a growth of 5.7%, followed by Kuwait and UAE with 5.3% and 4.8% respectively.

Economic growth in Qatar, Oman and Bahrain was expected to average between 3%-4% for 2022. If realised, that would be the best these countries have witnessed in several years.

Despite the relatively tight fiscal policy, and some external headwinds, we expect the GCC economies to see faster growth in 2022 as they continue to build on the progress made last year,” said Khatija Haque, head of research and chief economist at Emirates NBD.

“While the outlook for 2022 remains broadly constructive, there is still a high degree of uncertainty especially with regards to the evolution of the coronavirus pandemic.”

As the global economy deals with the prospect of persistent inflation, the region’s price outlook was modest, but varied.

Inflation was expected to stay between 2.0% and 2.8% this year, with the lowest reading for the UAE, Saudi Arabia and Oman at 2.0% and the highest for Qatar at 2.8%.

Saudi Arabia, the world’s largest crude oil exporter and the region’s economic and political heavyweight will see 5.7% economic growth this year. If realised, it would be the fastest growth since 2012 when oil averaged around $111 per barrel.

Apart from an upgrade to the median forecast from the October Reuters poll, the range of forecasts also showed higher highs and higher lows.

The UAE, a global trade hub and the GCC’s second-biggest economy was forecast to grow 4.8% this year, the fastest since 2015.

Dependency on energy prices has the attendant risk that any disruption in prices due to geopolitical tensions and a slowdown in the global economy could hurt the recovery.

Nine of 10 economists who answered an additional question said a decline in oil prices and new coronavirus variants were the biggest threats to GCC economic growth this year.

“The risk of oil price declines is still the biggest risk for the GCC region, while supply chain disruptions will continue to play a role and throw a wrench into global growth, but probably not so much for GCC economies,” said Ralf Wiegert, MENA economics team head at IHS Markit.

“GCC growth is very much centered on the upside already…oil supply and GDP growth in the GCC rests on the assumption of strong global demand for oil in 2022.”

Eight of ten respondents said risks to their growth forecasts were skewed more to the downside.

Source:https://economictimes.indiatimes.com/news/international/uae/gulf-economies-to-grow-faster-in-2022-oil-price-fall-biggest-threat/articleshow/89086426.cms

Pilots say Qatar Airways monitors and muzzles staff online

scion Industrial Engineering

Staff at Qatar Airways who vent work worries online say the state carrier is retaliating with legal threats and job cuts – part of a growing corporate trend to monitor and muzzle employees who dare speak out.

Advocates say the carrier’s attempts to silence employees and delete critical posts – be it in private or public forums – contravenes staff rights to privacy and free expression.

“It’s a very straightforward case of violating not just labour rights but human rights – the freedom of association and expression,” said Thulsi Narayanasamy, head of labour rights at the Business and Human Rights Resource Center, which tracks the human rights policies of companies worldwide.

The airline, which sponsors the 2022 FIFA World Cup to be staged in Qatar, would not comment on allegations that it had closed down legitimate debate or sidelined those who led it.

But advocates say its use of lawsuits and redundancies is part of a growing pattern by companies to monitor private chat by staff then unmask its anonymous online critics.

“It’s incredibly sinister,” added Narayanasamy, who said the trend had ballooned during the COVID-19 pandemic.

The Thomson Reuters Foundation spoke to three current or former staff of the state-run airline who believe they were directly punished for voicing their worries online.

In June, Qatar Airways (QA) filed a personal injury claim of more than $25,000 in a Los Angeles court against at least two anonymous accounts that had been posting on a forum known as the Professional Pilots Rumour Network, or PPRUNE.

According to court documents, QA believed the two accounts belonged to employees who had shared “confidential information” about the firm’s hiring and firing processes.

The airline served a subpoena to Google in a bid to discover whose Gmail addresses lay behind the critical accounts.

Neither Google, PPRUNE, nor QA’s U.S. counsel in the case, Shelley Hurwitz, responded to interview requests. Internet Brands, which hosts PPRUNE, also declined to comment.

LEGITIMATE CHAT
One pilot said he and others had indeed posted on PPRUNE about internal processes and extreme crew fatigue https://news.trust.org/item/20220127130241-c9q43 – but said sharing information was key as pilots faced mass redundancies.

“These discussions are not gossip. These discussions are reality,” the pilot told the Thomson Reuters Foundation.

In September, Google informed him it had been subpoenaed to disclose his identity but he could object by filing a motion to the Los Angeles court hearing the case.

He told the Thomson Reuters Foundation he could not afford the filing cost and feared it might reveal his identity.

“PPRUNE was the only place that people have to talk and say things without fearing being prosecuted. But now, they even go there and try to find people,” a second pilot told the Thomson Reuters Foundation, after hearing managers discuss the matter.

QA dropped the case in October, conceding in court documents that the “defendant has not been identified” despite its efforts to find out which staff ran the anonymous accounts.

DAVID AND GOLIATH
QA is not alone in trying to root out dissent, with more firms now using their heft to silence people on the payroll.

“When I look at a case like this, I see an example of someone using anonymity online to engage in important speech about their employer,” said Aaron Mackey, an attorney at the Electronic Frontier Foundation (EFF) who has worked on several such cases.

“Then I see an employer with much more power and resources using the judicial system to identify employees who criticise them.”

The EFF – a non-profit defending digital rights – says “unmasking can result in serious harm to anonymous speakers, exposing them to harassment and intimidation”.

“That type of behaviour is retaliatory and it undermines the rights of people who speak online,” said Mackey.

Other airlines have pursued similar cases.

“Recent high-profile defamation events illustrate that there are ways in which third parties can force personal data, including contents of personal messages, to be released by bulletin board owners. Be careful – libelous/defamatory posts can and have landed members in legal hot water.

“PPRUNE will not guarantee your anonymity in such situations,” it posted three months after the lawsuit.

QA declined to discuss why those employees lost their jobs.

One former flight crew, Alex, ran a private Facebook group for QA staff to share tips on layovers and swap shifts.

“These groups are really innocent stuff – what guides to use when on vacation, what to do on layovers, some shift swaps,” Alex said.

As the company ramped up layoffs in 2020’s travel slump, the chat increasingly turned to work woes and rising job cuts, with one former employee especially vociferous about her sacking.

Alex, who asked to be identified only by his first name, said management asked him to log into his Facebook account from a company computer and kill the post.

He complied – and also killed off his own administrator privileges to spare him more deletion requests.

“They got so mad and said, ‘why are you doing this? You were fine, you were out of trouble,'” Alex recalled.

A few weeks later, he was fired; no reason was given.

Another former flight crew member said he was let go after managing a WhatsApp group used by QA employees, whose talk in 2020 turned to reduced hours and the risk of redundancy.

Ivan said he was asked to come and meet with management – a first in almost 10 years on the job.

Source:https://economictimes.indiatimes.com/news/international/business/pilots-say-qatar-airways-monitors-and-muzzles-staff-online/articleshow/89171339.cms

Qatar National Bank raised provisions and remains on alert

https://ssrdind.com/

Qatar National Bank QPSC braced for credit losses by boosting the amount of money set aside in provisions and signaled caution over the main international markets where it has a presence.

The Middle East’s biggest bank booked 7.1 billion riyals ($1.9 billion) in loan-loss provisions during 2021, up 21 percent from the previous year, according to a statement on Tuesday. Total assets rose about 7 percent to 1.1 trillion riyals.

The Doha-based bank said it “remains cautious on the external environment with respect to potential risks that may arise from key markets where QNB Group operates.”

Many banks in the Gulf are seeing higher profits on the back of improvements in trade and tourism as regional economies recover from the pandemic. Qatar’s outlook for 2022 has also brightened thanks to higher energy prices and the possible boon to business from the soccer World Cup.

Beyond Qatar, QNB has operations stretching from Turkey, Egypt and India to France. Turkey, where the Qatari bank owns QNB Finansbank, made up 9.6 percent of its loans in September, down from 10.4 percent in 2020, according to Bloomberg Intelligence.

Turkey has seen its currency weaken to historic lows throughout December, fueled by fears that President Recep Tayyip Erdogan’s push for lower interest rates would stoke inflation. Turkish authorities have since unrolled a series of measures to support the lira.

“While the headline results missed our expectations, we note that this is almost entirely driven by higher” loan-loss provisions, Citigroup Inc. analyst Rahul Bajaj said in a research note. Much of the increase in the charges appears “to be used for building provision coverage.”

Source:https://www.arabianbusiness.com/money/corporate/commercial-banking/qatar-national-bank-raised-provisions-and-remains-on-alert

Gas crunch pushes anxious buyers to pay more for contracts

Worries that the current shortage of liquefied natural gas will persist through the middle of the decade are triggering a rush to sign long-term deals, pushing up the price of contracts for the super-chilled fuel.

While contracts had been getting cheaper over the last few years due to rising supply from Qatar and end-users favoring the more affordable spot market, the anxiety spurred by the current supply crunch has reversed the trend. There’s a lack of uncontracted gas available through 2025, which is boosting oil-indexed agreements, according to consultancy Wood Mackenzie Ltd.

“2021 saw the return of contracting activity to its highest levels over the last five years,” Valery Chow, WoodMac’s head of Asia-Pacific gas and LNG research, said in a report released Thursday. “Asia accounted for 85% of global contracts signed, with China leading the pack.”

China’s Beijing Gas Group Co. recently signed a deal to buy LNG from a portfolio player at about 12.7% to 12.9% of the price of Brent crude. By comparison, Qatar was signing supply agreements to customers in Asia’s largest economy in the low-10% range early last year.

LNG spot rates from Asia to Europe surged to records in 2021 as supply struggled to keep pace with the demand rebound from the depths of the pandemic. Importers stuck without contracted LNG supply linked to the price of oil — a practice dating back to the 1970s — were forced to pay astronomical rates to secure spot cargoes of the electricity feedstock and heating fuel.

Crude prices have been much less volatile than spot LNG benchmarks over the past year, increasing customer preference for oil-indexed deals. Contracts linked to the U.S. Henry Hub gas index have also been gaining in popularity, due to lower prices in the U.S. and the availability of new supply. WoodMac said it expected them to stay “in vogue” in 2022.

Source:https://www.arabianbusiness.com/industries/energy/gas-crunch-pushes-anxious-buyers-to-pay-more-for-contracts

Mannai weighs Inetum sale in deal that may fetch over $2 billion

Mannai Corp. said its board approved the sale of French information technology services provider Inetum SA, paving the way for a disposal that could fetch upward of $2 billion.

Mannai didn’t identify the potential buyer or how much it expects to receive from the sale. The deal is subject to entering definitive transaction documentation and approvals, the company said in a statement on Wednesday.

Shares in the company rose 1.6 percent at 9:30 a.m. in Doha, valuing Mannai at $683 million. The stock has gained about 84 percent over the past year, outpacing a 16 percent increase in the benchmark index.

The Qatari trading company has been working with advisers to help gauge interest in Inetum, Bloomberg reported last year. The company could fetch about $2.4 billion and attract private equity firms as well as other technology companies, the people said at the time.

Inetum offers systems integration, technology consulting, application engineering, outsourcing and software development services and is a top player in several European markets. The Paris-based company has nearly 27,000 employees in 26 countries and generated 1.97 billion euros of revenue last year, according to its website.

Mannai acquired 51 percent of the company, known at the time as GFI Informatique, in 2016. It later bought out remaining shareholders and delisted the company from the Paris bourse.

Source:https://www.arabianbusiness.com/industries/technology/mannai-weighs-inetum-sale-in-deal-that-may-fetch-over-2-billion

Qatar opens World Cup ticket sales with top seats costing $1,598

Fans can start applying to buy tickets for the FIFA World Cup in Qatar, with a prime seat for the final priced at 5,850 Qatari riyals ($1,598).

Ticket applications opened on Wednesday for the world’s biggest soccer tournament, which starts in November. A seat for a group-stage match starts at 250 riyals for international visitors, but Qatari residents will get special discounts and can pay as little as 40 riyals. The current sales round runs through Feb. 8.

Scheduled to start on Nov. 21, this year’s World Cup – moved from the summer because of heat – may prove to be the first major sporting event open to global fans since the start of the Covid-19 pandemic. Both Japan and China decided to bar international visitors from the Summer and Winter Olympics.

The gas-rich nation has invested hundreds of billions of dollars to develop infrastructure and erect new stadiums. A key organiser estimated the event will spur a $20 billion boost to the economy, but risks from new coronavirus variants could still upset those projections.

The country hopes to attract more than 1.2 million visitors during the month-long event. Organisers have said Qatar’s compact size will make the event more sustainable and that fans may even be able to attend more than one game per day.

An influx of people could put pressure on the import-dependent country’s resources. Qatar has leased two cruise ships to increase its hospitality capacity.

o counter the risk of price-gouging, the government has set maximum rates for 80 percent of the rooms rented from Nov. 1 through the end of the tournament, making the cheapest rooms available for up to 464 riyals. The government will make these accommodations available through a web portal that’s yet to go live.

Even before a temporary surge of people in the country of 2.6 million, Qatar has experienced its highest inflation on record. Consumer prices rose 6.5 percent in December from the previous year, driven by recreation and transportation costs.

Qatar has a lot at stake in the World Cup, working to overcome allegations of corruption and human rights abuses linked to its staging of the event.

Source:https://www.arabianbusiness.com/lifestyle/lifestyle-sport/qatar-opens-world-cup-ticket-sales-with-top-seats-costing-1598

Porsche Middle East’s order book bulges to highest in a decade

Luxury car maker Porsche has announced that its order book in the Middle East and Africa for 2022 is its largest for a decade.

The Stuttgart-based auto manufacturer said it delivered 6,841 sports cars across the region in 2021, marking a 10 percent increase compared to the previous year.

Orders for new models rose 37 percent, with the Cayenne premium SUV continuing to win over customers with 2,427 sales representing 35 percent of total volume.

It was closely followed by the Macan which maintained strong growth with 34 percent of total sales amounting to 2,359 units while the brand’s compact SUV recorded a 25 percent increase over the previous year despite a 2022 model year update in the final months of 2021.

The top three volume markets for the regional office were the UAE, Saudi Arabia and Kuwait, with the highest growth recorded in India, Morocco and Saudi Arabia, the statement added.

Dr Manfred Bräunl, CEO at Porsche Middle East and Africa, said: “We are very pleased with the growth we have seen during the past 12 months, given the challenges many industries continue to face.”

Demand for the iconic 911 remained strong with deliveries accounting for 14 percent of total sales representing close to 1,000 units while the 718 Boxster and Cayman were responsible for four percent of sales.

In addition to increasing new car deliveries, the offering from Porsche Exclusive Manufaktur for bespoke colour and trim finishes also witnessed significant growth.

More than 85 percent of all models ordered featured at least one individualisation option available through the brand’s customisation programme.

Last year, Porsche Middle East’s regional office in Dubai extended its successful global pilot of virtual consultation and turned it into a permanent function that is currently available in nine of its markets.

Bräunl said: “We are the first Porsche organisation in the world to develop a virtual sales consultation programme where people can discuss their model of choice directly with a Porsche expert and enjoy a personal tour of a vehicle on display from the comfort of their home via livestream.”

Moving into 2022, Porsche Middle East will see the arrival of many new models, including the latest generation Macan, the all-new GTS version of the Taycan saloon, the 911 GT3, the 718 GT4 RS and the Panamera Platinum Edition.

Bräunl said the brand’s business partners remain committed to continual investment in their market, including Saudi Arabia, Morocco, Egypt and India where the network will almost double with four new showrooms scheduled to open by the end of 2022.

Source:https://www.arabianbusiness.com/industries/retail/porsche-middle-easts-order-book-bulges-to-highest-in-a-decade