Tag: ABB spare parts

The national carriers of Bahrain and Saudi Arabia are set to establish a codeshare agreement as they seek closer commercial ties.

Gulf Air and Saudi Arabian Airlines (Saudia), the first two airlines that started operations in the Gulf region, said they will cooperate to expand their footprints regionally and internationally by sharing their codes.

Under the codeshare deal, Gulf Air place its ‘GF’ code on Saudia flights from Riyadh and Jeddah to Bahrain, Abha, Jizan, Yanbu, Aljouf, Ha’il as well as Tunis–Carthage airport.

Saudia will place its ‘SV’ code on Gulf Air flights from Bahrain to Riyadh, Jeddah, Tbilisi, Sialkot, Faisalabad, Baku, and Multan.These codeshare operations will commence from the upcoming summer schedule of 2021, a statement said.

Gulf Air’s acting CEO Waleed AlAlawi said: “The relationship between Bahrain and Saudi Arabia has always been strong on many fronts, and aviation is one of them… We look forward to strengthening our ties to offer better connectivity and services to both airlines’ passengers.”

Ibrahim S Koshy, CEO of Saudia, said: “Saudia and Gulf Air are key partners in connecting guests on each carriers’ diverse route networks. Both airlines have a long history of partnership, in which this expanded codeshare agreement further enhances connectivity, convenience and flexibility for travelers.”

Under the deal, Gulf Air’s Falconflyer members will be able to earn and redeem miles when flying on Saudia while Saudia’s Al Fursan frequent flyer members can do the same when traveling with Gulf Air.

Source:https://www.arabianbusiness.com/travel-hospitality/462604-bahrain-saudi-national-carriers-set-to-launch-codeshare-deal

KAPITA, in partnership with Iraqi Angel Investor Jafar Musawi (CEO of Atlas Plast), have opened up a new co-working space in Baghdad that aims to support the growing entrepreneurship and small business sector in Iraq.

The newly opened space ‘CoWork’, is a dedicated co-working space for companies, freelancers, startups and creatives who need a flexible and professional workspace in Baghdad.

CoWork is designed to be a convenient and affordable option for youth and freelancers to work from. It is a membership-based coworking space that has the capacity to serve up to 250 youth. This new space by KAPITA aims to create a network of productive Iraqi youth, linking freelancers with small business owners and startups, that enhances and develops the Iraqi ecosystem.

On the 22nd of April 2020, KAPITA held an opening ceremony for CoWork where a number of official figures and representatives from the Baghdad Chamber of Commerce attended along with respective figures from Banks, large corporations, prominent businessmen and Iraqi youth.

Mujahed Al Waisi, Executive Director of KAPITA stated:

“CoWork is a new addition to Baghdad, providing an important platform and space for companies, emerging projects and entrepreneurs. The entrepreneurship sector is expanding and growing rapidly in Iraq and there is greater need and urgency to keep up with these changes that are happening and a greater need to support the Iraqi youth in this sector.”

Jaafar Musawi, the Angel investor of CoWork added:

“As businessmen, we know every well the challenges that any project in Iraq faces. We must contribute in opening up new opportunities for the Iraqi market and encourage foreign and local companies to expand into Iraq and relieve any pressures and challenges they may face by providing creative spaces, services and solutions. I am very happy to partner up with KAPITA and to be able to provide a new space for entrepreneurs in Iraq.”

In addition, Bahaaddin Salim, CEO of Nass Al Iraq added:

”We are happy to support this space by providing the entrepreneurs with essential services that they require such as high-speed internet.”

Source:http://iraq-businessnews.com/2021/04/27/kapita-launches-new-co-working-space-in-baghdad/

Siemens Energy and the Ministry of Electricity of the Republic of Iraq signed a contract to construct Iraq’s West Mosul 400-kilovolt (kV) super grid station, which will provide reliable and efficient power supply to around 700,000 Iraqi citizens in northern Iraq, particularly the Nineveh province.

The construction of the Mosul station, which was destroyed in 2014, will help ensure stability in the transmission of power supply to the covered areas, coupled with a reduction in power losses.

The newly built 400-kV station will supply approximately 30 stations with voltage levels of 132-kV, thereby helping to tackle the severe shortage of power supply in the Nineveh province.

Eng. Khalid Ghazay Attia, Director General, Electricity Transmission Company, Northern Region, Iraq, said:

“Strengthening the national grid and scaling up its stability is a focal priority for us as demand for power in Iraq increases due to a growing population and to support industries and development projects in the country.

“The new Mosul station aims to bring predictable power to support the reconstruction and rebuilding of the Nineveh Governorate, recovering now from years of war. We’re already working on comprehensive grid projects across the country in collaboration with international partners, like Siemens Energy, to deploy the most reliable and advanced technologies.”

The project will be financed by the German state-owned development bank KfW.

Mahmoud Hanafy, Vice President, Grid Stabilization, Middle East, said:

“We’re proud to support the Iraqi national grid with our latest technologies. The new project comes at a significantly important time for Nineveh province.

“In addition to this project, we’re working relentlessly on the installation of more than 14 stations across Iraq. Just recently, we delivered 35 high voltage transformers to the Ministry of Electricity as part of Siemens Energy’s Roadmap for Iraq.”

For the West Mosul project, Siemens Energy’s scope of work includes the design, equipment manufacturing, construction, site delivery, erection, testing and commissioning for the turnkey 400/132/11kV substation project together with the supply of 13 auto transformers.

In 2019 Siemens and the Ministry of Electricity of the Republic of Iraq signed an implementation agreement to kick off the execution of the Iraq Roadmap which includes the addition of new and highly efficient power generation capacity, rehabilitation and upgrade of existing plants and the expansion of transmission and distribution networks.

Source:https://www.iraq-businessnews.com/2021/05/06/siemens-to-rebuild-west-mosuls-super-grid-station/

Saudi Arabia is celebrating one of the biggest foreign-investment windfalls in its history after netting more than $12 billion by selling off a stake in the oil pipelines that traverse the desert kingdom.

But the country may also be facing an uncomfortable reality as a result. As carefully cultivated relationships with firms such as BlackRock Inc. and SoftBank Group Corp. have yet to draw in the desired investment, it’s turning to the jewels of its energy industry to attract new money.

Last week’s sale of the stake to EIG Global Energy Partners LLC shows how reliant Saudi Arabia is on its traditional mainstay and the challenges Crown Prince Mohammed bin Salman faces in diversifying the country away from oil and gas to achieve his Vision 2030 goal. The likes of BlackRock and SoftBank haven’t invested back into the country as much as the government might have hoped, while foreigners favor revenue-rich energy assets over tourism and entertainment.

“Entertainment and tourism might have had a better year of foreign direct investment in 2020 if Covid had not happened,” Karen Young, resident scholar at the American Enterprise Institute in Washington, said via e-mail. “But all the same, the core investors who see value in Saudi will be interested in the largest and most profitable sector, and that is still very much oil and energy.”

Though EIG, the Washington-based private equity firm led by Chief Executive Blair Thomas, is a prominent investor in North America and Europe, it barely resonates in Saudi circles. It hasn’t made a single equity purchase in the Middle East until now, let alone the kingdom itself, and its management team has never showed at Saudi Arabia’s marquee “Davos in the Desert” conference, an event attended routinely by investment leaders from The Blackstone Group Inc.’s Stephen Schwarzman to Ray Dalio of BridgeWater Associates LP and the Carlyle Group’s David Rubenstein.

Saudi Arabia attracted $5.5 billion in net FDI flows in 2020, equivalent to about 1% of its economic output, according to data compiled by Bloomberg, which means the EIG deal brings more than twice last year’s total. The government’s goal is 5.7% by 2030, hence the temptation to offer up prized energy assets such as parts of Saudi Aramco, the state-owned energy giant.

“This is the latest milestone in an ongoing shift,” said Jim Krane, a fellow at Rice University’s Baker Institute for Public Policy in Houston. “Mohammed bin Salman and his advisers keep finding novel ways to coax cash out of Aramco without disrupting its operational capability. Right now it’s cash that the kingdom needs and Aramco controls the spigot.”

EIG beat out rivals including Apollo Global Management Inc. and Brookfield Asset Management Inc. to buy the stake. It’s now putting together a consortium of other investors to join the deal.

While several global investors have forged closer ties with Saudi Arabia in recent years, most of them see it more as a source of capital than an investment destination. The kingdom’s flagship Public Investment Fund, or PIF, is the largest investor in Softbank’s $100 billion technology vehicle, with an allocation of $45 billion. The PIF has also pledged as much as $20 billion to help Blackstone Group LP build the world’s largest infrastructure fund.

The reasons are manifold, ranging from the inconsistency of the Saudi legal system to an economic slump as the country adjusts to lower oil prices. The 2017 arrest and incarceration of scores of Saudi businessmen at Riyadh’s Ritz Carlton hotel and the murder of dissident writer Jamal Khashoggi the following year have hardly helped.

FDI into Saudi Arabia peaked between 2008 and 2012, averaging more than $26 billion. During those years, it was mostly driven by large refinery and petrochemical projects developed with foreign partners at a time when oil averaged over $90 a barrel. The subsequent slide in oil has seen average FDI into Saudi drop to about $6 billion a year.

“Despite the measures to liberalize and open the economy for investment into new industries, FDI has not come in the way originally planned,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

FDI may be set to pick up further this year. The kingdom signed agreements with developers including Electricite de France SA and Marubeni Corpo. to build solar power plants last week, and later this year it is likely to complete the sale of the world’s largest desalination plant. In 2020, FDI rose 20%, in part driven by deals with Alphabet Inc. and Alibaba Group Holding Ltd. to develop cloud-computing hubs that Saudi Arabia said were worth a combined $1.5 billion.

In selling assets of its main state-owned energy explorer, Saudi Arabia is following a model successfully implemented by neighboring Abu Dhabi. Instead of pursuing an initial public offering of its state-owned energy firm Adnoc, the emirate has raised more than $20 billion in recent years by bringing international investors into some of its key assets. EIG studied some of the Adnoc assets that were on offer but couldn’t reach an agreement. Hence, it didn’t want to lose out on the Aramco transaction, a person familiar with the matter said.

Saudi Aramco is encouraged by the valuation and the interest generated for the pipelines deal, meaning the oil giant may pursue more disposals in the coming years, people familiar with the matter said. It has already entrusted boutique investment bank Moelis & Co with formulating a strategy for selling stakes in some subsidiaries, people familiar with the matter said in December.

“It’s a great deal for Aramco, but also a new kind of investment strategy, in that it is “giving up” much more in terms of investor access to information, control over operations than an IPO does,” said Young of the American Enterprise Institute. “It is a real partnership, a long-term effort with outsiders, which is an entirely new level of trust outside of the firm and the government.”

Founded in 1982, EIG has committed more than $34 billion to the energy sector, according to its website. Its portfolio includes holdings in Spanish solar developer Abengoa SA, Houston-based Cheniere Energy Inc., natural-gas producer Chesapeake Energy Corp. and storage and pipeline operator Kinder Morgan Inc.

SOurce:https://energy.economictimes.indiatimes.com/news/oil-and-gas/a-12-5-billion-deal-shows-saudi-oil-still-eclipses-all-else/82076591

EIG Global Energy Partners will lead a yet-unnamed consortium to issue billions of dollars in bonds across two or three transactions to replace bank debt backing an investment in Saudi Aramco’s oil pipeline assets, two sources said.

The Washington, D.C.-based firm’s consortium will issue bonds to replace $10.5 billion in so-called staple financing that was arranged by Aramco for potential suitors to take the 49 per cent stake, the sources said.

The $12.4 billion deal, announced last Friday, gives the EIG-led group a stake in Aramco Oil Pipelines, which has the rights to 25 years of tariff payments for oil transported through Aramco’s oil pipeline network that traverses the world’s largest crude exporter.

The staple financing backing the deal had a five-year maturity and one-year extension option, the sources said.

EIG will replace the full amount with long-tenor bonds across two or three bond deals, they said.

The first bond issuance will likely be in the first quarter of next year and the entire refinancing will be done within two years, the sources said.

The equity portion of the $12.4 billion deal was $1.9 billion and the rest was the staple financing, one of the sources said.

EIG is in talks to sell part of the equity portion to investors including Abu Dhabi state fund Mubadala, Chinese investors, pension funds in Saudi Arabia and the UAE, as well as a small piece to U.S. pension funds, the source added.

Mubadala has said it is looking at the deal.

EIG is a Washington, D.C.-based investment firm that has invested more than $34 billion in energy and energy infrastructure projects around the world.

EIG has not commented beyond its statement last week that said the transaction is expected to close soon, subject to customary closing conditions, including any required merger control and related regulatory approvals.

Aramco declined to comment.

HSBC was EIG’s financial adviser and Latham & Watkins was legal adviser, the statement said.

EIG has invested in a gas pipeline project with LNG producer Cheniere Energy, in oil and gas producer Aethon Energy and last year took a majority stake in Limetree Bay Ventures, an oil refinery and terminal in the Caribbean.

The Aramco pipeline deal closely mirrors infrastructure deals signed over the last two years by Abu Dhabi National Oil Co (ADNOC), which raised billions of dollars through sale-and- leaseback deals of its oil and gas pipeline assets.

A consortium that took a stake in ADNOC’s gas pipelines similarly refinanced bank debt with bonds across two transactions in October and February.

Source:https://energy.economictimes.indiatimes.com/news/oil-and-gas/aramco-pipeline-investors-to-refinance-loan-with-bonds-next-year-sources/82087535

Liquefied Natural Gas (LNG) distributor Atlantic Gulf & Pacific Co of Manila Inc (AG&P) announced it has signed an agreement with ADNOC Logistics and Services (ADNOC L&S) for conversion, supply, operations and maintenance of a Floating Storage Unit (FSU) at AG&P’s new LNG import facility to be set up at Karaikal Port in Puducherry.

“AG&P has focused on bringing down the unit cost of re-gasification terminals for smaller volumes. AG&P and ADNOC L&S are excited to reach this critical goal for our customers.” Karthik Sathyamoorthy, President of AG&P Terminals & Logistics said in a statement.

The FSU owned by ADNOC L&S is being chartered for 15 years through a commercial model enabling supply to be scaled to match demand. Construction on the terminal will begin in the first quarter of 2020 with commercial operations expected to commence before the end of 2021.

“The Karaikal FSU will be only the 4th FSU-based LNG import terminal in the world, after those in Malta, Malaysia and Bahrain. ADNOC L&S will provide a Japan-built, Moss-type containment vessel as FSU for the project from its fleet of eight LNG ships,” the company said in a statement.

The LNG import facility at Karaikal Port will have an initial capacity of 1 million tonnes per annum (MTPA) which will be expanded to 3 MTPA in the medium-term as demand increases.

The terminal is expected to cater to domestic, industrial and commercial customers within a 500 km radius including the heavily industrialized regions of central Tamil Nadu. In addition, it will serve gas-fired power plants and AG&P’s own city gas distribution network across South India.

Source:https://energy.economictimes.indiatimes.com/news/oil-and-gas/agp-adnoc-sign-agreement-for-long-term-charter-of-storage-unit-for-lng-terminal/74062328

Credit rating agency Fitch said it has downgraded Bahrain’s long-term foreign-currency issuer default rating to ‘B+’ from ‘BB-‘, with the cut reflecting the combined impact of lower oil prices and the coronavirus outbreak on the country.

Bahrain’s outlook is stable, Fitch Ratings said in a statement on Friday.

The pandemic and the lower oil prices have marked increases in the budget deficit and government debt, and caused a sharp gross domestic product contraction for Bahrain, Fitch said.

Bahrain’s government revenue fell 29 per cent in the first half of 2020, the country’s state news agency said on Monday.

Fitch said it forecast the state budget deficit to widen to 15.5 per cent of GDP in 2020 from 4.6 per cent of GDP in 2019.

The small oil producing Gulf state was bailed out in 2018 with a $10 billion aid package from wealthy Gulf neighbours to avoid a credit crunch and had been working to plug its budget deficit.

Source:https://energy.economictimes.indiatimes.com/news/oil-and-gas/fitch-cuts-bahrain-rating-on-combined-impact-of-lower-oil-prices-coronavirus/77544395

Gulf Air, the national carrier of Bahrain, announced on Tuesday that it plans to move its entire operations for inbound and outbound flights to the new Bahrain International Airport terminal later this month.

The airline said the move from January 28 to the new airport terminal will open a “new chapter in the kingdom’s journey in aviation history” while supporting the vision for Bahrain to strengthen its position as a hub and facilitate the movement of millions of passengers.

The new airport terminal will feature a dedicated check-in area for both Falcon Gold and economy class passengers of Gulf Air as well as a new Falcon Gold lounge that is double in size and capacity compared to the previous one in the old airport.

The lounge will be operational around the clock with a capacity of over 400 passengers at any given time.

The new passenger terminal, which will boost the airport’s capacity to 14m passengers every year, spans approximately four times the footprint of the existing terminal.

Ahead of the move, Gulf Air’s acting CEO, Waleed AlAlawi, said: “It will be a big day for the kingdom of Bahrain’s aviation history and for Gulf Air. We started our operations back in 1950 in a small facility in Muharraq and soon we will see a world-class airport being officially opened to welcome the world to our beloved kingdom.

“The new airport is our new home and we are proud to have a bigger, more modern home to be Gulf Air’s hub.”

He added: “With our own check-in area and a brand new Falcon Gold lounge, we are now more equipped than ever to carry and serve more passengers and expand our operations. We welcome our passengers to fly with us through the new airport which I am sure will impress everyone with its design, facilities, capacity and welcoming feel.”

In November, Gulf Air introduced a new pricing concept of its air fares as it looks to rebound from the devastating impact of the coronavirus pandemic on the region’s aviation industry.

The airline said the move aims to make it easier and clearer to its passengers regarding what’s included in each price bracket. The new Boutique Fares come in three branded options for economy class and two branded options for Falcon Gold class.

With Light, Smart and Flex fare options introduced in economy class and Smart and Flex introduced for Falcon Gold class, all passengers can choose any price option, which comes with a set benefits including luggage, flexibility in changing or cancelling itineraries, earning Falconflyer miles, advanced seat selection, priority boarding and Falcon Gold lounge access.

Gulf Air said it has also revamped its internet booking engine and mobile app to accommodate the new fare changes to provide a “faster booking process for the customers”.

Source:https://www.arabianbusiness.com/travel-hospitality/457225-gulf-air-set-to-transfer-operations-to-new-bahrain-international-airport-terminal

Dubai-listed Ithmaar Holding has announced that its advisors have started preparations for the potential sale of the Bahrain operations of its banking unit.

Bank of Bahrain and Kuwait (BBK), one of the largest commercial banks in Bahrain, has entered into talks with Ithmaar Holding to acquire the Bahrain operations of Ithmaar Bank.

In a filing to Dubai Financial Market, Ithmaar Holding said it has “started working through its financial and legal advisors on the initial preparations that are necessary for the potential acquisition”.

It did not give a timeline for the completion of the proposed acquisition.

BBK operates the largest Islamic retail banking network in Bahrain. The acquisition also includes specific assets of IB Capital, a wholly-owned subsidiary of Ithmaar Holding.

The plans are subject to shareholder and regulatory approvals.

Source:https://www.arabianbusiness.com/banking-finance/457415-ithmaar-advisors-start-work-on-sale-of-bahrain-banking-ops-to-bbk

The CEO of UAE-based Rotana Hotels has said the Qatar accord will serve to accelerate the recovery of UAE’s hospitality industry as it gets back to its feet in the wake of the coronavirus pandemic.

The positive impact is likely to echo across several tourism-related sectors including aviation, retail, and hospitality, industry experts agreed.

“Following what was undoubtedly the toughest year on record for the hospitality industry, it is important to unite efforts to promote travel and tourism throughout the Middle East,” said Guy Hutchinson, CEO and vice president of Rotana Hotels.

“The restoration of ties between the UAE and Qatar will have numerous positive effects across many industries such as cross-border trade, investment, aviation, and travel & tourism sectors, accelerating the speed of recovery in 2021,” he continued.

The UAE joined Saudi Arabia, Bahrain and Egypt on Tuesday in signing an accord with Qatar during a summit of Gulf Cooperation Council (GCC) leaders, effectively ending a three-and-a-half year split between the countries.

While Dubai’s real estate sector is likely to reap the biggest benefits from the Qatar Accord in the long run, the emirate’s tourism sector could see a faster positive impact, said industry stakeholders.

“Dubai’s hospitality sector is more likely to see an immediate impact as Qatari tourists begin to return to the emirate. Whilst Qatari tourists were not so significant in terms of overall quantum of tourists visiting Dubai, accounting for 176,000 out of 14.9 million overnight visitors in 2016, their spending power and affinity towards luxury properties is likely to underpin stronger demand levels in this market segment,” said Taimur Khan, head of research at Knight Frank.

“More so, as both corporate and leisure inbound tourism increases we will also see the emirate’s retail and F&B sectors benefit from this trend,” he added.

Full recovery of Qatari tourism to Dubai, however, will be gradual given that multiple countries across the world continue to grapple with the pandemic.

“Qatar has, in the past, been a large market for the UAE. However, taking into account the new world norms, it will take time to return to the previous numbers,” said Hutchinson.

The aviation industry also stands to benefit from the restoration of ties with Qatar, with low-fare carriers Flydubai and Air Arabia expected to be among the big winners.

“The restoration of intra-Gulf links should feed through to lower fares and less flight time for travellers, providing a particular advantage to upcoming events such as Expo in 2021 and FIFA World Cup 2022, aiding to boost the overall GCC tourism sector,” explained Hutchinson.

Direct routes to and from Qatar, from Saudi Arabia, the UAE, Bahrain and Egypt, were halted as part of the country blockade implemented in June 2017. It meant passengers from the four countries travelling to or from Qatar were forced to take connecting flights, through Kuwait or Oman for example, while Qatar Airways was prevented from travelling over the respective airspaces.

That changed on Monday when Saudi Arabia lifted its ban and reopened its borders to Qatar and after the historic agreement was signed in Al Ula at the GCC summit on Tuesday, the other three countries are expected to follow suit.

Source:https://www.arabianbusiness.com/travel-hospitality/456954-uae-hotel-group-boss-sees-tourism-positives-in-new-qatar-agreement