Day: December 7, 2023

The International Air Transport Association (IATA) has announced strengthened profitability projections for airlines in 2023, which will then largely stabilise in 2024. However, net profitability at the global level is expected to be well below the cost of capital in both years. Very significant regional variations in financial performance remain.

According to IATA, airline industry net profits are expected to reach $25.7 billion in 2024 (2.7% net profit margin). That will be a slight improvement over 2023 which is expected to show a $23.3 billion net profit (2.6% net profit margin).

In both 2023 and 2024 return on invested capital will lag the cost of capital by 4p.p., as interest rates around the world have risen in response to the sharp inflationary impulse. Airline industry operating profits are expected to reach $49.3 billion in 2024 from $40.7 billion in 2023. Total revenues in 2024 are expected to grow 7.6% year over year to a record $964 billion. Expense growth is expected to be slightly lower at 6
.9% for a total of $914 billion.

Some 4.7 billion people are expected to travel in 2024, an historic high that exceeds the pre-pandemic level of 4.5 billion recorded in 2019. Cargo volumes are expected to be 58 and 61 million tonnes in 2023 and 2024, respectively.

‘Considering the major losses of recent years, the $25.7 billion net profit expected in 2024 is a tribute to aviation’s resilience. People love to travel and that has helped airlines to come roaring back to pre-pandemic levels of connectivity. The speed of the recovery has been extraordinary; yet it also appears that the pandemic has cost aviation about four years of growth. From 2024 the outlook indicates that we can expect more normal growth patterns for both passenger and cargo,’ said Willie Walsh, IATA’s Director General.

‘Industry profits must be put into proper perspective. While the recovery is impressive, a net profit margin of 2.7% is far below what investors in almost any other industry would accept. Of course, many airlines are doing b
etter than that average, and many are struggling. But there is something to be learned from the fact that, on average airlines will retain just $5.45 for every passenger carried. That’s about enough to buy a basic ‘grande latte’ at a London Starbucks. But it is far too little to build a future that is resilient to shocks for a critical global industry on which 3.5% of GDP depends and from which 3.05 million people directly earn their livelihoods. Airlines will always compete ferociously for their customers, but they remain far too burdened by onerous regulation, fragmentation, high infrastructure costs and a supply chain populated with oligopolies,’ said Walsh.

Overall revenues in 2024 are expected to rise faster than expenses (7.6% vs. 6.9%), strengthening profitability. While operating profits are expected to increase by 21.1% ($40.7 billion in 2023 to $49.3 billion in 2024), net profit margins increased at less than half the pace (10%) largely due to increased interest rates expected in 2024.

Revenues

I
ndustry revenues are expected to reach an historic high of $964 billion in 2024. An inventory of 40.1 million flights is expected to be available in 2024, exceeding the 2019 level of 38.9 million and up from the 36.8 million flights expected in 2023.

Passenger revenues are expected to reach $717 billion in 2024, up 12% from $642 billion in 2023. Revenue passenger kilometers (RPKs) growth is expected to be 9.8% year on year. While that is more than double the pre-pandemic growth trend, 2024 is expected to mark the end of the dramatic year-on-year increases that have been characteristic of the recovery in 2021-2023.

The high demand for travel coupled with limited capacity due to persistent supply chain issues continues to create supply and demand conditions supporting yield growth. Passenger yields in 2024 are expected to improve by 1.8% compared to 2023.

Reflecting the tight supply and demand conditions, efficiency levels are high with the load factor expected to be 82.6% in 2024, slightly better than 2023
(82%) and the same as in 2019.

Source: Emirates News Agency

During a glittering awards ceremony held at the Ritz Carlton DIFC last night, dmg events, organisers of Big 5 Global, announced the winners of Big 5 Global Impact Awards under 19 categories.

The awards recognise innovation, sustainable development, technology and digital achievements in the construction industry, where people, projects, initiatives and organisations won accolades. ‘Every year, we are honoured to showcase the businesses and people behind the monumental and impactful projects in the construction sector. Big 5 Global Impact Awards have become synonymous with inspiring the industry’s transformation, celebrating success in sustainable development and technological advancements,’ said Josine Heijmans, Vice President – Construction at dmg events.

The awards kick-started with the presentation of the Big 5 Lifetime Achievement Award, a first for Big 5 Global Impact Awards, to His Excellency Dr. Abdullah bin Mohammed Belhaif Al Nuaimi, the former Minister of Climate Change and Environment for the UA
E for his impact and contribution to construction projects and sustainable development.

The remaining awards were judged by an independent and international panel of renowned industry experts, including government officials and leaders, the winners being chosen on merit and excellence.

The awards were attended by dignitaries from the public and private sector including the Ministry of Energy and Infrastructure, Dubai Municipality, Albawani Holding and ROSHN Group.

In recognising the industry’s technological transformation and the adoption of innovation, Engineer Naseibah Al Marzooqi, Director of Studies Research and Development and Chief Innovation Officer at the Ministry of Energy and Infrastructure presented the award for Digital Transformation of the Year to Retal Urban Development Company.

Big 5 Global Impact Awards have been serving as a platform to showcase sustainable practices and innovation in the construction industry, contributing to the global effort to achieve the Sustainable Development Goal
s (SDGs).

One award that applauded the industry’s contribution to building a more sustainable future, Carbon Net-Zero Initiative of the Year, won by Masdar City for The Link – CO-LAB building. ‘This award is very special to us serving as a proof point towards our journey on the path to net-zero. Big 5 Global Impact Awards is a world-recognised awards programme and we felt very important to be involved in the awards because we work with many stakeholders in the industry,’ said Chris Wan, Associate Director of Sustainability and CSR at Masdar City.

The awards were sponsored by Gold Sponsor, Al Bawani, Category Sponsor, BETAM and Reception Sponsor, KEO International Consultants.

The winners of Big 5 Global Impact Awards 2023 run as follows:

-Lifetime Achievement Award: Dr. Abdullah bin Mohammed Belhaif Al Nuaimi, the former Minister of Climate Change and Environment for the UAE

-Sustainability Leader of the Year: Majed Al Mansoori, Deputy Executive Director, Museum of the Future

-Technology Leader of the Y
ear: Joel Baur, Founder and CEO, Citra Construction

-Sustainable Initiative of the Year: Qatareef, Egis

-Best Use of Technology: BIM Technology, ROSHN Group

-Workforce of the Future Initiative: Sobha Institute of Construction Excellence + Honor Pride Initiatives

-Conservation Heritage Initiative of the Year: Jubail Island, LEAD Real Estate Developer

-Community of the Future: The Sustainable City, SEE Holding

-Circularity Initiative of the Year: Vipingo Development Limited, Centum Real Estate

-Award for Diversity Equity Inclusion: Gensler Middle East

-Carbon Net-Zero Initiative of the Year: The Link – CO-LAB building, Masdar City

-Digital Twin Project of the Year: 30 MLD Common Effluent Treatment Plant – Wastewater, MaRS Planning and Engineering Services

-Digital Transformation of the Year: Retal Urban Development Company

-Digitalisation Project of the Year: The Sustainable City Yas Island, SEE Holding

-Retrofit Project of the Year: Reconstruction of Beirut, Aluminum, Glazing, Engineering Contracti
ng Company (ALGECO)

-Prefabrication Modular Construction Project of the Year: Red Sea Sheybarah South Hotel, KSA, Grankraft Construction

-Partnership of the Year: Joint Venture of Metito Limited, Orascom Construction, The Arab Contractors Company, Hassan Allam Construction, Khatib Alami

-Innovative Construction Organisation of the Year: Dubai Municipality

-Sustainable Construction Project of the Year: Masdar City Square, Masdar City

-Sustainable Construction Organisation of the Year: Red Sea Global

Source: Emirates News Agency

The Emirates Red Crescent (ERC) has continued to distribute food aid to the people of Gaza as part of the ‘Gallant Kinght 3’ humanitarian operation, which the UAE has launched to support the Palestinian people.

The humanitarian aid included the distribution of 12,993 food parcels over 64,965 beneficiaries in the Rafah, Khan Yunis, and Central governorates, which included basic foodstuffs and powdered infant formula.

The beneficiaries expressed their deep thanks and appreciation to the leadership and people of the UAE for this great aid and humanitarian gesture, stressing that these food baskets came at the right time, to help them face the difficult circumstances they are currently going through.

Source: Emirates News Agency

The Sharjah Events Festival, organised by the Sharjah Government Media Bureau, returns with its third edition bringing endless joy and fun for everyone over four days, from 14 to 17 December at Al Majaz Amphitheatre in Sharjah under the slogan ‘See Sharjah.’

The exciting agenda of Sharjah Events Festival this year offers wholesome fun for the whole family and a distinct creative and entertaining space celebrating humanity and positive social messages.

The Sharjah Events Festival every year attracts audiences of all age groups, from 4 to 10 in the evening keen to participate in a diverse bouquet of events and activities that offer entertainment as well as intellectual and cultural awareness activities including workshops, laser shows, ‘Space Toon’ shows, live cooking, sports activities, and traditionally popular shows. Besides, there will be enough opportunities for children to enjoy their own fun and games as the festival will have dedicated spaces for them. There will also be food trucks to cater to all a
ge groups.

The popular festival mascot, “Saqr”, will be back too to welcome his young guests and shares with his young friends various games and exciting activities.

The audiences will be treated to an exciting atmosphere of contests and prizes in the outdoor theatre. Visitors can pick up souvenirs bearing the festival’s theme from the event’s gift shop to take home beautiful memories of Sharjah.

The Sharjah Events Festival is also expected to see the unveiling of a number of events and activities upcoming in 2024, organised by various Sharjah government institutions and departments.

More than 30 governmental, semi-governmental and private bodies and institutions in the Emirate are taking part in the Sharjah Events Festival, showcasing through their interactive platforms a number of free activities and workshops for the festival visitors in an engaging manner.

Through their social messages, the participating Sharjah government departments and private stakeholders are looking to support society’s knowledg
e and culture and its role in the prosperity of the emirate. The festival targets all social and age groups combining entertainment with insights.

Source: Emirates News Agency

The Executive Office for Anti-Money Laundering and Counter Terrorism Financing (AML/CFT) of the UAE is participating in the international initiative to enforce laws regarding climate crimes at the United Nations Climate Change Conference (COP28), its Director-General Hamid AlZaabi said.

This initiative is led by the Ministry of Interior and the United Nations Office on Drugs and Crime, Al Zaabi added.

In statements to the Emirates News Agency (WAM) on the sidelines of the COP28, he emphasised that the illicit wildlife trade, a global market valued at an estimated $200 billion annually according to the World Bank, poses a significant threat to biodiversity.

He emphasised additional risks to the green transition arising from corruption, fraud, and counterfeit goods, stressing the necessity of remaining vigilant in addressing these issues.

Al Zaabi called for redoubled efforts to confront challenges stemming from the Fourth Industrial Revolution (4IR) and its associated transformations. These challenges wil
l require robust international cooperation, effective partnerships with the private sector, renewed commitment, adequate resources, and prioritising systems that sustainably and continuously combat money laundering and the financing of terrorism.

Al Zaabi informed that last week witnessed the inaugural ‘Risks 4.0’ forum as part of the Abu Dhabi Financial Week, under the auspices of the Office of Anti-Money Laundering and Counter Terrorism Financing.

He added that the addition of such a forum to examine financial crime risks within the context of the 4IR is timely and of significant importance to the international community engaged in combating financial crime.

He highlighted the adoption of the term “Fourth Industrial Revolution” by the World Economic Forum to signify the current era of advanced communication, analytics, automation, and advanced manufacturing technology.

He pointed out that financial crime represents a global scourge costing the global economy around $2.1 trillion, equivalent to or surpas
sing the annual gross domestic product of large economies and G20 nations.

Al Zaabi further highlighted that this alarming figure excludes the vast sums lost to corruption, tax evasion, and cybercrime. He emphasised the extensive harm inflicted by criminal activities, ranging from drug and human trafficking to environmental crimes fueled by climate change. “The critical question we must now confront,” Al Zaabi declared, “is whether the Fourth Industrial Revolution will exacerbate the dangers of financial crime or serve as a force multiplier in the fight against it. The safety of the global financial system hangs in the balance, alongside the health of our economies and the fundamental right of citizens to live free from crime.”

Al Zaabi underscored that collaborative efforts, as exemplified by last week’s ‘Risks’ forum, are key to mitigating the risks of the 4IR and unlocking its immense development and investment potential.

He added that the Fourth Industrial Revolution is characterised by three key trans
formations in technology, energy, and the global system, pointing out that these three transformations evidently have a tangible impact on how financial crimes are committed and how they are countered.

He pointed out that the world is witnessing a significant technological shift, with the adoption of new payment systems and the innovation of financial products online, such as “buy now, pay later” services, metaverses, and virtual assets, each contributing to transforming the financial system.

He emphasised that the response to these transformations has been at the required level, as a study conducted by Juniper Research estimates that global spending on software providing tools to prevent financial crimes will exceed $28.7 billion by 2027, compared to $22.1 billion in 2023.

Al Zaabi pointed out that new technologies, while offering valuable tools for law enforcement, also present opportunities for criminals, evidenced by the recent rise in cybercrime against businesses and individuals. He stressed that AI,
VR, and machine learning, despite their dual nature, can be harnessed to our advantage if used strategically.

He pointed out that global efforts have begun to bear fruit, particularly in the realm of cryptocurrencies. According to the ‘Chainalysis’ platform, flows of cryptocurrencies to known illicit entities decreased by 65% between January and July of this year compared to the same period in 2022.

Source: Emirates News Agency

Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, President and Chief Executive Officer of the UAE Independent Climate Change Accelerators (UICCA), emphasised that the ongoing COP28 serves as an ideal platform for shaping the future of global climate action.

The event, attended by world leaders, presents a significant opportunity for international collaboration to identify and implement crucial measures for the future of climate work on a global scale to preserve the Earth.

In a statement to the Emirates News Agency (WAM), Sheikha Shamma expressed her wishes for COP28 to yield tangible positive outcomes, propelling international climate action towards a more prosperous future.

She highlighted that the UICCA has an extensive agenda of activities within its pavilion at the climate conference, situated in the Knowledge Hub in the Green Zone, all reflecting the ambitious goals they strive to achieve.

Sheikha Shamma lauded the launch of Climate Call, an interactive new platform to crowdsource and accelerate i
nnovative climate action ideas from around the world. Additionally, she mentioned the partnership with Carbon Click, a platform enabling all COP28 attendees to offset their conference visits with transparent and high-quality carbon credits.

She stated that effective climate action hinges on innovation capabilities. As one of the independent institutions for climate action, the UAE Independent Climate Change Accelerators actively works to identify promising ideas and green technologies that can make a positive impact. All these activities aim to accelerate innovation and empower individuals to transform their ideas into tangible positive outcomes during COP28.

Source: Emirates News Agency

Dubai Financial Market (DFM) today welcomed the successful listing of Dubai Taxi Company PJSC (DTC), a leading provider of comprehensive mobility solutions in Dubai.

The Offering saw significant demand from international and regional institutional investors and retail investors in the UAE, with total demand for the Offering amounting to over AED150 billion (equivalent to approximately US$41 billion), implying an oversubscription level of 130 times in aggregate. This represents the highest oversubscription level achieved by an IPO on the DFM, underscoring the strength of DTC’s investment proposition and robust investor confidence in the Company’s growth strategy as well as Dubai’s robust economic performance.

DTC’s successful listing, which marks the second DFM listing in 2023, emphasises the strength of Dubai’s capital markets and cements the DFM’s integral position in Dubai’s strategic vision for the development of its economy.

Abdul Muhsen Ibrahim Kalbat, Chairman, Board of Directors, DTC, and Mansoor R
ahma Alfalasi, Chief Executive Officer, DTC, rang the DFM market opening bell to celebrate the listing, in the presence of Helal Al Marri, Chairman of DFM, and Hamed Ali, CEO of DFM and Nasdaq Dubai, alongside several other officials.

Shares began trading under the symbol ‘DTC’, concluding the Company’s successful public offering that raised around AED1.2 billion (equivalent to approximately US$315 million) with a market capitalisation of AED4.6 billion (equivalent to approximately US$1.26 billion) on admission and a final offer price of AED1.85. The DFM applied no price limits on the shares during the first day of trading.

Helal Al Marri, Chairman of DFM, commented, ‘We warmly welcome Dubai Taxi to the DFM. Today’s listing is a pivotal step in Dubai’s robust capital market development. DTC’s success reinforces our diversification strategy, showcasing the strength of Dubai’s economy and investor confidence. Aligned with Dubai Economic Agenda ‘D33′ goals, the DFM continues to drive Dubai’s economic growth st
ory, positioning the city as a global capital hub. This achievement highlights the efficacy of our strategic plan under the guidance of H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance.’

Hamed Ali, CEO of DFM and Nasdaq Dubai, said, ‘DTC’s listing marks a significant stride in our journey, DFM has maintained a steadfast momentum in trading activities on the DFM throughout the year, with new equity listings amounting to AED12.3 billion, reflecting the attractiveness of our markets to investors. As Dubai evolves into a leading global economic hub, DTC’s IPO underscores our commitment to fostering robust capital markets and accelerating new listings. Beyond its immediate impact on economic growth, this listing serves to reaffirm the DFM’s pivotal role as the preeminent exchange in the region, offering diverse opportunities and facilitating companies to participate in the vitality of Dubai’s financial ecosystem.”

Abdul Muhsen Ibra
him Kalbat, Chairman, Board of Directors, Dubai Taxi Company, said, ‘Our record-breaking listing on the DFM marks a major milestone in DTC’s journey, as we continue to play a critical role in developing Dubai’s world-class mobility infrastructure and sustainability vision. We feel proud in saying that DTC is the first mobility company to be listed on DFM, whilst also supporting the emirate’s ongoing privatisation program, with our IPO attracting significant investment into Dubai’s capital markets and further strengthening the DFM’s position as a leading regional bourse.’

Mansoor Rahma Alfalasi, Chief Executive Officer, Dubai Taxi Company, said, ‘The record-breaking demand for DTC’s IPO, which was 130 times oversubscribed, reflects the strength of our investment proposition as Dubai’s largest mobility company. We’re proud to join DFM at an exciting time for Dubai, with the emirate benefitting from impressive economic, population and tourism growth. With a strategy that capitalises on Dubai’s stellar growth pr
ospects, we are in a strong position to deliver value to our new and existing shareholders, as we invest in the latest technologies and continue our expansion across Dubai and into neighbouring emirates.’

Source: Emirates News Agency