Announcing the move, Capital A founder and CEO Tony Fernandes said Hamid’s onboarding will help spearhead growth, including a possible listing of the business in Hong Kong ⁠by mid-2026.

In January 2026, Capital A completed the sale of its short-haul aviation business to AirAsia X, allowing the latter to focus on expanding operations and reducing costs while Capital A looked to grow its businesses in areas including logistics, branding and aircraft maintenance. The move, along with Hamid’s appointment, comes amid both companies facing headwinds caused by the Middle East conflict, which has sent jet fuel prices soaring.

Capital A’s shares are down 27% over the past month, while AirAsia X’s have plunged 41%.

According to Tony Fernandes, Capital A has seen an ‌impact from the Middle East conflict on its businesses, which include aircraft maintenance, freight and logistics, food catering and branding services. However, AirAsia would work to keep its fares low, while desisting from the practice of cancelling flights amid the ongoing conflict. The budget carrier would also provide updates on its operations in the first week of April.

Capital A is also aiming to list its branding unit, AirAsia Next, in the United States by the end of 2026, reviving a plan that was called off two years ago.

Tony Fernandes also stated that the listing plans for Capital A and AirAsia Next were dependent on the group’s exit from PN17 classification, a tag given by Malaysia’s stock exchange to financially distressed companies.

Capital A has been classified as PN17 since 2022, after incurring massive losses due to COVID-19 pandemic-related disruptions.

“We just need to submit our audited accounts (to the stock exchange). I don’t want to jump the gun, but that’s the last thing we have (to do),” Tony Fernandes concluded.

The post Capital A names Effendy Shahul Hamid as its Deputy CEO appeared first on International Finance.

While 21st century businesses have no other option but to take the volatile geopolitics into consideration while expanding their operations, the insurance sector faces the challenge of accurately assessing the possible outcome of damages and calculating appropriate premiums to charge.

As of 2026, war insurance remains an unknown quantity for insurance companies, with a high risk that a policy issued in this domain could lead to insolvency.

While industries like aviation and maritime trade still get specific war insurance options tailored to their needs, International Finance, using the ongoing Middle East conflict as a case study, examines how the broader War risk insurance industry has come under tremendous stress.

In Dire “Straits at Hormuz”

On February 28, 2026, the coalition of the US and Israel launched targeted air raids against Iran’s military and missile infrastructures, along with its decision-makers, repeating a similar act from 2025, killing the Western Asian nation’s Supreme Leader Ali Khamenei and many senior government and military officials.

Since then, Iran’s retaliatory missile and drone attacks across the Middle East have introduced chaos in the entire region. Apart from the American bases located in the region, energy production facilities are being attacked, while maritime trade through the Strait of Hormuz (one of the important shipping lanes) faces severe disruption.

While aviation and maritime trade are known for getting specific war insurance options, immediately after the conflict’s beginning, marine insurers started cancelling war risk coverage for vessels, as three tankers were damaged in the first week.

Through the Strait, oil equal to about one-fifth of global demand is moved by Saudi Arabia, the United Arab Emirates (UAE), Iraq, Iran, and Kuwait, with tankers hauling diesel, jet fuel, gasoline and other products. While maritime insurance majors, including Gard, Skuld, NorthStandard, the London P&I Club, and the American Club, excluded Iranian waters, Gulf and adjacent waters from their War risk insurance commitments, Skuld is reportedly working on a buy-back option to reinstate cover.

This move has led to a situation where the costs of shipping oil from the Middle East to Asia, already at six-year highs, could put the global energy trade under tremendous financial stress.

By March 13, the rates for a weekly coverage reportedly stood around ten times higher than before the beginning of the conflict, raising the transportation cost in the shipping corridor as well.

Nick Francis, Partner with Kennedys Legal Solutions in Singapore and Hong Kong, told International Finance that the coverage rise should be viewed using the parameter called additional war risks premiums (AWRP).

“AWRP, as the name suggests, is driven by risk. The risk in the Persian Gulf and surrounding areas has obviously escalated dramatically since the Iran conflict began. As a sidenote, while AWRP has exponentially increased, so have charter rates for these vessels – particularly tankers – so owners/operators are willing to pay the AWRP (which is usually passed on to charterers of vessels under charterparties in any event),” said Nick.

According to the marine journal Lloyd’s List, as of March 13, high-risk voyages were being quoted at approximately 7.5% of the ship’s value. This ratio may rise to 10% or more. Before the war onset, additional premiums (AP) for voyages through the Middle East Gulf (MEG) typically ranged from 0.15% to 0.25%.

The geopolitical developments in the last three to four years (including those in Ukraine and the Suez Canal) have made one thing clear: the choking of shipping lanes will be the new normal. In that case, will it add pressure to the WRI industry?

Nick, a leading shipping and international trade lawyer, told International Finance, “The insurance industry is built on an ability to price risk. I think the market is well steeled for the current conflict, given the recent experiences with the Black Sea/Sea of Azov following the Russian invasion of Ukraine, and the Houthi attacks in the Red Sea.”

Could the insurers have handled the Hormuz situation in a better manner?

Nick said, “The insurance industry is there to provide cover for various risks, which it does. It doesn’t create the risk.”

Shipping sector in a tight spot

Discussing risks, things are getting uncertain within the commercial marine industry itself, with a strong probability of hull rates rising. Dylan Mortimer, Vice-President of New York-based insurance player Marsh, told the Reinsurance News that there could be near-term rate increases for the Marine Hull line of businesses operating in the Gulf region by 25%-50%, with underwriters swiftly cancelling certain annual hull war policies under standard seven-day war clauses.

Stephen Rudman, head of marine for Asia at Aon, told Modern Diplomacy that the increase in hull war market rates should be seen as a quick response to the risk of significant losses if multiple vessels are attacked at the Strait of Hormuz. According to Rudman, there will be heightened underwriting scrutiny for voyages into or near sensitive (conflict) zones, including a potential requirement for prior approval.

Estimates by global investment giant Jefferies suggests that damages from seven reported vessels at the Strait (figures as of March 6) could lead to industry losses of up to USD 1.75 billion. Tankers valued at USD 200-USD $300 million could face new insurance rates of approximately 3%, translating to about USD 7.5 million in premiums, a significant rise from roughly USD 625,000 before the conflict.

Shedding further light upon the crisis, Nick noted, “When costs rise for the owner and operators of vessels, they will inevitably be priced into charter rates. Increased cargo premiums will obviously affect the landed value of goods – and will eventually be passed on to the end consumer.”

According to Sheila Cameron from the Lloyd’s Market Association, by March 6, about 1,000 vessels (mostly oil and gas tankers), with a total hull value exceeding USD 25 billion were in the Persian/Arabian Gulf region.

Stating that while most of these vessels are insured within the London market, she told Modern Diplomacy, “Reinsurers may respond to increased risks by adjusting the conditions under which their liability begins, potentially leaving main insurers with more risk and stress on their solvency levels.”

Also, the International Group of P&I Clubs has ceased coverage for vessels operating in and around Iran. Without it, shipowners will face open-ended liabilities, often halting voyages in high-risk areas. Industry reports reveal that such war-risk exclusions in the past led to reduced traffic and higher freight costs, and the same pattern can now re-emerge in the Persian Gulf as well.

According to London-headquartered GlobalData, reinsurers are repricing exposures across sectors such as marine, aviation and energy, while maintaining coverage continuity wherever possible. The conflict is affecting the sector through both direct exposure to loss events and indirect pressures, including higher reinsurance costs, capital flows, and inflation.

If anything, the changing geopolitics have taught the 21st century global socio-economic order that businesses need to engage with insurers to address disruptions and risks tied to war-like events, without any laxity.

Expressing confidence in the sector’s resilience, Nick concluded, “War is not new. War risk insurers have been recently dealing with the events in the Black Sea/Sea of Azov, involving missile strikes on vessels and, later, numerous constructive total losses (following a 12-month deprivation period), and missile attacks by Houthis in the Red Sea – so they are well- prepared to deal with the current events in the Persian Gulf.”

The post IF Insights: Choking of Strait of Hormuz tests limits of war risk insurance appeared first on International Finance.

Instead of cutting passenger journeys, the mentioned efficiency measures would be far more effective in ensuring an immediate 11% reduction in carbon footprint by using the most efficient aircraft that airlines already have more strategically on routes they already fly, rather than providing lip service to terms like sustainable fuels or carbon offsets.

The researchers analysed over 27 million commercial flights in 2023, covering 26,000 city pairs and nearly 3.5 billion passengers. The methodology revealed enormous variability in emissions efficiency, with some routes producing nearly 900 grams of CO₂ per kilometre for each paying passenger, almost 30 times higher than the most efficient, at around 30 grams of CO₂ per kilometre. Published in Nature Communications Earth & Environment, the study claims to be the first to assess the variation in flights’ operational efficiency around the world.

As aircraft become increasingly fuel-efficient, the amount of carbon dioxide per kilometre flown has been decreasing, but the increase in the number of flights has far outpaced this, leading to higher emissions that are contributing to the climate crisis. Aviation experts predict that by 2050, carbon dioxide emissions from aviation could double or even triple. The new analysis also revealed that more polluting flights were common from smaller airports in the United States and Australia, as well as in parts of Africa and the Middle East. In contrast, airports in India, Brazil, and Southeast Asia were dominated by less polluting flights.

Flights out of airports like Atlanta and New York were among the least efficient, nearly 50% worse than those at the most efficient airports, such as Abu Dhabi and Madrid. The UN aviation body, the International Civil Aviation Organisation (ICAO), is pinning its hopes on an “unambitious and problematic” offsetting scheme, known as CORSIA, to reduce emissions, but has not yet made any airline purchase a carbon credit.

In fact, Khaled Diab, the communications director at Carbon Market Watch, remarked, “No airline has yet been obliged to use a single carbon credit under the UN’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). And when they are, CMW research reveals the European Union’s Emissions Trading System (EU ETS) imposes a carbon price on aviation emissions that is 25 times higher. This clearly demonstrates that cap-and-trade systems are better for the climate and should be expanded.”

Prof Stefan Gössling at Linnaeus University in Sweden, who led the research, said, “We are currently stuck with a global situation where there is no hope that aviation will reduce its emissions.”

According to him, all-economy-seat planes, 95% flight occupancy, and using today’s most efficient aircraft could cut fuel use and therefore emissions by 50%-75%. It would also mean far less sustainable fuel would be needed to make flying nearly emissions-free in the future.

“I always thought air transport was already very efficient, and that is also what airlines like to tell people. But, in reality, it’s very inefficient because of three factors: using old aircraft, transporting people [in premium seats] with lots of space, and often having aircraft that are not fully loaded. In 2023, the average ‘load factor’, seat occupancy, was almost 80%,” Gössling added.

Crunching the details

The study also analysed the efficiency of 26,000 pairs of cities based on the amount of CO₂ emitted per kilometre per passenger, using data from 3.5 billion passengers who flew a total distance of 6.8 trillion km (145 trips to the sun, 577 million tonnes of CO₂ emissions, equivalent to the annual emissions of Germany).

The study found that US flights were 14% more polluting than the global average, China had efficiencies slightly above average, and the UK, the third-largest aviation polluter in the world, had efficiencies slightly below the 84.4g of CO₂ per passenger kilometre average.

The most efficient route was Milan, Italy, to Incheon Airport near Seoul, South Korea (31.6g CO₂/pkm). The least efficient route was in Papua New Guinea, with the second-worst from Ironwood Airport to Minneapolis/St Paul in the US (805g CO₂/pkm).

“While airlines often claim that fuel savings are in their own economic interest, the reality is that many airlines continue to fly with old aircraft, low load factors, or growing shares of premium-class seating,” the researchers noted.

“The most important factor was replacing premium seats with denser economy seating: First- and business-class passengers are responsible for more than three times the emissions of economy passengers, and up to 13 times more in the biggest premium cabins. Other policies that might encourage greater efficiency include softer policies like requiring airlines to disclose an efficiency rating for each route. You wouldn’t want to fly with an airline that is rated F. Market-based policies might include airports charging higher landing fees for more polluting aircraft, which also makes local communities’ air dirtier,” Gössling claimed.

While the efficiency gains that the study identified, such as replacing older, more polluting planes, would bring improvements, they would also confront the reality of an industry operating on low margins. However, Gössling argued that the sector was stuck in a business model that maximised passenger numbers to boost profit and that it could operate fewer, fuller flights with higher ticket prices.

He said that many flights are taken because they are so cheap, commenting, “We know that a lot of air transport demand is induced. If you increase the cost, people will just choose a different type of holiday.”

Facing the reality

The senior vice-president of sustainability at the International Air Transport Association, the trade association for the world’s airlines, Marie Owens Thomsen, told Reuters, “Airlines have a vested interest in reducing fuel burn and maximising load factors, but the order backlog for aircraft exceeds 5,000 planes due to supply-chain failures.”

She further added that real progress in reducing aviation emissions would come from the use of SAF, CORSIA, and the modernisation of air routes.

Aviation accounts for 3% of global greenhouse gas emissions. Still, flying is concentrated among wealthy passengers, with 1% of the world’s population responsible for 50% of aviation emissions, while only 10% of people fly at all in any one year, and 4% fly abroad.

An ICAO spokesperson said its analysis showed that operational improvements could account for 4%-11% of the carbon emission reductions required to achieve net zero, while factors such as cleaner fuel and innovative technologies will do the remainder.

Meanwhile, with the aviation sector racing to decarbonise, how much might the cost of a passenger ticket increase by 2050? Naomi Allen, Head of Research at RAeS (Royal Aeronautical Society), crunched the numbers to find out the reality.

Decarbonising aviation will make the sector more expensive and, therefore, ticket prices will rise, making flights less accessible to passengers. Assuming that 25% of the ticket cost is for fuel, by 2050, the industry will face another dilemma, like fuel cost, including the real value (CAF or SAF), along with the penalties due to non-compliance with the mandate and the cost of GGR (Greenhouse Gas Removal) for any remaining carbon emissions.

On the other hand, the University of Oxford report assumes that fuel (kerosene and SAF) costs and GGR costs are evenly distributed across tickets and are agnostic as to which flights use SAF or not. While the United Kingdom’s SAF mandate does not yet specify requirements for 2050, according to Allen, the industry has assumed that the requirement will be 70% of fuel being SAF, the same as the ReFuelEU mandate requirement.

“The average ERF of the SAF used is assumed to be 70%; this may be an underestimate for PtL SAF by 2050, but it is higher than the ERF typically seen for many other types of SAF at the current time. Assuming Net Zero for the sector in 2050, all net carbon emissions resulting from the fuel outside the mandate and the ERF of the SAF will have to be offset by GGR,” Allen told The Guardian.

The study also ignores inflation between now and 2050, assuming that the price of fossil-fuel-derived kerosene in 2050 will be $700/ton, although the actual price will depend on the pace of decarbonisation in other sectors. The report assumes that the supply of SAF is sufficient to meet demand up to the level of the SAF mandate and that the supply of GGR is unlimited. In reality, SAF and GGR may not be available to the aviation sector in the necessary quantities, as there will be competition for resources between other sectors and scaling constraints.

Greenhouse gas removals by 2050 are expected to be permanent. However, the estimated costs for these removals vary significantly. The World Economic Forum has stated that achieving a Direct Air Capture (DAC) cost of $150 per ton of CO₂ by 2050 is both necessary and feasible. In contrast, the recently published Independent Review of Greenhouse Gas Removals for the British government predicts that the costs for permanent removals in 2050 will be much higher. For the study, GGR prices of $100/ton and $600/ton are used; a midpoint of $350/ton CO₂ is used to capture the probable range due to alternative GGR methods and processes, and significant uncertainty. A midpoint of $350/ton CO₂ is used for some calculations.

It is anticipated that all decarbonisation will come from SAF and GGR, and that other decarbonisation options, such as electrification and hydrogen, will not have a significant impact on aviation emissions (either due to scalability or technology/infrastructure maturity) by 2050. Costs will be affected differently by other decarbonisation strategies. Moreover, the research found that, provided the price of SAF is about as expected or lower, and the cost of GGR is high, then meeting the SAF mandate will, on average, result in lower ticket prices than if Net Zero is achieved entirely through GGR.

On the other hand, if lower GGR costs are achieved, then meeting the SAF mandate is likely to raise ticket prices by 10%-15%. Note that this assumes that enough SAF will be available to meet the mandate, but it was also calculated that if the SAF mandate is not met, then non-compliance penalties could raise ticket prices by as much as 15% more, depending on the extent of the excess demand. The scenario is plausible, given doubts about the ability to scale up the supply of SAF.

The post Is cleaner aviation within reach? appeared first on International Finance.

The scope of work under the project EOI includes the design, financing, construction, transfer, operations, and maintenance of the airport on a Build-Transfer-Operate (BTO) basis for 30 years. In addition, a new passenger terminal will be erected, along with ancillary services and airside infrastructure such as the runway, taxiways, and aprons to meet the projected demand of the airport.

The project aligns with the objectives of “Saudi Vision 2030,” the “Saudi Aviation Strategy,” and the “National Transport and Logistics Strategy” to make the Kingdom a global destination for tourism, aviation, and logistics. The EOIs must be submitted by 23 February 2026. However, details such as the target passenger capacity, estimated cost, and the date on which the request for proposals will be issued have not been made public by the authorities.

The project site is located approximately 25 kilometres from the city of Buraidah in the Qassim region. After its completion, the facility will likely increase the airport’s passenger handling capacity in line with anticipated annual travel growth.

Matarat Holding currently oversees the operation of 27 airports across the Kingdom through its subsidiaries, including Riyadh Airports Company, Jeddah Airports Company, Dammam Airports Company, and Cluster 2 Airports Company.

Qassim Airport is already working to enhance the passenger experience. Since May 2025, the facility, through its duty-free shop, has been providing a decent shopping experience for international travellers passing through the airport.

The market showcases a wide range of high-quality products from renowned international and local brands, offering travellers the opportunity to shop at competitive prices lower than those in the local market.

Prince Naif bin Abdulaziz International Airport is one of the vital airports serving the Kingdom. Since its establishment in 1964, the facility has undergone significant capacity expansion, serving both domestic and international flights, and hosting more than 1,250,000 flyers annually. Located on the western side of Buraidah, the administrative capital of the Qassim region, the infrastructure was renamed after Prince Naif bin Abdulaziz in 2012 through a royal decree.

In 2017, the airport was upgraded to international status. Currently, approximately 13 airlines operate from the facility. In the January 2023 performance report for Saudi Arabia’s international and domestic airports, Qassim Airport ranked first in the fourth category of international airports with fewer than two million passengers annually, achieving a 100% compliance rate and outperforming competing airports in the combined average wait times for departure and arrival flights.

The post Saudi Arabia launches EOI for Qassim Airport upgrade appeared first on International Finance.

The recognition highlights POTAS’ growing contribution to strengthening international fuel supply networks and its strategic investments in advanced storage infrastructure. The company’s state-of-the-art fuel farm at Antalya Airport, completed in 2024, exemplifies this vision, expanding capacity and integrating next-generation digital fuel management systems that align with the highest global standards of safety and efficiency.

POTAS CEO Hüseyin Hilmi Aslanoğlu said, “This recognition is not only a reflection of our technical excellence, but also of our ability to form long-term partnerships built on trust, transparency, and shared goals. We believe that operational reliability and open collaboration are the true cornerstones of sustainable growth in the aviation energy sector.”

Aslanoğlu is an established name in the Turkish aviation sector, as he possesses more than 20 years of experience in the aviation fuel sector. He previously held key leadership roles at Turkish Fuel Services, İGA Istanbul Airport, THYOPET Aviation Fuels, and Turkish Airlines.

Under his leadership, POTAS has expanded its infrastructure and service capacity, establishing itself as a benchmark in fuel storage and supply excellence. His vision focuses on innovation, reliability, and sustainability, establishing the venture as a trusted regional energy partner for global carriers.

The award-winning partnership, a joint venture between ATS Antalya Akaryakıt Dağıtım AŞ and Petrol Ofisi AŞ, led to the establishment of POTAS. This venture combines engineering excellence with strategic planning, ensuring that fuel storage and supply operations can effectively meet the growing demands of international carriers and airport authorities. The Antalya facility, one of the most advanced in the region, utilises automated monitoring systems, redundant safety layers, and data-driven performance analytics to optimise every stage of its operations.

POTAS will continue to expand its footprint across Turkey’s key aviation hubs, serving as a trusted partner to both national and global airlines. Its approach integrates technical innovation, financial discipline, and a steadfast commitment to safety and compliance, all supported by a corporate culture built on integrity and collaboration.

“At POTAS, our mission is to create the most reliable and sustainable aviation energy ecosystem in the region. Through strategic partnerships, we’re building not just capacity, but resilience, preparing for the aviation industry’s energy transition with the financial and operational strength it demands,” CFO Çağıl Koçhan added.

Also, before joining POTAS, Koçhan served as CFO at EY Turkey, where he led the firm’s national finance organisation and managed complex budgeting, reporting, and operational finance structures. The financial industry veteran also held senior audit roles at Deloitte and later assumed executive leadership roles at Bimed Teknik Aletler, overseeing corporate finance transformation and strategic financial planning.

With nearly two decades of experience in financial management and audit, Koçhan is recognised for building agile financial structures that support corporate growth and long-term strategic vision.

As the aviation sector accelerates modernisation and decarbonisation efforts worldwide, POTAS’ focus on innovation, partnership, and sustainability positions it at the heart of Turkey’s transformation into a regional aviation energy logistics hub.

The “Best New Strategic Partnership in Fuel Storage and Supply – Türkiye 2025” stands as a testament to POTAS’ ability to merge local expertise with global standards, reaffirming its role as an international benchmark for reliability, safety, and excellence in aviation fuel operations.

The post POTAS elevates fuel storage standards with advanced infrastructure appeared first on International Finance.

Heathrow Airport, the busiest airport in Europe by passenger volume in 2024, will begin construction of a new runway to “unlock even more of that connectivity, trade and economic growth for the United Kingdom,” according to a statement from the airport’s chief executive, Thomas Woldbye.

Istanbul Airport took second position, as it handled 84.4 million passengers last year, slightly less than Heathrow Airport’s 84.5 million. In December alone, nearly 7.2 million travellers passed through the hub. The good news comes amid the Keir Starmer government recently authorising the airport’s 49-billion-pound (USD 66 billion) expansion plan, as authorities endured years of legal struggle regarding the project.

While Heathrow Airport holds the annual record, Istanbul Airport actually surpassed Heathrow Airport in monthly passenger volume for much of the second half of 2025. This shift was driven by Istanbul Airport’s implementation of a world-first “triple runway” simultaneous operation system in April 2025, which increased the facility’s hourly capacity from 120 to 148 flights.

Unlike Heathrow Airport, which is physically limited by its current two runways and a 1,300-flight-per-day cap, Istanbul Airport’s purpose-built infrastructure allowed it to handle over 272,000 passengers on a single day in July, breaking the previous European daily record held by Heathrow.

This creates a narrative of “Old World vs New World” aviation, where Heathrow’s expansion is a race to regain a structural advantage that Istanbul Airport already possesses. Heathrow Airport claims that the project will boost capacity to up to 150 million passengers annually.

In Europe, where nations are divided between efforts to cut greenhouse gas emissions and the demands of a vital industry whose demand has skyrocketed since the COVID-era lockdowns, this would be an uncommon growth.

With flights anticipated to begin within ten years, the runway would cost 21 billion pounds. The remaining privately funded investment would be used to modernise and expand the airport.

The post Heathrow reclaims title as Europe’s ‘Busiest Airport’ with record 84.5 million passengers appeared first on International Finance.

The company’s expansion process will begin in 2027, with a new aircraft delivery scheduled each month until 2029 to reach the planned fleet size. In 2025, the airline carried 11 million passengers, and it projects to take the count to 12-13 million passengers in 2026 as the expansion gathers its speed.

Carrier flyadeal, which reported a 35% year-on-year increase in passenger capacity this December, will be inducting new aircraft types, notably the wide-body A330neo, which can carry 420 passengers. The wide-body aircraft, joining flyadeal’s fleet for the first time, will be capable of connecting Saudi airports on long-haul routes spanning from Western Europe to Southeast Asia. This will allow the low-cost venture to significantly expand its international network and develop a transcontinental operational structure to meet rising demand for travel to and from the Kingdom.

Also, flyadeal plans to restructure its operations over the next two years to achieve a balanced mix of domestic and international flights. It will result in a significant shift from the airline’s current operational structure, which relies on an 80% domestic and 20% international flight model.

In 2024, the airline closed its activities with a fleet of 36 aircraft, and in 2025, it added eight more. By this year’s end, flyadeal will have 44 aircraft, with one final delivery expected in the last week of December, Greenway said, while adding that the short-term plan includes addition of four new aircraft in 2026, bringing the fleet to 48, comprising traditional A320s, fuel-efficient A320neos, and A321s with 240 seats.

The Kingdom’s aviation sector recorded significant growth in 2024, with passenger numbers exceeding 128 million, a 15% year-on-year increase. The Kingdom’s General Authority of Civil Aviation reported more than 905,000 flights, up 11% from 2024, while air connectivity grew 16% to over 170 destinations worldwide.

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Since Saudi Arabia became a kingdom in 1931, Washington has provided diplomatic support. In the 1940s, President Franklin D. Roosevelt and King Abdulaziz formalised the oil-for-security deal aboard the USS Quincy, with the US promising military protection in exchange for a steady oil supply, an arrangement that continues to this day.

But the world of oil is slowly fading and making way for renewable energy. Crown Prince Mohammed Bin Salman, a visionary young leader, sees this truth. His oil-rich country has an advantage that won’t last forever, so he’s working hard to modernise and industrialise the Kingdom’s economy.

The headlines are staggering: Crown Prince Mohammed Bin Salman pledged to increase Saudi Arabia’s planned investments in the United States from $600 billion to $1 trillion.

During the meeting, both sides acknowledged shifting global realities. America wants fresh capital and supply chain security in a world that is quickly turning multipolar. The Saudis, on the other hand, have a deadline to meet. The Kingdom’s “Vision 2030” is as ambitious as they come.

They plan to be leaders in AI and aviation, produce nuclear energy, and build breathtaking cities in the desert. But it requires advanced technology and industrial partnerships that only American firms can provide for now. This partnership is a win-win for these G20 economies.

The Saudi-US partnership is not an alliance of convenience built on oil and security. They are now strategic partners with aligned goals of economic and technological supremacy. As they posed for pictures in front of the White House, it was clear to the whole world that the Saudis and Americans had tightened their alliance.

Data blooms in the Arabian deserts

Technology was at the heart of the conversation between the two world leaders. The Saudis expressed their desire to be the global hub of AI and data. It seems this visit to America has brought that vision closer to reality, with pacts that would place the Kingdom as a central node in the global AI infrastructure.

At the heart of this transformation is authorisation by the US Commerce Department for the export of advanced AI chips to Saudi Arabia. This decision effectively clears the way for the shipment of up to 35,000 Nvidia Blackwell chips to HUMAIN, a Saudi-backed national AI champion. This authorisation is more than just a trade deal.

It represents a stamp of approval from Washington that brings Saudi Arabia into the trusted circle of American technological partners. It addresses the long-standing bottleneck of access to high-performance compute power, which is the lifeblood of the modern AI economy.

HUMAIN was the undeniable star of the investment conference that ran parallel to the political meetings. The company, backed by the immense resources of the Public Investment Fund (PIF), announced a flurry of partnerships that read like a who’s who of the American tech sector.

The most headline-grabbing of these was the partnership with Elon Musk’s xAI. The two companies signed a framework agreement to build a massive network of low-cost GPU data centres within the Kingdom.

This project, which includes a flagship 500-megawatt facility, aims to leverage Saudi Arabia’s abundant and low-cost energy resources to power the energy-hungry training and inference workloads of the next generation of AI models.

The logic behind this partnership is compelling. As AI models grow exponentially in size, the cost of electricity becomes a primary constraint. Saudi Arabia offers some of the lowest energy costs in the world, making it an ideal location for what industry insiders are calling computer factories. By pairing American innovation with Saudi infrastructure and capital, the xAI-HUMAIN alliance seeks to lower the barrier to entry for advanced AI development.

HUMAIN also signed a separate agreement with Groq, a company famous for its ultra-fast AI inference chips. This deal will see HUMAIN triple the Kingdom’s Groq-powered inference capacity. This is a crucial distinction.

Nvidia makes the best chips in the world. There is no doubt about it. Groq has technology optimised for running models in real-time applications. The Saudis have made deals with both the hardware and software developers. They are going to alchemise the union between xAI and Nvidia in their energy-rich and spacious deserts.

This isn’t a one-way street. HUMAIN and Global AI also plan to build high-density AI data centres in the US, using top-of-the-line Nvidia technology. The Saudis are reciprocating capital flow and will soon lay the foundations of the great American digital economy.

In the venture capital space, the visit saw a major validation of the American startup ecosystem. Luma AI, a San Francisco-based startup working on Artificial General Intelligence (AGI), raised USD 900 million in a Series C funding round. HUMAIN led the round, with participation from major players like AMD Ventures, Andreessen Horowitz, Amplify Partners, and Matrix Partners.

This investment highlights the PIF’s strategy of taking significant equity stakes in companies that are defining the future of technology. It provides Luma AI with the runway to compete with giants like OpenAI and Google while giving Saudi Arabia a seat at the table of frontier AI research.

Microsoft also cemented its role in the Kingdom’s digital transformation. The tech giant signed a Memorandum of Understanding (MoU) with the PIF and the Saudi Information Technology Company. The agreement explores the delivery of Microsoft’s sovereign cloud services in Saudi Arabia.

The sovereign cloud restricts data to national borders and subjects it to local laws. It is essential technology for governments and sensitive industries. Microsoft has secured a lucrative deal with one of the world’s wealthiest clients and will provide services in the Kingdom’s administration, healthcare, and finance sectors.

These agreements collectively signal a pivot. Saudi Arabia is moving beyond being a passive consumer of technology. It is positioning itself as a co-creator and a critical infrastructure provider for the global AI ecosystem. The Silicon Desert is no longer just a marketing slogan. With billions of dollars in hardware and infrastructure now in the pipeline, it is rapidly becoming a physical reality.

Powering future partnerships

While technology captured the imagination, energy remained the bedrock of the discussions. However, the conversation has moved far beyond the traditional barrel of crude oil. The visit marked a historic turning point in energy cooperation with the announcement of a new agreement on civil nuclear cooperation.

This agreement has been years in the making. It establishes a framework for the United States to support Saudi Arabia in developing a civilian nuclear energy programme. For Riyadh, nuclear power is essential to its domestic energy strategy.

The Saudi plan is clever. With a rapidly growing population and expanding industry, the country needs more energy. They decided to build nuclear power plants to provide safe, low-cost energy while exporting oil to other countries, reducing their own carbon footprint. The Saudis aim to be the world’s largest oil exporter while using less oil at home.

The US sees this as a win. Without this deal, Saudi Arabia might have turned to Russia or China for their energy needs, which could have caused concern in Washington. Now, the Saudis are more likely to follow nuclear safety standards, and the agreement boosts US nuclear exports while strengthening long-term energy ties between the two countries.

The deal includes strict safeguards and non-proliferation standards. It addresses security concerns while allowing the Kingdom to join the club of nations with peaceful nuclear capabilities. At the same time as the nuclear deal, Saudi Aramco, the world’s largest oil producer, used the visit to grow its presence in the American energy sector.

Aramco announced 17 MoUs and agreements with a potential total value of more than USD 30 billion. These agreements were signed with major US companies and cover a diverse range of activities.

The deals are also about Liquefied Natural Gas (LNG). The world is moving away from coal to greener alternatives. LNG is now the critical transition fuel. The Saudi gas giant, Aramco, often cited as one of the most valuable companies in the world, is expanding its global portfolio aggressively. New partnerships are being made with MidOcean Energy and Commonwealth LNG.

This might involve offtake agreements and equity stakes in US LNG export terminals. It is a powerful move to become a major trader of US gas by leveraging its global marketing network to sell American LNG to buyers in Europe and Asia.

Aramco is signalling the corporation’s supply chain resilience. The oil titan has signed important contracts with US oilfield services companies such as SLB, Baker Hughes, and Halliburton. Most of them are procurement deals. It is a strategic move that ensures continued access to reservoir management technologies and advanced drilling techniques. It is a vital step for maintaining production capacity and efficiency.

Furthermore, the energy partnership is increasingly looking at new vectors such as hydrogen and carbon capture. The investment conference featured discussions on how US technology can help Saudi Arabia achieve its goal of becoming the world’s largest exporter of clean hydrogen. Saudi Arabia brings low-cost gas and renewable energy potential. The US brings expertise and the machines, like electrolysers and carbon capture technologies, needed to make it viable.

This diversified energy portfolio reflects a mature relationship. It is no longer just about the US importing Saudi oil, which it does in far smaller quantities than in the past. The US and Saudi Arabia are partnering to address the global energy transition. Both countries want to maintain the lead they have held in the energy industry for the past century. They are investing heavily in cleaner and cheaper hydrocarbons, as well as nuclear and renewable energy. The MoUs signed during this visit lay the legal and commercial groundwork for this multi-decade collaboration.

Backbone of modern economy

The third pillar of the visit focused on the physical backbone of the modern economy. Global trade tensions are at an all-time high, and supply chain threats are an existential crisis. The United States and Saudi Arabia took decisive steps to strengthen their networks in critical minerals, aviation, and defence.

There was a lot of talk about critical minerals. This is an important conversation for the US, considering its tariff wars and China’s decision to cut the US supply of rare earth minerals. Minerals such as cobalt, lithium, and rare earth elements are essential for making semiconductors and batteries that power AI and robotics. Most of these are mined in China.

Washington and Riyadh are seeking to diversify this dependency. Saudi Arabia sits on an estimated USD 2.5 trillion worth of untapped mineral resources. The new framework agreement aims to unlock this potential. It facilitates US investment in Saudi mining projects and encourages the transfer of American processing technology to the Kingdom.

The mineral corridors are a boon to America. They are very timely, and without them, the US would have lagged in the chip wars. Both the United States and Saudi Arabia are preparing for potential geopolitical meltdowns. Both parties also discussed their commitment to meeting high environmental standards. Mineral mining was first sent to China decades ago because the work is dangerous for both the environment and local communities.

In the aviation sector, the visit yielded a major win for American manufacturing. Saudia Group, the owner of the Kingdom’s national flag carrier, entered into a strategic agreement with GE Aerospace. The deal will see GE equip the airline’s fleet with GEnx 1B engines. This covers the carrier’s 2023 order of 39 Boeing 787-9 and 787-10 aircraft.

This agreement is significant for several reasons. American aerospace technology gets to shine in one of the fastest-growing aviation markets. Saudi Arabia is soon to be a global leader in tourism and logistics and aims to triple tourist footfall by 2030. The Saudia-GE deal is a guarantee that American engines will power this transition.

The deal is also likely to have long-term maintenance and service contracts, which generate recurring revenue for GE and create high-skilled jobs in both countries. It’s a clear example of how one country’s growth can also benefit another, bringing real advantages to both industrial bases.

Minerals and aviation are becoming key areas of mutual reliance. Saudi Arabia will mine and export minerals, which will be used in batteries for American cars. In return, American jets and planes will transport global leaders and businesspeople to Saudi Arabia, fuelling the next stage of economic growth. It’s a mutually beneficial relationship that connects the industrial and physical needs of both countries.

An ally in the Middle East

Economics aside, Saudi Arabia is an important ally to the United States. It is a neutral neighbour to Israel, a nation that America has special interests in protecting. Before the attacks on October 7, Saudi Arabia and the UAE were contemplating the Abraham Accords and were willing to partner with Israel.

After the issue in Gaza began, Saudi Arabia withdrew its interest, and peace in the Middle East became a dream once again. But there is good news this time. Crown Prince Mohammed Bin Salman has renewed his interest in a partnership with Israel on the condition that the two-state solution be implemented.

America also has a special interest in Saudi Arabia because the Al-Saud family is the custodian of the two holiest mosques of Islam in Mecca and Medina. It also provides some soft power and legitimacy. The new economic, technological, and defence deals have interwoven the destinies of the two countries tightly than ever before.

The gateway to 2030

As the Crown Prince’s jet lifted off from Andrews Air Force Base, the significance of the visit began to settle in. This was not a transactional meeting to fix oil prices or address a singular geopolitical crisis. It was a strategic alignment of two nations looking toward the next decade.

The pledge to increase investments to USD 1 trillion is a testament to the scale of the ambition. It signals that the Public Investment Fund (PIF) and other Saudi entities view the US economy as the primary engine for their capital deployment. The large number of American CEOs at the investment conference signals that Wall Street and Silicon Valley view Saudi Arabia as the world’s most exciting growth market.

The visit serves as a key opportunity. For the United States, it opens the door to the Gulf’s vast capital and infrastructure projects. It’s a chance to revitalise parts of the American economy through foreign investment and secure future supply chains.

For Saudi Arabia, it is a gateway to the technology and expertise required to realise Vision 2030. The Kingdom knows that it cannot build a post-oil economy in isolation. It relies on Nvidia’s AI chips, Microsoft’s cloud infrastructure, GE’s engines, and the innovation from American startups.

The warm personal dynamics between the leadership provided the necessary political cover for these deals to flourish. It smoothed over bureaucratic friction and signalled to the bureaucracies in both capitals that getting to yes was the priority. The result is a roadmap that is ambitious, detailed, and remarkably comprehensive.

We are witnessing the birth of a new economic corridor. It is a corridor where data flows as freely as oil once did. It is a partnership defined by gigawatts of computing power, fleets of modern aircraft, and the secure supply of critical minerals.

The November 2025 visit will likely be remembered as the moment when the United States-Saudi Arabia relationship finally stepped out of the shadow of the twentieth century and firmly embraced the opportunities of the 21st century.

The success of this visit will be measured not just in the dollars pledged but in the execution of these vast projects. Building data centres, nuclear plants, and mineral supply chains takes time and persistence. However, the foundation laid in Washington this November is solid. The “Trillion Dollar Handshake” has set the stage. Now the real work of building the future begins.

The post Saudi and US: The new dynamic duo appeared first on International Finance.

Paloma Adams-Allen, who has over two decades of experience in global development leadership and expertise, most recently served as the Chief Operating Officer and Deputy Administrator for Management and Resources at the United States Agency for International Development (USAID), where she oversaw operations in over 100 countries. She previously served as the President and CEO of the Inter-American Foundation, in addition to holding senior positions at Winrock International, the Organisation of American States, and USAID’s Latin America and Caribbean bureau.

“Paloma’s deep operational experience, global perspective, and commitment to empowering communities make her the right leader to guide Airlink into its next chapter. Airlink’s priorities include expanding our humanitarian logistics capabilities to enhance our capacity for disaster response—we are confident that Paloma can deliver results,” Todd Freeman, Chair of Airlink’s Board of Trustees, said.

Airlink, which turns 15 in 2025, uses its airline and logistics network to move humanitarian aid to non-government organisations for free or for a nominal cost, positioning itself as a key logistics expert.

“As natural and man-made crises become more frequent and complex, Airlink’s model—saving lives by connecting aviation and humanitarian partners to get aid to communities in crisis quickly and cost effectively—has never been more necessary,” Paloma Adams-Allen said, while reacting to her appointment.

All You Need To Know About Paloma Adams-Allen

Paloma Adams-Allen grew up between Jamaica’s Strawberry Fields and the very different environment of New England, and that mix gave her a sense of how uneven opportunity can be depending on where an individual stands. It’s part of what pulled her toward global development long before she ever imagined leading large organisations.

She started in roles where she had to learn by doing, working with regional groups, dealing with policy details, and talking to people on the ground. Those years at places like Caribbean-Central American Action and Coudert Brothers gave her the kind of experience that doesn’t show up in traditional leadership and corporate textbooks. These assignments also led her to the Organisation of American States, where she saw up close how complex international cooperation can be when cultures, governments, and priorities collide.

Later, when Paloma Adams-Allen moved into leadership roles, her work became more connected to long-term impact. At Winrock International, she spent her time bringing public and private partners together, trying to make development efforts more practical and sustainable. That experience carried over to the Inter-American Foundation, where she focused heavily on supporting community-driven projects, initiatives built from the ground up instead of the top down. At USAID, she stepped into senior roles that required her to manage big strategies and budgets while dealing with crises that didn’t wait for anyone’s timeline.

Now, as Airlink’s President and CEO, she brings all of those chapters with her. The job asks for someone who understands both emergency response and the long, slow work of rebuilding lives, and she has lived in both worlds. Her background—part personal, part professional—has made her the kind of leader who pays attention to the human side of global challenges. And that’s the approach she’s taking as she guides Airlink into the next set of challenges.

The post Business Leader of the Week: Paloma Adams-Allen steps in as Airlink’s new President and CEO appeared first on International Finance.

IndiGo, known for operating at least 60% of domestic flights in India, is facing one of the worst crises in the history of global aviation. The disruption has so far resulted in mass cancellations, widespread delays, and the company paying refunds amounting to 827 crore rupees. Shares of InterGlobe Aviation, IndiGo’s parent, fell nearly 9% on November 8, with the company losing nearly 18,000 crore rupees worth of market valuation.

The whole crisis started as India’s new passenger safety norms came into effect. It has put strict emphasis on the duty timings of pilots and flight crew, making sure they get a mandatory weekly rest period of 36 to 48 hours, while capping the flying hours that continue into the night to 10 hours.

While IndiGo’s rivals Air India and SpiceJet have already hired more staff to comply with the new rules, IndiGo, which runs 2,200 flights daily, has fallen short of the crew, resulting in massive flight cancellations, causing an ordeal for thousands of flyers.

While the Narendra Modi-led Indian government has relaxed the new aviation safety rules, it is in no mood to let the airline go unpunished. Apart from show-causing Pieter Elbers, the South Asian country’s civil aviation ministry is also mulling drastic moves like slashing IndiGo’s winter schedule and reducing the number of flights by 5%.

Amid the chaos, while the company’s board members anonymously expressed their views on Pieter Elbers’ future at the company to the leading Indian business daily Business Standard, no conclusion has been reached yet.

A board member said that while removing Pieter Elbers was an option, finding a new CEO who can run an airline operating around 2,300 daily flights is not easy. Expressing confidence in Elbers’ capability, a second board member said he had handled multiple crises as an aviation industry veteran, and the ongoing chaos was “another major crisis” he must manage effectively.

The first member, however, said if the Narendra Modi government puts “intense pressure,” along with a “substantial financial penalty,” the company may have to think about a leadership change. The second member highlighted that disciplinary action could instead be directed at other senior executives responsible for managing the pilot duty roster and overseeing hiring.

IndiGo has nine members on its board, chaired by Vikram Singh Mehta, a former IAS officer and ex-head of Shell India. Promoter-director Rahul Bhatia is serving as managing director. The board also includes the likes of senior lawyer Pallavi Shardul Shroff and former Indian Air Force chief BS Dhanoa, with the duo serving as independent directors. Michael Gordon Whitaker, former head of the US Federal Aviation Administration (FAA), is also an independent director.

Meleveetil Damodaran, former Sebi chairman, sits on the board as a non-executive director, along with finance veteran Anil Parashar and former WestJet chief executive Gregg Albert Saretsky. Amitabh Kant, former Niti Aayog CEO, is also a non-executive director.

Photo Credits: IndiGo

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