Flydubai makes first order from Airbus with 150 A321 Neo jets

Flydubai has signed up for 150 Airbus A321 Neo jets at the Dubai Airshow, marking its first Airbus order and a shift from its all-Boeing fleet.

The company will use the planes to diversify its fleet and strengthen its long-term expansion plans, Sheikh Ahmed bin Saeed, Chairman of Flydubai and CEO and Chairman of Emirates, told reporters at the airshow on Tuesday. 

Abu Dhabi carrier Etihad Airways placed an order for 32 wide-body aircraft from Airbus, including six A330 Neos, for delivery between 2028 and 2029.

Etihad also agreed to lease nine A330-900s from Avalon beginning in 2027 to support its long-haul expansion.

Meanwhile, Emirates President Tim Clark said he will hold off on ordering Airbus A350-1000 jets until engine durability and performance improve.

The Daily Circuit: Trump favors Saudi F-35 deal + Flydubai orders Airbus fleet

In the Daily Circuit today, we’re reporting on Flydubai’s big Airbus order at the Dubai Airshow, the joint $1 billion fund launched by the Hong Kong Monetary Authority and Saudi Arabia’s PIF, Kuwait opening bids for a solar power project to help address its chronic blackouts and UAE developer Mohamed Alabbar’s $55 million purchase of a 12th-century Italian castle. But first, the Trump-MBS summit kicks off today at the White House.

Even before Saudi Crown Prince Mohammed bin Salman touched down earlier today with an entourage of 1,000 on his first visit to the U.S. in seven years, U.S. President Donald Trump was playing dealmaker.

Bucking opposition in Congress for one of the most controversial items on the agenda when the two leaders meet at the White House, Trump said the sale to Saudi Arabia of a fleet of F-35 stealth fighter jets for roughly $4 billion was practically in the bag. “They want to buy it, they’ve been a great ally,” Trump told reporters in the Oval Office on Monday, adding, “Yeah, I will say that we will be doing that. We’ll be selling F-35s.”

Virtually every member of the Saudi cabinet, senior officials from the Public Investment Fund and CEOs from state-owned companies will be among those accompanying Prince Mohammed as part of a delegation Al-Arabiya said would total about 1,000. A more exclusive black-tie dinner is being arranged in the White House East Room for tonight.

Among the business leaders will be Tareq Amin, CEO of state-backed Humain, who is pitching Silicon Valley companies on the kingdom as a major source of AI computing power and is visiting the White House to seek U.S. approval for access to advanced American chips, Bloomberg reports. Humain is central to Saudi plans to build large-scale AI infrastructure as the country aims to become one of the world’s largest exporters of computing resources.

On Wednesday, the two countries are organizing a Saudi-American investment forum at the Kennedy Center in Washington, where both leaders are expected to appear, similar to the conference Saudi Arabia sponsored in May when Trump visited the kingdom. This week’s event is being organized by Saudi Arabia’s Ministry of Investment and the U.S.-Saudi Business Council.

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Dubai Airshow opens with Emirates’ $38 billion Boeing order

Emirates set the tone on Day 1 of the Dubai Airshow with a $38 billion order for 65 Boeing 777-9s, offering the aircraft giant a timely reprieve as it works to steady the long-delayed 777X program.

Sheikh Ahmed bin Saeed, Chairman and CEO of Emirates Airline group, said at a press conference on Monday that the order is a “massive long-term commitment” to U.S. aerospace manufacturing.

The airline will also roll out SpaceX’s Starlink across its fleet, with the first flight to offer the boosted Wi-Fi service on Nov. 23.

Despite Boeing’s early lead, the bulk of the orders from one of the world’s biggest airshows is expected to be won by Airbus.

The European planemaker is closing in on a deal to supply about 100 A321neos to Flydubai, a shift that would challenge Boeing’s long-standing dominance at the low-cost carrier. 

Saudia in talks with SpaceX to outfit aircraft with Starlink

Saudia Airlines is talking with Elon Musk’s SpaceX to bring Starlink’s high-speed internet to more than 140 of its aircraft.

If signed, the deal would mark SpaceX’s entry into the Gulf’s largest economy, even as local rival Neo Space Group races to develop its own in-flight service, Bloomberg reports.

While Saudia, the country’s flagship airline, did not comment on the news, its chief guest experience officer, Rossen Dimitrov, said in a post on LinkedIn that he recently toured SpaceX’s industrial complex in Texas to explore “the exciting future they are bringing to aviation.”

Starlink’s airline service follows a subscription model, with upfront hardware costs of $300,000 to $500,000 per plane plus a monthly fee per seat.

SpaceX is also in talks with Emirates, Flydubai, and Gulf Air, the news agency added. 

The Daily Circuit: China’s investments in Saudi surge + Kuwaiti beachscaping

👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at a $5 billion beach town in Kuwait, Flydubai’s inaugural flights to the Red Sea, “Golden Visas” for UAE companies and why Oman’s banks are adopting the IBAN standard. But first, China’s investment surge in Saudi Arabia.

China is emerging as Saudi Arabia’s most active foreign investor amid a flood of new projects aimed at turbocharging non-oil economic growth in the kingdom. The world’s second-largest economy accounted for 58% of new business investments — primarily focused on automotive, metals and semiconductor investments — in Saudi Arabia in 2023, with $16.8 billion invested. That figure is up more than tenfold from $1.5 billion the previous year, according to new data from Dubai-based Emirates NBD.

Saudi Arabia, the Arab world’s largest economy, is still trailing its target of attracting $100 billion in foreign direct investment (FDI) by 2030 as de facto ruler Crown Prince Mohammed bin Salman looks to boost non-oil GDP and diversify the economy. But 2023 showed signs of progress: foreign investment into new business in Saudi Arabia more than doubled to $28.8 billion last year, according to Emirates NBD, surpassing the 2018 peak of $17.6 billion but shy of the 2008 record of $34.3 billion.

The influx in foreign capital comes as Gulf economies are increasingly turning East to China and India, one of the fastest growing economies, for opportunity. Saudi Arabia and the UAE have been invited to join the BRICS economic alliance, which analysts have predicted will increase China’s power and influence in the MENA region. Still, the U.S. was runner-up: pouring $2.7 billion into Saudi Arabia, mostly in software and IT, and a 238% increase over the previous year. The UAE came in third, its investments primarily focused on renewable energy.

This week the kingdom’s Minister of Culture, Prince Badr bin Abdullah, visited Beijing, where he signed a flurry of agreements with his Chinese counterpart to boost collaboration. Museums, cultural heritage, theater, architecture and libraries are all on the table for greater exchange. “With the support of the leadership of the two friendly countries, Saudi-Chinese cultural cooperation begins a new chapter,” Prince Badr said on X.

🪪 Licensed to Sell: The UAE is considering a proposal that would enable foreign companies to obtain operating licenses for periods of five years and 10 years as a business stimulus.

💱 Payment Standard: Oman’s central bank will introduce the use of IBAN codes to manage consumer payments, aligning the country with international standards to ease transactions and fight money laundering.

☀️ Green Finance: Saudi Arabia may sell green bonds for the first time as part of its new Green Finance Framework aimed at reducing carbon emissions and reaching net zero by 2060.

U.S. President Joe Biden said Arab countries including Saudi Arabia were prepared to “fully recognize Israel” at a campaign fundraising event at Radio City Music Hall in New York on Thursday, that was attended by his Democratic predecessors Barack Obama and Bill Clinton. 

Sheikh Khalid bin Mohammed, Crown Prince of Abu Dhabi and Chairman of its Executive Council, approved the emirate’s tourism strategy that aims to raise the sector’s contribution to non-oil GDP to $24.5 billion and generate 178,000 jobs by 2030.

Sheikh Abdullah bin Zayed, the UAE Minister of Foreign Affairs met in Rome with Italian Foreign Minister Antonio Tajani, Minister of Foreign Affairs of the Italian Republic, where they discussed cooperation in trade, energy and investment.

Apr. 9, New York. The Information’s Private Capital Conference. An exclusive event for subscribers to join Founder and CEO Jessica Lessin and The Information’s reporters to discuss the future of technology and investing. New York Stock Exchange.

Apr. 16-17, Abu Dhabi, UAE. Green Hydrogen Summit 2024. Bringing together experts, policymakers, and industry leaders to explore opportunities and the industry’s future. Abu Dhabi National Exhibition Center. 

Apr. 16-18, Abu Dhabi, UAE: World Future Energy Summit 2024. A platform to showcase the solutions to some of the most critical challenges identified at COP28. Abu Dhabi National Exhibition Center.

Apr. 16-18, Dubai, UAE. Middle East Energy. Energy leaders gather to debate and shape the future. Dubai World Trade Center.

Apr. 23-25, Dubai, UAE: GISEC Global. A forum for furthering the key discussions that are helping to define cyber resilience and connecting the global cybersecurity community. Dubai World Trade Center.

Apr. 25-26, Abu Dhabi, UAE: DriftX. An event for smart, autonomous and sustainable urban mobility across air, land, and sea organized in partnership with the Abu Dhabi Investment Office, Abu Dhabi’s Smart and Autonomous Vehicles Industry (SAVI) cluster and Bayanat. Yas Marina. 

Apr. 28-29, Riyadh, Saudi Arabia: World Economic Forum Special Meeting. A gathering of investors, politicians and experts on topics of collaboration, growth and energy for economic development. TBC.

Apr. 29-May 1, Riyadh, Saudi Arabia: Future Hospitality Summit. An international gathering hosted in cities around the world bringing together the most influential hospitality investors and developers. Mandarin Oriental Al Faisaliah.

Apr. 29 – May 5, Abu Dhabi, UAE: Abu Dhabi International Book Fair. A key event for the publishing industry in the Middle East and North Africa. Abu Dhabi National Exhibition Center.  

Apr. 30-May 1, Abu Dhabi, UAE: Mobility Live. A conference and exhibition sponsored by the Abu Dhabi transport regulators, gathering disruptive technology developers in transportation and the public sector. Abu Dhabi National Exhibition Center.

Apr. 30-May 1, Abu Dhabi, UAE: Middle East Rail. The leading conference in the region for rail innovation, technology and strategy. Abu Dhabi National Exhibition Center. 

May 13-15, Abu Dhabi, UAE: Abu Dhabi Global Healthcare Week. A conference focusing on investments, and innovation to solve the most important global health challenges. Abu Dhabi National Exhibition Center and Abu Dhabi City.

May. 14-16, Doha, Qatar: Qatar Economic Forum, Powered by Bloomberg. A news-driven event dedicated to global business and investment. This year’s theme is “A World Remade: Navigating the Year of Uncertainty.” Request your invite here. Fairmont & Raffles, Doha.

May 29-31, Marrakech, Morocco: GITEX Africa. The second edition of the biggest tech and startup gathering in Africa. Place Bab Jdid. 

Wizz Air expands cheap flights in Mideast, pledges better service

ABU DHABI, United Arab Emirates – At $157 for a round-trip ticket, Wizz Air’s three-hour flights between Abu Dhabi and Tel Aviv last April were less than half the cost of FlyDubai, El Al and other competitors.

Passengers, however, were crammed into some of the narrowest seats in the industry, flights were habitually late and extra charges piled up for luggage, food and legroom. In February, Wizz Air was rated the U.K.’s worst airline by a consumer organization in terms of boarding, cabin environment and seat comfort.

The Budapest-based carrier’s executives acknowledge the shortcomings and say they’re trying to improve on-time schedules and customer service. At the same time, they suggest that passengers know what they’re getting with the airline’s “ultra low-cost” model – similar to RyanAir, easyJet and Spirit Airlines – and business has never been better.

“I’m actually not too worried about how we are performing,” Johan Eidhagen, managing director of Wizz Air’s Abu Dhabi-based Mideast division, told The Circuit. “But I do understand that, of course, a lot of skepticism comes around being low-cost, of how you can achieve [better service]. And that’s the challenge.”

The airline, which was established as a Hungarian company in 2003, flies to 54 countries and operates 183 aircraft. Its lead investor is Indigo Partners, a Phoenix, Ariz.-based private equity firm that also owns controlling stakes in the U.S. carrier, Frontier Airlines, and Chile’s JetSmart. 

Over the last few years, Wizz has increased flights to the Gulf, particularly the UAE and Saudi Arabia. The airline said in March that it plans to increase its fleet to 200 aircraft this year and 500 by 2030. The Mideast subsidiary, Wizz Air Abu Dhabi, is a joint venture between Wizz Air Holdings and ADQ, a government-owned Abu Dhabi investment company, which owns 51% of the airline. Eidhagen is a Swedish native who joined Wizz Air as a marketing executive in 2015 and previously worked for Nokia.

In July, the U.K’s Civil Aviation Authority said it had received hundreds of complaints about Wizz Air’s failure to reimburse passengers after flight cancellations and delays. It said the airline committed to complying with reimbursement regulations.

Alannah Travers, a communications specialist in the U.K., said she still hasn’t been reimbursed for a  flight she booked and then canceled to the Canary Islands in 2019. Getting any response from the airline’s telephone switchboard required more than an hour on hold. “Technically, I’ve never flown with them, but [the airline has] terrible customer service,” Travers said. Nadine Knotzer, an art gallery owner in Dubai, said high fees for luggage and seat selection on a London to Vienna flight made Wizz Air’s prices more expensive than she expected from a budget airline. “There is nothing cheap about this,” she said.

On the other hand, Salwa Azzam, a magazine editor in Dubai, said she found flying with Wizz Air delightful. “The team on board was incredibly friendly and attentive,” she said. “What surprised me the most was how affordable the tickets were without compromising on the quality of the flight.”

Eidhagen said Wizz Air’s priorities are passenger safety, low prices and on-time performance. “If we can deliver those three most important things,” he said, “then I think we have a strong and good airline.”