Tag Archives: NESMA Group

Yesterday I got some news from FTN News that might spell bad news for America. America is at this moment drowning in tourism ‘debts’ (for a lack of a better word). At present the downfall is set to 29 billion dollar and there are several sources who give us that there is all likelihood that this will not be reversed until 2029. And that is merely the reversal of income (if America does an about face basically today) the loss of income will continue. America will bleed tourism revenue for years to come. And the bad news that is added is seen (at https://ftnnews.com/travel-news/aviation/inside-saudi-arabias-bold-plan-for-a-low-cost-airline-with-45-planes-by-2030/) giving us ‘Inside Saudi Arabia’s Bold Plan for a Low-Cost Airline with 45 Planes by 2030’ where we see “Saudi Arabia’s bold plan for a low-cost airline with 45 planes by 2030 is the Kingdom’s latest move to transform its aviation sector and boost tourism and connectivity” Now don’t think this is a silly notion, but at present in Europe, Canada, Asia, Australia and a few more countries people can only afford one vacation a year and the sewing of cheap holidays to a place where many like to see it, it means that most will contemplate Saudi Arabia against the unwelcoming grounds of America. Considering that the bulk of Muslims (who are about 1.8 Billion, close to 20%) they all will consider Saudi Arabia over America, especially if that comes with lower costs. As such this is almost a slam dunk win for Saudi Arabia. So when we see “The new carrier will be operated by a consortium led by UAE-based Air Arabia, in partnership with Saudi companies Kun Investment and Nesma Group. According to the Saudi General Authority of Civil Aviation, this alliance was awarded the contract to launch the airline after a competitive bidding process that also included Jazeera Airways and other regional players.” It sets a setting that the UAE/Saudi Arabia connection could spell a lot more bad news for certain parties. As stated, base operations might be in Dammam, yet they are aiming to carry at least 10 million passengers per year once fully operational. Its 81-route network—comprising 24 domestic and 57 international destinations will set the fall to others up to 10,000,000 passengers annually and that is merely the beginning. As I see it, the 10,000,000 will grace Dammam, Riyadh, Jeddah, Abu Dhabi and Dubai. Considering the simplest setting that many will now be able to afford a trip to Dubai with its 0% taxation and Apple growing there too I expect a boom of people trying to unite cheap vacation with cheap shopping and in that regards Abu Dhabi remains an option for these people. The could visit both with the High Speed train that takes you to the other UAE destination in a mere 35 minutes. So how interesting is that against any place in America? 

So is this a real threat against American revenue? I believe it is and after the bad setting that America pushed itself in, and the upcoming Vision 2030, I reckon that America might get a prolonged bad tourism time going through until 2032/2033, a few years after Disney and Harry Potter theme parks graced Yas Island totaling the amount of theme parks to 6 with the added Yas Island Mall and the F1 races there too. And Harry Potter to be expected to arrive late 2026 and as there is no date for the new Disney park, I expect that this will not happen before early 2027. But that sets a new danger for America getting relieve to its tourism downfall. 

The setting that SeaWorld is an unique place merely sets the premise towards a lot of tourists selecting Abu Dhabi over America and that is merely the start of this matter. So as I see it, whomever invested in the new airline (apparently The NESMA Group and Kun Investment Holding) seem to be riding an great profit venture and as this goes on the investment might turn out to be a golden one and that is before the impact is seen that Neom Bay airport will face and that means tourists will flock towards Trojena and its ski slopes. Yup, the Kun Investment Holding is looking towards the bright side of profits.

So could I be wrong? 
It is a fair question, but the reality is that nearly all people need a vacation and when the price goes down people can do more and as such these 10,000,000 annual places are 10,000,000 that America loses, pretty directly and that is after the losses it is already facing at the moment, as such I feel pretty confident that this will make it, even as it is not the only one in Saudi Arabia. There is also Flyadeal, Flynas and Air Arabia. The fact that Saudi Arabia is ready to expand the tourist game implies that they have been upgrading with a focus and I think it will drive people towards Trojena and Sindalah, which is besides the options that Abu Dhabi and Dubai offer. So as I see it, America will be facing several more hard years and that is if they do an about face on tourism as per today, when they do not, by 2028 Ski tourism will go towards Saudi Arabia as well. A nasty package is coming to the American shores. They did this to themselves, as such I feel it is their own fault. But to see this amount of damage due to the stupidity of America first is pretty laughable in any book you read.

As such have a great day and if you need a point of investment, I reckon having a better look at the Kun Investment Holding might not be a bad idea. Don’t ask me for advice, this is all I see and I am not the expert in investing, but there are good times ahead for Kun Investment Holding.