Good morning, wonderful people, and welcome to the first official issue of EnterpriseAM Saudi, your essential 7am report on business, finance, the economy, and regulation.
Our goal: To be the essential morning business report for senior executives, business owners, foreign and domestic investors, and anyone else interested in what we think is the world’s most exciting business story — indeed, the business story that will define our generation.
Enterprise is read by hundreds of thousands of senior people around the world who need the inside track on news that will move markets, drive investment decisions, and set the corporate agenda. They all share three characteristics: They are ambitious, they are curious about the world around them, and they want to make a difference.
Produced in Riyadh and in Cairo, EnterpriseAM Saudi is a daily subscription-only report delivered at 7am KSA by the same team that produces EnterpriseAM UAE and EnterpriseAM Egypt. For nearly 10 years, we’ve been trusted by C-suite executives, directors, fund and portfolio managers, entrepreneurs, senior managers, non-execs, investment relations officers, researchers, analysts, and diplomats around the world.
Our publications also include Enterprise Climate and Enterprise Logistics as well as our popular invitation-only conferences and C-suite events.
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WE’RE HIRING- If you’re a Saudi citizen with a passion for business, we have a couple of vacancies left on our Saudi news team. Successful applicants will file from the Kingdom for EnterpriseAM Saudi as well as our other publications, including Enterprise Climate and Enterprise Logistics. Career switchers and fresh grads alike are welcome to apply. Email patrick@enterprisemea.com to get the conversation started.
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HAPPENING TODAY-
#1-Foreign Minister Prince Faisal bin Farhan will land in Cairo today for talks with his Egyptian counterpart, Sameh Shoukry, Egypt’s state-run MENA agency reported yesterday.
On the agenda: Prospects of a weeks-long ceasefire in Gaza, on which Egypt and Qatar are leading negotiations (see below). Meanwhile, Egypt is still hoping that Saudi will both step up investment in the country and potentially provide it with fresh loans or deposits as the region’s most populous country looks for ways out of a foreign exchange crunch.
#2- The BiznEX International Exhibition kicks off today at the Riyadh Convention Center and is set to wrap up on Wednesday. Register here.
#3- The Saudi Franchise Expo 2024 begins today in Jeddah and runs through Wednesday.
WEATHER- Expect a mostly cloudy day in Riyadh today, with some wind in Jeddah and scattered clouds in Dammam. No rain or fog in the cards.
- Riyadh: 22°C daytime / 10°C overnight
- Jeddah: 27°C daytime / 18°C overnight
- Dammam: 24°C daytime / 14°C overnight
HAPPENING THIS WEEK
#1- It’s a huge week for corporate earnings, particularly on Wall Street, as we note in this morning’s Planet Finance, below. Analysts are watching the results closely for signs on the direction of travel of the US and global economy.
#2- We’re entering an interesting phase of the US presidential race. The next big primary for the Republicans doesn’t come until South Carolina on 24 February. (The Nevada caucus on 8 February doesn’t interest pundits much). The lull already has some speculating that Nikki Haley faces improbably long odds of beating Donald Trump. The Donald, meanwhile, says he is feeling mentally “sharper now than I did 20 years ago” after Haley savaged him for his age and gaffes on the campaign trail.
The take-home message: Get ready for the longest presidential campaign ever, featuring the oldest candidates, writes the Wall Street Journal.
#3- It’s a big week for tech nerds. Samsung’s very well-reviewed Samsung Galaxy S24 line starts shipping in Saudi and around the world on Wednesday (you have until then to place pre-orders that 2x your storage), and Apple’s Vision Pro face computer is due to ship on Friday.
How well reviewed is the S24? Marques Brownlee speaks for the pack when he asks of the S24 Ultra (the top-end model): Why buy anything else?
DATA POINT-
MBC crowned IPO king of 2024 — so far: Regional broadcaster MBC’s IPO is currently the world’s top performer this year, data compiled by Bloomberg showed last week. Its shares surged 134% since trading began earlier this month after its USD 222 mn listing, making it the top gainer among IPOs that raised at least USD 50 mn globally.
What the pundits are saying: “MBC is a household name in the region and investors are putting faith in their streaming platform, which caters to the MENA region,” Christian Ghandour, senior portfolio manager at Al Dhabi Capital, said. “As more IPOs come into regional markets, investors finally have a chance to gain exposure to sectors that were never represented on the equity markets.”
MBC shares shed 9.9% at the closing bell on Thursday as investors took profits.
OIL WATCH-
OPEC+ could say “no” to more oil cuts at this week’s meeting, Bloomberg reported last week, citing unnamed delegates who say the group needs to assess the impact of cuts already implemented this month. The cartel is due to meet on Thursday, 1 February. Russian oil major Gazprom Neft CEO Alexander Dyukov said “there is no need [to adjust the OPEC+ agreement]” on the back of fresh production cuts and a seasonal rise in oil demand in spring, according to Reuters.
AND- Aramco is working on refining and chemicals acquisitions in China and India, a senior company official told Bloomberg. “Really, the big growth markets for us are China, India and southeast Asia,” he said. “As we speak today we have teams in China negotiating deals,” he said.
WATCH THIS SPACE-
#1- Football legend Lionel Messi will lead a new global marketing campaign for the Saudi Tourism Authority to challenge “misconceptions” about the Kingdom, according to a statement yesterday. The “Go Beyond What You Think” campaign will focus on target markets in Europe, India, and China, the statement added.
#2- A unified digital ID for properties will help digitize real estate services and streamline operations, Ahmed Al Salman, general supervisor at the Justice Ministry-affiliated Real Estate Market platform told Asharq Business last week (watch, runtime: 3:24). The digital ID is a 16-digit number that covers all types of property and allows for access to everything related to the property, including ownership and services. Over seven mn temporary digital IDs and 500k active ones have been issued, according to Al Salman.
The pitch: The system will make it easier to buy and sell property.
#3- Makkah, Madinah to become global investment and events destinations: The Federation of Saudi Chambers (FSC) signed a manafea partnership agreement with the Islamic Chamber of Commerce and Development (ICCD) to turn Makkah and Madinah to a global investment hub and destination for international events, SPA reported last week.
PSAs-
#1- Companies failing to abide by new online delivery regulations will be at risk of financial penalties, Transport General Authority (TGA) spokesman Saleh Al Zowayeed told Asharq Business last week (watch, runtime: 5:31). Al Zowayeed didn’t provide information about the fines. The new rules come into force in early April.
REMEMBER- The TGA is introducing new rules aimed at regulating online delivery that will gradually phase out self-employment for non-Saudis in the sector.
#2-Landlords have until Saturday, 10 February, to apply for permits that will allow them to lease their properties to pilgrims during the Hajj season, the state news agency SPA reports citing an announcement by the Pilgrims’ Housing Committee.
THE BIG STORY AT HOME-
New day, new alcohol rules — for some: The Kingdom will open its first alcohol shop in over 70 years exclusively for non-Muslim diplomats. The new store will open in the coming weeks in Riyadh’s Diplomatic Quarter, according to a document seen by several news agencies. Reuters reports that initial conditions will include:
- Access only for approved diplomats vetted by the Foreign Ministry;
- No one under 21 will be allowed in the shop;
- Monthly quotas will be in effect (they look generous);
- No sending your driver to pick up your hooch.
We’ve been expecting this: New rules to control imports of “special goods” and ethanolic beverages by foreign embassies in the Kingdom took effect last week.
The rationale: The government’s Center for International Communication told Reuters that the new rules aim to counter the illegal trade of alcohol. “This new process will continue to grant and ensure that all diplomats of non-Muslim embassies have access to these products in specified quotas,” it said in a statement to the business newswire.
More to come? Speculation in Riyadh is that this is the first in a series of moves that will see alcohol become available next in select hotels across the country as officials position the Kingdom as a more tourist-friendly destination.
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THE BIG STORIES ABROAD-
Ongoing disruptions to shipping in the Red Sea continue to dominate global headlines this morning on what’s shaping up to be the first business day of a very busy week for news.
The Houthis struck a tanker operated on behalf of shipping giant Trafigura in what the press is dubbing the most serious attack yet on a vessel in the Red Sea. There have been nearly 80 incidents since the Houthis began their attacks in late November.
The US is pressing China to help bring pressure to bear on the Houthis, the Financial Times notes.Beijing, worried about how the disruptions could impact its own exports, is now reportedly pushing Tehran to tell its proxies that enough is enough. Don’t play ball? Business ties with China are at stake, diplomats have reportedly warned Iran, according to an exclusive from Reuters.
The conflict in the Red Sea and the shipping disruptions to which it is giving rise look set to drive volatility in natural gas prices this year, the International Energy Agency warned on Friday in its most recent quarterly report. Also impacting price volatility: The war in Ukraine and potential delay to the start of operations at a number of natural gas plants.
Aramco continues to send tankers through the Red Sea with both crude and oil products, Mohammed Al Qahtani, who leads the oil giant’s refining and oil trading and marketing units, told Bloomberg last week. Risks, he said, are “manageable.”
ONE THING TO READ that puts it all in context:The risks of relying on superpowers to protect global trade (the FT’s Big Read this morning).
ALSO WORTH KNOWING- A weeks-long ceasefire in Israel’s war in Gaza could be in the cards. Egyptian and Qatari negotiators, working in tandem with US officials, “are edging closer to an agreement in which Israel would suspend its war in Gaza for about two months in exchange for the release of more than 100 hostages still held by Hamas.” The agreement could be sealed in the coming two weeks, the New York Times writes.
INNOVATION WATCH-
Kaust researchers develop eco-friendly cooling film:Researchers from King Abdullah University of Science and Technology (Kaust) have developed a novel passive cooling technique that uses a superabsorbent polymer film to lower temperatures without the use of any electricity, Enterprise Climate reports. The team is now designing a process to produce the film at industrial scale.
Why does it matter? The researchers demonstrated that the film can reduce the temperature by as much as 5°C under a partly cloudy sky, potentially saving up to 3.3% of the total energy consumption for cooling if used on a commercial scale.
CIRCLE YOUR CALENDAR-
The Kingdom has submitted a bid to host the World Water Forumin Riyadh in 2027, SPA reported yesterday. The event is the largest international gathering in the industry.
Filipino exporters are coming to town next month: A business-matching tour will kick off on Saturday, 10 February, where a group of Filipino exporters of food, beverage and personal care products will tour Riyadh, Jeddah, and Dammam to market their businesses, Arab News reports.
The AlUla Tour 2024 will kick off on Tuesday, 30 January and wrap up 3 February.
The PIF Private Sector Forum takes place in Riyadh on Tuesday, 6 February to Wednesday, 7 February, the PIF said on Linkedin. The event will bring together the fund, portfolio companies, private sector and others to help advance economic growth.
The Hail Toyota International Rally which will kick off on 8 February and wrap up on 10 February. You have until Saturday, 27 January to register.
The Saudi Capital Market Forum will open on Monday, 19 February and wrap up on Tuesday. Held under the theme “Powering Growth,” the event will bring together members of the global financial landscape for discussions on the capital markets and investment strategies.
Riyadh will host the International Conference on Sand and Dust Storms in the Arabian Peninsulafrom Monday, 4 March to Wednesday, 6 March. The conference will address regional challenges caused by sand and dust storms and discuss monitoring systems, mitigation strategies, economic and infrastructural impacts, and more.
Tickets are on sale for the 2024 Saudi Arabian Grand Prix, scheduled for Jeddah from 7-9 March.
Riyadh will host a World Economic Forum special meeting on 28-29 April.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.