Good morning, wonderful people. On an otherwise very slow news day, we lead this morning’s issue with breaking news that the head of the Royal Commission for AlUla has been detained.

Amr AlMadani was arrested on charges of corruption, the Oversight and Anti-Corruption Authority (better known as Nazaha) said late last night on X. AlMadani, a high-profile figure who first entered the national spotlight as the founding CEO of the General Entertainment Authority, faces charges of abuse of office and money laundry.

The charges cover allegations both before and after AlMadani joined government service. A relative of the RCU CEO was also arrested in connection with the investigation, as were AlMadani’s two partners at National Talents, a company AlMadani (LinkedIn | Twitter) ran and where he remained a shareholder entering government.

Could the investigation widen? At least one of the charges relates to a contract with King Abdullah City for Atomic and Renewable Energy that National Talents won before AlMadani moved to the General Entertainment Authority.

A clear message from Nazaha: There is “zero tolerance” for corruption, the authority warned, saying it would “pursue anyone who exploits the public office to achieve personal gain or harm public interest.”

AlUla is one of the Kingdom’s most visible megaprojects as the 200k-year-old settlement becomes a global tourism and cultural hub.

** You’re reading issue #2 of EnterpriseAM KSA, your essential 7am KSA briefing on business, finance, economics, regulation, and public policy, produced in Riyadh and Cairo. You can subscribe here without charge.

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WATCH THIS SPACE-

#1-A direct shipping line between the Kingdom and Iran could be happening: The Kingdom and Iran plan to establish a direct shipping line connecting Dammam with Kangan under efforts to boost bilateral trade ties, Iran’s semi-official Mehr news agency reported yesterday, citing statements by local governor Ahmad Mohammadizadeh. He said the shipping line was decided during a recent visit to Dammam by Iran’s Deputy Foreign Minister for Economic Diplomacy, Mehdi Safari. The story includes no further details, and Saudi officials have offered no comment on the report.

REMEMBER- The two countries have been working to advance ties in the past months since their restoration of relations last year, although an agreement to restore direct umrah flights has recently stalled for what Tehran has called “technical reasons.”

#2- A delegation from the World Water Council is in town to evaluate the Kingdom’s bid to host the 2027 World Water Forum, SPA reported yesterday and met with the deputy minister of environment, water, and agriculture Minister, Mansour Al Mushaiti. The delegation’s itinerary includes visits to the Saline Water Conversion Corporation, the National Water Company, and others.

#3- A mandatory uniform code for bus drivers is coming in spring: The Transport General Authority (TGA) is introducing a new uniform code for bus drivers across the Kingdom, a handbook (pdf) on the decision showed. Municipal, education, international, and specialist services will all need to comply. The requirements are set to come into force on 27 April:

  • Female drivers can choose to wear either a standard abaya with an optional head cover or black cap and black shoes or a long-sleeved blue shirt and black trousers, belt and boots.
  • Male drivers will be allowed to wear either the thawb and optionally a shemagh or ghotra or a black cap or wear a uniform long-sleeved blue shirt and black trousers, belts and boots like women drivers.

PSAs-

#1- The Saudi Industrial Development Fund (SIDF) Academy is now accepting applications for its programs this year, it said in a statement yesterday. The programs include finance for non-financial professionals, transitioning entities to the fourth industrial revolution, project finance, and credit analysis for SMEs. The first program begins on 18 February, with the rest set to be held throughout the year. Check the program calendar here.

#2- Beware, unlicensed real estate pundits: Individuals and executives providing analysis on of the real estate industry in the press or on social media without a license could be in risk of a fine of up to SAR 200k, Real Estate General Authority (REGA) spokesperson Tayseer Al Mufarrej said in an interview with Rotana Khalijia (watch, runtime: 5:53).

#3- The Saudi Business Council is asking business owners to give it a copy of their financial statements through its Qawaem portal. It hopes to use the data in financial and economic reports.

SPORTS-

Inter Miami will go head-to-head with the Blue Wave today at the Kingdom Arena stadium at 8 pm KSA for the first match of the US club’s pre-season tour here.

This is what you are scrolling down for: Football GOATs Lionel Messi and Ronaldo will share the same pitch on Thursday when Inter Miami meets Al Nassr.

The Green Falcons will face South Korea tomorrow in an Asian Cup Round of 16 knockout match at 6 pm KSA. Tajikistan beat the UAE after a penalty shootout yesterday, and Australia sent Indonesia home after a 4-0 victory, advancing the winners to the quarter finals. Qatar will be facing Palestine today, while Iraq will go head to head with Jordan.

THE BUSINESS OF LAW-

Our friends at Mithaq Law Office have opened a joint-venture law office in Riyadh with leading Egyptian firm ALC Alieldean Weshahi & Partners. The firm, known as Mithaq Law Firm in Association with ALC Alieldean Weshahi and Partners, will have a team of 20 multilingual professionals in Riyadh and plans to have a presence in other major business centers in the region, the firm said in a statement (pdf).

The Mithaq-ALC tie-up is a member of the Grimaldi Alliance, a global network with more than 500 lawyers in Italy, London, and New York, as well as 2k others in more than 70 jurisdictions.

The aim is to provide a one-stop shop for the needs of clients in Saudi Arabia and beyond, Mithaq Law Firm Senior Partner Ziyad Al Qassim told us in Riyadh last week at a reception for the launch. The gathering at Al Zarqaa Majlis was attended by a who’s who of the Saudi business community, including senior executives and shareholders of major corporate groups and professional services firms.

Why a direct office now? “There has never been a more exciting time to do business in Saudi Arabia,” said Mithaq Law Firm Senior Partner Ziyad Al Qassim. “No other economy in the world holds the diversity of opportunities today as does Saudi Arabia. Our partnership will provide a full range of legal services to global companies in the Kingdom and to Saudi companies doing business abroad, spanning large projects, M&A, and capital markets through to complex matters of arbitration.”

THE BIG STORY ABROAD

One story dominates on an otherwise slow morning in the global press: The White House says Iran-backed fighters killed three members of the US military and wounded 25 in a drone attack on an American outpost in Jordan.

Why it matters: They’re the first US casualties since tensions started ramping up following Israel’s invasion of Gaza. Pundits on both sides of the ocean are calling the attack a “significant escalation that is likely to draw the US further into conflict even as Washington seeks to avoid a broader regional conflagration.”

“We shall respond,” said US President Joe Biden.

Oil prices climbed overnight following news of the attack and an earlier incident in which Houthi rebels struck a Trafigura-chartered tanker in the Red Sea.

It’s leading front pages from the business press onward: Financial Times | Wall Street Journal | New York Times | Politico | The Guardian.

From the business pages:

  • Banker bonuses are down: Wall Street’s Masters of the Universe thought their bonuses would be super-sized this year. They’re not. (Wall Street Journal)
  • Sales of climate-focused mutual funds crashed 75% in the past two years. Blame poor performance, competition from rising interest rates, and the backlash against all things “woke.” (Financial Times)
  • China is moving to curb short selling as the market downturn deepens. Beijing failed to deliver last week on an anticipated USD 100 bn stock bailout. (Bloomberg)

HAPPENING THIS WEEK-

It’s Fed week: The Federal Reserve kicks off its two-day policy meeting tomorrow Economists polled by Reuters see the Fed leaving rates at their current 22-year high at 5.25-5.5% when it meets later this week to ensure that “recent progress in inflation is sustainable.”

AND- It’s World Economic Outlook week: The IMF will be out with its January 2024 World Economic Outlook update tomorrow.

ALSO- It’s a massive week for earnings reports, with everyone from Apple to Amazon, Microsoft, Chevron, and ExxonMobil due to file results.

WEATHER- Expect a cloudy day in Riyadh, Madinah, and Makkah today.

  • Riyadh: 24°C daytime / 11°C overnight
  • Madinah: 23°C daytime / 12°C overnight
  • Makkah: 29°C daytime / 22°C overnight

CIRCLE YOUR CALENDAR-

The AlUla Tour 2024 will kick off tomorrow, 30 January and wrap up 3 February.

The Saudi International Marine Exhibition (SIMEC Expo) will kick off in Riyadh on Sunday, 4 February and wrap up Tuesday, 6 February. The event will bring together key stakeholders and decision makers to discuss activities related to marine fisheries and the aquaculture sector.

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.

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 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.

The Kingdom has submitted a bid to host the World Water Forum in Riyadh in 2027, SPA reported. The event is the largest international gathering in the industry.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

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