Good morning, wonderful people, and happy Thursday to you all.

This morning’s issue is once again packed with news including Cenomi Centers landmark debt package, the state budget deficit for 2023 coming in below forecasts, some regulation coverage, and a guide to what you can expect on how companies are looking at hiring and salaries this year.

Before we get underway this morning, we have a WEATHER WARNING from the General Directorate of Civil Defense, which warns we have some wild weather coming our way this weekend through at least Saturday. Makkah will get the worst of it, but you can also expect thunderstorms and hail in areas including Riyadh, Al-Baha, and the Eastern Province, state news agency SPA reports.

Rainfall could be heavy at times even if it is intermittent or brief, so watch out for flooding in low-lying spots,. There’s also a chance of blowing dust.

  • Riyadh: 27°C daytime / 13°C overnight
  • Makkah: 30°C daytime / 20°C overnight
  • Madinah: 26°C daytime / 13°C overnight

WATCH THIS SPACE-

#1-Chinese e-commerce giant Alibaba is looking to partner with firms in Saudi and the UAE as China’s ties with the Arab world continue to warm, Bloomberg reported, citing statements by the company’s president, Michael Evans, at the World Government Summit. “We’ve just finished doing something very interesting in Saudi,” Evans noted, adding that local partnerships can help Alibaba keep up with the region’s developments.

BACKGROUND- GCC countries have been bolstering ties with China in recent years as they look to attract foreign investment to non-oil sectors of the economy. The move has attracted some pushback from Washington.

#2- Food retailers may have to come up with and implement food waste policies: The government is working on rules that would require food retailers to develop a food waste policy, Al Eqtisadiah reports, citing unnamed sources. The policy would include a mechanism aimed at lowering or eliminating waste, including returning waste to the original supplier, recycling it, or reprocessing it.

REMEMBER- The Kingdom produces the world’s largest amount of food waste on a per capita basis with over a third of food produced or imported by the kingdom going to waste, according to a 2022 study (pdf) published by King Saud University.

#3- We’re getting serious about protecting intellectual property rights: A new unit in the attorney general’s office will prosecute violations of intellectual property rights under the trademark and copyright laws. The office will investigate and explore whether to lay charges in cases referred to it by the Saudi Authority for Intellectual Property. Attorney General Saud bin Abdullah Al Mojeb signed off on the new unit, state news agency SPA reported yesterday.

PSAs-

#1- You can now update your family register online through the Interior Ministry’s Absherplatform, it said in a statement yesterday. Other services will allow military personnel to finalize their paperwork through Absher, according to the statement.

#2- You can still register to the Emerging Technologies Regulatory Sandbox until Sunday, 31 March, the Communications, Space and Technology Commission (CST) said in a statement yesterday. The program will see participants testing new technologies like Blockchain and IoT for their products and business models. You can register for the second cohort here.

DATA POINT-

#1- Saudi exports to the US fell 32% y-o-y to USD 16 bn in 2023, according to the latest US Census Bureau figures. Riyadh’s imports from the US rose 22% y-o-y to USD 14 bn over the same period.

MORNING MUST READ-

The Financial Times does a great job of arguing that our AI moment is becoming just a little bit frothy. No, it’s not a bubble. In the long run, AI will change how we live, work, and do business. But when Sam Altman talks (unironically) about raising USD 7 tn — more than the combined GDP of the UK and France, Inside Business columnist June Yoon writes — it may well be time for a reality check.

Go read AI hype has echoes of the telecoms boom and bust.

And while you’re at it: Go check out Early adopters of Microsoft’s AI bot wonder if it’s worth the money. Businesses everywhere are working out what AI tools mean to them. But is it really time to spend USD 30 per person, per month to get access to a bot that amounts to a not-too-bright intern that lies to you with great confidence (to steal from Benedict Evans and Nilay Patel in one sentence)?

THE BIG STORY ABROAD-

It’s all politics, all the time in the pages of the foreign press. Let’s start in Washington, where Politico and the New York Times report that Moscow may have made significant progress on the development of an anti-satellite nuclear weapon. The weapon has not yet been deployed, the Times writes.

MEANWHILE- The Wall Street Journal and Bloomberg are leading with Israel pulling out of Gaza peace talks. The Financial Times and the New York Times are looking at European defense policy in the wake of Republican presidential challenger Donald Trump’s remarks about not defending Nato allies that fail to hit their defense spending targets.

Turkish President Recep Tayyip Erdogan’s visit to Cairo in more than a decade is also getting attention as Cairo and Ankara look to turn a new page. EnterpriseAM Egypt has more coverage this morning.

Oh, and Vladimir Putin would prefer that Joe Biden be elected president of the United States, calling the sitting president “more experienced and predictable.”

OIL WATCH-

Not every OPEC+ member stuck to their share of cuts last month: OPEC+ is yet to fully deliver on their latest oil production trims as the monthly report (pdf) by the group of oil producers showed an uneven compliance to the agreed upon cuts. Kuwait and Algeria promptly implemented their share, but Iraq overproduced. Total OPEC+ production stood at 26.34 mn bpd in January down 350k bpd from December’s figures.

Iraq and Kazakhstan said they will stick to the output cuts after falling short of slashing production in January, Bloomberg reported yesterday. Kazakhstan’s Energy Ministry said it will “compensate for the overproduced volumes over the next four months.” Iraq, which pumped 190k barrels above its limit, said it will also review production and compensate for any overproduction over a four-month period.

SPORTS-

#1- The Aramco Saudi Ladies International gets underway today and runs until Sunday, 18 February at the Riyadh Golf Club. Sponsored by the Public Investment Fund, the golf tourney has a prize purse of USD 5 mn.

#2- The WWE’s Undertaker is returning to Riyadh to debut his ‘Graveyard Escape’ at the WWE experience in Riyadh’s Boulevard City. That’s according to WWE Chief Content Officer and 14-time world champion Triple H, who posted on social media platform X. The event kicks off tomorrow, and you can book your tickets here if it’s your kind of thing.

CIRCLE YOUR CALENDAR-

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.

The Diriyah Contemporary Art Biennale will kick off in Diriyah on Tuesday, 20 February and wrap up on Friday, 24 May. Headlined After Rain, it will be led by German curator Ute Meta Bauer and features 92 artists from 43 countries. It will see several new commissions, including a joint project documenting “Saudi futurism” since the 1940s by local artist Ahmed Mater and Berlin-based photographer Armin Linke.

The Future Investment Initiative (FII) will host a two-day priority summit in Miami starting Thursday, 22 February.

The annual tech event LEAP will open in Riyadh on Monday, 4 March and continue through Thursday, 7 March. Dubbed the “Digital Davos”, the event will bring together the global tech industry for discussions on the future of technology.

The Saudi Signage Expo will kick off in Riyadh on Tuesday, 5 March and wrap up on Thursday, 7 March. It bills itself as the largest event in the Middle East for digital, print, graphics and imaging.

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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