Good morning, wonderful people. The Public Investment Fund is still dominating the conversation on an otherwise quiet Ramadan morning, but the big news is that the non-oil economy now accounts for 50% of GDP — a welcome milestone on our journey to build a resilient, diversified economy.

Also worth reading this morning: Our Formula 1 explainer, which breaks down Aramco’s Aston Martin title partnership.

WEATHER- We’re in for light rain in Riyadh today, with a daytime high of 34°C falling to 21°C overnight. It’s shaping up to be a mostly cloudy week in the capital, with some sun peeking out on Wednesday.

In Makkah, expect brisk winds through tomorrow with temperatures reaching a high of 40°C before cooling off to 28°C overnight.

Meanwhile in Madinah, brace for some scattered thunderstorms today with the weather peaking at 34°C before dropping to 24°C at night.

So, when do we eat? Maghrib prayers are at 6:04pm in the capital city, and you’ll have until 4:40am tomorrow to hydrate and caffeinate ahead of fajr.

HAPPENING TODAY-

#1-A meet-and-greet between the PIF and PGA Tour: Representatives from the Public Investment Fund and the PGA Tour will meet today in Florida for what will be “more of a meet-and-greet than a substantive discussion” on outstanding issues, PGA Tour Policy Board member Patrick Cantlay told Sports Illustrated yesterday. “Well, I’ve gotta hear out what they have to say, and I will always do my best to represent the entire membership whenever I am in a meeting in that capacity,” Cantlay said. “I think more information is always better,” he added.

It remains unclear if PIF boss Yasir Al Rumayyan will attend today’s meeting at the Ponte Vedra Beach in Florida despite earlier whispers that he could personally be the key to moving forward the merger of the tour and PIF-backed LIV Golf.

#2- It’s a big week for the global hydrocarbon industry as S&P Global’s CERAWeek kicks off in Houston, Texas, running through Friday. Saudi Aramco CEO Amin Nasser will be on stage along with the chiefs of ExxonMobil and BP. They’ll be joined by a who’s who of senior US and international policymakers, global energy and services executives, leaders of national oil companies.

This year’s big themes: The outlook for energy markets, policy and geopolitics, net-zero supply chains, the green transition in power markets, paying for the transition to greener energy, and climate and sustainability. Check out the full agenda here and the live stream here.

ALSO THIS WEEK- The US Federal Reserve’s Federal Open Markets Committee meets on Tuesday and Wednesday. Market watchers will be parsing every word when the Fed updated economic projections public after the meeting.

At issue: How soon will the Fed cut rates — and how many times this year. Pundits now see the Fed leaving rates higher for longer than markets anticipate, according to economists surveyed in the latest Financial Times-Chicago Booth poll. Most respondents think we’ll see a maximum of two cuts this year. When? July or September, they say.

The fear: Acting too soon will not entirely snuff out inflation as the “last mile” battle looks tougher than originally thought after a surprise uptick in inflation last month.

It’s a huge week for central bank watchers: In addition to the Fed, we’ll see rate decisions or speeches from the Bank of Japan and the Bank of England. There will also be a barrel of economic indicators to parse, including consumer price or economic sentiment data from Canada, Germany, China, the EU and the United Kingdom.

EM watchers will be keeping an eye on: Turkey (Thursday interest rate announcement), Russia (Friday rate announcement), Brazil (Wednesday announcement), and Indonesia (also Wednesday).

WATCH THIS SPACE-

#1- Egypt’s EGAS is expanding to Saudi Arabia. The new venture, dubbed Modern Gas Saudi Arabia, will be 80% held by units of the state-owned natural gas player, Egypt’s oil ministry said in a statement. EGAS is responsible for the development and management of natural gas in Egypt, where it oversees everything from exploration and production to the transportation and distribution of natural gas as well as LNG imports and exports.

The Saudi Basira Company will hold a 20% stake in the venture, which looks set to focus on contracting as well as natural gas distribution to industrial, commercial, and residential clients.

DATA POINTS-

The value of residential mortgage loans written to individuals hit an 11-month high in January 2024 to SAR 7.5 bn, Arab News reported yesterday, citing data by central bank Sama. The loans in January are up 21% m-o-m.

The Kingdom was the region’s largest diesel exporter to Europe in February 2024 at 192k barrels per day (bpd), data from S&P Global Commodities at Sea showed last week. Kuwait’s shipments came in second, with exports more than doubling to an average of 114k bpd. The region sent an average of 374k barrels per day to Europe, the highest in two months, the data showed.

PSAs-

#1- Be safe out there: The Roads General Authority (RGA) is urging folks to drive with caution after fatal traffic accidents spiked 27% during the iftar rush last week, Saudi Gazette reported.

#2- Pilgrims can only perform Umrah once in Ramadan, Okaz reported, citing statements by the Hajj and Umrah Ministry. Permits issued through the pilgrimage itineraries booking platform Nusuk will be limited to one per person during the fasting month to help alleviate congestion.

#3- Prosecutors will use AI to help translate in cases involving foreign pilgrims, deploying an AI agent called Turjman that will be used be a special unit following up on cases involving hajj and umrah pilgrims, local media reports.

#4- King Salman has ordered the disbursement of over SAR 3 bn in Ramadan aid to social security beneficiaries, state news agency SPA reported yesterday.

SPORTS-

Joy Joyce wants to show banking heavyweights who’s boss in the Kingdom as he looks at planned fight cards in town for a chance of a comeback, talkSport reports. “Any opportunities in Saudi, we’ll see. Here in the UK and America. The world is my oyster, especially as a heavyweight. I’m really excited to get these big fight nights,” he said in a statement after putting down Kash Ali in Birmingham on Saturday

And some football whispers: Atletico Madrid midfielder Rodrigo De Paul could be on the Saudi Pro League’s radar for a summer transfer, according to Spanish media. A financial offer of c. EUR 40 mn could prove tempting for the club, which is looking to clear its debts.

THE BIG STORY ABROAD-

It’s another sleepy Monday in the global business press, with geopolitics (Putin just won reelection, getting six more years in power) and tech (the White House is pushing the Senate to take up without delay a bill that would ban TikTok) taking center stage.

Sign of the TImes- So. Much. AI. Anxiety. This time, physical robots take center stage:

Happening today: Super Micro Computer becomes an S&P 500 constituent. The server maker will instantly become the index’s top one-year performer when it does. The Wall Street Journal has the rundown on why. (Hint: Lots to do with the AI revolution.)

What’s a little xenophobia among friends? Republicans in the US Congress are probing whether Qatari funding for US universities has contributed to what they claim is a rise of antisemitism on college campuses. The catch: Most of the money they’re talking about was spent to build outposts for US universities in Doha. The Financial Times has the story.

CIRCLE YOUR CALENDAR-

The four-day Townhall Expo is slated for Thursday, 2 May, at Holiday Inn Hotel in Riyadh, featuring over 200 projects from Saudi-Egyptian real estate developers and investors who are aiming to wrap up EGP 2 bn in real estate transactions during the expo.

The three-day Smart Future Expo will open its doors on Monday, 13 May, at the Riyadh Front Exhibition and Convention Center. The gathering will include execs, investors, startups, and exhibitors, offering insights into smart tech including AI, AR, digital twin, cybersecurity, cloud computing, blockchain, business intelligence, IoT solutions, big data, and 3D printing. You can register here.

Projects tracking and analysis platform Meed is hosting the Saudi Giga Projects 2024forum on Monday, 13 May, at Crowne Plaza Riyadh, convening contractors, suppliers and top industry execs. The summit will provide an overview of the USD 870 bn mega projects currently under development across the Kingdom including Qiddiya, Roshn, and Neom. You can register here.

Meed will also be hosting its annual MENA Construction Summit 2024 on Tuesday, 14 May, at the same venue, where industry leaders will have a chance to network and discuss the challenges and potentials of construction tech, climate change resilience and sustainable development in the digital economy. You can register here.

The two-day Future Projects Forum kick starts on Monday, 20 May, at the Four Seasons Hotel in Riyadh, where contractors and investors will be able to meet 40 project owners including Aramco, the PIF, Investment Ministry, Asir Municipality, Mawani, Modon, and the Transport General Authority. The forum is expected to feature projects worth SAR 1 tn where contractors and investors can access information about these projects and weigh their bidding success chances.

^^ Check out our full Calendar on the web for links to all of these conferences.

Leave a comment

Your email address will not be published. Required fields are marked *