Good morning, friends, and happy THURSDAY to you all. We have a busy news morning for you, so let’s jump right in:

WATCH THIS SPACE #1- An unnamed investor is looking to launch a new airline serving routes to Africa, Aleqtisadiyah reports citing unnamed sources it says have knowledge of the plan. The airline has received the go-ahead from both local regulators and the African Civil Aviation Commission, according to the sources.

It’s just one of a number of possible shakeups of the local aviation industry: The Public Investment Fund announced in March 2023 that it will launch Riyadh Air. The challenger to Emirates and Qatar Airways will see its first flights in the air next year and aims to serve 100 destinations by 2030. Current national flag carrier Saudia will bid adieu to Riyadh by 2030 to make way for Riyadh Air and will instead base itself out of King Abdulaziz International Airport.

WATCH THIS SPACE #2- The Second Milling Co. (MC2) has changed its name to Arabian Mills, it said in a post on X. The miller, privatized in 2021 under the government’s privatization scheme for its state-owned milling firms, is said to be eyeing an IPO on Tadawul’s main market.

WATCH THIS SPACE #3- The Housing Ministry will ink an agreement next month with a Spanish real estate developer to build residential units within integrated residential communities and neighborhoods in Saudi, Al Riyadh reported yesterday, citing statements by minister Majed Al Hogail at the Saudi-Spain Business Forum in Madrid. He did not provide further details, but said the plan comes under the ministry’s target to raise home ownership by 70% in 2030.

In context: Al Hogail was in Spain for talks with Spanish officials on housing, infrastructure and real estate development among other topics.

DATA POINTS-

#1- The state-run Musaned recruitment platform for labor agencies here and abroad processed some 2 mn contracts last year for domestic workers from 33 countries, state news agency SPA . It didn’t give a comparable figure for 2022, but said growth in contracts processed came on the back of growing numbers of contracts for people from Ethiopia, Burundi, Sierra Leone, Tanzania and Gambia.

#2- Honey production in Saudi rose 41% y-o-y in 2023 to 3.1k tons in comparison with 2021 levels, state news agency SPA reported yesterday, citing data by the Environment Ministry-affiliated Sustainable Agricultural Rural Development Program (Reef Saudi).

PSAs-

#1- Do you have a recent finance or B-school grad in the family who is interested in a career in investment banking? The Saudi Central Bank is accepting applications for a six-week investment banking training program, it said in a statement yesterday. The program includes a mix of coursework and on-the-job training and was designed in partnership with the Wharton School at the University of Pennsylvania as well as top global banks and asset managers.

You (or your spawn) can apply for the program here. The deadline is 30 May.

Get a 50% break on all of your unpaid traffic fines starting today, according to state news agency SPA yesterday. Want to take advantage of the break? You’ll need to cough up what you owe within the next six months.

WEATHER- Look for clear skies in Riyadh with a high of 32°C, dipping to 17°C overnight Makkah could sprinkles today with a high of 38°C (cooling to 25°C overnight) while Tabuk is looking at the chance of blowing dust with a high of 34°C today and a low tonight of 17°C.

THE BIG STORY ABROAD: WAR?

To use the language of the weather forecasters: It’s a mixed day for news around the world, with no single story holding sway and little but clouds in the sky.

#1- Mattering most to our corner of the world: Israel’s allies are increasingly convinced that it will respond militarily — in one form or another — to Iran’s Sunday missile and drone attack.

“It is clear that the Israelis are making a decision to act. We hope that they do so in a way that does as little to escalate this as possible,” British Foreign Minister David Cameron said yesterday as he headed into a meeting with Israel’s Benjamin Netanyahu, who yesterday warned Cameron and German Foreign Minister Annalena Baerbock (also in Tel Aviv for a visit) that “we will make our own decisions.” G7 nations have still not announced the sanctions on Iran that they hope might convince Netanyahu to sit tight.

MEANWHILE- Iran is readying its air force and said its navy will start escorting Iranian commercial ships in the Red Sea as it prepares for an Israeli attack on its territory or allies.

#2- AND- Ceasefire talks on Gaza seem as stalled as ever (Egypt and Qatar are mediating the negotiations) and Iran-backed Hezbollah wounded 14 Israeli soldiers in a drone and missile attack yesterday in retaliation for Israeli attacks that killed Hezbollah troops.

Looking ahead: The UN General Security Council will vote tomorrow on a Palestinian request for full membership in the world body. A “yes” vote would be tantamount to international recognition of Palestinian statehood, so expect a US veto. Palestinian President Mahmoud Abbas reportedly snubbed a request from the Biden administration to delay the request.

IN THE BUSINESS PAGES-

#3- Wall Street is tempering its expectations of a Fed rate cut this year, with most interpreting Jay Powell’s remarks earlier this week as meaning the first change in rates won’t come until September at the earliest. Bank of America economists, meanwhile, say there’s a “real risk” the central bank won’t cut rates until March 2025 “at the earliest.” CNBC has a solid roundup of sentiment.

That comes as IMF boss Kristalina Giorgieva warned overnight that “central banks should resist the temptation to lower their key interest rates too early and risk a resurgence of inflation and a fresh bout of policy tightening.”

It’s day four of the IMF and World Bank spring meetings in Washington, DC, so stay tuned for more policy discussion heading into the weekend. We’ll have the wrap-up for you in EnterpriseAM at the start of next week.

MEANWHILE- US equities have now posted their longest losing streak so far this yearafter the S&P 500 and the Nasdaq fell for a fourth day in a row.

SIGN OF THE TIMES- The “fear gauge” is soaring after Powell’s remarks and amid worries that Iran-Israel tensions could spill over into a regional war. The volatility index, or VIX, is at its highest level since Hamas’ attack on Israel, meaning “US investors are paying the biggest premiums since October to protect their portfolios against market gyrations.”

AND- Tuesday’s crazy rain and flooding in the UAE have captured the imagination of business editors, with the story getting front-page play in the Financial Times, CNBC, and Bloomberg, among others.

EnterpriseAM UAE reports that some buildings were still without power yesterday and Dubai International Airport warned passengers to “NOT come to the airport unless absolutely necessary.”

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SPORTS-

#1- Al Hilal lost 4-2 to UAE’s Al Ain in the first leg of the Asian Champions League semi-final yesterday, with Al Ain’s Soufiane Rahimi’s putting an end to the Saudi side’s record of 34 consecutive wins. The loss comes after the game was delayed for a day after Tuesday’s historic rain storm lashed the Emirates.

Time to focus on Jeddah-Riyadh clash: A scheduled fixture between Al Hilal and Al Ahli in the Saudi Pro League on Friday will now be played on Monday, 6 May, the SPL said yesterday in a post on X. Blame the delay in the Al Ain fixture for the postponement. Al Hilal currently sits on top of the league table with 77 points, while Al Ahli is third with 52 points.

#2- The World Masters of Snooker will come back to Riyadh next year with USD 1 mn purse on offer as Riyadh Season becomes an official partner of the World Snooker Championship, General Entertainment Authority Chairman Turki Alshikh said yesterday in a post on X.

ALSO- World number one snooker player Ronnie O’Sullivan will become a Saudi ambassador for the sport for the next three years. He’ll take part in all World Snooker Tour events here and coach young Arab talent.

CIRCLE YOUR CALENDAR-

The Gulf Film Festival wraps today in Riyadh. The five-day event showcases 29 films from across the region.

The King Salman bin Abdulaziz Royal Reserve Festival is also it its last day today at the Cultural Center in Al-Qurayyat governorate.

Riyadh will host the 2024 IsDB Group annual meeting from Saturday, 27 April until Wednesday, 30 April.

Riyadh will host a special meeting of the World Economic Forum on 28-29 April.

Riyadh will host the Saudi Water Forum from Monday, 29 April to Wednesday, 1 May.

Automechanika Riyadh will open on Tuesday, 30 April till Thursday, 2 May at the Riyadh International Convention and Exhibition Center.

Innovation Week 2024 will kick off on Sunday, 21 April, at the King Abdulaziz City for Science and Technology (KACST) in Riyadh.

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