Good morning, ladies and gentlemen, and welcome to an unexpectedly (very) busy hump day. We have news of Aramco closing in on an agreement to buy Shell’s fuel station business in Malaysia, as well as a duo of reports from S&P Global on growing real estate demand in the Kingdom and projections of a potential increase in government debt to finance Vision 2030 projects.

^^ We have chapter and verse on these stories and more in this morning’s newswell, below.

HAPPENING TODAY-

Aramco will release 1Q 2024 results. Analysts will be looking for guidance on how Opec+ production cuts could impact profitability and, as a result, the company’s plans to pay some USD 34 bn in performance-based dividends this year.

The Saudi Smart Manufacturing trade fair is in its second day at the Riyadh International Convention & Exhibition Center as part of Riyadh international industry week. It brings together government officials, industry professionals, international and local manufacturers, and buyers to share knowledge and showcase new smart manufacturing technologies and goods. The event is held concurrently at the same location with Saudi Plastics & Petrochem, Saudi Print & Pack and Saudi Smart Logistics. It runs until Thursday, 9 May.

It’s day two of the Arabian Travel Market in the UAE. Expect plenty more tourism and aviation news today — and check out our report in the Aviation section of this morning’s news well, below.

For our fellow iSheep: Apple is expected to unveil new iPads this afternoon at 5pm Saudi time (7am Pacific). The expectation: a revamp of the line that restores some coherence to the offering (and for the Pro to get a FaceTime camera on the long edge). You can stream the announcement from Apple’s website or its Youtube channel.


WEATHER- Riyadh is looking rather cloudy today with a high of 37°C and a low of 22°C. Expect some winds in Makkah which is still on the hot side at a high of 39°C and a low of 26°C, and more winds in Al Taif with a high of 30°C and a low of 19°C

DATA POINT-

There are some 2.5k active licenses in the mining sector, including 1.6k for building materials quarries, 611 for exploration, 195 for exploitation, 42 for reconnaissance, and 28 surplus mineral ore licenses, according to Industry and Mineral Resources Ministry data. The ministry issued 20 new mining licenses in February 2024, including five exploration licenses, nine building materials quarry licenses, and six surplus mineral ores licenses.

WATCH THIS SPACE-

#1- A delegation of senior Saudi officials led by Assistant Investment Minister Ibrahim Al Mubarak landed in Pakistan yesterday for a two-day investment conference, state-run Pakistani news wire APP reports. The delegation is expected to sign several MoUs across sectors in Pakistan, which Al Mubarak described as “a high priority economic, investment and business” destination in his opening remarks at the conference (watch, runtime: 5:15).

ALSO- An agreement on Pakistan’s Reko Diq could be coming: The delegation includes executives from Manara Minerals who are looking to continue talks on the acquisition of a stake in Barrick Gold’s Reko Diq copper and gold mining project in Pakistan, Reuters reports, citing a Pakistan government document it says it has seen.

BACKGROUND- Manara is a joint venture between the Public Investment Fund and mining giant Ma’aden. Manara was said to be close to a USD 1 bn investment in the mining project — one of the world’s largest undeveloped copper-gold areas. A preliminary agreement could be made public in a matter of weeks, sources said last month.

We’ve been getting closer with Islamabad: Foreign Minister Prince Faisal bin Farhan was in the Pakistani capital last month, nearly a week after Pakistan’s prime minister discussed a USD 5 bn investment package during a meeting in Makkah with Crown Prince Mohammed bin Salman. Saudi has been among key backers of crisis-hit Pakistan, extending the term of a USD 3 bn in deposit at the State Bank of Pakistan for an additional year to mature in December 2024. This is in addition to USD 2 bn in financial assistance from the Kingdom last year to shore up the country’s finances.


#2- The region’s largest water theme park, courtesy of Qiddiya: The board of PIF’s Qiddiya Investment Company has approved the launch of a new water theme park that is slated to be the first of its kind in Saudi and the largest in the region, state news agency SPA reports. The water park — dubbed Aquarabia — will be home to 22 water games and attractions, including the world’s first double water loop and roller coaster with the highest jump among other record-breaking water games. It is set to complement Qiddiya’s Six Flags Theme Park.

REMEMBER- Qiddiya, a USD multi-bn development, aims to become the world’s largest entertainment hub. The district will be home to the world’s first-ever Dragon Ball themed park and a multi-use stadium where it plans to host major sports, cultural and entertainment events, including games at the 2034 Fifa World Cup. The destination will also be home to the world’s first gaming and esports district.


#3- The Kingdom’s “first 18-hole island golf course” is coming to PIF-backed Red Sea Global’s Shura Island next year, according to a statement. Shura Links, a par 72 championship length course, will span across 7.5k yards of green featuring multiple tees. It was designed in partnership with acclaimed golf architect Brian Curley, who was the mastermind behind Mission Hills Golf Club, the world’s largest golf facility.

#4- Radisson Hotel Group plans to have the Kingdom account for 70% of its portfolio in the region over the next three years, Vice President for Development Elie Milky told Argaam yesterday. Radisson currently operates 30 hotels, resorts, and hotel-apartment properties in the country, with another 20 under construction. It aims to operate 100 hotels or 20k rooms in Saudi by the end of the decade, Milky said.


#5- Local restaurants and food outlets may soon be obliged to have a tracking system for the exact food ingredients and packaging used to prepare their meals, the Saudi Gazette reported yesterday. The system would allow the operator to know and track the source and quantity of the ingredients being used to ensure food safety and quality. It would allow food items to be recalled in the event of violating food safety rules.

The system, proposed by the Housing, Rural Affairs and Municipal Ministry, follows a recent food poisoning outbreak linked to a local hamburger chain. One person reportedly died of food poisoning and more than 70 were made sick.


#6- The Saudi Fund for Development (SFD) and the UK’s Foreign Commonwealth and Development Office will work to improve the lives of the most vulnerable globally after signing a joint cooperation agreement, SFD said in a statement. The agreement will see the two collaborate on refining donor management, humanitarian aid transparency, and accountability, in addition to improving monitoring and evaluation schemes.

#7- Eight water bottling and distribution companies were fined for engaging in anti-competitive practices, the General Authority for Competition said in a post on X. The companies were handed fines ranging between SAR 100k and SAR 1 mn for price fixing. The authority didn’t name the companies.

PSAs-

#1- Tenants must pay a one-time security deposit through the Ejar platform against potential damage to the property during the rental period, Okaz reported yesterday. The security deposit can be itemized when both parties document the rental contract on Ejar, with the platform acting as a neutral party holding the deposit, it said. The agreed-upon unit delivery form dictates the process of automatic refund to both parties in their electronic wallets upon leasing contract expiration or cancellation, it added. If damage occurs, the deposit can cover costs or be returned to the tenant upon mutual agreement.

#2- Citizens traveling outside the region must ensure their passport has a minimum validity of six months, or three months for visits to Arab countries, the General Directorate of Passports said in a post on X.

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DID YOU KNOW that we also cover Egypt and the UAE?

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THE BIG STORY ABROAD-

Hamas has accepted a ceasefire proposal — Israel says it’s not enough and is hammering Rafah. Here’s what you need to know this morning:

  • Hamas accepted a proposal from Egyptian and Qatari mediators;
  • Israel says it doesn’t go far enough and plans to take over the Rafah border crossing;
  • Israeli forces are attacking Rafah by air and on the ground. More than 1 mn people have sought refuge in city on Egypt’s border, and the Israeli army is now telling at least 100k of them in east Rafah to move into a so-called “humanitarian zone;
  • Shuttle diplomacy continues today in Cairo after both sides said they’d continue indirect talks.

The Foreign Ministry has warned Israel against invading Rafah as part of its “systematic bloody campaign” against Gaza, it said in a post on X. Riyadh reiterated a call for the international community to intervene immediately to “stop the genocide carried out by the occupation forces against defenseless civilians in the occupied Palestinian territories.”

There’s more foreign policy ugliness in the headlines: Russia has rattled Western capitals with an announcement that it’s running drills on the use of tactical nuclear weapons. Pundits say the Kremlin is putting on pressure in response to French and British statements on Ukraine.

SOUND SMART- Tactical nukes are smaller, less-powerful weapons designed for use on the battlefield. Strategic nuclear weapons are the things designed to take-out cities.

IN THE BUSINESS PAGES- Reuters won a Pulitzer Prize for its long-term investigation into Elon Musk’s business empire, including Tesla and SpaceX. The newswire also won for its photography of the war between Hamas and Israel. You can read the full series here, read the Pulitzer announcement, or check out the long list (pdf).

CIRCLE YOUR CALENDAR-

The European Chamber of Commerce in the Kingdom of Saudi Arabia is set to launch tomorrow, the chamber said on LinkedIn. It will be the first EU chamber of commerce in the Gulf. The launch event will take place at the Cultural Palace in Riyadh.

Are you subject to withholding tax? You have until Sunday, 12 May to submit and pay withholding taxes for April, according to a Zatca statement. Late payers will face a fine equivalent to 1% of unpaid fees for every 30 days of delay.

The Saudi Giga Projects Summit will open next Monday, 13 May at the Hilton Riyadh Hotel and Residences. The Meed event will showcase Saudi’s USD 870 bn giga projects drive. It brings together contractors, suppliers and relevant stakeholders from the region and elsewhere for discussions on potential investments.

The MENA Construction Summit will kick off next Tuesday, 14 May at the Hilton Riyadh Hotel & Residences. Also organized by Meed, the one-day event will bring together developers, contractors, key executives and others to discuss the latest innovations in the construction industry.

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