Good morning, friends, and a very happy THURSDAY to us all. We have a rather busy issue with which to wrap the week — and the month of August — so let’s jump right in.

⚠️WEATHER WARNING- Storms continue through to next week: Makkah will continue to see heavy rain, flooding, and strong winds through to Saturday, the General Directorate of Civil Defense said, according to SPA. Madinah, Al Baha, Asir, Jazan, and Najran are also in for medium to heavy rain, the directorate said.

HAPPENING THIS WEEK-

The inaugural Saudi Arabia Snooker Masters kicks off tomorrow and wraps up next Saturday, 7 September, at Green Halls in Riyadh. The lineup includes seven-time world champion Ronnie O’Sullivan, Judd Trump, world No.1 Mark Allen, world champion Kyren Wilson, and Mark Selby, and 139 others with a purse of GBP 2.3 mn, according to The National. Also competing as a wild card is our very own 14-year-old Ziyad Al Qabbani. With its debut, the Saudi Snooker Masters is now the sport’s “fourth major.”

PSAs-

#1- Reminder that there are rewards for reporting tax violations: The Zakat, Tax, and Customs Authority (Zatca) offers rewards between SAR 1k and SAR 1 mn (capped at 2.5% of the value of the violations) for reporting valid tax violations, Zatca spokesperson Hamoud Al Harbi told state news agency SPA. Zatca has previously had this policy in place.

#2- We now have a revised national version of the Generic Statistical Business Process Model (GSBPM), according to a statement from the General Authority for Statistics (Gastat). This updated model, reflecting current international standards, provides a comprehensive framework for managing statistical processes, from data collection to publication. It is designed to boost the quality and uniformity of statistical practices across governmental and private sectors.

#3- Air conditioner manufacturers are required to obtain both the Energy Efficiency Card and the Gulf Conformity Mark, the Industry and Mineral Resources Ministry said on X. The certifications can be applied for on the Saudi Standards, Metrology and Quality Organization (Saso) platform here and here.

#4- The Environment Ministry is offering 27 land plots for lease in Najran to be used for poultry projects. Submissions can be filed through the Naama platform between today and 28 September.

#5- SFDA calls on biopharma experts who want to contribute to the development of vaccines, blood products: The Saudi Food and Drug Authority is calling on all seasoned biopharma professionals who are interested in helping the development of vaccines, blood products, biotherapeutics, and advanced therapies to join the experts’ list of the Research and Laboratories Sector, the authority said on X.

WATCH THIS SPACE-

#1- Olympics in Saudi? The Kingdom is exploring the possibility of bidding to host the Olympics as part of its extensive economic transformation, which includes heavy investments in sports, Saudi Esports Federation Chairman Prince Faisal bin Bandar bin Saud said, according to Bloomberg. “We as a country are setting up for doing more and more, and I think the Olympics is a logical step,” he said.

#2- Saudia lines up five-year expansion plans: The Kingdom’s flagship carrier Saudia is set to receive 191 new aircraft by 2032, adding to its current fleet of 188 aircraft, Director General Ibrahim Al Omar said on the Socrates podcast (listen, runtime: 2:14:28). New aircraft deliveries are set to kick off late next year and will include some 100 electric aircraft, Al Omar said. Saudia is also set to double the number of its destinations to 140 in the next five years in a bid to meet rising demand and to cater to upcoming mega events including Expo 2030 and the FIFA World Cup 2034, with the carrier angling for a position among the world’s top five airlines by 2027.

How will Saudia finance the upgrades? The carrier plans on lining up loans, as well as tapping its own resources from leasing and reselling aircraft to fund its fleet expansion, Al Omar said, adding that some 40% of Saudia’s fleet is currently leased out.

DATA POINTS-

Consumer spending in Saudi via point-of-sale (PoS) transactions declined 14.1% w-o-w for the week ending 24 August at SAR 11.7 bn, according to Sama’s weekly PoS report (pdf). Meanwhile, the number of weekly transactions fell 9.2% at 185.4 mn transactions.

The breakdown: Restaurants and cafes were the highest spending category during the period at SAR 1.6 bn, followed by food and beverages (SAR 1.5 bn), and miscellaneous goods and services (SAR 1.3 bn). Riyadh had the highest value of PoS transactions during the week at SAR 4.2 bn, followed by Jeddah (SAR 1.7 bn), and Dammam (SAR 590 mn), the report said.

OIL WATCH-

#1- Aramco dividends and non-oil revenue to support government budget: Greater returns from Aramco on the back of more performance-linked dividends and a boost in dividends per share will keep state hydrocarbon revenues this year on par with last year’s despite a downtick in export volumes, according to Jadwa Investment’s August Macroeconomic Update (pdf). Meanwhile, “higher non-oil budget revenue and higher government spending will largely cancel each other out” yielding a current account surplus, the report adds. It also revised its inflation forecast down to 1.7% from 2% on the back of global inflation cooling down, and consumer prices growing at a “stable and modest” rate.

#2- Pundits are divided on whether Opec+ will move forward with its proposed production boost next quarter, due to persistent concerns about demand impact prices, according to a Bloomberg survey. 12 analysts believe the cartel will proceed with the hike, while 11 think the move will be put on ice, and five expect it might be only partially implemented or dependent on a continued production freeze in Libya.

#3- A bearish outlook for oil next year: Goldman Sachs and Morgan Stanley lowered their price predictions due to rising global supplies, including potential increases from Opec+, Bloomberg reports. Goldman Sachs now forecasts benchmark Brent crude will average USD 77 / bbl, while Morgan Stanley estimates futures to range between USD 75-78. Both banks expect a surplus in the crude market, leading to lower prices throughout the year.

OUT AND ABOUT-

Make weekend plans for some Japanese-Brazilian-Peruvian fusion cuisine: The world-famous Sushisamba is opening its doors today in the King Abdullah Financial District, Riyadh, according to its website. You can book your dining experience here.

SPORTS-

The scoreboard for Saudi Pro League matchday 2 of 34:

  • Al Fateh vs. Al Ahli: 1-0
  • Al Feiha vs. Al Nassr: 1-4
  • Al Raed vs. Al Qadsiyah: 0-1
  • Al Ettifaq vs. Al Akhdoud: 1-0
  • Al Hilal vs. Damac: 3-2
  • Al Wehda vs. Al Orobah: 2-1

Today’s matches:

  • Al Riyadh vs. Al Kholood (6:55pm)
  • Al Khaleej vs. Al Shabab (9pm)
  • Al Ittihad vs. Al Taawoun (9pm)

#1- Nantes FC’s Egyptian striker Mostafa Mohamed has reportedly turned down a EUR 15 mn offer to join the Saudi Pro League from an undisclosed club, according to L’Équipe.

#2- Al Ahli really want Victor Osimhen: Al Ahli submitted an improved offer from their GBP 60 mn to Napoli, attempting to out-bid Paris Saint-Germain and Chelsea who have also shown interest in the Nigerian striker, according to The Football Faithful. The value of the new bid was not disclosed.

#3- The Professional Fighters League returns to Saudi for its playoffs season, PFL MENA 3: The semifinal matchups will be held on Friday, 20 September, in Riyadh at the PFL MENA Studio, Boulevard City. This event, part of a four-event season, features top fighters from the Bantamweight, Featherweight, Lightweight, and Welterweight divisions competing for a spot in the PFL MENA Finals and a chance to become the inaugural champions.

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THE BIG STORY ABROAD-

The international business press is uniformly leading its front pages this morning with Nvidia’s earnings, which we unpack in Planet Finance, below.

Also getting prominent coverage this morning: Telegram CEO and founder Pavel Durov was charged in France for being complicit in the spread of inappropriate images of children on the platform, in addition to complicity in illicit transactions, fraud, and drug trafficking. Durov was also charged with failure to comply with authorities on investigations into illegal activities happening on Telegram. French authorities ordered Durov to post EUR 5 mn bail and banned him from leaving the country. Durov was arrested on arrival in France earlier this week. (Bloomberg | Financial Times | Wall Street Journal | Washington Post | New York Times)

PLUS- OpenAI is in talks for another funding round that would give the ChatGPT maker a valuation of more than USD 100 bn, the Wall Street Journal reported. OpenAI is currently valued at USD 86 bn. The company is in talks with Thrive Capital — which alone could invest USD 1 bn — and other investors for its first funding round since the release of ChatGPT in early 2023. CNBC and the Financial Times also have the story.

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