id: 2024-09-26-03:59:46:225t

Good morning, ladies and gentlemen, and a very happy THURSDAY to us all. This may have been an abridged week, but the volume of news made it feel like a complete workweek — and today is hardly an exception. We have updates on a handful of developing stories, including Aramco’s USD-denominated sukuk sale, as well as new GDP growth projections from the OECD, the Kingdom’s latest trade figures, and much more.

WEATHER- Riyadh’s mercury will hit a high of 41°C today and a low of 27°C. Meanwhile, Jeddah will see a high of 37°C, and a low of 30°C.

UPDATES-

#1- Aramco issues price guidance on USD 3 bn sukuk sale: Aramco is guiding on a price of 90-95 basis points (bps) over US Treasuries for the five-year tranche of its ongoing sukuk issuance, and 105-110 bps above Treasuries for the 10-year notes, Reuters reports, citing IFR. The oil giant tightened the price guidance after previously guiding on 120 bps above Treasures for the five-year tranche and 135 bps for its 10-year tranche. The state-owned oil giant could lock in as much as USD 3 bn from the USD-denominated sale.

REMEMBER- This is Aramco’s second international debt issuance since July, following a three-year break. The step comes as the state owned oil giant navigates OPEC-mandated oil production cuts and prepares for substantial dividend payouts to the government, as part of its USD 124 bn dividend program for this year.

What the pundits are saying: Lower oil prices and production cuts were a key factor in Aramco’s decision to tap debt markets for a second time this year, as the oil giant looks to alternative sources to boost its FCF and support large dividend payouts, Bureau Chief of Saudi ops at Bloomberg Christiane Burke said in an interview (watch: runtime: 3:34).

#2- SURJ out of the race for EuroLeague minority stake? UK-based BC Partners is now in exclusive talks to acquire a minority stake in the EuroLeague basketball competition, the Financial Times reports, citing sources it says have knowledge of the talks. The exclusive negotiations mean that Saudi’s SURJ Sports and the US’ General Atlantic — which were looking to partner for the stake acquisition — are no longer being considered as bidders. The agreement, which could be valued at EUR 1 bn, is expected to be locked in within a month according to the salmon-colored paper.

REMEMBER: EuroLeague Commercial Assets, the owner of EuroLeague and EuroCup Basketball, is looking to sell about a third of the business.

#3- Dar Global’s first project in Saudi Arabia is expected to cost SAR 880 mn, according to a press release. The 200-villa development in North Riyadh, which it is building in partnership with jewelry maker Mouawad is scheduled to be completed in 4Q 2026, with sales going live next month. Dar Global is the Dubai-based international arm of Saudi real estate developer Dar Al Arkan.

PSAs-

#1- The Saudi Food and Drug Authority updated its regulations on cosmetic product listing, adding a unified online platform for document checking and product listing, and improving access to governmental documents and approvals, state news agency SPA reported. You can dig deeper into the regulations here (pdf).

#2- Registration is now open for the Developing National Cadres to Enter the Contracting Sector program. The program, launched by the Saudi Contractors Authority and the Municipalities and Housing Ministry, helps aspirant contractors tap into the industry. It will accommodate up to 100 participants and runs from 20 October to 20 November.

#3- The Municipalities and Housing Ministry put up new regulations on rest areas for public consultation on Istitlaa until 15 October. The new regulations (pdf) seek to introduce a technical integration of governmental platforms Balady, Ejar and Shomos, as well as the Center for Regulating Rest Houses, Parks, and Camps. They also mandate the Real Estate General Authority to draw up a draft for rest area lease contracts.

WATCH THIS SPACE-

#1- SPPC issues tenders for 4.5 GW renewables projects: State-owned Saudi Power Procurement Company (SPPC) has issued requests for qualification (RFQs) for five wind and solar projects in the sixth round of the National Renewable Energy Program (NREP), according to a press release. This round will add a combined capacity of 4.5 GW to the Kingdom’s renewable energy portfolio.

Project details: Key projects in this round include the 1.5 GW Dawadmi Wind IPP in Riyadh and four solar PV projects: a 1.4 GW plant in Najran, 600 MW each in Samtah and Ad Darb in Jizan, and a 400 MW plant in Hail.

#2- The Kingdom’s National Transformation Program is currently working on 42 out of 320 country-wide initiatives, with estimated investments of more than SAR 74 bn, the program’s CEO Thamer Al Saadoun was quoted as saying by Aleqtisadiah. The program focuses on empowering the Saudi private sector through its partnerships with over 60 government and private entities, aiming to push forward some 820 pro-business reforms, Al Sadou said.

#3- Dammam to get its first atmospheric water generation plant in 2025: Shas Contracting Company partnered with US firm DewStand to establish the first atmospheric water generation facility in Dammam, targeting an annual production capacity of 1.8k tons of water, DewStand board member Wajih Al Maliki told Aleqtisadiah. The solar-powered facility will serve rural areas, supplying water at lower costs compared to traditional supply networks.

OIL WATCH-

Goldman Sachs expects crude price to rise to USD 77 per barrel in 4Q 2024 as the US Fed kicks off its monetary easing cycle, the investment bank said in a note picked up by Dow Jones Newswires. The bank also estimates that the current global supply shed 500k bpd amid lower output from Canada.

SPORTS-

French goalkeeper Sarah Bouhaddi signed with AlUla’s women’s team, after spending the second half of last season with Arsenal, according to She Kicks. Bouhaddi boasts 149 caps for France and has made 199 appearances for Lyon. Her new club faces Al Nassr this Friday.

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THE BIG STORY ABROAD-

Business news is once again being pushed down the digital front page as the world’s press cover frantic diplomatic efforts to try to put together a ceasefire to stop “hell … breaking loose” — in the words of UN Secretary-General António Guterres. French and US authorities pushed for a temporary ceasefire between Israel and Hezbollah at the UN General Assembly yesterday, with French president Emmanuel Macron saying, “Israel cannot, without consequence, just expand its operations to Lebanon.” The two countries are apparently pushing for a 21-day ceasefire, according to two sources speaking to the Financial Times, with Biden expressing hopes that a truce might help pave the way to “dealing with the [occupied] West Bank” and Gaza.

Alongside hopes for a ceasefire are fears of an Israeli ground invasion into Lebanon after Israeli Chief of Staff Lieutenant General Herzi Halevi told Israeli troops that the country’s airstrikes on Lebanon were aimed not just at degrading Hezbollah’s capabilities, but “to prepare the ground for your possible entry.”

ELSEWHERE IN THE REGION- Libya’s two opposing governments have reportedly agreed on a new central bank leadership to be announced later today, sending Brent crude futures down 2.3% by the end of trading with the expectation of the country to soon up supply. The country’s oil output has fallen by more than half this month after a dispute between competing political factions over central bank-controlled oil revenues led to the removal of the bank’s governor and production strikes in protest.

AND IN BIG TECH NEWS- OpenAI’s CTO Mira Murati announced her departure yesterday — the third in a string of high-profile departures from the AI leader after John Schulman and Ilya Sutskever earlier this year. It was also revealed that OpenAI is in the midst of formulating a plan to restructure the core business into a for-profit corporation as the company seeks to remove the cap on investor returns.

PLUS- The FBI is investigating California-based VC fund Hone Capital on allegations of accessing information about the technology, finances, and clients of US-based startups for the benefit of their Beijing-based financiers or even even the Chinese state. The VC fund has invested in more than 360 tech startups in less than three years, including acquiring stakes in driverless car maker Cruise, payments group Stripe, and aerospace engineer Boom.

CIRCLE YOUR CALENDAR-

Intersec Saudi Arabia will open its doors on Tuesday, 1 October, where experts in the security, safety and fire protection industries will convene to address the role of AI and VR in the sector. The event wraps up on Thursday, 3 October.

The two-day Multilateral Industrial Policy Forum will kick off in Riyadh on Wednesday, 23 October. The forum will address global industrial challenges, focusing on topics like industrial policy, clean energy, and advanced manufacturing tech. The forum is organized by The Industry and Mineral Resources Ministry in partnership with UNIDO. The Kingdom will also host the UNIDO General Conference in 2025.

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