Good morning, wonderful people. It’s shaping up to be a rather busy Wednesday as we race towards the weekend, with plenty of updates both here at home and on the global stage.

BUT FIRST- The government has tapped BlackRock to “develop a market for mortgage-backed securities” in a bid to make housing more affordable, BlackRock CEO Larry Fink said, according to Bloomberg. “Spreads are much wider than if there was a securitization market,” Fink said. “It would be much narrower and the homeowners would benefit, so the cost of home ownership would go down.” The fund manager chief did not provide further details.

SEPARATELY- PIF-backed Lucid’s follow-on public offering raised USD 1.75 bn, coming in above the USD 1.67 bn figure initially expected, Lucid CEO Peter Rawlinson tells Reuters. The figure includes proceeds from PIF’s purchase of an added 374.7 mn shares in the luxury EV maker in a private placement.

Use of proceeds: The transaction gives Lucid cashflow runway “well into 2026,” Rawlinson said. The raised funds will support product development, a new plant in Saudi, and expansion works at the firm’s Arizona facility.

HAPPENING TODAY-

Finance Minister Mohammed Aljadaan is leading the Saudi delegation at the annual IMF / World Bank meeting, underway in Washington, DC, through 26 October, state news agency SPA reports. Aljadaan will chair the International Monetary and Financial Committee (IMFC) session, focusing on global economic dynamics and the IMF’s strategic role in supporting member states.

The delegation includes Saudi Central Bank Governor Ayman Alsayari, Vice Minister of Finance Abdulmuhsen Alkhalaf, Deputy Minister for International Affairs Khalid Bawazier, and Ryadh Alkhareif, who serves as deputy chair of the International Monetary and Financial Committee.

On the agenda: Aljadaan and Alsayari will also participate in the G20 Finance Ministers and Central Bank Governors meeting, chaired by Brazil, where discussions will address global economic headwinds and explore avenues for deeper multilateral cooperation.

WEATHER- Riyadh is looking at a high of 34°C and a low of 22°C today. Over in Jeddah, the temperature will peak at 36°C before dropping to 28°C. Meanwhile, Madinah will see a high of 37°C and a low of 24°C.

PSA-

The Industry and Mineral Resources Ministry is accepting bids for seven new mining exploration licenses across Makkah and Riyadh, covering an area of nearly 1.1k sq km, it said in a post on X. Bidding through the ministry’s Taadeen platform is open to both local and international investors, and is set to run until mid-November. The sites have reserves of key minerals including gold, copper, zinc, and silver.

WATCH THIS SPACE-

#1- Saudi eyes stake in Doha-based BeIN Sports: The Kingdom has reportedly been engaged in intermittent talks to secure a stake in Qatar’s global media group BeIN Sports — the Premier League rights-holder for the Middle East and Africa — since it took over Newcastle in 2021, the Telegraph reports.

#2- Abeer Medical Group is eyeing a Tadawul IPO in the next five years, Argaam quotes Chairman Mohammed Alungal as saying. The Jeddah-based group — which currently operates some 22 clinics, pharmacies and optical stores around the country — is looking to expand to 60 clinics and add five new hospitals to its portfolio, he said.

#3- The Saudi-Portuguese Business Council is pushing for a new direct flight between the two countries, the Federation of Chambers of Commerce post said on X. Discussions are already underway between the General Authority for Civil Aviation (GACA) and Saudia Airlines to kick off the new route.

#3- The Gulf Cooperation Council (GCC) is currently in talks with India over terms of references for a freetrade agreement ahead of initiating formal talks, the GCC secretariat told Aleqtisadiah. The GCC has agreed on terms of reference with Japan and Malaysia.

#4- US-based AI chip startup Kneron is looking to set up a regional office in the Kingdom, Bloomberg reports, citing an investor presentation it saw. The regional office comes as part of a plan for the Taiwanese-US firm to raise USD 300 mn from an upcoming funding round, which would also push the company’s valuation to around USD 1 bn, the business information service reported, citing people familiar with the matter. Kneron also plans to launch a research and development lab here at home.

DATA POINTS-

Consumer spending via point-of-sale transactions in the Kingdom fell 7.5% w-o-w for the week ending 19 October at SAR 11.4 bn, according to the Saudi Central Bank (Sama)’s weekly POS report (pdf). Meanwhile the number of transactions was down 4.9% at 198.2k.

The breakdown: Restaurants and cafes saw the highest spending during the week, despite falling 4.4% w-o-w at SAR 1.77 bn, followed by food and beverages at SAR 1.74 bn, down 4.4%. Meanwhile, Riyadh had the highest value of PoS transactions at SAR 3.99 bn, followed by Jeddah at SAR 1.6 bn.

SPORTS-

Al Hilal triumphs over Al Ain in 9-goal thriller: Al Hilal dispatched the UAE’s AFC Champions League Elite title holders Al Ain on their own turf in a 5-4 victory that featured two hat tricks — one from Al Ain’s Soufiane Rahimi and another from our own Salem Aldawsari, according to Reuters.

ALSO- Neymar made a comeback as a substitute in the 77th minute, following a year on the sidelines due to an ACL tear.

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THE BIG STORY ABROAD-

It’s a mixed bag on the front pages of the foreign press today, with more talk of a potential ceasefire in the region continuing as US Secretary of State Antony Blinken touches down in Jerusalem for a meeting with Prime Minister Benjamin Netanyahu, more US elections news, and a smattering of business updates.

Blinken and Netanyahu agreed that the killing of Hamas Leader Yahya Sinwar over the weekend opens up possibilities for the end of the war in Gaza, though the meeting seemed to yield no clear plans for what’s to come, Bloomberg reports.

Israel confirmed for the first time that it had killed Hezbollah’s suspected successor, Hashem Safieddine, in airstrikes on Lebanon earlier this month, along with another Hezbollah commander. (Financial Times | NY Times | The Guardian)

OVER IN THE US- It’s not a great time for The Donald, who just two weeks ahead of elections is still behind in polls that put rival Kamala Harris marginally in the lead. A Republican appeal of a decision blocking a new rule that would have required poll workers to hand-count ballots was also blocked by a top Georgia court. Meanwhile, Trump is accusing the UK Labor Party of “foreign interference” and aid of Harris’ campaign. (BBC | FT | The Guardian)

IN BUSINESS NEWS- A few headlines are getting attention:

  • Former Abercrombie & Fitch CEO Mike Jeffries has been charged with running a trafficking ring during his time as CEO. (Reuters | BBC | CNN)
  • Starbucks has scrapped its guidance as it reported a decline in sales and revenues ahead of schedule. (FT)
  • McDonald’s shares fell by 10% after the fast food franchise was linked to a fatal E. coli outbreak in the US that killed at least one person and left 10 others in hospital. (FT)

CIRCLE YOUR CALENDAR-

The two-day Multilateral Industrial Policy Forum will kick off in Riyadh tomorrow. 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.

The Human Resources and Manpower Expo kicks off on Sunday, 27 October at the Riyadh International Exhibition and Convention Center, expecting over 1k exhibitors and 22k visitors.

The five-day Jeddah International Motor Show revs up on Tuesday, 29 October, running through Saturday, 2 November. The event will showcase motorcycle and drift shows, sim and kart racing, a lineup of custom-tuned cars, and more.

WWE Raw is coming to Riyadh for the first time ever on 2-3 November, kicking off on the back of the WWE Crown Jewel event the day prior, Turki Alalshikh said in a post on X. You can book your Raw tickets here, and your Crown Jewel tickets here.

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