Good morning, friends. We have a workaday issue for you this morning — there’s nothing unremarkable in the headlines as we inch toward the 2034 World Cup, look to close in on lithium from Chile, join regional trade talks with Turkey, and mull the growth potential of the Kingdom’s food delivery industry.

UP FIRST- Saudi Arabia is particularly interested in importing lithium from Chile, Mining and Industry Minister Bandar Al Khorayef said yesterday while on the Chilean leg of a long tour through South America. Chile’s industry is attractive because there are players of all sizes in the lithium market, which Saudi is hoping to tap as we continue our push into renewable energy and the electric vehicle industry.

The Kingdom is also interested in exporting fertilizers to “bolster Chile’s farming activities and food security,” Bloomberg writes. Reuters also has the story.

HAPPENING THIS WEEK-

#1- The GCC and Turkey are laying the groundwork for a trade agreement, with the first round of talks kicking off yesterday in Ankara, state news agency SPA reports. Negotiators will keep at it today and tomorrow before taking a breather. Representatives from the Saudi ministries of investment, economy, industry, energy, and environment are in Turkey for the talks.

What’s the timeline? We’ve seen no official guidance on how long talks could last beyond this week, but trade agreements are never pulled together quickly.

BACKGROUND- The two sides said in March that they were looking to liberalize trade “in goods and services, facilitate investment and trade, and increase [Turkey’s] trade with the region.”

The hometown angle: The Kingdom accounted for 25% of Turkey’s imports from the GCC in April 2024 with Saudi exports valued at USD 201.6 mn. That’s down 33% from USD 301 mn in April of last year. Saudi’s imports from Turkey were up 44% y-o-y to USD 297.6 mn in April.

#2- A Saudi-Korean business forum got underway yesterday in Seoul, featuring a delegation of 55 executives from local government and private companies led by Commerce Minister Majid Abdullah Al-Qasabi, SPA reports. The minister met separately with Korean Prime Minister Han Duck-soo, the country’s minister of SMEs and startups, and the CEO of Naver, South Korea’s largest internet company. The visit wraps up tomorrow.

Are you planning to be in Egypt on 24 September? You may be interested in attending our 2024 Enterprise Finance Forum. Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders.

Why attend? We’re in the early days of a generational realignment of power in our industry — in our region and beyond — and on the cusp of the biggest intergenerational transfer of wealth the world has ever seen. With that as the backdrop, we’re going to take stock of where we stand six months after the float of the EGP and ask what’s next for finance in Egypt and the wider region. Among the questions we’ll be asking:

  • What roles will Egypt, Saudi and the UAE play in the regional industry going forward?
  • What are foreign investors looking for right now?
  • Is real estate the only asset class in Egypt?
  • What does the next generation of leaders think as they take over established family businesses?

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WATCH THIS SPACE-

Saudi Electricity Company fires four senior staff for negligence resulting in power outage: The Saudi Electricity Company’s board of directors agreed to dismiss its executive vice president of generation and three other managers after an investigation into a power outage in Sharurah concluded the incident was caused by a faulty breaker due to poor maintenance and malfunctioning protection devices, according to state news agency SPA. The board also signed off on technical fixes, maintenance, and protection device reviews to address the issues that caused the outage.

BACKGROUND- On 12 July, a power outage in Sharurah — a town in Najran, near the Yemen border — led to a total service failure and prompted the company to offer residents SAR 2k each in compensation and launch an investigation.

DATA POINTS-

Some 20 new mining licenses were issued in May 2024 by the Industry and Mineral Resources Ministry (14 for building materials quarries and six for exploration), the ministry said in a post on X.

BACKGROUND- Saudi is ramping up investment in mineral exploration: The Industry and Mineral Resources Ministry unveiled earlier this year a fresh incentives package worth SAR 685 mn to boost mineral exploration in the Kingdom. The program was rolled out in collaboration with the Investment Ministry and aims to reduce early-stage risk for exploration companies. It comes as part of efforts to expand the sector and tap reserves of gold, phosphate and others. The nation’s untapped mineral resources are now worth as much as USD 2.5 tn, or 90% more than the last forecast in 2016, officials said earlier in January.

SPORTS-

#1- M&A WATCH- PIF-owned Newcastle United is now valued at USD 1.3 bn after the PIF raised its stake to 85%, reports Bloomberg, after the fund bought former owner Amanda Staveley’s stake.

Background: The club said earlier this month that the PIF and RB Sports and Media were set to raise their ownership of Newcastle United after the exit of Amanda Staveley and her firm, PCP Capital Partners. The new structure sees the fund hold 85% stake, with RB Sports and Media holding the remaining 15%. The transfer of ownership was expected to be completed this month.

#2- Spanish pro-golfer Jon Rahm clinched his first Liv Golf UK title on Sunday, AP reports. Rahm, who joined Liv in December 2023, is one of seven Liv players hitting the pitch at the Olympics next week, it added.

#3- The Saudi Arabian Football Federation’s women’s teams program will get SAR 10 mn more to spend as it looks to deploy SAR 60 mn for the 2024-2025 season, according to a press release. SAFF will use the funds to increase the number of women’s competitions, create new teams, develop the different age groups in clubs, and enhance overall organizational and technical performance. Some 70 clubs are participating this time around, up from 34.

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THE BIG STORY ABROAD-

It’s another day dominated by politics, with little business news of which to take note.

Venezuela is getting prominent play on front pages this morning after longtime president Nicolás Maduro claimed victory despite the opposition candidate Edmundo González having had the lead in most polls and exit surveys. Venezuelans took to the streets in protest and a number of countries are expressing concern, the Financial Times reports.

The US is cautioning Israel against striking Lebanon’s capital or any major infrastructure following the strike on Golan Heights, Reuters reports. Airlines including Lufthansa, Aegean, and Air France have stopped flights to Lebanon, Bloomberg.

In business news, a single AI story and the first slump in Mcdonald’s sales since 2020 are getting attention.

The AI story in question? Apple revealed in a research paper that it has been using Google’s chips to build and train its new AI software infrastructure, the first real dent in the armor of Nvidia, which has an 80% share of the AI chip market, Reuters reports.

OLYMPICS-

It’s a relatively quiet day in the Olympics, with the highlight being rowing, tennis, and lots of rugby sevens. The men’s triathlon is also scheduled to take place today.

In tennis yesterday: Spain’s Rafael Nadal exited the tournament, losing to Serbia’s Novak Djokovic. The Olympics’ website has the rundown on the big names that have made it through to the third round of the men’s and women’s singles.

Surfing also made headlines in Tahiti’s Teahupo’o — also known as the End of the Road, as it is seen as one of the most deadly surfing spots in the world due to the size of its waves and the large, shallow reef at its bottom. The third round of surfing saw favorites exit the competition after a brutal set of eight heats in which two riders went head-to-head, with only one advancing from each run.

The medal standings now at the Paris Olympics:

  • Japan (6 gold, 12 overall)
  • France (5 gold, 16 overall)
  • China (5 gold, 12 overall)
  • Australia (5 gold, 9 overall)
  • South Korea (5 gold, 9 overall)

But Enterprise, US media says Amreeka is at the top of the table… US athletes have so far taken home more hardware (20 medals overall vs 16 for France), but the Olympics themselves ranks countries by the number of golds a country has picked up — not by total medal count.

Want to see when your favorite sport is on? Check out the official schedule here.

CIRCLE YOUR CALENDAR-

The Crawford vs Madrimov boxing showdown will take place on Saturday, 3 August at the Los Angeles BMO Stadium. The event is the highlight of the Los Angeles Riyadh Season Card which features five other bouts. You can check them out here.

Aramco is set to release its 1H 2024 results on Tuesday, 6 August, according to its website. You can tune into the audio webcast of its earnings call here. The oil giant’s net income dipped a bit more than 14% in 1Q 2024 to SAR 102.3 bn.

Small and medium enterprises regulator Monsha’at will hold a franchise tour of five cities on 12-13 August (Monday and Tuesday). The tour, which starts in Khobar and includes stops in Abha, Qassim, Hail and Jeddah, will showcase success stories in the sector. The tour then picks up with seven stops scheduled for an installment next year.

Cybersecurity training event SANS Riyadh Cyber Leaders August 2024 will run from Sunday, 18 August to Thursday, 22 August at the Hyatt Regency Riyadh Olaya.

The eight-week Esports World Cup runs until Sunday, 25 August Riyadh’s Boulevard City. The world’s top esports clubs are competing for a pool of USD 60 mn — the largest purse in esports.

The two-day Middle East LPG Expo – Saudi Arabia 2024 will open on Tuesday, 10 September, bringing together upwards of 4k liquified petroleum gas (LPG) experts to discuss the future of the fuel gas in clean energy. Saudi accounts for 50% of demand for LPF in the Middle East and Africa.

The TotalEnergies CAF Super Cup Final 2024 between Egyptian rivals Al Ahly and Zamalek will be held in Riyadh on Friday, 27 September. The venue and kick-off time of the match will be announced at a later date.

This year’s edition of security-focused expo Intersec Saudi Arabia will run from Tuesday, 1 October to Thursday, 3 October at the Riyadh International Convention and Exhibition Center.

International food and beverage expo InFlavour is returning to Riyadh on Tuesday, 1 October. The three-day event — which will be organized in collaboration with the Environment, Water and Agriculture Minister, Tahaluf, Pepsico, Al Rabie, Arasco and Nadec — will take place in Riyadh’s Front Exhibition and Conference Center.

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