Good morning, wonderful people. September is going out with a bang, giving us another busy start to the week with not one, not two, not three, but four IPO stories, in addition to the latest on Aramco’s USD-denominated sukuk sale over the weekend and USD 1 bn-worth of contracts signed at Diriyah. Let’s jump right in.

WEATHER- Riyadh’s mercury will hit a high of 39°C today and a low of 26°C. Meanwhile, Jeddah will see a high of 36°C, and a low of 28°C.

PSAs-

The next round of e-invoicing: Companies that had more than SAR 3 mn in revenues subject to VAT in 2022 or 2023 will have to integrate their e-invoicing solutions with Zatca’s Fatoora platform between 1 April and 30 June, 2025, according to the official gazette Umm Al Qura. This is the latest phase of an e-invoicing rollout that began in late 2021.

WATCH THIS SPACE-

Pakistan has secured significant financing commitments from Saudi, the UAE, and China as part of a new International Monetary Fund (IMF) program, Reuters reports, citing IMF Pakistan Mission Chief Nathan Porter. These assurances go beyond a USD 12 bn debt rollover owed to these countries by Pakistan. While details of the Kingdom’s additional contribution weren’t disclosed, the new funds are part of a broader effort to stabilize Pakistan’s economy.

REMEMBER- Pakistan obtained assurances from the UAE, Saudi Arabia, and China to roll over USD 12 bn in debt for a year in August. The Saudi Fund for Development had already agreed to roll over its USD 3 bn deposit in Pakistan’s Central Bank for an additional year last December.

DATA POINTS-

#1- Local poultry production rose 9% y-o-y in 1H 2024 to 558 mn kg, the Environment, Water, and Agriculture Ministry said on X.

#2- Demand for Schengen visas in Saudi Arabia increased by 23% this year, VFS Global CEO Zubin Karkaria told Asharq Al Awsat. The company offers visa and passport services at 14 locations across the Kingdom, including Riyadh, Jeddah, and Madinah.

OIL WATCH-

Ditching USD 100? The Kingdom is reportedly planning to scrap its unofficial USD 100 per barrel oil target as officials are committed to raising production by 83k bbl per month from December 2024 even if it induces a period of lower prices, the Financial Times reports, citing people it says are familiar with the matter. This comes after OPEC+ agreed earlier this month to suspend its planned 180k bpd output hike for October and November.

REMEMBER- Goldman Sachs sees crude prices reaching USD 77 per barrel in 4Q 2024, according to its recent forecast.

SOUND SMART- The government needs to sell crude at USD 100 / bbl to close its budget deficit. Scrapping the unofficial target would mean the Kingdom is prepared to tap alternative sources of funding to narrow the gap.

SPORTS-

English refs are officially benched from Saudi matches: Referees from the UK’s Premier League were blocked from officiating in Saudi and Gulf Leagues after backlash over prioritizing lucrative gigs overseas, the Daily Mail reports. The Professional Game Match Officials Limited Chief Howard Webb has now restricted their appearances to “development opportunities” for up-and-comers. The move follows backlash over ref Micheal Oliver refereeing in Saudi before a botched VAR call in the Premier League.

PIF-owned Newcastle United’s CEO Darren Eales will step down from his role after being diagnosed with chronic blood cancer, the Associated Press reports. Eales assumed the role in August 2022, following the club’s acquisition by the Saudi sovereign wealth fund. He plans to remain in the role until a successor is appointed.

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THE BIG STORY ABROAD-

One story is on every front page this morning: Israel killed Hezbollah leader Hassan Nasrallah in Beirut over the weekend in an airstrike. Nasrallah, who led Hezbollah for 32 years, had been among the main targets of Israel’s bombardment of Lebanon. Israeli forces killed at least 700 people in Lebanon last week, including 50 children. At least 30k people — mainly Syrians — have crossed into Syria from Lebanon since Wednesday and more than 200k people in Lebanon have been uprooted by the attacks.

Houthis attack Israel: Yemen’s Houthis said on Friday that they had launched missile and drone attacks on the Israeli cities of Tel Aviv and Ashkelon as well as three US destroyers stationed in the Red Sea. The Israeli army said that it managed to intercept a missile fired from Yemen, but the Houthis said that their operations would not stop until Israel ceases its offensives in Gaza and Lebanon.

REGIONAL EFFORTS- Egypt continued to call for an immediate ceasefire in both Gaza and Lebanon, warning on Thursday that Israel’s practices and violations of international law threaten to plunge the region into a state of chaos.

AND IN BUSINESS NEWS- Beijing wants Chinese companies to ditch Nvidia chips: Chinese regulators are reportedly discouraging companies from purchasing US-based Nvidia’s H20 chips, in a bid to expand local chipmakers’ market share and to prepare local tech companies for more US restrictions that may be coming down the pike. The instructions have come as a guidance rather than an outright ban, as officials weigh the benefits of access to the world’s fastest chips for its burgeoning AI sector.

PLUS- HSBC to exit the South African market: HSBC will transfer its commercial and investment banking business in South Africa to local lender FirstRand as it exits the country and continues to shift its focus toward Asia, it said in a press release (pdf). Absa Bank has also been tapped to provide HSBC’s equities and securities finance clients with access to the South African market.

AND IN US ELECTIONS NEWS- Tehran comes under fire for election interference: The US Justice Department on Friday accused three members of Iran’s Islamic Revolutionary Guard Corps of hacking Donanld Trump’s election campaign, after they purportedly used fake emails to dupe Trump’s staff into clicking links that allowed the hackers to snag sensitive information like debate prep notes and VP shortlists. While the Iranian suspects are outside of US jurisdiction, Attorney General Merrick Garland emphasized the Justice Department’s commitment to pursuing international cybercriminals, stating, “We will follow these people for the rest of their lives.”

CIRCLE YOUR CALENDAR-

Intersec Saudi Arabia will open its doors this 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 Professional Fighters League’s (PFL) Battle of the Giants is coming to Riyadh on Saturday, 19 October. Headlining the card, MMA superstar Francis Ngannou will face PFL heavyweight champion Renan Ferreira for the title of inaugural PFL Super Champion. Meanwhile, women’s featherweight champion Cris Cyborg will square off against Larissa Pachecho for the World Title Fight in the co-main event. Expect fireworks with additional matchups featuring Johnny Eblen vs. Fabian Edwards and A.J. McKee vs. Paul Hughes.

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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