It’s a crazy day for news at home and abroad, so we’re going to jump right in with … a weather report?

Yes, weather. It didn’t rain lizards and frogs in the UAE yesterday, but flying patio furniture was a thing as torrential rain led to power outages, flooding, and property damage in Dubai. Water coursed through the Mall of the Emirates and a conference in festival city. Runways at Dubai International Airport were also flooded, prompting a 25-minute shutdown and the cancellation of dozens of flights. And cars did their best submarine imitation on major roadways.

In context: It was the most single-day rainfall the UAE has seen in 75 years.

We’re not feeling smug, though: We’re looking at a nasty day here. The national weather center is warning that most regions in the Kingdom will face rain and sand storms today. Meanwhile, Oman is still grappling with heavy flooding that killed at least 18 people.

WATCH THIS SPACE-

#1- Companies relocating their regional HQs to Saudi could be subject to zakat depending the how much stock is held by domestic or GCC individuals who are subject to the 2.5% zakat at the end of the financial year, new guidelines on the Regional Headquarters Program (RHQ) from Zatca (pdf) showed. The rules also make clear that the the 30-year no-income tax window only applies to licensed activities by foreign firms looking to relocate here. All other revenue-generating business activities of the RHQ within the Kingdom will be taxed.

#2- Crown Prince and Prime Minister Mohamed bin Salman is working the phone lines as Arab leaders try to tamp down prospects of a broader conflict involving Israel and Iran. UAE President Sheikh Mohamed bin Zayed Al Nahyan phoned Prince Mohammed yesterday to discuss how to prevent the conflict from spiraling further, state news agency SPA reported overnight. The subject also led the crown prince’s call yesterday with Qatar’s Sheikh Tamim bin Hamad Al Thani, SPA said.

#3- PIF-owned agricultural and livestock investment firm Salic is planning investments in Pakistan’s food and commodities sectors with a focus on rice, its CEO Suleiman Al Rumaih told Al Arabiya in an interview (watch, runtime: 1:07). “We’ve been offered more than one opportunity which we’re planning to examine carefully. We look forward to joint investments in the near future,” Al Rumaih said, without providing further details.

BACKGROUND- PIF companies have been spearheading the Kingdom’s drive to bolster food security. Salic acquired a 10.7% stake in Brazilian food processor BRF through a follow-on share offering in July last year. Halal Products Development Company formed a joint venture with BRF in August to help develop the halal meat industry in the region.

!_InserLine_!

#4- Riyadh-based construction and mining firm Mohammed Hadi Al-Rasheed has issued a supplementary prospectus for its planned offering on parallel market Nomu, Argaam reported yesterday. It added Al Rajhi Capital and Saudi Fransi Capital to its list of receiving banks.

BACKGROUND- Mohammed Hadi Al-Rasheed said last month that it is gearing up to float 1.44 mn ordinary shares on Nomu.

#5- Mawani wants port operators to up their operational efficiency game: Saudi Ports Authority has warned the operators of the Jeddah and Dammam ports that it would fine them SAR 10k for each container that is not in-compliance with the authority’s timeline rules for carrying out customs procedures, resulting in operational delays, Aleqtisadeyah reports.

ALSO- Mawani is making it obligatory for importers to enter their data through its importing and exporting e-platform Fasah starting Wednesday, 1 May, it said in a post on X.

#6- Jana Financial has gotten the okay to experiment with the distribution of investment and real estate funds as part of a fintech license, according to a Capital Market Authority statement.

#7- Riyadh Season will become an official partner of the World Boxing Council under a new agreement, SPA reports.

THE BIG STORY ABROAD-

Strap yourselves in, folks: It’s shaping up to be a very busy day for business news in our region and around the world.

#1- Are we in the “Tepid Twenties”? That was the warning from IMF chief Kristalina Georgieva to officials and businesses around the world as we headed into this week’s IMF and World Bank spring meetings. It’s only by driving growth, harnessing AI, and dealing with climate change that we can turn them into the “Transformational Twenties, she said.

Her caution runs through the latest update to the IMF’s World Economic Outlook, which shares top billing on this morning’s front pages (Bloomberg | CNBC) with Jay Powell’s remarks on interest rates (below).

The global economy will grow by 3.2% in this year and next — on par with last year — the IMF writes in the WEO. That’s essentially the midpoint between the really slow growth we saw in the 2010s and the rapid growth we saw in the early years of this decade during the freemoney era. (We have more on the WEO’s outlook for Saudi in this morning’s news well, below.)

The tent poles: The US economy will grow at a 2.7% clip, faster than most advanced economies, while China’s GDP will expand at a 4.6% clip, unchanged from last year.

A flashing red light: “Progress toward inflation targets has somewhat stalled since the beginning of the year,” IMF chief economist Pierre-Olivier Gourinchas said at a news conference on the WEO yesterday.

#2- Enter Jay Powell, who “dialed back expectations of a [US] rate cut” in remarks that “called into question whether the Federal Reserve will be able to lower interest rates this year without signs of an unexpected economic slowdown,” the Wall Street Journal reports. His worry: Inflation in the first quarter was higher than he’d have liked. Powell’s remarks also lead the front page of the Financial Times.

ALSO MAKING HEADLINES THIS MORNING:

#3- In geopolitics: We’re still waiting for Israel’s next move on Iran after Tel Aviv’s war cabinet yesterday postponed its meeting to today.

The hope in Western policymaking circles: That a basket of new sanctions on Iran might convince Israel not to retaliate for Iran’s drone and missile attack overnight Sunday (itself retaliation for an unprecedented attack by Israel on Iran’s embassy in Syria). The sanctions will be unveiled “in the coming days,” the White House national security advisor said overnight.

#4- In business: Microsoft has made a massive USD 1.5 bn investment in the UAE’s G42, arguably the region’s most important AI firm, EnterpriseAM UAE reports. The transaction completes G42’s pivot away from China and onto US technology, Bloomberg notes. The story is also getting prominent play in the Financial Times.

Speaking of AI: Andreessen Horowitz has raised USD 7.2 bn to invest in AI-anchored companies, the firm said in a note yesterday.The high-profile VC’s fund is among the biggest to close since the downturn in the VC “ecosystem” began a couple of years back.

Big themes for the fund: Infrastructure, growth, games, apps, and “ American dynamism ” (don’t get us started).

DATA POINT-

#1- Saudi’s foreign reserve assets grew 4% y-o-y to SAR 1.7 tn in March 2024. Foreign reserve assets were also up 5% m-o-m, according to SAMA figures.

PSAs-

#1- TAX DAY COMETH- The Zakat, Tax and Customs Authority said businesses have until Monday, 29 April 2024, to submit their 2023 tax returns, according to a statement.

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SPORTS-

#1- The much-anticipated clash between Al Hilal and UAE’s Al Ain in the Asian Champions League semi-final will be played today after it was pushed back yesterday due to “adverse weather conditions” in the UAE, the Asian Football Confederation said in a statement yesterday. The match will be played at 7pm local time today.

#2- Proposed fixtures for 2025 Saudi Pro League season have been sent to clubs for review. The proposal sees the first SPL matchday set for 22 August. Clubs are looking at conflicts arising from participation in the AFC Champions League or any international tournament or games by the national team, Asharq Al Awsat reports.

#3- Whipping, no more? The Saudi Arabian Football Federation and Football Players Association of Saudi Arabia have emphasized their commitment to safeguarding the safety of all football enthusiasts, according to a joint statement.

The remarks came after a fan whipped a player at the Saudi Super Cup Final last weekafter the player threw water at the fan following an altercation. SAFF pledged to review its spectator code of conduct to “ensure updated rules and regulations are put in place to swiftly and effectively impose suitable penalties to help avoid any repeat of such incidents.”

CIRCLE YOUR CALENDAR-

The Gulf Film Festival (GFF) runs through Thursday, 18 April in Riyadh. Organized by the Film Commission in cooperation with the Gulf Cooperation Council (GCC) General Secretariat, the five-day event will showcase a selection of 29 films from across the region. It will also include three training workshops and six educational seminars focused on fostering artistic dialogue and raising awareness of cinema’s social impact.

Riyadh will host the 2024 IsDB Group annual meeting from Saturday, 27 April until Wednesday, 30 April.

Riyadh will host a special meeting of the World Economic Forum on 28-29 April.

Automechanika Riyadh will open on Tuesday, 30 April till Thursday, 2 May at the Riyadh International Convention and Exhibition Center.The annual trade fair will showcase the automotive industry’s latest advances and innovations.

The King Salman bin Abdulaziz Royal Reserve Festival will kick off today at the Cultural Center in Al-Qurayyat governorate, state news agency SPA reports. The art and culture event runs until Thursday, 18 April.

Innovation Week 2024 will kick off on Sunday, 21 April, at the King Abdulaziz City for Science and Technology (KACST) in Riyadh.

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