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Good morning, friends. We’re sliding into the weekend with an Aramco-strong news cycle, with updates on both its secondary offering and its fresh bond issuance. We have chapter and verse on both stories and more in this morning’s news well, below.
WEATHER- Riyadh will see a daytime high of 46°C and a nighttime low of 33°C. In Makkah, the mercury will peak at 45°C during the day before dropping to 33°C at night. Meanwhile, Jeddah — the coolest of the three — is looking at a high of 39°C and a low of 33°C.
PSAs-
#1- Residents of Hittin, Al Nakheel, Al Aqeeq, and Al Ghadeer had their electricity fully restored after a power outage affected the areas earlier this week, the Saudi Electric Company said in a post on X. The Saudi Electricity Regulatory Authority determined the outage was caused by an unaffiliated contractor damaging a main electrical transmission line while working on a public project, according to a statement.
#2- Outstanding Saudi law graduates can apply for the Center for Legal Studies and Research’s second Future Advisor Program, the center said on X. The 12-month program focuses on developing recent graduates’ skills in legal consultation and drafting through practical training by specialist advisors. The program also offers a monthly stipend and medical ins. for the trainee and their family, according to the state news agency (SPA).
Eligibility criteria: Applicants must be Saudi nationals, recent graduates from 2023-2024, with a bachelor’s degree in law and a minimum GPA of 3.75/5 or 2.75/4. They must be under 27 and have no more than six months of practical experience. Applicants must also be proficient in English, with the program requiring a minimum score of 4.5 in IELTS, 70 in STEP, or 460 in TOEFL or its equivalent. You can apply for the program here.
WATCH THIS SPACE-
#1- Beijing is urging the Public Investment Fund to expand its green investments in China, Reuters reports, citing China’s official Beijing Daily newspaper. China is looking to convince the PIF to increase its business activities in the Chinese capital, especially in the industrial investment, green development, and energy transition sectors, Beijing’s Mayor Yin Yong told PIF boss Yasir Al Rumayyan. The PIF governor said that Riyadh is interested in an ongoing collaboration with Beijing, particularly in sustainable development and renewable energy.
This comes as part of China’s diversification strategy: This appeal is part of Beijing’s broader diplomatic strategy to enhance ties with countries in Europe, the Middle East, and Africa as a countermeasure to what China perceives as the US’ weaponization of economic policies, the news outlet added.
PIF has been active in China: The sovereign wealth fund has been eyeing a USD 250 mn stake in Chinese electric car manufacturer Human Horizons since last November. The fund also signed a Joint Development Agreement with Chinese solar PV manufacturer LONGi Green Energy Technology back in January 2023.
#2- Riyadh is set to be home to the tallest sports tower in the world, after plans for the Global Sports Tower — a prime attraction at the Sports Boulevard megaproject — were approved by the board of the Sports Boulevard Foundation, which is chaired by Crown Prince and Prime Minister Mohammed bin Salman, according to a statement.
About the Riyadh megaproject: Inspired by Salmani architectural style, Sports Boulevard — one of the capital’s megaprojects — is a large-scale linear park that aims to promote the capital to be among the world’s most liveable cities. It spans over 135 km on Prince Mohammed bin Salman bin Abdulaziz Road to connect the capital’s east to the west through dedicated green pathways for athletes, cyclists, pedestrians and others.
#3- Saudia Group offers exclusive benefits to global HQs setting up shop here: National carrier Saudia Group and the Investment Ministry signed an MoU to offer exclusive benefits to drive global HQ relocations to the Kingdom, according to a press release. The benefits include access to Saudia flights, logistics support via Saudia Cargo, and premium aviation and concierge services through Saudia Private.
IN CONTEXT- Earlier this year, the government rolled out tax incentives for foreign companies that relocate their regional headquarters to the Kingdom — and state institutions are helping with the push. The incentives are part of a plan that is a cornerstone of Crown Prince and Prime Minister Mohammed bin Salman’s drive to build a diversified, globally significant non-oil economy, and has been in the works since February 2021. Companies that don’t declare Saudi their regional HQ run the risk of losing out on government contracts.
ALSO FROM SAUDIA- The flagship carrier is reportedly close to formalizing a framework agreement with Germany-based air taxi developer Lilium to purchase some 100 flying air taxis, Reuters reported, citing a source it says was familiar with the agreement. Lilium plans to announce the order by Saudia at its headquarters near Munich on Thursday, 18 July. The framework agreement was signed in October 2022.
#4- Singapore-based customer support solution provider MyAlice opened its regional HQ in Riyadh under a partnership with Dubai-based business expansion platform Astrolabs, according to a statement. MyAlice aims to help local brands increase conversion rates, improve customer satisfaction, and achieve deeper visibility through its services, according to the statement.
#5- The Industry and Mineral Resources Ministry has released a guide covering sanctions for mining investment law violations, according to a post on X. The sanctions cover violations that include lateness in declaration submissions or fee payments, exploiting resources excluded from the scope of the license, and preventing inspectors from entering a site during official working hours.
#6- Google is offering USD 100k in research grants for artificial intelligence studies at the King Abdullah University of Science and Technology (KAUST), to support KAUST researchers working on projects in multilingual and multimodal machine learning, as well as developing large language models, Gulf News reports. The research will be carried out at KAUST’s new Centre of Excellence on Generative AI, and each awardee will be paired with a Google researcher who will act as their sponsor.
#7- Six pharmacies were fined SAR 45k for failing to report medicine shortages to health authorities, according to a Saudi Food and Drug Authority (SFDA) statement. Inspectors from the authority handed the fines to the pharmacies over failing to ensure the availability of a stock of medicines for the public and not reporting shortages to the authority.
It could have been worse: Under Saudi law, pharma establishments that fail to notify the SFDA of any expected shortage six months in advance could face fines of up to SAR 5 mn, a temporary closure of the establishment for a maximum of 180 days, or have their operation license revoked.
DATA POINTS-
Remittances from expats living in the Kingdom rose 12% y-o-y to SAR 12.6 bn in May, according to Saudi Central Bank’s (SAMA) monthly bulletin (pdf). Meanwhile, remittances by Saudi nationals to other countries rose 6% y-o-y to SAR 6.2 bn, according to Argaam.
OIL WATCH-
The Kingdom’s crude production dipped 0.8% m-o-m in June to 8.9 mn bbl / d in June, marking its third consecutive drop, according to the Opec Monthly Oil Market Report (pdf). Total OPEC crude production was down 0.3% m-o-m in June to 40.8 mn bbl / d.
The bigger picture: Opec kept its forecast for a robust global oil demand for 2024 and 2025 unchanged at 2.2 mn bbl / d and 1.8 mn bbl / d, according to the report. The forecasts come on the back of growing demand on transportation fuels during the summer. “Expected strong mobility and air travel in the Northern Hemisphere during the summer driving/holiday season is anticipated to bolster demand for transportation fuels and drive growth,” the report read.
SPORTS-
#1- The Saudi Pro League has dozens of suitors: More than 100 companies — including five to six that are fully-foreign owned — are showing interest in investing in the top flight of Saudi football, said Sports Minister Abdulaziz Bin Turki in an interview with podcast platform Thmanyah. The third phase of a privatization program will see a private offering to investors, the minister said. “Investors will be selected to join in the private offering,” he said, with the ministry currently working on the process.
REMEMBER- More sports clubs up for grabs: Some 14 football clubs from various divisions are set to go private in the second phase of a privatization program aimed at lining up investment in the industry, the Sports Ministry said earlier this month. Both domestic and foreign investors will be invited to bid in the sale process, which the ministry is running with the National Center for Privatization and Public-Private Partnerships.
#2- Amanda Staveley is set to exit Newcastle United and sell her shareholding to current owners the Public Investment Fund and the Reuben Brothers, Bloomberg reported, citing people it says are familiar with the matter. Staveley, who served as director of the club, is expected to sell her stake, which was lowered to 6% from 10% as part of the PIF’s takeover in the Premier League club in October 2021. Staveley, who helped architect the takeover, looks to be ending her three-year stint on The Magpies after having led it to the UEFA Champions League and the final of the Carabao Cup at Wembley.
More than acquainted: Staveley owns Abu Dhabi-based private equity firm PCP Capital Partners, which has been a key adviser to investors in the region. The firm has been involved in talks related to a potential merger between the PGA Tour and PIF-backed LIV Golf.
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THE BIG STORY ABROAD-
A handful of stories are making a splash on business front pages after a week dominated by election news — though Biden’s campaign is still getting attention.
#1- Archegos founder Bill Hwang was found guilty on charges of fraud and market manipulation after his investment fund wiped bns off the market after its collapse. Hwang stands to face 20 years in prison. (FT | Bloomberg | Reuters | CNBC)
Need a refresher on the 2021 meltdown? Long story short: The family office managed to hold USD 50 bn in positions while owning only USD 10 bn in assets, prompting Bulge Bracket banks to sell off their assets, leading to the fund’s implosion. EnterpriseAM broke it down at the time here.
#2- Apple is planning to ship 90 mn iPhone 16s in 2H 2024, marking a 10% y-o-y growth in shipments after a bumpy year marked by lackluster sales. The firm is counting on Apple Intelligence AI features to boost demand for the phones, Bloomberg said.
ALSO- Android users can expect a bigger-and-better Bixby later this year, which Samsung plans to upgrade using a South Korean AI large language model.
Your regularly scheduled dose of elections and politics news:
#1- Two high-level democrats and longtime allies of Biden — former House speaker Nancy Pelosi and actor George Clooney — are the latest to voice their doubts about his reelection.
Clooney wrote a damning opinion piece in the New York Times to say Biden is too old to run. “It’s devastating to say it, but the Joe Biden I was with three weeks ago at the fund-raiser was not the Joe ‘big F-ing deal’ Biden of 2010. He wasn’t even the Joe Biden of 2020. He was the same man we all witnessed at the debate,” he wrote.
Pelosi, meanwhile, said Biden needs to make a quick decision on his reelection, without flat out saying she doesn’t back him.
#2- Iran’s newly elected president, Masoud Pezeshkian, is set to name the chief negotiator on the 2015 nuclear agreement, Abbas Araghchi, as foreign minister — sending another signal that the new government will hope to end Iran’s nuclear stalemate with the West.
CIRCLE YOUR CALENDAR-
The eight-week Esports World Cup runs until Sunday, 25 August Riyadh’s Boulevard City. It will see the world’s best esports clubs competing for a pool of USD 60 mn — the largest purse in esports.
The 16 teams who passed the group stage of the ESports World Cup’s Riyadh Masters will face off from today through to next Sunday, 14 July. Only four will make it to the playoffs upper bracket and two will make it to the lower bracket.
Aramco is set to release its 1H 2024 results on Tuesday, 6 August, according to its website. You can tune into the earnings audio webcast here. Aramco posted a 14.4% y-o-y net income decrease in 1Q 2024 to SAR102.3 bn (USD 27.3 bn), and its revenues dipped 3.7% y-o-y to SAR 402.0 bn (USD 107.2 bn).
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.
