Good morning, wonderful people. We have a packed issue for you this morning, with news from massive projects in energy and real estate, word that a review of gigaprojects may be ongoing, and news that Donald Trump was lightly wounded in what appears to have been an assassination attempt.

Let’s jump right in:

WATCH THIS SPACE-

#1- China eyes more business with Saudi: PIF Governor Yasir Al Rumayyan sat down with Chinese Commerce Minister Wang Wentao on Thursday to discuss ramping up trade and investment between the two nations, Reuters reported, citing a statement from the Chinese ministry. Beijing has singled-out priority areas including infrastructure and energy as well as the digital and green economies.

Beijing Mayor Yin Yong called on the PIF to increase its investment in the Chinese capital during a meeting with the PIF boss the day before.

What one pundit said: “The Gulf region is very well positioned to capture this growing interest from China,” Edmond Christou, senior financials analyst at Bloomberg Intelligence said.

IN CONTEXT- Chinae is looking to boost its ties to the Middle East, Europe, and Africa at the same time as Saudi officials are looking at how to deepen ties with both Beijing and Washington. Oil giant Aramco is investing Chinese industries including petrochemicals and artificial intelligence, the Tadawul has run a series of events and roadshows in China, and Neom has been stumping for business and investment there, and more flights are connecting Riyadh to major Chinese centers.

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 and pulled the trigger on a an agreement with Chinese solar PV manufacturer LONGi Green Energy Technology back in January 2023.

#2- Are GCC trade talks with the UK on track after change in gov’t? The Gulf Cooperation Council (GCC) is aiming to finalize a trade agreement with the United Kingdom before the end of this year, GCC Secretary General Jassim Al Budaiwi said after talks with UK Trade Secretary Jonathan Renolds in London last week, state news agency SPA reports. It was the first meeting on a trade agreement since the Labour Party’s landslide victory in the country’s general election on 4 July.

IN CONTEXT- Six rounds of talks have taken place so far, the last in February 2024. Officials are hoping London’s interest in a trade agreement, clear under Rishi Sunak’s Tory government, will survive now that Keir Starmer is in charge.

#3- New regulations will limit how names Makkah, Madina and others are used: The Saudi Authority for Intellectual Property has rolled out new guidelines on the registration of trademarks that include the names of Makkah, Madinah, the Grand Mosque, and the Prophet’s Mosque, Okaz reported. The regulations apply to filings in both Arabic and English. The regulations focus in particular on the use of the names in real estate developments and service projects.

DATA POINTS-

#1- The number of registered businesses across the Kingdom grew 85.3% y-o-y in 1H 2024 to 225.5k, Aleqtisadiah reported, citing data from the Commerce Ministry.

The e-commerce sector got the most traction, with some new 40.7k businesses licensed — that’s about 18% of all businesses registered in the first half of this year. The short-term accommodation sector came in second with 22.5k new registrations in 1H, followed by the arts, entertainment, and recreation sector with 20.5k businesses.

Zooming out: There were 1.5 mn registered businesses in the Kingdom at the end of June.

#2- Finance companies in Saudi saw their collective net income more than double y-o-y to SAR 761 mn in 1Q 2024, according to Saudi Central Bank (SAMA) figures (pdf). Net income in the sector grew 43.3% on a quarterly basis from SAR 531 in the preceding quarter. Also worth noting:

  • Total assets were up 9.6% y-o-y during the period at SAR 66.8 bn
  • Total finance extended by industry players rose 12.3% y-o-y to SAR 88.6 bn, led by personal finance, residential real estate, and vehicle finance.

#3- Passenger traffic at the nation’s airports rose 17% y-o-y to 62 mn during 1H 2024, while total flights climbed 12% y-o-y to 446k, the General Authority for Civil Aviation said in a post on X. Air cargo rose 41% y-o-y to 606k tons in the same period.

By the numbers:

  • King Abdulaziz International (Jeddah:) 24 mn passengers (+16% y-o-y);
  • King Khalid International (Riyadh): 17.7 mn passengers (+21% y-o-y)
  • King Fahd International (Dammam): 6 mn passengers (+15% y-oy);
  • Prince Mohammed bin Abdulaziz International (Madinah): 5.6 mn (+20%);
  • All other airports: 8.8 mn travelers (+16%).

#4- Saudi Ports Authority (Mawani) saw 9.2% y-o-y growth in cargo throughput in June, hitting 27.6 mn tons from 25.3 mn tons in the same month last year, according to a statement. Exported containers went up 7.8% to 228k TEU, while imports rose 9.9% to 245.6k TEU. Meanwhile, transshipment container volumes dropped 54.9% y-o-y to 121.3k TEUs.

OIL WATCH-

Fuel oil imports spiked in June to their highest level since late 2020 as demand for air conditioning rises in the summer, Bloomberg reported, citing data from market researchers Kpler and Vortexa. Imports of the fuel have grown fourfold since March to 350k barrels a day and look on track to break the 300k barrier again in July.

Fuel oil? The comparatively dirty fuel is effectively what’s left after the distillation of gasoline and diesel. It can be burned to produce power.

SPORTS-

#1- Neom and the Asian Football Confederation (AFC) have extended their multi-year partnership until 2029, according to separate statements (here and here). Neom will remain the official global partner of the AFC’s national and club competitions and will also support the inaugural AFC Women’s Champions League as its presenting partner for 2024-2025. Neom will also be the global presenting partner of the eight final matches of the fresh AFC Champions League Elite Finals, which will be played in Riyadh in 2025. Neom first signed on as an AFC sponsor in 2021.

#2- Hattan Alsaif continued her unbeaten run in the Professional Fighters League (PFL) MENA 2 after beating Egypt’s Iman Baraka in Riyadh, according to a post on X. Alsaif is the first-ever Saudi woman to be signed to a major MMA organization.

AND- Saudi national Mostafa Nada knocked out Algerian Abdel Rahmane Driai in the first round of a match that lasted just a hair over two an a half minutes, according to a post on X. This improves Nada’s PFL record to 2-0 and his overall record to 9-3.

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PSAs-

#1- Three individuals were fined a combined SAR 180k for violating the Capital Market Law after the Appeal Committee for Resolution of Securities Disputes issued a final verdict in their cases, the Capital Market Authority said in a statement. The breaches include “dealing as an agent” and providing investment advice without a license, the authority said.

#2- The General Authority for Competition has reached settlements with two companies accused of collusion on government tenders worth a combined SAR 63.8 mn, according to posts on X (here and here). Under the agreements, Mohammad Ibrahim Al Hussein General Contracting will pay SAR 56.5 mn, while Abdulaziz Al Hassan Al Muqbil Trading is set to pay SAR 7.4 mn.

#3-Researchers in healthcare, food, cosmetics or tobacco have until Saturday, July 27 to submit their abstracts for this year’s SFDA Research Day, the Saudi Food and Drug Authority (SFDA) said in a post on X. Participants must be affiliated with a government, academic, or medical body and can find more information here.

#4- Fresh graduates have a bit more time to apply for the PIF Graduate Development Program, according to a post on X. The deadline is now 31 July. The program provides mentorship and on-the-job training to improve skills and increase employability. Applicants must be Saudi citizens holding a bachelor or master degree in business administration, finance and accounting, engineering, law, actuarial science, AI, cybersecurity and others with a GPA of at least 3.75 out of 5 or 2.74 out of 4 or equivalent.

Also from the PIF: Registration for Accelerated Manufacturing Program is now open. The program offers training in business, product development, and production management, as well as personalized mentorship and coaching sessions for emerging manufacturers.

#5- Citizens looking to renew their passports should ensure that their travel document has a validity of one year or less, Okaz reported, citing the Interior Ministry’s e-platform Absher.

THE BIG STORY ABROAD-

Donald Trump was wounded in what is being called an assassination attempt after a shooting at a rally during the early hours of today (local time). The Republican candidate was reported safe after being hit by a bullet in his right ear, while the suspected gunman and another attendee were reported dead and two others are in critical condition.

In typical Trump fashion: He was seen pumping his fist as he was being rushed offstage and into his car by the Secret Service and he is said to be in “great spirits” after the accident.

The story is on every front page this morning and pictures of the incident have already been made into memes on X. (Associated Press | CNN | FT | Reuters | Bloomberg | CNBC)

CLOSER TO HOME- At least 90 Palestinians were killed and 300 others were injured in the latest wave of Israeli attacks yesterday, said to have been targeting Hamas official Mohammed Deif. The Foreign Ministry denounced the strike as part of a series of “genocidal massacres against the Palestinian people by the Israeli war machine.”

AND ON THE BUSINESS FRONT- Rate cut incoming? The US Federal Reserve has sent its “strongest signal yet” that it will move forward with highly-anticipated rate cuts following easing inflation. Traders now see the Fed first cutting rates in September.

CIRCLE YOUR CALENDAR-

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.

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.

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.

The Real Estate Brokerage Forum will open on Wednesday, 17 July at the Riyadh International Convention and Exhibition Center.

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 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.

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