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Good morning, everyone. We have a packed issue for you this morning, so we’re going to jump straight in:
Saudi companies, airports, and government agencies were among the untold dozens of institutions worldwide hit this weekend by what may be the world’s largest IT outage. The National Cybersecurity Authority, Flynas, and several domestic airports were among joined their global peers in facing technical and operational disruptions on Friday they said in separate statements posted on X (here, here and here).
Not impacted here at home: The Saudi Central Bank Sama, the Saudi Data and AI Authority, and the Human Resources and Social Development Ministry were spared from the global computer crash, according to separate posts on the social media platform (here, here and here).
Blue Screens Of Death for everyone: A routine software update pushed by global cybersecurity firm CrowdStrike to its Falcon Sensor software threw some 8.5 mn machines running Microsoft Windows into boot loops. Airlines and some other companies were particularly hard-hit: Microsoft’s Azure platform went down for some late on Thursday.
The irony: CrowdStrike bills itself as the fastest way for IT pros to detect threats to their infrastructure. It serves more than 29k major global companies and institutions, including more than half of the Fortune 1000.
Who was impacted: Many airports and airlines around the world grounded flights and did manual paperwork. Some broadcasters were off air, hospitals canceled procedures, and banking services were offline in many countries, Bloomberg reports. Emergency services were also hit in some countries.
The status now: Things are starting to unsnarl as technicians push out fixes, Reuters notes. Windows users who have been impacted have to reboot their machines and manually delete CrowdStrike’s botched update — a process that requires hands-on access to each device, according to Financial Times. It’s a process that could take days for businesses with large fleets of impacted devices and not enough IT staff, experts told FT.
Y2K redux: The tech failure is now being described as one of the biggest tech failures ever and is raising questions about the fragility of the world’s fundamental IT architecture. “This is basically what we were worried about with Y2K,” cybersecurity expert Troy Hunt wrote in an X post Friday, “except it’s actually happened this time.”
REGIONALLY- the failure impacted some of electronic systems in the UAE and had a limited impact on flight operations.
HAPPENING TODAY-
#1- The new Saudization rate for engineering comes into effect today, state news agency SPA reported. The regulation, which was announced in January, stipulates that private companies employing five or more engineers must have Saudi citizens account for at least 25% of their engineering headcount
Background: The Human Resources and Social Development Ministry first set in 2020 a 20% Saudization target for engineering professions.
#2- It’s a law week by Monsha’at: Small and medium enterprises regulator Monsha’at will hold a series of events in Riyadh, Madinah, Jeddah, and Al Khobar to raise awareness about regulations for small businesses, according to a statement. You can check out extra resources and workshops here.
WEATHER- It’s going to be hot. But you know that… Riyadh will see a daytime high of 46°C and nighttime low of 32°C today. It’s almost as hot in Makkah, where 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 42°C and an overnight low of 31°C.
WATCH THIS SPACE-
#1- Nomu-listed snacks-maker Fesh Fash has pulled the plug on its transition to Tadawul’s main market, it said in a disclosure to Tadawul after falling short of liquidity requirements. It said it will reconsider a transition again after meeting requirements for the move.
Dig deeper? While the company did not provide further details, the checklist for a transition from Nomu to Tadawul includes being on the parallel market for two years and having an average market cap of SAR 200 mn in the last six months ahead of an upgrade to the main market among others.
Need more background? You can find all the requirements for making the move to the main market from Nomu here.
#2- The National Transport Safety Center is investigating a fire during the takeoff of a Cairo-bound Nile Air flight from the King Fahd International Airport in Dammam, it said in a statement on X. All 186 passengers and eight crew members on board the Airbus A320 were safely evacuated. The fire reportedly originated in the aircraft’s wheel system.
#3- The Human Resources and Social Development Ministry is reportedly investigating allegations that workers may have been mistreated by staff of e-commerce player Noon. The New York Times’ The Athletic has the story.
AND- The Financial Times has a long take on the Kingdom’s courting of foreign filmmakers.
DATA POINTS-
#1- Real estate brokerage law is already reaping fruit: The number of real estate transactions grew by 17% to 3.5 mn at a value of SAR 605 bn since the implementation of the real estate brokerage law in January of last year, Argaam reported, citing statements by Real Estate General Authority CEO Abdullah Al Hammad. Residential transactions accounted for nearly half of total real estate sales during the period, up 18% to 2.9 million at a total value of SAR 305 billion.
REFRESHER- The broker regulations cover licensing and training, advertising rules, brokerage contracts, and the recording of transactions. The regulations were released in July 2022 and came into effect in January 2023.
#2- Saudi chemical exports dropped 14% y-o-y to SAR 5.8 bn in April 2024, Argaam reported. The exports were also down 15% from March 2023. China was the top importer of Saudi chemical products in April, with imports totaling SAR 840 mn to account for 14.6% of total chemical exports. India followed with imports worth SAR 712.1 mn, while UAE came in third at SAR 495 mn. The Kingdom’s imports of chemicals were up 10% y-o-y in April to SAR 6 bn.
OIL WATCH-
Opec+ is likely to keep its oil output policy unchanged on Thursday, 1 August when its joint ministerial monitoring committee meets online, Reuters reported, citing three unnamed sources. One of the sources said the meeting would be a “pulse check” for the market after the oil cartel agreed to an extension of cuts at its last meeting in June.
In context- Opec+ kept in place last month current production cuts of 3.66 mn barrels per day (bbl / d) until the end of this September, before beginning to phase out the cuts of 2.2 mn bbl / d over the course of a year from October 2024 to September 2025.
SPORTS-
Pierre-Emerick Aubameyang has joined newly promoted side Al Qadsiah, with the Aramco-owned club tying down the former Arsenal, Dortmund, and Barcelona player to a contract that runs until 2026, according to a statement. Aubameyang is joining Al Qadsiah from Marseille after just one season with the French club. No details were provided on the transfer value or the player’s wage, but media reports have suggested that the Gabonese international signed with Al Qadsiah for a fee of EUR 9-10 mn with a salary of EUR 20 mn per season.
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THE BIG STORY ABROAD-
The big story this morning is unquestionably the global IT outage that’s been compared to the Y2K bug that worried IT pros a generation ago. We have the details above.
MEANWHILE- Calls for Joe Biden to bow out of the US presidential race continue to gather steam as the octogenarian candidate remains publicly defiant in the face of media and party skepticism. Leaks in and out of Washington — including reports that former president Barack Obama is now calling into question Biden’s ability to win in November — reflect the Democratic Party’s increasing concern with Biden’s candidacy.
What happens next? It’s anyone’s guess, but the New York Times suggests that:
- Biden’s advisors wouldn’t want to give Benjamin Netanyahu the satisfaction of Biden dropping out before Netanyahu addresses the US Congress on Wednesday;
- Some are looking at possible dates and venues for Biden to announce he’s not seeking a second term;
- Party grandees including former House speaker Nancy Pelosi favor an open primary where more than one potential candidate can put themselves forward as potential candidates.
IN THE REGION- Israeli jets struck Houthi targets in Yemen and the International Court of Justice has ruled that Israel’s occupation of Palestinian territory is unlawful and that its actions and policies are “tantamount to the crime of apartheid,” the court said in its latest non-binding opinion (pdf)
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.
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 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.
