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Upcoming Saudi Holidays, Events, Webinars, and Conferences
- Global Real Estate Summit 42nd edition (Riyadh): December, 2023
- World Defense Show: February 4-8, 2024
- For Riyadh-based business events, see:
Public Sector and Significant Updates
- Tech Investment Fund: Crown Prince Mohammed bin Salman has announced the launch of a $200 million fund for early investment in local and global tech companies.
- World Cup Bid: Saudi Arabia announced it will bid to host the 2034 World Cup just minutes after FIFA invited countries from the Asia and Oceania regions to submit bids.
Corporate / Labor:
- Riyadh HQ Incentives: Saudi Arabia is weighing additional incentives for companies to relocate their regional headquarters to Riyadh, such as granting premium residencies for executives.
- Saudization in the Private Sector: The number of Saudi nationals in the private sector rose 10.5% in the Q2 2023 to 2.2 million. The Kingdom’s unemployment rate plunged to the lowest in a year to 8.3%, down from 9.7% during the same period last year.
Analysis:
- Saudi First: For an analysis of the state of Saudi Arabia from the Harvard Kennedy School’s Belfer Center, see here.
- Foreign Policy Recalibrated: For an analysis of Saudi Arabia’s shifting foreign policy by the International Crisis Group, see here.
Legal
- Reference:
- Al Tamimi Legal Magazine: For Al Tamimi Law’s latest magazine issue (focus is on education), see here.
- Saudi Updates:
- Data Protection Law Implementing Regulations: The Saudi Data & Artificial Intelligence Authority (SDAIA) has published the Implementing Regulations to the Kingdom’s Personal Data Protection Law (PDPL).
- Zakat and Tax Amendments: Saudi Arabia has issued amendments to its Zakat and income tax by-laws.
- Mandatory Vehicle Insurance: The Saudi General Traffic Department has begun enforcing its requirement that all motor vehicles have insurance. Violations are subject to fines of SAR100-150.
- Motor Insurance Rules Feedback: The Saudi Central Bank (SAMA) has invited feedback for the comprehensive motor insurance rules via the Istitlaa platform.
- Industry:
- No significant recent developments.
Visas, Travel, and Airline Industry
- Reference:
- Travel Guidance: For up-to-date travel information, visit the U.S. State Department’s Saudi-specific COVID-19, alerts and messages, travel info, travel advisory, and security report pages. For the UK’s travel advice, see here. For Ministry of Health’s guidance, see here; COVID statistics are published on the ministry’s Dashboard. For Saudia’s travel guidelines, see here.
- Industry Updates:
- Riyadh Air Alliance Plans: The CEO of Riyadh Air says the company has no immediate plans to join any airline alliance.
- Etihad Expansion: Etihad Airways has announced a massive expansion with increased frequency to key destinations and new routes, including to Dusseldorf, Copenhagen, and Osaka.
- Saudia Expansion Plans: Saudia is considering a debt sale to help fund expansion plans. Saudia recently rebranded, with an updated, tech-focused logo.
Business / Economy
- General Economic:
- Dashboards (for reference): GASTAT, SAMA, AGSIW Economic Barometer, S&P, Moody’s, IMF, World Bank, EIU, Argaam. Macroeconomic summaries at the U.S.-Saudi Business Council.
- Forecast: According to a preliminary budget statement, Saudi Arabia has lowered its GDP growth forecast from 3.1% to 0.03% and expects to post a budget deficit of 2% of GDP this year rather than an earlier projected surplus of 0.4%. The Kingdom has crafted three revenue scenarios. Saudi Arabia is expected to tap the international debt markets to finance a projected budget deficit in 2023-2024, according to the Ministry of Finance.
- IMF Analysis: For an analysis by the IMF on the growth and diversification of the Saudi economy, see here. The IMF also released a report on the findings of its 2023 Article IV Consultation in which it stated that it expects Saudi Arabia’s domestic demand to keep non-oil growth at 5% in 2023.
- General Business:
- No significant recent developments.
- Public Investment Fund (PIF):
- Cruise Company Investments: PIF-owned Cruise Saudi has announced investments into various tech companies for its AROYA Cruises.
- GASCO Stake Sale: The PIF has completed the sale of its 10.92% stake in the National Gas and Industrialization Company (GASCO) through a private sale transaction for SAR491.19 Million to Jadwa Investment Company.
- Steel Investment: The PIF has purchased a 100% stake in the Saudi Iron & Steel Company (Hadeed) from the Saudi Basic Industries Corporation (SABIC).
- Finance, Insurance, VC, and Investment:
- IMPACT46 Startup Fund: Saudi Venture Capital (SVC) announced its investment of $30 million in startup-oriented Fund III managed by IMPACT46, a prominent asset management and advisory firm.
- Real Estate, Construction, Infrastructure, and Megaprojects:
- Projected Spending: Saudi Arabia is expected to over $175 billion annually on industrial and megaprojects between 2025 and 2028 as the Kingdom’s construction boom kicks into full gear, according to McKinsey & Co.
- Saudi-Kuwait Railway Approved: Saudi Arabia has granted authorisation for the construction of a significant railway connection linking Riyadh with Kuwait.
- Jeddah Tourism Development: The PIF has announced the establishment of Al Balad Development Company, which aims to develop Jeddah’s historic district.
- Madinah Development: Rua Al Madinah Holding, a unit of the PIF, has awarded contracts worth over $1.41 billion for the Rua Al Madinah project.
- Industry, Utilities, Transportation, Logistics, and Non-Oil Energy:
- Lucid Factory: Luxury electric vehicle maker Lucid Group has opened its first international manufacturing plant in Saudi Arabia, which is expected to produce 155,000 electric vehicles a year.
- Tesla Talks: Tesla is in early talks to build a factory in the Kingdom.
- Nuclear Ambitions: Saudi Arabia announced its commitment to building a nuclear energy program, as well as a pledge to allow greater oversight for atomic energy inspectors.
- Tourism, Hospitality, Culture, Sports, and Entertainment:
- Tourism Ambitions: Saudi Arabia has raised its target of tourists per year from 50 million to 70 million.
- Marriott Trojena Properties: Marriott has announced it has signed an agreement with NEOM to open two luxury properties in Trojena.
- Netflix Saudi Films: Netflix has released a new collection of Saudi short films.
- Retail, Luxury, and E-Commerce:
- No significant recent developments.
- Religion:
- No significant recent developments.
- Science and Education:
- Hospitality School: Saudi Arabia is opening a $1 billion school of tourism and hospitality in Riyadh.
- Healthcare:
- No significant recent developments.
- Technology and Telecom:
- Arabsat Goes Global: Arab Satellite Communications Organization (Arabsat) has launched a new platform for global content delivery.
- Defense:
- Combat Vehicle Maintenance Deal: The U.S. State Department has approved a possible sale to replenish Saudi Arabia’s stocks of spare and repair parts for the country’s fleet of combat vehicles, at an estimated price tag of $500 million.
- Food and Agriculture:
- No significant recent developments.
- Natural Resources, Mining, and Environment:
- Rewilding Arabia: For an Arab News feature on the Kingdom’s plans to enhance its biodiversity, see here.
Oil, Hydrocarbons, and Aramco: Oil prices most recently stood on October 6, 2023 at $87.32 pbb for Saudi oil (Arab Light) and $82.79 pbb for West Texas Intermediate (WTI).
- Aramco LNG Acquisition: Aramco has acquired a minority stake in EIG Partners’ LNG company MidOcean Energy in a deal valued at $500 million.
- Shenghong Investment: Aramco has begun preliminary discussions with Jiangsu Eastern Shenghong to acquire a 10% stake in the China-based energy company’s petrochemical subsidiary.
- Aramco Journal of Technology: Aramco has released its Fall 2023 Journal of Technology.
- Oil Strategy: Saudi Arabia and Russia have seen robust oil revenue as a result of production cuts, with prices climbing towards $100 a barrel, a move helped by diminished investment from Western oil competitors. On October 4, Saudi Arabia and Russia announced they were continuing voluntary oil cuts to year end. Fears of weakening demand have prompted the Kingdom to adjust its pricing strategy. For an analysis by Financial Times on divergences in oil pricing strategy between the U.S. and Saudi Arabia, see here.
Geopolitical
- U.S.:
- U.S.-Saudi Relations: For a Saudi perspective on the state and future of U.S.-Saudi relations, see here.
- Mutual Defense Treaty: The U.S. is reportedly discussing terms of a mutual defense treaty with Saudi Arabia that would resemble military pacts with Japan and South Korea.
- Africa EV Metals Investments: The U.S. and Saudi Arabia are in talks to secure metals in Africa needed for both countries’ energy transitions, as the White House tries to curb China’s dominance in the electric-vehicle supply chain and the Kingdom looks to buy $15 billion in global mining stakes.
- WTTC Partnership Extension: Saudi Arabia and the World Travel & Tourism Council (WTTC) have signed an MoU extending their partnership.
- Netanyahu Normalization Strategy: For an analysis by Financial Times of Israeli Prime Minister Netanyahu’s strategy to normalize relations with Saudi Arabia, see here.
- Qatar Ministerial Visit: A delegation headed by Saudi Arabia’s foreign minister met with the Qatari Prime Minister during an official visit to Doha.
- Pakistan Technology MoU: Saudi Arabia has signed an MoU with Pakistan to expand cooperation in IT.
Gulf
- GCC:
- Potential Visa-Free GCC Travel: The UAE is considering a new visa system that would allow GCC residents to travel freely within the bloc.
- Health Service Integration Proposal: Oman has proposed integrating certain health services in the GCC.
- UAE:
- Travel Information (reference): For current information from the U.S. Embassy in the UAE, see here and for travel information see here.
- Gambling Legalization Move: The UAE has introduced a new regulatory body to oversee commercial gaming in a move towards legalization.
- Abu Dhabi Economic Growth: Abu Dhabi’s GDP grew 3.5% in Q2 2023 compared to the same period last year while its non-oil economy grew 12.3%.
- Industrial Investment Plans: The Abu Dhabi Department of Economic Development (ADDED) announced it will provide 100 investment opportunities, with a combined market size of $33.5 billion by 2027, as part of its “Abu Dhabi Channel Partners” industrial investment program.
- Abu Dhabi Urban Railway Plan: Contractors have started work on the first phase of Abu Dhabi’s long-awaited light rail transit (LRT) system.
- ADNOC EPC Contracts: Abu Dhabi National Oil Company (Adnoc) has awarded $16.94bn-worth of engineering, procurement and construction (EPC) contracts for its Hail and Ghasha offshore sour gas field development project.
- Qatar:
- Travel Information (reference): For current information from the U.S. Embassy in Qatar, see here and for travel information see here.
- North Field Expansion Project Commences: The Emir of Qatar has laid the foundation stone of the North Field LNG expansion project.
- Kuwait:
- Travel Information (reference): For current information from the U.S. Embassy in Kuwait, see here and for travel information see here.
- Fitch Rating: Fitch Ratings has affirmed Kuwait’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at “AA-” with a Stable Outlook.
- Terrorism Lawsuit: British Airways passengers and crew members taken hostage in Kuwait in 1990 are preparing to take legal action against the UK Government and the airline.
- Bahrain:
- Travel Information (reference): For current information from the U.S. Embassy in Bahrain, see here and for travel information see here.
- U.S. Security and Economic Pact: The U.S. and Bahrain have signed a security- and economy-focused pact dubbed the Comprehensive Security Integration and Prosperity Agreement.
- Oman:
- Travel Information (reference): For current information from the U.S. Embassy in Oman, see here and for travel information see here.
- Labour Law Changes: Oman has amended its Labour Law.
- S&P Rating: S&P raised its long-term foreign and local currency sovereign credit ratings on Oman to “BB+” from “BB”, stating favorable oil sector dynamics coupled with higher non-hydrocarbon sector output.
- Fitch Rating: Fitch Ratings has upgraded Oman’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ”BB+” from “BB” with a “stable” outlook.
- Saudi Royal Visit: Crown Prince Mohammed bin Salman visited Sultan Haitham bin Tarik in Muscat to enhance relations.
- TOW Missile Sale: The U.S. is exploring a plan to sell $70 million worth of TOW 2B anti-tank missiles to Oman.
Regional
- No significant recent developments.
Miscellaneous and Interesting
