Good morning, wonderful people, and welcome to another busy Monday as we resume our four-day publication week. We’re still in zero issues and won’t move to a five-day-a-week publication schedule until a little closer to our January launch slot.

We have tons of news for you this morning, so we’re going to jump right in today without further preamble.

HAPPENING NOW- TikTok is still on the naughty list. Google Trends shows a 25% drop in use in KSA of the Chinese social network in the face of a popular boycott triggered by allegations that it was censoring or downplaying Saudi accounts from cheering for the social and economic changes sweeping the Kingdom. Arab News has more.

PSA #1- Zatca really, really wants you to pay your taxes. The Zakat, Tax, and Customs Authority is warning folks with unpaid taxes that they have until year’s end to pay up or face fines and the possibility of jail time.

PSA #2- Warning to late-filers: Privately held companies could face fines ranging from SAR 8k-25k for failing to file their financial statements on time, Okaz, citing an official at the Trade Ministry.

PSA #3- Cloudy skies over Riyadh this morning will clear by afternoon, setting up a sunny day with a high of 24°C. Look for a mix of sun and clouds in Dammam (high of 26°C), while in Jeddah it’s going to be a warm 33°C at this afternoon’s peak, according to our favorite weather app.

** You’re reading Zero Issue #007 of EnterpriseAM KSA.

** Think of a zero issue as a “beta.” This issue has not been published or distributed to a wide audience. The sponsor logos above are not correct because we’re still developing the new Saudi template.

** Did you receive this as a forward? Email editorial@enterprisemea.com and let us know if you’d like to be added to our list of beta readers ahead of our launch.

** Have a comment, criticism, or story tip? Hit up patrick@enterprisemea.com.

WATCH THIS SPACE

#1- Industry Ministry mulls a rare earths trading platform: The Kingdom is looking into the feasibility of a new commodity trading platform focused on raw materials that are key to battery technology, smartphones, computers, and our green future, including lithium and rare earth minerals, Vice Minister of Industry and Mineral Resources Khalid bin Saleh Al Mudaifer told Reuters in an interview last week.

What he said: “To be a minerals hub, you have to have it all and we are studying a future minerals commodity exchange for graphite, rare earths, lithium, cobalt, and even nickel, as there is no efficient commodity exchange nor price-finding mechanism for some,” he said.

A final decision is at least six months out, Al Mudaifer said, noting that the platform, under discussion for three months now, may still turn out not to be feasible: “The quantities are small and the specifications differ. It’s not as easy as aluminum or crude oil,” he said.

Uh, Enterprise, what’s a rare earth? Rare earth elements are a family of 17 metallic elements that are used in high-tech consumer products (smartphones, laptops), electric and hybrid vehicles, lasers, guidance systems, and more.

Where do they come from? The market is largely split right now between producers in China (38% of output), the US (33%) and Australia (12%). In our corner of the world, Egypt is making a play as many countries look to curb Chinese and US dominance in the market, which is hotly political: The US has invoked a Cold War statute to boost its supply.

#2- Chinese, Korean textile companies face anti-dumping probe: The General Authority for Foreign Trade has launched an anti-dumping probe that will look into claims raised by Filing and Packing Materials Manufacturing Co, (FIPCO) affiliate FPC alleging that competitors have been dumping PVC-coated textiles and fabrics on the Saudi market. The probe could take as long as 12 months.

Sound smart- Dumping allegations are typically raised when a commodity is sold in export markets at below-market prices thanks to either subsidies and / or a supply glut in the market of origin.

Background- It’s the second fair competition investigation GAFT has launched in as many weeks after opening in late November an investigation of whether China and Russia are dumping SNF, a key cement and textiles additive, on Saudi shores.

COP WATCH-

It’s day five of COP28 in Dubai. It’s finance day and another track is set to look at gender and climate. “With world leaders having left the conference in Dubai, expect the finance talk to be a little more detailed and the announcements a little less bold, with nitty-gritty discussions meant to improve financial plumbing but not necessarily grab headlines or photo ops,” Reuters writes.

Also happening in Dubai today: The Saudi Green Initiative Forumat COP28, bringing together corporate leaders, policy types, and government officials.

Big news for the oil and gas industry:

Saudi Arabia is headlining the decarbonization of the hydrocarbon industry at COP28: The Kingdom and the COP28 Presidency jointly launched a landmark Oil and Gas Decarbonization Charter (OGCD) in a bid to cut operational emissions from the sector by 2050, a statement by COP28 read on Saturday. Saudi Aramco is one of the headline backers of the agreement.

Why this matters: Some 50 companies, representing over 40% of global oil production, have signed the charter. State-owned producers accounted for 60% companies that have signed on.

What they’re promising to do: Producers are committing to:

  • net-zero operations by 2050;
  • an end to routine flaring by 2030;
  • and near-zero upstream methane emissions.

ALSO- Signatories have promised to ramp up investment in renewables, low-carbon fuels, and negative emissions technologies — and have pledged to be more transparent about greenhouse gas emissions while allowing independent verification.

The activist set isn’t having it, with the umbrella group 350.org telling Bloomberg that decarbonizing oil and gas is a sideshow compared to a legally binding package to phase-out fossil fules.

ALSO AT COP28- Preservation in AlUla: The Royal Commission for AlUla (RCU) and leading conservation organization Space for Giants have signed an agreement for the preservation of biodiversity on the sidelines of COP28, according to a statement.

Want to go deeper on everything happening at COP28? Enterprise Climate has got yourback.

OIL WATCH-

Saudi and Russia will continue with oil production cuts for early 2024, but last Thursday’s meeting of OPEC+ countries failed to reach consensus on a larger group cut as African producers led by Angola dug their heels in, saying, “We will produce above the quota determined by OPEC.” Reuters and Bloomberg have the story.

Lula wants to shake up the group. The president of Brazil — a recent invitee to the group — said in Dubai late last week that “I think it’s important for us to take part in OPEC+ because we need to convince the countries that produce oil that they need to prepare for the end of fossil fuels.”

(NOT) HAPPENING THIS WEEK-

Germany’s Economy Minister is skipping a trip to Riyadh after being told by his chancellor to stay home and work on filling a hole in the country’s 2024 budget. Robert Habeck had been scheduled to touch down tonight in Dubai to attend COP28 before heading on to KSA, Oman, and Israel.

Still due in town: PGA Tour Commissioner Jay Monahan, who said last week that he would be in town to meet with Public Investment Fund Governor Yasir Al-Rumayyan about the PGA / Liv Golf / European Tour lashup. A deadline for the three to close a transaction looms on 31 December.

HAPPENING TOMORROW-

Riyadh Cement is leveling up to the Tadawul tomorrow, when the company moves from Nomu to make its trading debut on the main market.

That makes two upgrades from the baby bourse to the big show in as many weeks after homegrown burger chain Burgerizzr made the leap last month.

RANDOMLY NOTED-

DEBT WATCH- It’s official: The Saudi Fund for Development (SFD) has agreed for the secondtime to roll over its USD 3 bn deposit in Pakistan’s Central Bank (SBP) for another year, according to anSBPpress release (pdf). We originally picked up the news from the Pakistani press on Thursday.

DATA POINT- KSA topped the list of Arab Gulf countries exporting to China in October, Mubasher reported last week, citing Chinese government figures. Our exports to the world’s second-largest economy were down 20% y-o-y to USD 5.5 bn from USD 7 bn in the same month last year.

A downward trend: Exports by Arab Gulf countries including KSA, the UAE, Kuwait, Iraq, Oman, Qatar and Bahrain, to China fell 14.2% y-o-y in October to USD 18.2 bn.

MORE INT’L EVENTS IN KSA-

#1- Riyadh will play host to the UNIDO General Conference in 2025. The gathering is set to take place on 25 November 2025, SPA reports.

KSA has big ambitions on the manufacturing front: Industry and Mineral Resources Minister Bandar Al Khorayef said the nod from UNIDO is “international recognition of the Kingdom’s position as an engine of economic growth and industrialization in the region and an affirmation of its commitment to promoting industrial development around the world.”

#2- Saudi Arabia will host the first two editions of the Asian Football Confederation (AFC) Elite finals after topping Iraq’s rival bid, the AFC said in a statement. The tournament replaces the existing Asian Champions League and will begin in September 2024. Asia’s top 24 clubs will be divided into two leagues of 12 across East and West. We’re on track to host the following three seasons if the first season finals go well, AFC said.

#3- Will we get the rights to host the America’s Cup, too? Jeddah seems to be in the running to host the 2028 edition of the America’s Cup after pulling off what sport officials say was a “hugely successful” regatta in Jeddah over the weekend. Grant Dalton, chief executive of next year’s Barcelona edition of the cup, said that while it was “too soon” for KSA to host the 2024 event, “We may well be back. It’s up to [Saudi officials] if they want to bid of course.”

#4- It was a great weekend for Saudi tennis as the ATP Next Gen Finals came crashing to a close as Serbia’s Hamad Medjedovic closed out the final in Jeddah, taking home the Neom-sponsored trophy with a 3-4(6), 4-1, 4-2, 3-4(9), 4-1 victory over Frenchman Arthur Fils. The ATP gave plenty of love to tennis in the Kingdom with slice-of-life coverage here and here and a spotlight on Saudi No. 1 Ammar Alhogbani, who made a return to professional tennis after a stint as national team development officer for the Saudi Tennis Federation.

CIRCLE YOUR CALENDAR-

The 2024 Saudi Games continue today:

  • Today’s finals: Karate, muay Thai, para table tennis, fencing, and fustat
  • Also today: Plenty of basketball action plus chess.

The games wrap on 10 December.

The Red Sea Film Festival continues through Saturday, with Hollywood and European A-listers set to attend. Among them: Johnny Depp, Will Smith, Sharon Stone, and Alessandra Ambrosio.

Metallica is coming to Riyadh on Thursday, 14 December pas part of the eclectic musicfestival Soundstorm. Soundstorm runs 14-16 December with a lineup that also includes Pharrell Williams, Chris Brown and Her, DJs Tiesto and David Guetta, Black Eyed Peas, and others.

Cycling fans have just 11 sleeps left until the Arab Road Cycling Championship comes to Riyadh, with the event running 15-23 December.

Tickets are on sale for the 2024 Saudi Arabian Grand Prix with less than 100 days to go until the racetrack roars to life in Jeddah from 7-9 March. Grandstand, premium hospitality, and general admission tickets are now available.

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